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Consumer Behavior

Consumer Behavior

Question A

Nexba is a sugarless beverage that targets people looking to lead healthier lifestyles. It therefore uses consumer behavior to target the culture, motivation, and perception of different individuals to contribute to the development of the overall brand image. The product, Nexba, contains a variety of naturally sugar free drinks. The idea is to use the new emergent culture that has led people to living healthier lifestyles, use the motivation and attitude linked to the same, and create perceptions of a product that will make life better for consumers.

Motivation represents an inner drive, an attitude to attain a specific goal. It is an arousal that is objective-directed and goal oriented. In consumer behavior, the result is a desire to consume products and the entre experience. Nexba’s sugarless products are meant to motivate the target markets to change their purchasing behavior towards consumption of sugar free and healthier products. For example, individuals involved in sports are motivated to purchase the products because of the promise of a healthier body. Similarly, motivation can target status and esteem type of needs when the behavior of a consumer is influenced by the status quo and esteem needs.

Perception denotes a process through which people receive, select, and interpret stimuli to create coherent and meaningful interpretation of the world. Perception happens when stimuli come within the range of an individual’s sensory receptor nerves. There can be deliberate or random exposure that calls for immediate and/or long term decision making. Exposure leads to attention, then interpretation, storage of content (memory), and later influences purchase and consumption decisions. Attention is influenced by individual characteristics, stimulus characteristics, and situational characteristics. The promise of a sugarless and healthier beverage creates a perception of a superior product that is better than the market alternatives. The Gestalt principles of proximity, similarity, closure, continuation, constancy, and figure and ground then lead to cognitive and affective interpretation. Attention helps in creating retail strategies for marketers, in brand positioning, media strategizing, advertising, and interpretation of these elements. From a consumer’s perspective, perception helps to shape how a consumer perceives Nexba’s products through its image and how it is presented through marketing efforts.

Nexba also targets the culture of its variant target markets. Culture is defined as a unique pattern of the shared understandings or meanings in a social group. Culture is invented and includes knowledge, myths, customs, symbols, language, rituals, art, beliefs, myths, morals, and the law among other artifacts. Dimensions of culture include the fact that it is comprehensive, acquired, unconscious, adaptive, and creates boundaries for behavior. Cultural values create norms and sanctions. Norms are the ranges of what is considered to be appropriate behavior and sanctions are penalties for the violations of said norms. The end product is the consumption patterns. Cultural values consist of widely held values and belief systems that affirm what should be desirable in an individual. Terminal and instrumental values are important elements in shaping the perception of an individual in life. Terminal values include the primary end-states or goals of an individual (happiness, pleasure, equality, security, or wisdom) while instrumental values are the basic approaches to reaching terminal values (honesty, courage, politeness, and loving), define as the means. These values are used by consumers to create critical product attributes and shape the belief and attitude regarding a brand, leading to brand selection and product class selection. Therefore, culture is very influential in creating a brand image.

Question B

Culture plays a pivotal role in molding individuals to conform to certain societal standards and expectations. It helps in the creation of an environment that includes ways of thinking, methods of interacting with other groups, and shared belief systems. Culture leads to a way of perceiving life that is unique to a certain group of people based on their values and other cultural boundaries. It creates norms and limits people to thinking alongside these norms. For Nexba, a sugar free product, culture would influence how consumers perceive it and the image it creates in an individual’s mind. For example, in the American culture and context, issues relating to diabetes and obesity have led to cultural shifts in the way people perceive sugars. The perception in such cultures now leads people to value health and to create limits and norms that are driving people towards sugar-free products.

In marketing the product, perception has a number of strategy implications. First, the modern consumer makes decisions on the basis of what they perceive as opposed to basing decisions on objective reality. The selection of stimuli from the environment by consumers is based on the interaction of motives and expectations with the said stimuli. Therefore, the communication made by a product through branding and other activities such as advertising resonates differently with different markets, groups of people and individuals, all on the basis of perception. The way a consumer perceives a product, such as the sugar-free Nexba, is likely to influence their intention to buy, loyalty, and word of mouth marketing among other important marketing implications. For example, some consumers are likely to perceive sugar-free products, e.g. Nexba, as containing zero sugars and therefore very safe for consumption. Others are likely to see the marketing as fake, owing to the taste of sugar in the product or other factors influencing their decisions. Overall, the perception created through exposure and interaction with the product is likely to affect consumer behavior.

Motivation is very important for a brand as it helps in creating sustained relations between a product/brand and the consumer. It enables a consumer to decide the brand to buy, given the traits that are desirable and those that they want to embody. Motivation aids consumers in establishing a link to a brand as they can identify with both the product and what it communicates. For example, a consumer who is focused on leading a healthier lifestyle will be attracted to Nexba’s new range of products. Beyond the true value of the product, the consumer creates a liking for the brand, which helps to project his own goals and objectives through the product they consume. The marketing implications of motivation are that they help to match a consumer to the desirable product based on their goals and objectives.

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CategoriesUncategorized

Consumer Behavior

Imagine that you work for a well-known marketing research firm. Your supervisor has asked you to use the expectancy disconfirmation model to evaluate a consumer’s post-hoc satisfaction level for a recent purchase of running shoes.

Your Challenge:

1. Identify three determinant attributes for this consumer (e.g., comfort, style, durability).

2. Determine the consumer’s importance weights for each attribute, such that they total 100%. For example, comfort = 30%, style = 10%, and durability = 60%.

3. On a 1 to 7 scale, ask the consumer to rate how he expected the brand to perform on each of these attributes, prior to purchase (for example, comfort = 6, style = 4, and durability = 6).

4. Also on a 1 to 7 scale, ask the consumer to rate his actual perceptions of how the shoe has performed on each of these attributes.

5. Plug in the weights, expectations, and perceptions into the formula: S = Σw(p−e). Does the outcome of the function suggest that this consumer is satisfied, delighted, or dissatisfied? To see if the model is consistent with the consumer’s response, ask the consumer if he is satisfied.

B. Read Chapter 10 and then answer the following:

In the early 1980s, a format war took place between VHS and Betamax videotapes for video storage. VHS ultimately won. History always repeats itself. Between 2000 and 2008, another format war took place between Sony’s Blu-Ray and Toshiba’s HD DVD (high density optical disc for video storage). Blu-Ray ultimately won. But why? HD DVD had several advantages over Blu-Ray. HD DVD was the pioneering brand, or the first brand to enter the market, plus it was less expensive than Blu-Ray. Initially, almost as many movie titles appeared in HD DVD as did in Blu-Ray. Using the concepts in Chapter 10, how would you compare and evaluate these differences? In January 2008, an important event tipped the scale in favor of Blu-Ray when Warner Brothers Studios decided to support Blu-Ray exclusively. Because Sony Blu-Ray already had the exclusive support of Sony Pictures (including MGM/Columbia Tristar), Disney (including Touchstone and Miramax), Fox, and Lions Gate, the Warner decision gave Blu-Ray the support of 70% of the movie studios. Toshiba was unable to overcome this advantage. In addition, Blu-Ray discs hold more data than HD DVD discs (50 GB versus 30 GB). The Sony PlayStation 3 can also play PS3 games, Blu-Ray discs, and standard DVDs. Using the concepts in Chapter 10, how would you compare and evaluate these differences?

Your Challenge:

1. What strategies could HD DVD have used to beat Blu-Ray?

2. What strategies could Blu-Ray have used to beat HD DVD more quickly?

3. After Warner Brothers decided to support only Blu-Ray in January 2008, Toshiba reduced the price of HD DVD players to $150. Explain why this was too little, too late. In February 2008, Net Flix, BestBuy, and Walmart announced that they would phase out HD DVD. After these announcements, Toshiba announced that they would stop producing HD DVD players. Explain why Toshiba needed the support of Warner Brothers, Net Flix, BestBuy, and Walmart.

4. In what other product categories do you currently see a format war? What steps can competing companies take to try to avoid format wars?

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