...Marketing and Consumer Behavior Why can companies mark up their prices and stay in business? Research Question: In our world today a stigma exists between brand name products and the upper class and a common association between high prices and brand name items exists. Everyday marketers price products based off of researched consumer behavior, they price products at an excessive price compared to the cost to produce it, yet still sell their products and stay in business. Typically, the consumer is aware that brand names cost more money and consumer behavior has shown that the consumers are willing to pay high prices for these specific products and certain brands. Why is it that marketer’s mark up their products and that consumers are willing to purchase products and brands regardless of the price? Do marketers know the consumers will purchase their products regardless of price and take advantage by pricing them high? Is an underlying ethical issue present in the way companies are marketing their products? An interesting relationship occurs between consumers and brand name products and studies have shown consumers will spend any amount for a product they have justified they need or want. Furthermore, studies have shown that consumers purchase regular and brand name products based off of psychological driven needs. As a result of consumer’s physiological buying habits, marketers have based their pricing tactics off of it, resulting in excessively high mark ups. Although companies...
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...SAMPLE ANSWER 01 CAM CAM Diploma Marketing and Consumer Behaviour December 2010 Contents Task 1: Marketing Principles Task 2: Communication Task 3: Communication, Advertising and Media Task 4: Consumer Behaviour Task 5: Channel Behaviour Appendices: Background information to THE AGE Appendices to task 2 4 - 14 15 - 20 21 - 31 32 - 43 44 - 47 48 - 54 References 55 - 57 Task 1 Word count 1618 Marketing Planning Planning is an essential task to ensure THE AGE continues to be a market leader. Drummond et al (2005) suggest planning should be systematic and structured, and is required in order to adapt to the changing business environment. The corporate objectives are at the heart of the marketing planning process (Brassington et al, 2000). The marketing plan will contribute to the corporate plan by developing specific functional strategies and tactics to achieve the corporate objectives. Figure 1.1 demonstrates the process. THE AGEs corporate plan is ‘to build on profits from the previous year and continue to be Britain’s number one quality selling newspaper’. From this, the marketing plan could be ‘to increase the number of subscribers’. Marketing planning process diagram A common framework to use in the planning process is the SOSTAC model, see figure 1.2 Marketing planning process • • Situational Analysis – The first stage of the planning process is to look at where the THE AGE is now - Britain’s number one selling quality newspaper with...
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...Reflection essay on Consumer Behavior «We used to think that the enterprise was the hardest customer to satisfy, but we were wrong. It turns out, consumers are harder than the enterprise because the consumer will not give you a second chance.» (Eric Schmidt) Using the provided material and basic knowledge of this subject I got acquainted with the definition of consumer behavior. The main object of the system of marketing is good`s customer (or consumer) which can be an individual person or a whole organization. All final consumers combine to make up the consumer market. It is important to know the degree of involvement of certain groups of consumers in making decisions about the purchase of certain goods. In the system of marketing the key role is the understanding the mechanism of formation of purchasing decisions, which can have its own characteristics, depending on the socio-psychological characteristics of the buyer or the nature of the purchased goods. Thus, in accordance with one of the patterns of behavior for the buyer, this mechanism includes: awareness, interest, desire and effect. It is important to know how and when the customer begins to show interest in the product, under the influence of what factors consumer makes a decision. Enterprise (company) cannot succeed if it doesn`t take into consideration the needs of customers. Consumer behavior is defined as the activities directly related to yield, consumption and disposal of goods and services, including decision-making...
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...Aspects of consumer behavior to emphasize in marketing. Marketing concentrates on several aspects of consumer behavior in order to promote a product or service. A consumer’s motivation is one aspect that Coca-Cola should emphasize to increase product sales. Their motivation, such as a hunger or thirst, will be the deciding factor to drive the consumer to make a purchase. In past advertising campaigns Coca-Cola has aligned the product with thirst quenching or refreshment. This type of marketing will focus on the consumer’s immediate need to remedy their thirst. Not only does Coca-Cola need to emphasize the consumer’s motivation but they must take into consideration the customer’s perception. Perception would be the process by which the customer will select, organize, and interpret the information to act on the motivation (Kotler & Keller, 2012). People are stimulated from the advertisements that will address a current need or that they anticipate. The product advertisement must focus on a remedy of the current yearning that the consumer is experiencing. An advertisement that is focusing on quenching the thirst will address and motive the consumer to purchase the product to remedy their need. Coca-Cola has to not only address a customer’s current need but will need to consider the customer’s selective distortion and selective retention. Selective distortion is a person’s way of associating past experiences or information with a brand or product. Selective retention...
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...INFORMS MARKETING SCIENCE Vol. 00, No. 0, Xxxxx 0000, pp. 000–000 issn 0732-2399 | eissn 1526-548X | 00 | 0000 | 0001 doi 10.1287/xxxx.0000.0000 c 0000 INFORMS Predicting Individual Behavior with Social Networks Sharad Goel, Daniel G. Goldstein Yahoo Research, New York, New York, 10018 A basic objective of the social and economic sciences is to predict behavior. With the availability of social network data, it has become possible to relate the behavior of individuals to that of their acquaintances on a large scale. While the similarity of connected individuals is well established, it is unclear if and how social data can predict behavior, and whether such predictions are more accurate than those arising from current marketing practices. We employ a communications network of over 100 million people to forecast highly diverse behaviors from patronizing an offline department store to taking interest in an advertisement to joining a recreational league. Across all the domains, we find that social data are strongly informative in identifying individuals who are most likely to undertake actions, and that in identifying such individuals, social data generally improve the predictive accuracy of baseline models. Key words : Computational social science, product adoption, social networks Predicting individual behavior is a basic objective of the social sciences, from economics (Manski 2007) to psychology (Ajzen and Fishbein 1980), sociology (Burt 1987, Coleman...
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...Business Marketing Perspective & Organizational buyer behavior The Business marketing or Industrial marketing is the marketing of goods and services to commercial enterprises, governments, and other nonprofit institutions for use in the goods and services that they, in turn, produce for resale to other industrial customers. By contrast, consumer goods marketing are the marketing of goods and services to individuals and family units for personal consumption and to wholesalers and retailers in consumer goods distribution systems. What consumers buy, they use for themselves or for consumption by members of a family. Individual customers buy to support the profit-making or nonprofit functions in which the organization is engaged. To understand some of the major differences between business-to-business and consumer marketing, it is useful to think of the industrial marketing system as consisting of two key linkages. The first is the external interface between the marketing/sales function of the producer and the end user. The second is internal interface between the producer’s marketing/sales and production functions. While each of these linkages has considerable complexity, the two sets of linkages serve as convenient handles to explore the major differences between business-to-business and consumer marketing. Given the distinguishing characteristics of both the internal and the external linkages, the formulation and execution of the marketing mix poses different challenges...
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...1. Introduction 1.1. Origin Our esteem faculty Md. Farhan Faruqui assigned us a product which is “NAVY” cigarette and completes a study that covers all-important factors of consumer behavior relating to this product. After a brain storming session with in the group we have been studied the behavioral pattern of “NAVY” cigarette. It is due on July 31, 2007. 1.2. Objectives Followings were the objectives of the study: Broad objective: To develop profile of “NAVY” cigarette. Specific objectives: To attain the broad objective following specific objectives were pursued: □ To know briefly about the “NAVY” cigarette industry. □ To find out the group influence on “NAVY” cigarette. □ To identify the motivational factors that influences the “NAVY” cigarette. □ To find the situational influences that affects the “NAVY” cigarette. 1.3 Scope This study focused “NAVY” cigarette smoker of Dhaka City. It covered time span of 15 days starting from 16th July. It is a comprehensive study of the consumer's belief about the “NAVY” cigarette. The report focuses on the Consumer's belief, perception, lifestyle etc. and the currently what consumers are thinking about the “NAVY” cigarette. 1.4 Limitations Several problems were arises to complete this study. They were: 1. Some of the respondents failed to complete the questionnaire due to unavoidable reasons. 2. The management of “NAVY” did not want to reveal all the information about the product 3. For most of the...
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...Pharmaceutical marketing mix strategy and physician’s prescription behavior Rizwan Raheem Ahmed ABSTRACT Purpose: This research paper gives an insight about the processes used by local and MNCs pharmaceutical companies in Pakistan.The purpose of our research is to examine that what factors affect physician prescription behavior based on ethical grounds. Methodology: This research focuses on the strategies and marketing tools used by pharmaceutical companies in Pakistan, and how Physicians behave against all these marketing strategies in terms of Prescription patterns. The questionnaire survey method is used for data collection and SPSS is used for Correlation and Regression techniques for the understanding of Physician’s prescription behaviour. Findings: The data analysis figuring out the correlation of these variables with the subject of the study i.e. factors influencing the prescribing behavior of the physician. The data shows the significance level of individual independent variable as Promotional tools. According to the results of Multiple Regressions Analysis (MRA) the researchers can conclude that independent variables have significant relationship with dependent variable. Therefore other all hypotheses are accepted except on Personal Obligation. Therefore, Promotional tools (Literature, Samples, Detailing Knowledge & skills of Medical Reps, Scientific activities like RTD`s, LSP & FSP, Local &International CME`s all influence the physician prescription behavior in Pakistan...
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...being rendered by them in order to promote or sale products or services. As a result the competition gets fiercer and sometimes this either creates challenges for some company’s and for some opportunities. It is here that companies decide of adopting and sometimes introducing effective marketing strategies in order to sell its goods or services, and those too must be able to attract the consumer to the product. In order to attract the consumer’s some organizations introduce new products whereas some organizations advertise in order to attract the consumers. The later is considered to be one of the most influential ways of attracting consumers, since advertising not only creates awareness about the product among the consumers but also entertains them. Even though past studies have agreed that advertisement, especially TV advertisement, is the most effective media source since it attracts consumers attention. Advertisements affect the perceptions of the consumers and it can influence the consumer’s buying decisions. According to past research of Zuraida & Uswatun (2001), that there are three factors that make an advertisement effective; the influence of advertisement on consumer buying behavior, the communication process, and decision...
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...A research proposal on The impact of marketing In Consumer Behavior in Apple mobile phone in UK. Course work B Name: SID: WORD COUNT: Name: SID: WORD COUNT: Contents 1.0 Introduction 3 1.1 Research aim and objectives 3 1.2 Research Questions 4 2.0 Literature Review 4 2.1 Marketing Strategy 4 2.2 Marketing Plan 4 2.3 Marketing Mix 5 2.4 Differentiation and Segmentation of market 6 2.5 Generic strategy 6 2.6 Skimming and Penetration 7 2.7 Consumer Behavior 7 2.8 Theoretical Framework 8 3.0 Research Methodology 8 3.1 Framework-Attitude Theory 8 3.2 Research Approach 9 3.3 Data Collection 9 3.4 Sampling Techniques 9 3.5 Accessibility Issues 10 3.6 Ethical Consideration 10 3.7 Data Analysis 10 3.8 Limitations of the Study 11 4.0 Timetables 12 References 13 1.0 Introduction Marketing has a large influence over the consumer buying patterns as marketing motivate people to buy their product so that they can do business. Marketing identify the target market and the potential customer of that target market. It is a key source for customer acquirement as the consumer are whom generate profit for the organization. Apple follow a competitive marketing strategy as they hold a large market share in the world’s mobile phone. Apple become a giant in household technology because of their unique marketing strategy. Apple Inc. follow exclusivity technique in its marketing strategy which make them the giant in mobile phone industry...
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...AJRM Volume 1, Issue 3 (June, 2012) ISSN: 2277‐6621 A Peer Reviewed International Journal of Asian Research Consortium AJRM: ASIAN JOURNAL OF RESEARCH IN MARKETING A STUDY OF CONSUMER BEHAVIOR WITH RESPECT TO VARIOUS BRANDS OF SHAMPOO IN NAGPUR CITY DR.RUHI BAKHARE* Faculty Dr. Ambedkar Institute of Management Studies and Research,Deeksha Bhoomi,Nagpur ABSTRACT ‘Consumer is king’ –the statement carries profound truth in it. Today the success of any firm depends upon the satisfaction of consumers. For satisfying the consumers the firm should know about the behavior of the consumers. In these circumstances understanding consumer is a very difficult task because of the changing technology, innovation, and changes in life style. Researchers conducted many research in this area, and they given only few suggestion, but there is no final conclusion. As per the ideas given by the researchers, there are two factors influencing the consumers such as intrinsic and extrinsic factors. It is difficult to classify consumers by conventional demographic factors and unless their thought process and buying behavior are fully understood, decisions on product designs and packaging, branding and distribution channels are likely to be misplaced. With the inevitability of change intimidating large over the horizon, Indian companies must learn from their western counterparts; not only to identify the sources, timing and direction of the changes likely...
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...Marketing mix Kotler defined that marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. (Kotler, 2002) McCarthy’s Four Ps A marketing expert named E. Jerome McCarthy created the Marketing Four Ps in the 1960s. This classification has been used throughout the world. Business schools teach this concept in basic marketing classes. The marketing four Ps are also the foundation of the idea of marketing mix. Product A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. Price The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition. It is also a very important component of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the sales and demand of the product. Place Placement or distribution is a very important part of the product mix definition. You have to position and distribute the product in a place that is accessible to potential buyers. This comes with a deep understanding of your target market. Understand them inside out and you will discover the most efficient positioning...
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.......................................20 1.7 Humanistic Approach ........................................................................................25 1.7.1 Humanistic Models of Consumer Behaviour..............................................25 1.9 Summary ............................................................................................................28 References................................................................................................................29 Figure 1.1: Stimulus-Organism-Response Model of Decision Making........................7 Figure 1.2: Cognitive Consumer Behaviour Models ..................................................10 Figure 1.3: Major components of the Theory of Buyer Behavior ..............................11 Figure 1.4: The Theory of...
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...exercise. Fishbein and Ajzen’s Theory of Reasoned Action is a powerful model for analyzing and understanding the factors that influence voluntary, overt behaviors. Students need to understand the basic components of the model and the logic that underlies their interrelationships. Exhibit 6.6 in the text clearly presents the major components of the model and their interrelationships. Students should be able to discuss these "flows of influence." The theory of reasoned action identifies two main influences on behavioral intentions--Aact and SN that is attitudes toward the action and subjective norms. Different promotional strategies, such as those used by The Gap, can try to change consumers’ attitudes and/or their subjective norms. For instance, if the weak BI is due to negative attitudes toward purchasing clothing from The Gap, advertising needs to focus on the specific negative beliefs about the consequences of buying and using the product. Alternatively, The Gap could try to use social influences to impact subjective norms by communicating social acceptability by wearing clothing from The Gap. 7. Use the example of “The Gap” to distinguish between the multi-attribute attitude model and the theory of reasoned action. How could each model contribute to the development of a more effective marketing strategy at The Gap? This review and applications question forces students...
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...Many factors play into the consumer behavior of the consumer. Successful marketers take into consideration the beliefs and culture of the buyer, as well as the family situation and even the psychological outlook of the purchase. Reference group is a group who’s perspective and individual takes on in forming values, beliefs, attitudes, opinions, and overt behaviors (pg.499). Reference groups can influence an individual’s cognitions, affective responses, and behaviors. As a consumer, your decision to purchase and use certain products, is influenced not only psychological factors, your personality and life-style, but also by the people around you with whom you interact and the various social groups to which you belong. The groups with whom you interact directly or indirectly influence your purchase decision and thus their study is of great importance to marketer to understand. Primary and secondary reference groups is one with which an individual interacts on a regular basis and whose opinion is of importance to him such as, family, neighbors, friends, colleagues and co-workers. Secondary reference groups are those with which an individual interacts only occasionally and does not consider their opinion very influential. Formal and informal reference groups are groups such as labor unions, social clubs, and societies are types of formal reference groups to which individuals may belong (pg 500-501). A formal reference groups has a highly defined structure, specific roles and authority...
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