Consumer Behavior Final Exam 1) In recent years, there has been a large debate about the influence that internet shopping will have on our consumer lives. Try listing the changes that you personally have made in your buying and consumption patterns due to ecommerce. Compare these changes with changes experienced by other people from various social groups, e.g. somebody from your parents’ generation, an IT freak, or somebody with a lower educational background. Answer Question 1: Online purchasing has flourished in recent years due to its lower cost and convenience. However, the move from one purchase technique to another, more contemporary buying method first concerned customers about data leakage, online fraud, product quality mismatch, failed to ship, etc. People's anxieties have faded as they grasp the advantages of online shopping. The ability to compare prices across numerous websites simultaneously is one of the main reasons people shop online. Another is the desire to avoid interacting with retailers in person and traffic jams on the way to the store. In addition to the convenience and ease of buying online, clients get additional knowledge about the products they want to buy. Online purchasing is claimed to be more convenient and quicker. This kind of online communication may attract a consumer's attention and interest. Before buying, a customer may ask for further information. To find out more, people utilize online resources including catalogs, websites, and search engines.. The most significant influence that e-commerce has had on consumer purchasing patterns is the ability for customers to shop from any location, at any time. They are no longer required to make a purchase during shop hours. While the ability to do research and purchase online has been for some time, mobile has elevated e-commerce by allowing consumers to utilize the device at any moment throughout the sales cycle. Forrester Research's 2018 Retail Best Practices: According to a Mobile Web survey, mobile devices will account for more than a third of all retail purchases in the United States in 2018. Consumers utilize mobile in a variety of ways throughout the sales cycle, according to Retail's North America managing director. Among these instances are the following: To make new product discoveries To find and compare items To facilitate the creation and management of shopping lists To buy To conduct an audit of purchasing With the development of mobile shopping, the border between the real store and the online experience has become more blurred. Rather than having two independent channels, both may be utilized in tandem to improve the purchasing experience. While some established brick-and-mortar firms have struggled to keep up with the expansion of e-commerce, this is not the end of physical storefronts. Amazon and Alibaba have both launched brick-and-mortar shops. The death knell for businesses that are unable to establish a seamless experience between online and physical purchasing occurs when they do not build applications, optimize their e-commerce shops, or begin selling things via their social media platforms. They have done so by giving customers the option of where, when, and how to buy. A consumer may order a thing online at 12 a.m., get it the following day, and then return it to a real store if they are dissatisfied with it. That is the potential of mobile e-commerce — to offer a seamless buying experience. Customers have learned to anticipate this level of service. 2) Although demographic information on large numbers of consumers is used in many marketing contexts, some people believe that the sale of data on customers’ incomes, buying habits and so on constitutes an invasion of privacy and should be banned. Comment on this issue from both a consumer’s and a marketer’s point of view. Answer Question 2: Analytical techniques that combine data on consumer spending and other socioeconomic factors with geographic information about the areas in which people live are known as geo-demography; researchers use this approach on the assumption that people who share similar needs and tastes also tend to live close to one another, implying that it should be possible to identify "pockets" of like-minded consumerism. In my opinion, relevant and tailored messages can reach new customers. Customers, on the other hand, may see such messages as an invasion of their privacy, which may have a negative impact on the bottom line. Customer permission in advance provides an interesting potential for future connections to overcome these challenges and comply with regulatory duties. When a company asks a consumer for permission to contact them, it is referred to as permission marketing. Because these conversations are anticipated, personal, and relevant, they are beneficial to both parties. A viable solution to legal and privacy issues, therefore, is permission marketing. Using this strategy is a good way to connect with customers. Consumers are likely to choose from a variety of vendors, but they are likely to grant permission to just a few. Consequently, firms with a large number of customers who have given their permission have a significant advantage over their rivals. These organizations may exploit their present customer base for cross-selling activities by using customized marketing. A large number of nations restrict companies from becoming passive order takers since they cannot aggressively target customers without their permission. Consumer view: I feel mostly abused as a customer, particularly online; I constantly get emails from websites that monitor my online activity. Every page I visit annoys me with advertisements based on my prior search terms. When I am at retail stores, I sometimes feel duped by store staff into purchasing items I do not need because they are on sale or presented in an enticing manner. I am OK with disclosing my purchasing habits, but not with disclosing my financial details, such as my salary or the cost of purchasing a particular quantity of a certain product every month. In most situations, we were unaware of it, and so believe that finding the precise goods handy for us in the shop is a coincidence. That is how we are duped and purchase stuff. Marketer view: Not all habits are indestructible; they may be ignored or altered. Once the loop has been created, and a habit has formed, your brain no longer participates actively in decisionmaking. This means that the old pattern will continue to develop until you actively seek out new signals and rewards. A marketer must gather data on consumer behaviors and incomes to serve the customer's wants; otherwise, he will not have access to the things he needs at the correct time, in a convenient location, and at a fair price. Someone who has never told us they are pregnant, and we give them a catalog and say, "Congratulations on your first kid!" will feel uncomfortable about it. Software businesses, for example, make their products accessible for free testing during the early stages of development, known as Beta, so that users may provide input on how the product might be improved. When Microsoft released its pre-release version of Windows 10, they included an application called the Windows Input app to solicit feedback from users. Occasionally, we give each customer a unique identifier that we use to track his or her purchases. If you use a credit card, please fill out a survey, send in a refund, phone the customer helpline, respond to an e-mail we have sent you or visit the store's website; we will record it and connect it to him since we are interested in knowing everything possible. 3) Select a product and brand that you use frequently and list what you consider to be the brand’s determinant attributes. Without revealing your list, ask a friend who is approximately the same age but of the opposite sex to make a similar list for the same product (the brand may be different). Compare and contrast the identified attributes and report your findings. Answer Question 3: As far as a product goes, I've decided on a smartphone. The Samsung phone I've been using for the last many years is still going strong. Because I was already acquainted with Nokia phones, I decided to go with them as my preferred brand. I was able to save money because of the introduction of Android technology, which included a wide variety of sharing applications, after-sales support, and economically priced replacement components and accessories... According to my buddy, the attractiveness of Apple goods stems from the fact that they are the only ones available in their respective categories and of the highest possible quality. When held in one's hand, all Apple devices have a distinct feel to them. The quality of iOS applications is much more significant than that of apps developed for competing operating systems like Android. Considering that we're talking about smartphones and tablet computers, we must have a reliable platform so that you can do more on your phone. While you're on the road, it's safe to assume that you can rely on your iPhone to do your tasks fast and effectively. Consumers' responses to marketing communications may be influenced by their personality qualities. 4) Collect ads for five different brands of the same product. Report on the segmentation variables, target markets and emphasized product attributes in each ad. Answer Question 4: Product: Cinema Movies Brand Product Type Movie Summery 20th Century Fox Avatar Science Fiction In the course of his assignment on Pandora, a paraplegic Marine finds himself divided between obeying instructions and preserving the planet that he considers being his home. Segmentatio Segmentation based on psychographic characteristics n People with a wealth of experience, critical thinking, Variables and innovative ideas. Target market Experiencers Attributes For added authenticity, the film was made using 3D visual effects that need special glasses and surround sound effects. The action took place in a fantastical reality. The film depicted futuristic machinery and computers. Included for dramatic effect is a love tale. As a result of viewing, you will be forced to consider many complex concepts. Epic fights pique the interest of those who thrive on competition. Brand Product Type Movie Summery Walt Disney Up Animation Carl Fredricksen, 78, takes a teenage stowaway on a trip to Paradise Falls in his residence, which is outfitted with balloons. Segmentatio Segmentation of the population by age n Children, adolescents, young adults, adults, and the Variables elderly Target market Parents and children are the focus of this section. Attributes 1. Caricatures of characters and color schemes. 2. An action-packed tale. 3. Elements that are particularly appealing to children, such as talking pets, a flying home, and even Grandpa 4. Using basic concepts like aiding the elderly, caring for animals, and good and evil to encourage good conduct.. 5. In the last scene of the film, the little character is rewarded for his excellent conduct. Brand Product Type Movie Summery Segmentation Variables Target market Attributes Brand Product Movie Summery Type Segmentatio n Variables Target Brand market Attributes Product Movie Summery Universal Meet the Parents Comedy Before proposing to his fiancée, Greg Focker, a young male nurse, sees her parents. However, her skeptical father is the worst date nightmare. Segmentation based on demographic life stages and marital statuses Friends and family members of all ages and marital statuses, as well as divorced couples Couples that are engaged and/or married 1. Focusing on the topic of family life. 2. Reminiscence-inducing comic events and responses. 3. Discourses on love, lust, fear of misinterpretation, and acceptance of others are all prominent topics in interpersonal relationships. 4. Slightly focusing attention away from the main pair. Paramount Mission: Impossible By alone, an American agent must find and expose a spy who has been falsely accused of treason. Action Segmentation based on psychographic characteristics Achievements, creators, inventors, and makers Innovators Warner Bros. 1. Innovators are drawn to theMillionaire prospect of reaching a Slumdog A Mumbai reflects on his life after being accused certain teenager goal. of All cheating on the Indian of "Whoand Wants 2. of the characters areversion well-educated self-to be a Millionaire?". assured. Type Drama 3. Assigning the role of team leader to our primary Segmentatio Demographic generation based segmentation character. n The Youth, middleand ages and elders. 4. puzzles cryptic clues make the task much Variables more difficult. Target market Youth 5. Moderately upbeat music to arouse the audience. Attributes 1. Wealth and love are two of the most frequent young aspirations shown in the film's plot. 2. Creating the impression that a person's hard work has paid off. 3. A narrative based on a well-known television program adds an extra layer of attraction to the film. 4. The audience is only rewarded and pleased towards the conclusion of the presentation, which depicts a dismal, wretched existence for a young guy.. 5) Assume that you are a consultant for a marketer who wants to design a package for a new bar targeted to an affluent market. What recommendations would you provide in terms of such package elements as color, symbolism and graphic design? Give the reasons for your suggestions. Answer Question 5: Consumers are increasingly looking for products that provide hedonic value in addition to their intended function. Perception may be studied by looking at the meaning we assign to raw sensations, and the colors we choose for packaging should convey the appropriate subliminal message in order to draw in our target market and motivate them to buy our goods. As a result, I'd pick a shade of purple that symbolizes delicacy. Given that packaging is the most physical depiction of a brand or product for customers, marketers must devote time and resources to creating one that works well for their target audience. Consumers make a subconscious judgment in less than 90 seconds on a product based purely on color, according to study performed by marketing experts. This might be defined by the fact that color registers far quicker than sophisticated visuals or text. A whopping 88% of shoppers say that the color of a product is the deciding factor in their purchase decision. Elements of a brand's identity, such as its color scheme and distinctive images, may become iconic if they are regularly maintained. In addition, celebrities will be crucial in promoting our product's trustworthiness as well as providing a visual message that can be quickly disseminated. A. Color I would choose golden, silver, or chrome as the predominant hue in Nescafe gold, which conveys a sense of affluence, wealth, and high social status. Alternatively, I may use a chocolate picture as a complimentary color. Another option is to utilize the black hue for the whole box and decorate it with distinctive flashy colors like gold, silver, or chrome. Black is also a symbol of wealth and mystery, so I'd try to make the contrast between it and the chocolate color, which is also a dark hue, stand out more. B. Symbolism I could use a picture of melting chocolate, a beautiful woman's face, or some glistening gems. In a second option, you may depict a woman's mouth with beautiful lips closed and her tongue licking a little bit of chocolate over the top lip. C. Designing graphics The quality of the product should be reflected in the packaging, not just the aesthetic. In order to make the buyer feel special, I would want to open the packaging in a creative method rather than the usual approach so that the design is less complicated. 6) Find one ad that is rich in symbolism and perform a semiotic analysis of it. Identify each type of sign used in the ad and the product qualities being communicated by each. Comment on the effectiveness of the signs that are used to communicate the intended message. Answer Question 6: McDonald’s ad symbolisms. McDonald's has been a major player in the fast-food industry for many years. It is clear that they have an excellent grasp of the demands of their clients. When it comes to sales volume and profit rates, McDonald's is the industry leader. Is there any other explanation for their success? Strategic marketing and other internal elements are to blame for the company's success. The mission of the company is, “To create delicious feel-good moments for everyone”. https://www.youtube.com/watch?v=IiU2_DpLh-U&t=20s This Is What I'm Talkin' About... McDonald's has been using the jingle "Par Pap Pap Paa" for a long time now. This jingle emphasizes the good aspects of a McDonald's meal. A memorable jingle is the one that focuses on how pleased customers are throughout their meals and how polite and helpful the staff is. The Logo and Object: The golden arches were first featured in the company's logo in 1961. Ray Kroc, who bought McDonald's that year, asked Fred Turner to design a new logo. Turner initially attempted to design the logo himself, but he eventually handed the task to Jim Schindler, the company's head engineer and structural designer. Although Schindler designed the golden arches, he also added a horizontal line across the "M" in his design. Between 1961 and 2003, the McDonald's logo changed a lot. The company selected a new logo and tagline in 2003 and has been using them since. Except for a line of wording under the golden arches that said "I'm lovin' it," the design was plain. A lot is unknown about the future of the McDonald's logo, but one thing is certain: the current design has lasted for 14 years. It's one of the world's most easily recognizable symbols. A new logo is designed to address a common customer concern, directly affecting the company's impression. McDonald's has effectively associated their corporation with sentiments of excellent meals and speedy service. Because of its longer wavelength, red has been observed to excite and be “associated with happiness.” In the eyes of customers, the golden arches emblem represents the McDonald's brand. The logo represents McDonald's. It evokes in customers' thoughts the company's emotions and imagery. The Mcdonald’s logo is widely known as “The Golden Arches”. An early campaign for McDonald’s told customers to “look for the golden arches”. McDonald's has a number of things on its menu that are always available and never change. This includes items such as their classic hamburger and cheeseburger, the Big Mac, and the Quarter Pounder, to name a few. Following the first development phase, some foods stay on the menu for lengthy periods of time without receiving any substantial modifications in flavor or appearance. As a result of this method, customers will always find something they are acquainted with on the menu. The Sign: o Ronald McDonald, who is just shy of his 50th birthday, is a perfect example of effective worldwide semiotics. Exaggerated features and an unending sense of glee give him an uncanny human quality that relaxes viewers. As a representative of the firm he works for, he's seldom included in the slew of complaints. o It is his ethnic ambiguity that makes him appealing to a worldwide audience. While it's safe to conclude he's a white American male, his facial characteristics aren't very distinct. As a result, he's ripe for commercial exploitation. McDonald's restaurants around the country have sculptures and images of him, despite the fact that he doesn't appear in any of their television ads. It's common to see monuments depicting him surfing, lounging on park benches, and welcoming people across the globe. If you type in "Ronald McDonald" on Google Images, you'll get photos of people from all over the world standing with similar plastic sculptures from all over the world. o Ronald McDonald's significance is undeniable, even if it is downplayed. He's one of the few McDonald's features that hasn't been questioned. Their charity's face and trustworthy hostess. Even abandoned his yellow uniform for the 2010 Olympic training. Furthermore, Ronald McDonald is an unwavering image of the McDonalds Corporation: cheerful, fat, and somewhat threatening. The Interpreting Burgers and French fries are part of the American way of life, and dining at McDonald's will bring you closer to your family and friends, as well as place you in a pleasant setting where you can enjoy a delicious meal. 7) Compile a set of recent ads that attempt to link consumption of a product with a specific lifestyle. How does a marketer usually accomplish this goal? Answer Question 7: When done correctly, there is no doubt that marketing your product in conjunction with a particular way of life is extremely effective, and there are numerous techniques you can employ through your various media vehicles to do so; in the following, we will take a brief look at advertisements to illustrate these techniques. A. Rexona – Anti deodorant: Video Link : https://www.youtube.com/watch?v=65KRf8WW5nQ Ramadan Sobhi is preparing to do necessary tests after using Rexona, who is facing the evaluation committee because he is required to put in significant effort in testing the strength of the MotionSense feature with movement and also to announce that sweating does not appear on him, so he must put in even more effort, which caused the committee to impose additional difficulties and confrontations on him to humiliate the action significantly. However, despite this, the star succeeds in attaining its aim, which indicates that utilizing the product makes it capable of coping with the effort and ease of movement required. This commercial employed a celebrity like Ramadan Sobhi to relate the use of the product to the consumer's lifestyle, utilizing his traits such as being a successful person whose daily duties need him to constantly be in a nice fragrance for a long length of time to promote the brand. The Final Message : The more you move, that protects you more 8) In the last few years several products made in China, including toothpaste and toys, have been recalled because they are dangerous or even fatal to use. In one survey, about 30% of American respondents indicated that they have stopped purchasing some Chinese goods as a result of the recalls or that they usually don’t buy products from China. If the Chinese government hired you as a consultant to help it repair some of the damage to the reputation of products made there, what actions would you recommend? Answer Question 8: For any firm, brand, or even a nation, brand equity, and reputation are the most important assets. This is true regardless of the entity's size. There will be a lot of time and effort required to alleviate these harms. The United States is China's "Factory of the World," and China regards the United States as its most important ally. Many of the respondents to a study on Chinese items that have been recalled by Chinese firms in a certain product category have stopped using or purchasing Chinese products, according to the problem indicated in the question. Taking into consideration the Chinese government's support for international commerce, it has decided to take steps to minimize the negative perception of China's products and the "Made in China" label among American consumers. The following are some examples of acts that will accomplish the intended outcome: 1- An apology at a conference should be held in the US and reported by all media. This meeting will be an American commitment to restore the quality of Chinese goods. 2- As a way to remind Americans of the quality of the most popular Chinese companies in many product categories, this activity must be widely disseminated on all media platforms. 3- Creating hotline numbers and other channels, such as email, to allow American customers to report any problems they are experiencing with a specific product and for which action must be taken in order to get feedback from customers and open a channel of communication with the Chinese Ministry of International Trade and all other authorities concerned with ensuring that the quality of Chinese products is controlled, So a huge public awareness campaign for this service is required. 4- The quality of the items that will be exported to the United States may be assured by reminding Chinese producers of American quality requirements and by conducting quality control exercises on the manufacturers themselves. 5- With a distinctive and unified brand, it is easy for consumers to see that the product is made in the United States to the highest quality standards. Quality certificates like ISO-9001 must appear on the packaging of a brand's products. 6- Equality assurance and production methods in Chinese companies are shown in a campaign that allows clients to arrange a free online visit to any factory in China at any time of day or night. 9) Think of a product you recently shopped for online. Describe your search process. How did you become aware that you wanted/needed the product? How did you evaluate alternatives? Did you wind up buying online? Why or why not? What factors would make it more or less likely that you would buy something online versus in a traditional store? Answer Question 9: My most recent online purchase was an airline ticket to China, which I made only a few days ago. As a result, I had to travel from Cairo to Beijing to complete specific paperwork required to be performed by myself. As a result of these and other reasons, there is an increase in the demand for airplane tickets to go to a new place. Soon after realizing how urgent my situation was, I began hunting for an airplane ticket to China to meet my deadline. Because of the situation's urgency, I boarded a plane and traveled to the location as soon as possible. I searched for tickets from airlines that I was already acquainted with, based on my past experiences and comprehension of the services I was already familiar with. I found a few tickets that I liked and purchased them. Afterward, I evaluated my choices regarding their time convenience, the options that were open to me, and the price. The final decision I made was to buy and use the services of Etihad Airline since the trip was available on a day that was convenient for me, and I could reduce the cost by not carrying luggage that I did not need. If I were more concerned with the physical quality of the item, I would purchase it from a traditional retailer - such as a travel agency - rather than purchasing it online. I prefer to check and buy products in person rather than analyze them online since there are more risks associated with internet shopping than with conventional purchasing. In contrast, if I'm not bothered with physical quality and have confidence in the source, buying online is preferable due to the convenience of making online payments and the opportunity to complete purchases from the comfort of my own home.
