Consumer Behaviour

The target audience for any given product or service is the group of people that advertisers wish to attract through their marketing activities. The process of identifying and defining an audience leads to assessing priorities.

For instance, a firm may identify a sizable large group or market to be potential consumers. However, it is likely to be financially unsound to attempt to target all consumers within the group. A target audience may be established by asking questions such as: Which audience is large enough to be a significant target? Which audience is a priority in terms of the brand’s product? Which audience is the target of the product’s attributes and benefits? A target audience may be denned by their age, gender, Tamil status, little, interests or a combination of these characteristics.

It is noteworthy that a target audience invariably differs from the overall target market and is generally only a segment of a given market. For example, Blabbing would target consumers (both male and female) between the ages of around 12 – 35; but different segments of this road market are more likely to purchase than others. It is desirable to develop demographic and cryptographic profiles of these likely consumers (the target audience). Accurate details of a target audience can only be obtained by means of credible market research practices. However, inferences and assumptions can be made beforehand to aid any research.

Some of the demographic characteristics of the Blabbing target audience are, as mentioned previously, males and females between the ages of around 12 – 35 (although advertising is usually specific to one particular gender as seen in the example of Appendix A). Such individuals are predominantly situated in coastal regions where the beach/surf/sun culture thrives (as clearly demonstrated in Appendix A), although there are significant deviations from this trend especially in recent times with such a broad, climate and geographically unbiased product range pning some 2200 lines in Australia alone (Blabbing International 2004).

Economic factors can sometimes play a role in defining a target but in this case the audience is not necessarily limited to any specific economic traits; for example, income brackets are not easily defined for consumers as Blabbing International offers such a variety of products satisfying both functional lifestyle needs and fashion influenced desires, hence the user’s likelihood of purchasing is expected to be more dependent on the cryptographic factors of consumer motivation, motivational intensity and consumer knowledge.

Consumer motivation represents the drive to meet physiological and psychological needs via purchase and consumption of products (Blackwell et al. 2001, p. 233). Blabbing customers are likely to be driven to satisfy their social image needs and needs for pleasure. They are expected to have a high motivational intensity to fulfill Hess needs so as to willingly overcome the price barrier associated with doing so. The target consumers for Blabbing have a relatively high level of consumer knowledge regarding their chosen product.

The concept of consumer knowledge involves individuals pre-existing knowledge and perceptions related to product purchase and consumption. These consumers have a high awareness of the products attributes and associations, such as the famous waves symbol, the obvious ties with surfing and pro surfing and the companies Australian origins. They have a familiarity with the products image within the marketplace. They associate the brand with high quality, high fashion and are prepared to bear the comparatively high price.

This target audience is aided by the purchase knowledge they hold regarding Blanding’s price positioning; that is, the company is in the high price range compared to the overall market but is moderate to high in price when evaluating surf brands (see Section 1 4) These consumers are also equipped with knowledge on when and where to buy – aware that the products are available in specialty surf-specific stores and can rely on a least two sales each year at the end of summer and winter.

Although expensive research is often the most accurate way of developing a targeted marketing approach, it is always beneficial to attempt to identify expected consumers as early as possible in a marketing plan. Whether you utilize extensive demographic and cryptographic research or Just use common-sense, “the key is to identify a group or groups of potential customers that offer the best opportunities for business potential” (Defining Your Target 2004). 3. 0 SECTION C 3. 1 THE BLABBING COMMUNICATION MIX A successful communication mix is essential in the marketing of any brand or product to consumers.

This ties in with the familiar four Up’s of marketing which are price, place, promotion and product. The most important factor relating to the concept of the communications mix is promotion. Examples of promotion include: personal selling, sales promotion, public relations, publicity, direct mail, advertising, sponsorship, branding and distribution of samples. A good communication mix ensures that the brand receives adequate exposure whilst also targeting the appropriate audiences (see Section B). For many large corporations, their logo is an integral part of their marketing activities.

This unique identifier will be present wrought all forms of visual marketing communication and is a powerful statement in itself. An obvious example of such would be Nikkei with its ‘swoosh’ symbol. Similarly, the famous Blabbing ‘waves’ are present throughout the Blabbing communication mix. 3. 2 PRINT ADVERTISING Currently there are a number of communication methods that are used by Blabbing. Products are featured in a number of magazines such as Dolly, Girlfriend, Chick and Cosmopolitan, who predominately market to the female segment of Blanding’s target audience.

Print advertisements also feature in more male oriented publications such s Ralph and FEM. and can be seen in specific surfing magazines such as Surfing. The combination of these promotional activities effectively reaches the specific audience that Blabbing targets. 3. 3 BROADCAST ADVERTISING Broadcast advertising is very limited and is likely to only be featured for events such as special surfing related events such as the Blabbing Pro surf championships. 3. 4 INTERNET PROMOTIONS Internet promotions are one tot the most extensive ways in which Blabbing advertises.

On almost every Blabbing advertisement featured in the aforementioned media, the Blabbing web address is present; ‘blabbing. Com’. The website shows the entire product list, which are available for purchase online. The website is not Just limited to the Australian audience. It also caters for different products and prices suitable for different regions around the world, including: North America, South America, Asia and Europe – representative of Billings growing international presence and successful utilization of the internet in market places around the world. . 5 PROMOTIONAL MATERIAL Associated to Blabbing is a highly influential reference group who effectively act as a promotional tool. These are pro surfers such as Lane Beaches, Alan Brenna and Andy Irons. This reference group gains credibility for the brand by using Blabbing products. Blabbing promotions use these public faces to give testimonials as the attention gained by having expert’s approval is invaluable in the fight for consumer preference. 3. 6 POINT OF PURCHASE DISPLAYS Point of purchase displays are frequently used by Blabbing.

In surf shops such as City Beach Surf (Garden City, Whitehorse City), Blabbing products are grouped together in the store whereas in Brothers Nielsen (Garden City, Perth, Whitehorse City), the Blabbing are grouped alongside competing brands by category. From the racketing perspective of a reputable manufacturer, it is more desirable to have the clothes grouped by brand rather than by category as this allows consumers to search for the specific brand they wish to purchase. 3. 7 IS THIS COMMUNICATION MIX APPROPRIATE?

Print advertising utilized by Blabbing is appropriate and effective as the magazines that they feature in are targeting similar or overlapping audiences. Promotions and promotional material aid in increasing public familiarity with the brand. This has been achieved by attaching the Blabbing name and logo with events such as the Blabbing Pro and other surfing events worldwide. Celebrities, especially movie stars, television actors, entertainers, and sports fugues, can be very powerful assets to any marketing and advertising campaign (Blackwell et al. 2001).

Blabbing uses famous surfers Lane Beaches, Alan Brenna and Andy Irons to achieve higher credibility within the surfing world. Another powerful promotional tool is the brands website. Generation “X” and “Y” are very likely to search the internet for products that they wish to purchase, as it allows them to shop in the comfort of their homes without the effort of searching different stores to tint CE retain products or intimation. Internet Promotions are seen to be effective because of the increasing frequency and effectiveness of e-commerce in today’s globalizes market place.

The website is easy to use, easy to find and is prevalent in all the advertising material; increasing consumer knowledge of the website. Broadcast advertising for Blabbing is likely to have a limited effectiveness. It has been shown that only 19% of television viewers actually watch the advertisements shown during a show (Lack, cited in Blackwell 2001, p. 438). Bearing this in mind, and realizing that the target audience is a relatively specific one, it is doubtful that the audience will be reached on a frequent basis via this medium. 3. CHANGES TO COMMUNICATION MIX We believe that Blabbing should implement a number of various changes to the current communications mix in order to launch the Swimwear range. Procedures such as distributing free samples would be effective in increasing: awareness of the product, its function of reducing the effects of sun exposure and the positive associations of the brand. An increase in Blabbing sponsored events will lead to increased exposure of the Blabbing name and will provide an excellent opportunity to introduce consumers to he product extension line.

The Swimwear range can be officially launched by specifically attaching the name of the new product (Swimwear) to a Blabbing sponsored event. On its launch, the previously mentioned method of sample distribution can be used to full effect. The launch of Swimwear will coincide with the increased marketing activities surrounding the entire Blabbing range during the summer holiday season. An effective way of maximizing the benefits of this situation would be to utilize POP displays, perhaps combined with promotional gift packs. . 0 SECTION D 4. 1 PRODUCT CONCEPT As a well recognized and trusted surf brand, Blabbing is endeavoring to branch out into the skin-care market, in particular: sun-care to further cater to its customers lifestyle needs. Like the rest of the world, Australia as a society has become heavily health and image conscious; as demonstrated from the many articles, advertisements, new products and spending increases based in the Health and Cosmetic Industries.

Blabbing has made the decision to extend their existing product range in an attempt to take advantage of this new demand for health and beauty products. In doing so, Blabbing has created its ‘Swimwear’ range which includes a Sunscreen, Lip balm and After-Sun Gel all of which meet the high standards set by the Australian raiment and Australian Cancer Council. Included in the Blabbing Swimwear range is a Sunscreen boasting an SSP or Sun Protection Factor of 30, shielding the skin from harmful UP rays 30 times longer than our skins natural defenses are able to.

Through the introduction of past innovative products, Blabbing has become known for its dedication to meet and exceed the needs demanded by their surfing clientele; hence incorporating an 8 hour water protection attribute into this product. This feature allows surfers and beach goers he chance to enjoy their lifestyle without the concerns of having to frequently reapply sunscreen. The combination of 30 SSP and errs of water resistance will instantly place the product at least equally, in terms of functional attributes, at the top of the market. Billings new Swimwear range also includes a Liable featuring an SSP of 15.

As a means to widen the target audience, Blanding’s new Liable is free of color and taste, removing added hesitation in the male demographic. For easy application, the Liable is packaged in a squeezable tube, making for easy and mess-free application; all of which is very handy when applying at the beach. Incorporated into the After-Sun Gel is an aloe extract. According to Steve Herman (2004, p. 54) “aloe remains a genuinely useful healing agent widely accepted by the public”. In order to meet consumer requirements, aloe is a feature in the After-Sun Gel product.

It is merely a last resort that consumers would ultimately require a product to soothe the effects the sunburn; however, as Plato quite accurately stated “The most we can teach people is what they already know”. This statement defines the need for a product such as After-Sun Gel, as it is expected that even with the existence of a Sunscreen as provided by Blabbing; consumers are likely to use the product ineffectively every now and then. Pat Thomas (2004, p. 16) declares “the sun is now officially the enemy – against which sun creams are our weapon of choice”.

According to fugues given on the Australian Cancer website (http://www. Cancer. Org. AU) 374,000 Australians are treated for non- melanoma skin cancer every year. This figure accounts for 1. 9% of Australia’s entire population. More alarming is that an additional 8,500 Australians are diagnosed with a melanoma, of which 1300 will die as a result. Such frightening statistics generate he question; are members of Australia’s beach and surf culture taking appropriate steps to protect their skin from such devastating consequences?

Pioneers in serving this beach/surf culture, Blabbing attempt to make their consumers aware of the harmful dangers associated with long term exposure to the sun and its effects. In doing so, Blabbing offers such products as available in their new Swimwear range to protect the physiological needs of their consumers as well as removing the quite apparent social negativity involved in wearing and applying sunscreen. It would be unwise for a brand such as Blabbing to extend an already successful reduce range if there was any reason to believe that it would not be as successful as the collective existing products.

In accordance, Blabbing has created a Swimwear range that not only extends the well recognized image of the brand but also the values and attributes that a consumer would associate with any of its other products. For instance, Blabbing is renowned for its high quality surf-related products, innovative style and up-to-date fashion. A marketing approach to increase the popularity of Blabbing products is to promote consumption as more than an experience, but rather a statement of image and self-expression. It is for this reason that the slogan for the new Swimwear range reads: “Wear Blabbing, even when you’re naked”.

As identified in Section B, Blanding’s key target audience extends between males and females aged between 12 and 35. At these ages, it would not be inaccurate to suggest that a major factor in the purchase and consumption of surf brands and their related products is whether the product links consumers with the desire to fit certain image and style demands. The surf and beach culture is dominant in the lifestyles and images of Australian people. This, in effect, further intensifies the need for many consumers to conform. Australians are becoming more obsessed with their health and appearance.

Appearing on Australian networks week by week are television shows that promote cosmetic surgery, crash diets, new health risks, advanced pharmaceuticals and much more. It is not surprising that consumers in the demographic of 12-35 years of age are identifying a need to improve and maintain beauty and health. The links between sun exposure and skin damage have been extensively researched in Australia, as it appears that compared to other geographical locations, Australian people are more susceptible and at risk of suffering, due to the consequences of vying in such a sun exposed location.

When taking into consideration the various issues relating to sun exposure and skin damage, Blabbing decided to create their Swimwear range. It is expected that with an informative and effective marketing campaign, existing Blabbing consumers will see the need to execute a diligent skin protection regime, in turn utilizing the products that are now offered by Blabbing. 4. 3 ATTITUDES In order for this product extension to be successful, Blabbing has attempted to seize the large target audience that already purchases and consumes their existing reduce range.

It is suggested by Blackwell et al. (2001, p. 289) that “holding a favorable attitude toward a product is almost always an essential prerequisite in order for consumers to hold a favorable purchase of consumption intention”. In saying this, it is not expected that the consumer will automatically purchase the product, but that they will hold a doubtable intention which may assist in their decision. Several models are used to aid marketers of company’s such as Blabbing to analyses consumer attitudes and their associated effects on product evaluation and choice.

Better known as the Fishbone Model and Ideal-Point Model, marketers of brands such as Blabbing are given important information from consumer’s responses. In many cases, this leads to new product developments as is the case of Blabbing, where certain needs not catered for are alerted to designers. In order for Blabbing to avoid consumer’ attitudes becoming impartial between brands, it is essential to do whatever it takes to achieve “Attitude persistence… [where] an attitude’s immune to such corrosion” (Blackwell et al. P. 300).

It is likely that the need for products such as that offered in Billings Swimwear range will ever be made redundant, purely because the risks associated with having lives revolved around the sun are not diminishing in number and neither are the risks associated. The greatest obstacle faced when introducing Billings new Swimwear range is changing consumer’s preferences, in effect, “recruiting competitor’s customers” (Blackwell et al. 2001, p. 301). A strong feature of the Swimwear range is its SSP rating and Water Resistance.

In order to “recruit competitor’s customers” Blabbing must be effective in changing consumers attitudes, drawing on favorable attitudes held about their existing product range, as well as emphasizing imprisons between their new product extension and other existing brands – hopefully in favor of their products. 4. 4 CONCLUSION Blabbing recognizes the importance of consumers needs to ‘be protected in the sun’. After all, it is the expectation that having consumers who exude a lifestyle surrounded by surf and beach that these needs will as some point require satisfying.

As a highly regarded surf brand, Blabbing places importance on fulfilling consumer’s needs for safety and health. In recognizing the gap in its product range, Billings new product extension, boasting a highly protective Sunscreen, Liable and After- Sun Gel, continues their commitment to meet the demands of its consumers for the coming summer season. 5. 0 SECTION E To examine the decision making processes experienced by a consumer it is practical to use the Consumer Decision Process (CDC) Model which defines seven likely stages involved in any purchase. The CDC model “… Presents a roadman of consumers’ minds that marketers and managers can use to help guide product mix, communication and sales strategies” (Blackwell et al. 2001, p. 71). All consumers are not strictly bound by this model in making their decisions, but are likely to undergo at east some of the following stages: The Consumer Sino Process M In the case of Blabbing, to ensure the success of their product line extension and the associated marketing activities; it would be beneficial to hypothesis the probable processes of their target audience in becoming loyal users of the new product.

Such predictions may be made by examining the stages of the CDC model. The first stage of the model, need recognition, involves the consumer sensing the difference between their ideal and actual state of affairs. Blabbing will aim, through straight-forward advertising and other marketing communications (as outlined in Section C), to undermine the user’s perceptions about the adequacy of their existing state and will hence create a problem that must be solved.

Advertising will include the contrasting negative consequences of not using the product (such as skin damage and/or cancer) with the altogether positives outcomes associated with using the new product. Such benefits include a high level of skin care and also positive social image. With so many choices and more and more variables affecting consumer decisions, especially for low-involvement products such as sunscreen, it is expected hat previous loyal followers of the Blabbing trademark will factor their positive experiences and high levels of satisfaction into their decision to use Blabbing Swimwear.

The second stage involves searching the marketplace for information on products and alternatives. The loyal Blabbing consumer will find themselves undergoing components of both an internal and external search and will then move on to assess evaluative criteria as outlined by the third stage; pre-purchase evaluation. It is in this stage that these particular consumers are likely to conclude Blabbing as the better alternative. The target audience, whether undergoing an external or internal search will find Blabbing to be at least equal (see Section 4. ) to its competitors in terms of its products attributes whilst the positive associations with the Blabbing brand will ensure that Blabbing Swimwear is seen as the superior alternative. It is the intention of Blabbing to extend its dominance into the new market and it is hoped that consumers eliminate the need for extensive searching in order to simply transfer loyalty into this new market. There are two paths that will lead a consumer to the fourth stage of the purchase session.

They may either systematically travel through the previous three stages leading to an obvious choice to purchase, or they may avoid the first three stages altogether and simply purchase the product based on an instantaneous decision influenced by prior ties to the Blabbing brand. An example of such may be seen in impulse purchasing, where point-of-purchase (POP) displays may play a significant role. The fifth stage; consumption, is likely to occur seasonally as sun protection is demanded mainly in summer. However, loyal consumers such as those outlined in

RESEARCH PROPOSAL

1.0 The Research Topic

The general field in which the research will derive from is brand image and the particular domain of this field in which the research will focus on will be that of consumer behaviours i.e. their purchasing decisions towards a particular brand or store and how they perceive brands. The primary aim of the research is to determine how brand image, essentially, combines with that of consumer behaviour through a range of mediums, looking at the consumer perspective. Therefore brand image, perception and consumers purchasing decisions will be explored in greater detail, thus allowing them to be critically analysed and compared with one another.

Brand image and consumer behaviour is a relatively large field in terms of its literate context; therefore this will be narrowed down by focusing on two areas of consumer behaviour, their purchasing decisions and what influences this and their perceptions of a brand/product and so forth. It is also the intention to focus on a particular industry, in this case the portable audio industry. Furthermore the research will make particular reference to one of the more recognised brands, Apple, which effectively has a substantial brand association with consumers due to the popularity of the I-Pod and most recently the I-Phone. Additionally, this will incorporate and touch on several other brands such as Sony and Archos, whom both operate in the portable audio industry.

The reasoning behind carrying out such research is due to the familiarisation, not only with the brand Apple, but also with consumer behaviours. Having worked in retail for over 3 years the experiences have brought about a diverse range of customers who have demonstrated similar behavioural patterns when it comes to their purchasing decisions, but there have of course been some customers who behave differently when making a purchasing decision. Furthermore, having studied marketing for the best part of 5 years at GCSE, A-Level and degree level, a keen interest in specific areas of branding has been established. As a result, in part-time work whereby there is a sole responsible for ones self which entails driving the own brand products of the store, ensuring that sales remain strong, that the brand gains recognition and builds it’s reputation through various forms of media including advertising, word of mouth and so forth. In doing so, consumer responsiveness has unquestionably been a captivating, nevertheless encouraging experience, thus leading to the reasoning behind the selected research topic. Read also Research Proposal sample on customer satisfaction

Due to the passion for Branding, mainly stemmed from part-time work the decision is to base a large part of the dissertation on the concept of branding, in particular brand image. Moreover it is extremely important that consumer’s perceptions, purchase decisions are adhered to in order to supply them with their specific needs and wants. Therefore being in a competitive retail environment where consumers have a wide range of products to choose from it is felt that by focusing on brand image an organisation can help to gain competitive advantage by ensuring repeat purchases of a brand. As a result,

using these tools and putting them into practice within the part-time place of work would not also enhancing ones belief, but also knowledge of brand image.

2.0 Research Aim

The primary aim of the research is to define brand image and consumer behaviour, moreover perception and purchasing decisions and how the two associate with one another, with reference to the portable audio industry and the brand Apple.

3.0 Research Objectives

The main research objectives in which the dissertation will focus upon are to:

Define and explain brand image through use of theoretical material

To explore and elucidate consumer behaviour with particular reference to that of perception and purchasing decisions.

To identify the brand image of Apple and how consumers perceptions of this chosen brand effect their purchasing decision

To compare the quantitative and qualitative data gathered, thus allowing to critically analyse the two and conclude on a best practice

4.0 Review of the Literature

The purpose of the literature review is the examination of the identified problem in order to determine its causal factors, as established by both theoretical and empirical research.

It is therefore the intention to review the two main components as to which my research will discuss and critically evaluate, that of ‘consumer behaviour’ and ‘brand image’. In order to review the literature, a considerable amount of time

has been spent looking through journals, articles, texts and so forth in the last few months and in doing so selected a few texts and journals which are most relevant to the research and which can therefore be discussed and critically evaluated.

The study of consumer behaviour has been given increasing attention in the context of an expansion of the study of marketing and marketing research over the past few decades (e.g. Kotler et al., 2001; Jobber, 2004; Keith, 1960).

However, despite rapid growth and development in the study of consumer behaviour, there are considerable disagreements about what consumer research is, what its objectives are, and how it differs from other disciplines (Simonson et al., 2001). Consequently, the field lacks a universally-accepted

theoretical framework or model (Foxall, 2005). The disciplines of economics and psychology (especially cognitive and social) have traditionally provided

the theoretical foundations of consumer behaviour and lent their research towards more cognitive approaches (Jacoby et al., 1998).

It is the intention of this dissertation to examine a wide range of theories that underpin the topic consumer behaviour and brand identity, with particular references as to how the two link together. There will a specific reference to the company Apple, which is one of the world largest brands due to constant innovation and exhaustive market research.

Consumer behaviour is defined by Blackwell, Miniard & Angel (2001) as “activities people undertake when obtaining, consuming, and disposing of products and services”. My primary aim is to unearth how consumers of portable audio products respond to the plethora of buying decisions they are faced and in turn what particular factors influence such a decision.

Below, is a simple model of consumer behaviour drawn up by Assael, 1992:-

At the core of this model is the consumer’s decision and as we can see, this decision has been effected by the individual’s thoughts and also environmental issues. It is therefore these factors that are able to persuade the consumer to decide upon one brand, product or service rather than another.

4.1 Perceptions

There are many forms of perception, some of which include self-perception, perceived risk, product, price and communicational perception; however that of self-perception will be discussed in detail.

Consumer’s self perception stems from the belief that consumers choose products that are consistent with their perceptions of themselves and reject those which are incongruous with them (Sirgy 1982).

Two self concepts have been employed extensively in consumer research: actual self image, which refers to the entire way in which the individual sees himself, his evaluation and description of himself, and ideal self-image, which is the individual’s perception of what he, should aspire to become (e.g. Green et al. 1969; Grubb and Stern 1971; Hughes and Guerrero 1971; Hughes and Naert 1970). In the last 20 years, the individual’s social self-concept, the image he or she would like others to have of themselves, has received research attention (Malhotra 1988; Sirgy 1980).

Malhotra defines self concept as; the totality of the individuals thoughts and feelings having reference to them as subjects as well as objects. Hence, self-concept includes (a) the self as knower, or subject, or I, i.e. the process of active experiencing. Furthermore, the ideal self (the person I would like to be) and actual self (the person that I believe myself to be) are important components of this multi dimensional construct (Malhotra 1988:7).

Later researches have continued by widening the scope of self-concept consumer research by looking at a variety of products, despite weak results, the research was particularly supportive of the hypothesis that consumers prefer, intend to buy or use brands/products which are more congruent with their self concepts (Malhotra 1988:5-6). However, Pollay, 1986 argues that the matching of self-image to goods and services embraces not only product attributes but promotional, distributive and pricing elements of the marketing mix. Additionally, advertising portrays products and brands that may attain their ideal selves as a result (Pollay 1986).

Despite this, some studies have produced results that contradict the general pattern, in particular Schewe and Dillon. Their investigations into self-concept, found little difference between actual, ideal and social self concept. However, the reconceptualisation of self-concept as a multi-dimensional construct has shown that these differences are valid and potentially capable of being incorporated into marketing strategies based on the segmentation of consumer’s image-based preferences.

There are numerous other forms of perception, ranging from price perception, store perception, subliminal perception and perceived risk, which will be discussed and critically compared with other research within the body extended literature review.

 4.2 Purchasing Decisions

There are a number of theories surrounding a persons purchasing decision, the most common of which is repeat purchases. This is where repeated problem solving or habitual decision making takes place. Repeat purchases often require problem solving, i.e. dissatisfaction derived from a previous purchase (Kotler et al, 2005), which often results in a change of brand or when a retailer is out of  stock of a particular item. Therefore a consumer will weigh the consequences of investing time and energy in finding an alternative product.

Habitual decision making takes different forms depending on the decision process followed in the initial purchase. For example customers will have certain expectations about the products they purchase and the retailers from whom they buy. The satisfaction that customer will experience when they expectations are met or even exceeded often results in loyalty towards that product or retailer. Typically inertia is the opposite of this and this exists when there is little or no consumer loyalty taking place. Consumers can be easily swayed, for instance a particular product is lowered in price or on promotion. (Enhrenhberg and Goodhardt, 1979).

Some earlier models of consumer response to such mediums as advertising failed to distinguish trial from repeat purchase and they therefore depict the effects of advertising in terms of a sequence of pre-purchase mental states, linking to the habitual purchase theory (Kotler et al, 2005). However, Lavidge and Steiner argue that consumer’s evaluations of competing brands could be carried out even before a purchase had been made on the basis of information supplied by the marketer, not simply by the consumer’s mental state. They argue that when brands are low, it is the consumers experience with the brand that counts and that during a period of trial which may involve several purchases which eventually determine whether it becomes part of the repertoire from which regular purchases are indeed made. (Lavidge and Steiner, 1961 & Colley (1961).

In addition, impulse buying is a more recent theory introduced by Engal introduced a theory which has brought about many arguments amongst well known theorists in the field. Impulse buying derives from an unplanned, spur-of-the-moment action which is often triggered by product displays or point-of-sale promotions within retail stores. The main characteristics of this theory are a sudden and spontaneous desire to act accompanied by urgent, emotional considerations dominate and also there is a lack of regard for consequences as it is something that is not necessarily needed, but seemed attractive at the time. (Engal et al.1990)

The figure below shows four categories of purchasing patterns, ranging from brand loyalty to variety seeking. The diagram incorporates factors such as consumer loyalty, to brands and the number of brands purchased in a particular time period.

Number of Brands Purchased in a Given Time Period

      Single                                     Multiple

Brand Loyalty

Variety Seeking

Repeat purchase behaviour

Derived varied behaviour

Consumer Commitment

High

            Low

4.3 Brand Image

Brand image refers to the organised set of perceptions consumers have formed about he brand. It is important because consumers use mental representations such as their perceptions to distinguish one brand from another and as the basis for their purchasing behaviours.

In marketing and consumer behaviour, perceptions are reality, so that brand images are of primary concern to marketers. Brand images are formed as consumers receive information from the media, from other consumers and from personal experience with brands. Brand image, though quite complex consists of several dimensions, which break down into brand personality, connotations, advantages, users and situations, and therefore some of which will be touched upon in the body of the literature review.

A brand’s personality describes what it is like- what impression does it make on the consumer; is it fashionable, lively, reliable and so forth. A brand’s personality is created through advertisement, naming and packaging. For example a black package associates sophistication, whilst a pastel package would signify the brand to by quite feminine and/or delicate.

A brand’s connotations are what a brand makes the consumer think of and also the image attempting to be portrayed. Dagnoli, looked at various advertisements to determine the image being portrayed, for example a Kool ad which used a cartoon penguin to suggest a hip or with-it message to potential smokers. In the past, Kool cigarettes have traditionally suggested the menthol taste, reinforced by both the name and the advertisement which have featured snow and running water. (Dagnoli, 1989)

Many researches of brand image have evaluated brands based only on one feature i.e. quality or price. However, more recent research has looked at a more complex theory, where several dimensions are considered. This theory is a multidimensional measurement of a product space for a set of brands which is generated by a family of statistical techniques called multidimensional scaling (Churchill 1991: 448-464).

Taking the above into consideration a multidimensional map was created and therefore used in latter research. The map allowed for consumers to compare pairs of competing brands with one another for preference or similarity purposes or simply by rating them. This of course signals that there is more than one factor taken on board by the consumer and there is a greater thought process involved when selecting one brand over another.

                                               High Prestige

                  Brand A (X)                              Brand D (X)

High Durability                                                           Low Durability

                   Brand C (X)

                 Brand B (X)

                                               Low Prestige

When compared with a latter model created by Keller, the above model which only taken into consideration two or three factors were greatly scrutinised and as a result a plethora of factors were then added to produce a more complex model involving more thought processes such as attitudes, personality, experiences and so forth.

Summary of Brand Knowledge Model (Keller, 1998)

4.4 The Apple Brand

Apple Inc is a US multinational corporation with a focus on designing and manufacturing consumer electronics and software products. The company’s best-known hardware products include the Macintosh line of personal computers, the iPod line of portable media players, and the iPhone. Apple’s software products include the Mac OS X operating system, iTunes media browser, the iLife suite of multimedia and creativity software, and Final Cut Studio, a suite of professional audio- and film-industry software products. The company operates more than 200 retail stores in eight countries and an online store where hardware and software products are sold.

On October 23, 2001, Apple introduced the iPod digital music player. It has evolved to include various models targeting the needs of different users. The iPod is the market leader in portable music players by a significant margin, with more than 100 million units shipped as of April 9, 2007. Apple currently sells four variants of the iPod:

iPod classic, portable media player introduced in 2001, with 120GB capacity.
iPod nano, portable media player introduced in 2005, available in 8 and 16 GB models.
iPod shuffle, digital audio player introduced in 2005, available in 1 and 2 GB models.

iPod touch, portable media player introduced in September 2007, available in 8, 16 and 32 GB models.
At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long anticipated iPhone, a convergence of an Internet-enabled smartphone and iPod. The iPhone combines a 2.5G quad band GSM and EDGE cellular phone with features found in hand held devices, running a scaled-down versions of Apple’s Mac OS X, with various Mac OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touch screen display, 4 or 8 GB of memory, Bluetooth, and Wi-Fi (both “b” and “g”).

Marketer Marc Gobe, author of Emotional Branding, said Apple’s brand is the key to its survival. It’s got nothing to do with innovative products like the iMac or the iPod. “Without the brand, Apple would be dead,” he said. “Absolutely. Completely. The brand is all they’ve got. The power of their branding is all that keeps them alive. It’s got nothing to do with products.”

A recent study by Satmetrix Systems ranked Apple as the computer company with the highest customer loyalty. Satmetrix sought to discover how likely customers were to recommend the company to a friend or colleague, creating a proprietary Net Promoter Score for each company. If that wasn’t enough for Apple, an annual Harris Poll of “best brands” put Apple in the top ten for the first time. The Harris Poll surveyed 2,351 US adults online and asked each to name the three brands they considered best. No list of brands was made available to the participants. Apple’s successful branding finds it in the company of Sony, Dell, Coca-Cola, Toyota, Ford, Honda, HP, GE, and Kraft.

Above all, Apple’s simplicity, attention to detail, ease of use, creative thinking, and an absence of jargon are all messages conveyed through these products. Steve Jobs has said that Apple’s position in the computer industry makes it possible to design a product from scratch. By controlling both software and hardware, Apple can integrate their products more tightly, providing an advantage over PC companies like Dell and Gateway.

Brand messages are supported by other aspects of the company’s activities as well. The first-time visitor to the Apple Web site is left with an impression distinct to the Apple brand. The site is clear and easily navigable, and it manages to avoid clutter and technical terminology. With Apple, the impression you’re left with matches the experience of the product. Anyone who has received a new iPod will tell you of the beauty of the packaging, its simplicity and attention to detail tying in with the product itself. Buying from the Apple online store, the purchasing experience, the packaging, and finally the product itself and its functions, all fit into Apple’s carefully constructed brand promise. That’s one of Apple’s major strengths – the company maintains its brand promise from the customer’s research phase on the Web site, through the online store purchasing experience, and all the way to the point where he or she unpacks and starts using the product.

The power of the Apple brand, and in turn the perception of it, is that Apple can clearly state that they are different and deliver on that pledge. In deciding on a computer, the consumer must believe in the brand, to buy into a style or an attitude. However, this not for all, since many people prefer to fit in or stay well behind the cutting edge. However, Apple uniquely owns this territory in the computer market and it’s an invaluable part of the Apple brand. Thanks to the Apple Stores, Apple can bridge that concluding gap linking brand and consumer and no longer be dependent on third-party translation of the messages they are trying to send. Read also Research Proposal sample on customer satisfaction

5.0 Methodology

Research methodology references the procedural rules for the evaluation of research claims and the validation of the knowledge gathered, while research design functions as the research blueprint (Creswell, 2003). As Sekaran (2003) further clarifies, research methodology may be defined as academia’s established regulatory framework for the collection and evaluation of existent knowledge for the purpose of arriving at, and validating, new knowledge Research scholars have identified three main purposes to the research activity. These are the exploratory, the descriptive and the explanatory purposes (Saunders et al., 2000).  Exploratory research unfolds through focus group interviews, structured or semi-structured interviews with experts and a search of the relevant literature (Saunders et al., 2000). Its primary purpose is the exploration of a complex research problem or phenomenon, with the objective being the clarification of the identified complexities and the exposition of the underlying nature of the selected phenomenon.

Punch (2000) explains the purpose of the descriptive research as the collection, organisation and summarisation of information about the research problem and issues identified therein. Descriptive research entails the thorough examination of the research problem, for the specified purpose of describing the phenomenon, as in defining, measuring and clarifying it (Dane, 1990).

Taking the above into consideration both desk research and field research will be carried out in this dissertation to ensure the robustness of the study as a whole. The desk research will examine and analyse previous researcher’s theories and published literature, thus allowing for a clear constructive argument either in favour or against some of the previous research or established approaches.

Field research will come in the form of a focus group and also a questionnaire in order to support my own argument(s) regarding consumer behaviour and brand image. The focus group will consist of approx 6-8 people and last no longer than 45 minutes; each individual will be presented with various photographic images and in turn questioned about what they have been shown. The focus group discussion would be moderated by a skilled individual who will ensure that none of the respondents deviate from the main purpose of discussion; however, respondents would be allowed to talk freely about and to comment on the photographs. Thus this will enable to extract the inner most perception of the respondents to be documented to further enhance the authenticity of our study.

Dependent upon the success of this, a 2nd and 3rd focus group may take place to ensure consistency; again this will consist of approximately 6-8 respondents and entail a similar process. It is hoped that the focus group will help to pick up on each person’s perceptions of the brand(s) they are presented with and how they associate with those particular brands.

The questionnaire will take the form of stratified sampling of proximately 250 respondents, whereby people of all ages and genders will be asked a series of questions relating to consumer behaviours and brand identity within the portable audio market. The reason for using this particular method is because this method allows for the breakdown of information. In this instance the data collected can be broken down so that occurring trends can easily be recognised and in turn analysed. In addition, these particular types of sampling are because it allows for up-to-date and accurate results, thus allowing for easier statistical analysis.

 For example, the data can be split into gender, age groups or more specifically as a percentage of those who are female, aged 16-25 and shop on a regular basis. Questions would therefore include; do you as a consumer regularly buy a particular product or brand and if so, what is the reasoning behind such a purchase decision? Such factors would therefore include price, appearance/style, brand of the product, features of the product and so forth.

Upon completion of this particular research a statistical analysis programme SPSS will be used, thus allowing for the collected data to be produced in graphical form, making the data far more coherent and comparable with previous research carried out on my chosen subject.

As the focus group will be recorded, the information will be interpreted and written down word for word. This information will then by analysed for any reoccurring themes. For example, if during the focus group individuals associations with Apple products are similar; this would be a re-occurring theme and would therefore be a solid talking point within the data analysis.

5.1 Limitations to Research

The only major limitation to the research is that of time, therefore it is critically important that careful planning and use of time is adhered to. Selectivity is also of importance, with regards to the use of previous research, as a result, the research used within the dissertation must be relevant and aid the argument being portrayed. Therefore a large amount of research and time must be spent reading through texts/journals and so forth in order to establish which information will benefit the dissertations research.

5.2 Anticipated Results

It is anticipated that due to the methods of research being adopted, the results achieved will be both accurate and therefore reliable. It is expected that there will be a strong correlation between those individuals who are frequent purchasers of one particular brand or store and those who have store rewards/loyalty cards. Thus such a comparison will be made once the results of the questionnaires and focus groups is collected and then rigorously analysed for any possible trends.

5.3 Resources Needed

To carry out certain tasks there will be a need for a few essential resources. The first of which, will be access to a rather large classroom with access to a computer in which to carry out the focus group, a room big enough to accommodate the 6-8 people that will participate. The focus group will be recorded, so access to a voice recorder or video camera would be extremely useful for future reference.

5.4 Credibility of Research Findings

Ultimately, the data collected is used to form up the draft(s) for the research findings. If the data is not verifiable, the implication is that the findings are potentially deficient; therefore all collected data would be cross-checked and validated by various means. Accordingly, it is incumbent upon the researcher to validate his/her findings (Sekaran, 2003).

In summary, it is vitally important that the previous research I use to support my own research is credible and strengthens my case or I have gathered enough proof to counter any established theories and findings. I must therefore by very selective in terms of what data I choose to incorporate into my dissertation.

5.5 Reliability

A study is reliable only if another researcher, using the same procedure and studying the same phenomenon, arrives at similar, or comparable, findings (Sekaran, 2003).

Even with the best of intentions in mind, the researcher is often confronted with a variety of variables which may impinge upon the reliability of his findings. Quite simply stated, if he is partly drawing conclusions on the basis of questionnaire and interview data, it could very well be that respondents were biased or, simply not in the mood to answer the questions with any degree of interest. It is not at all uncommon for respondents to simply tick of response options without reading or considering them (Sekaran, 2003).

The reliability is something which I intend to take into serious consideration. As a result my chosen method of sampling for my questionnaire is one of the more reliable methods in which my approach is not biased and is not selective in any shape or form. The respondents in which I will select will have to show a willingness to participate in the study and will be given ample time to answer their questionnaires, thus allowing for their answers not to be rushed and blindly answered. In addition, the focus group will again be selective, with people of all ages, allowing for a non-biased outcome, thus supporting my reliability of the collected data. To enhance the reliability of the current research, the above shall be considered and meticulously applied.

5.6 Validity

Saunders et al. (2000) contends that a research is valid only if it actually studies what it set out to study and only if the findings are verifiable. The

validity of the research concerns the research design and that it fully addresses the research aims and objectives. It is therefore extremely important that the dissertation requires a vast amount of planning and preparation, with a primary focus on the research aims, ensuring that they are fully satisfied. It is therefore the intention that the research aims remain attainable and be thoroughly discussed, analysed and evaluated throughout the course of the dissertation.

6.0 Conclusion

As may have been deduced from the above, the research shall adopt a mixed methodological approach. The selection of the above explained methodology was imposed upon the research by the nature of the phenomenon under investigation, the multi-layered nature of the research problem and the imperatives of satisfying the study’s diverse, but interrelated, objectives.

7.0 Schedule and Budget

Below is a gannt chart to show the timescale which is to be used throughout the course of the dissertation, taking into account the various meetings with a dissertation tutor and also hand in dates.

1/12/08
15/12/08
29/12/08
12/1/09
26/1/09
9/2/09
23/2/09
9/3/08
23/3/08
6/4/08
21/4/08
Submission of Research Proposal

Meeting with supervisor

Background Information

Research Aims ; Objectives

Literature Review

Meeting with supervisor

Methodology

Focus Group taking place

Distribution of questionnaires

Meeting with supervisor

Ethical Considerations

Collection ; Analysing of questionnaires

Submit Draft Dissertation

Timescale

Resources

References ; Bibliography

Submission Date

8.0 References

Foxall, G. R. (1990) Consumer Psychology in Behavioural Perspective. London and New York: Routledge

Engel, J. F., Blackwell, R. D., ; Miniard, P. W. (1995). Consumer Behaviour, 8th Ed. Chicago: Dryden Press.

Foxall, G. R. ; James, V. K. (2003). The behavioural ecology of brand choice: how

and what do consumers maximise? Psychology and marketing, 20, 811-836.

Foxall, G. R., ; Schrezenmaier, T. C. (2003). The behavioural economics of consumer brand choice: Establishing a methodology. Journal of Economic Psychology, 24, 675-695.

 8.0 Bibliography

Websites

http://arstechnica.com/journals/apple.ars/2006/07/12/4625

[Accessed 23/11/2008]

http://www.wired.com/gadgets/mac/commentary/cultofmac/2002/12/56677

[Accessed 22/11/2008]

http://www.theregister.co.uk/2008/03/31/brand_poll/

[Accessed 23/11/2008]

http://rpcevents.wordpress.com/2007/09/14/how-apple-creates-brand-loyalty/

[Accessed 23/11/2008]

http://academic.mintel.com/sinatra/oxygen_academic/search_results/show;;type=RCItem;sort=relevant;mode=accessible;list=search_results/display/id=173680

[Accessed 23/11/2008]

http://www.apple.com/products

[Accessed 22/11/2008]

http://www.apple.com/thebrand

[Accessed 22/11/2008]

Journals/Articles

Markoff, John (January 9, 2007). “New Mobile Phone Signals Apple’s Ambition”. The New York Times

Alexandru M. Degeratu, International Journal of Research in Marketing, Volume 17, Issue 1, 31 March 2007, Pages 55-78, Consumer choice behavior in online and traditional supermarkets: The effects of brand name, price, and other search attributes

Klowden, Tanya (July 12 2006), Apple Shines at customer loyalty and branding, Ars Technica

Gordon R Foxall, Jorge M Oliveira-Castro, Victoria K James, Teresa C Schrezenmaier, August 2007 in Management Online Review, Consumer Behaviour Analysis and the Behavioural Perspective Model

Textbooks

Foxall (1998) Ronald E Goldsmith and Stephen Brown, Consumer Psychology for Marketing, International Thomson Business Press,

Keller, K (1998) Strategic Brand Management. Prentice Hall. New Jersey

Sirgy J, M (1980) Social Cognition and Consumer Behaviour, Praeger

White, B (2000) Dissertation Skills for Business and Management Students, Thomson Learning

Blackwell D, Roger, Miniard W, Paul ; Engel F, James (2001), Consumer Behavior, Ninth Edition, South Western, Thomson Learning

Mowen C, John (2000) the 3M Model of Motivation and Personality, Theory and Empirical Applications to Consumer Behavior, Kluwer Academic Publishers

Philip Kotler ; Gary Armstrong (2005) Principles of Marketing, Prentice Hall.

Consumer Behaviour Dissertation Questionnaire

This questionnaire is to assist with an ongoing dissertation regarding consumer behaviour and brand image, if you could answer the questions both honestly and accurately, then return the form as soon as possible.

 (1) Are you male of female?

Please circle one
Male
Female

 (2) Approximately, what age group do you fall into?

Please circle one
0-16
17-25
26-40
41-55
56-70
71+

(3) How often do you shop for consumer goods?

Please circle one
Once a month
Once a week
A few times a week
Every day

(4) Do you shop frequently with one particular store/brand?

Please circle one
Yes
No
Sometimes

(5) What prompts you to do the above?

Please circle one
Quality of product
Price of product
Customer Service
Loyalty schemes
Convenience reasons

(6) Are you a member of any company loyalty schemes?

Please circle one
Yes
No

If yes, please circle the following, if not listed then please state ‘Other’

Please circle one or more
Nectar Card
Tesco Club card
Boots Card
Marks ; Spencer’s
Game
Other

(7) Have you ever bought a product on impulse, an unplanned purchase?

Please circle one
Yes
No

(8) What prompted you to do so? (If You answered ‘No’ to (7) then skip this question)

Please circle one
Price Lowered
Attractiveness (display)
Convenience
Promotional Offer
Unexplained

(9) Have you ever regretted buying a product that was unplanned?

Please circle one
Yes
No

(10) Which of the following brands would you associate with most?

Please circle one
Sony
Archos
Phillips
Apple
Samsung
Creative

(11) Do you like the above state brand because of its

Please circle one
Price
Innovation
Ease of Use
Durability
Uniqueness

(12) Are these brands owned by your close-ones?

Please circle one
Yes
No

(13) DO you own a product of the stated brand?

Please circle one
Yes
No

Thank you for completing the questionnaire, your feedback is greatly appreciated!

In the survival game, the Macs have positioned themselves strategically in growth areas, chasing volumes and shedding the ‘premium’ image. Though the craze for ‘foreign’ cosmetics cannot be ignored, it has not been smooth sailing for Consumer Behavior of Lake By impurity the Macs. Understanding the color tot the cosmetics market NAS been an arduous recess for most players. That the premium market is limited in size was not realized early. The medium and low ends are where the volumes are almost as high 95 per cent. Macs such as L’Oreal, Airframe and Avon, which entered in the mid-sass, realized the importance of the segment game and started reformulating their strategies.

The size and the potential of the cosmetics market, like many others, have been grossly misjudged. First, the middle-class users, which was taken to be 60 millions, had to be pruned by half. Second, with little understanding of the income asperities and the willingness to pay, the players were caught unawares by the price sensitiveness and the heterogeneous sets of needs at different price points. Third, a discrete change had occurred in the perception of cosmetics _ from a functional to a fashion item, with emphasis on choice. These have made the task of market development complex. Macs such as Milliner (with its Pond’s line), Procter and Gamble (Oil of Lola) and J.L.

Morrison (Naive range), which have a long presence and an understanding of the domestic market, succeeded only after learning about the varied preferences of consumers. This being a continuum, they are still unlearning and relearning to fashion new strategies and introduce competitive products. The entry of Macs also helped the efforts of marketers and dispelled the notion that colors are harmful for the skin. The products are now packaged as having skin moisturizing and enriching agents too. As a result, the number of users and the frequency of use have risen markedly. Till the sass, the market was ruled by Lake, a Data brand, and a distant second was Tips and Toes (manufactured by Paramount Cosmetics, a local company).

Though Indian consumers crave for foreign brands, repetitive prices forced them to remain loyal to the local brands. This prevented a marked change in the market leadership structure. Hindustan Lever Ltd (HALL) has become a domino with the takeover of Lake and Pond’s, and its furiously growing strength in personal-care products. This, however, can change. Macs are strong enough to indulge in long-drawn battles, given to their long-term commitment and deep pockets. Overall, the cosmetics and toiletries market _ the dearth of detailed data notwithstanding _ is estimated at over RSI. 1,600 scores. Color cosmetics continue to be the most active segment at RSI. 00 scores, of which, lipsticks account for RSI. 90-100 scores and nail enamels, around RSI. 110 scores.

Once the market matures, more consumers are expected to graduate to the premium segment of perfumes and color cosmetics. This is happening at a fast pace, thanks to the growing awareness and increasing disposable incomes. From 1996 to 1998, the cosmetics and toiletries market grew at 30-35 per cent. While the growth still remains a healthy 20-25 per cent, consumer trends reveal that the low- and medium-priced products are the ones in demand _ a trend dictated largely by Lake. Selling strategies of cosmetics are hanging to suit Indian conditions and consumer requirements. Macs have been experimenting with selling methods and resorting to customized pampering as never before.

This route focuses on value addition to create new customers, build brand loyalty and increase market-share Technology is being used innovative for direct interaction with consumers at the retail level. Mobile units are also being deployed. These efforts are aimed at enhancing sales volumes, and boosting the growth of cosmetic industry in India. Lake is an Indian brand of cosmetics, owned by Milliner. Lake had started in 952, as a 100% subsidiary of Data Oil Mills (Tomato), part of the Data Group. It was named after the French opera Lack. However in 1996 Data sold off their stakes in Lack Lever to HALL, for RSI 200 Core. A brand that has over 5 decades talked of beauty- Lack, offered a range of cosmetics with nail polishes ; lipsticks from the early sass’s.

Lack understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. Even today, when most multinational beauty products are available in India, Lake still occupies a special place in the hearts of Indian women, because of it’s brand positioning strategy. The strong point of Lake, experts say, is its reach. With a retail reach of close to 1000 counters and an overall direct reach of 40,000 stores, Lake is one of the most widely available brands. This large presence gives the brand volumes and makes it the largest cosmetics brand in India.

Lake provides a wide range of beauty products which includes products for lips,nails,eyes,face and skin. It also ventured into beauty services business with the launch of ‘LAKE Beauty Salons’ price.

Price:

1. Promotional pricing
2. Respond to competitors prices.
3. If the competitor changes prices, company have to analyze the market situation and then change the price accordingly.
4. Differentiated price .

PLACE:

There is significant change in market distributional channel of cosmetic products: Distribution Places are: * Super Markets * Departmental Stores * Food Stores * Cosmetic counters * Beauty Salons * Hyper Markets Lake distribution also merged with HULL. HULL is having 3000 distributors around the country and lake have 1000 distributors. Currently retailed through 1 5000 counters across India. Soot Analysis of Lake: Strengths: * High quality manpower resources * Brand Name * Vast range of products and services * Distribution Channel is integrated * Milliner global technology capability Weakness: * High Service costs Use of hard Chemicals Opportunities * Brand growth through increased consumption depth * Growth in Business of beauty saloons * Lake beauty training academy in Iambi, Achaean and New Delhi.

Virtue is aging a unique approach to that of the technology-obsessed mobile-telephone industry. Its concept is based on craftsmanship (I. E. Uniquely customized handsets), style and service- in the same vein as luxury watch and Jewelry manufacturers. Virtue Signature mobile phone is encased in metals from stainless steel to platinum and decorated with sapphires (virtue. Com). The design reflects poise and stature. Hence, Virtue performs highly on the symbolic (I. E. Expressive) level and giving the perception of being more a piece of art, rather than Just a high technological (I. E. Instrumental) mobile phone (Sanderson, 2002).

Added values such as 24 hrs concierge service which can organism restaurant, travel and hotel bookings are included in the purchase. Its flagship store opened in Paris 2002, and now exists in Consumer Behavior Report for: Virtue “Life. Beautifully Arranged” By Semiannually over 70 countries worldwide. It also NAS a well-developed online boutique (virtue. Com). Prices range from 5,555 to 270,000, hence the most expensive mobile phone brand in the market (Sanderson, 2006). This paper highlights Virtue’s target profile by explore some situational influences, their decision making process, and ales.

In addition, external influencing factors such as social class and lifestyle are investigated. A study was also conducted, where subjects were asked to answer a questionnaire about their opinions and values. The result revealed that most subjects emphasized quality, design, and technological features when considering purchasing a mobile phone, but also a value of being unique. Based on the theory in this paper and the study done, recommendations will be highlighted in the last section. A Survey (see Appendix A) was conducted in order to explore and identify the profile of Virtue’s target.

The questions focused on their perceptions and values of Virtue and from what references and sources they seek information. Participants Fourteen (N=14) business professionals in the finance, IT, marketing and law sector were randomly selected from my network of friends and assigned to answer 15 questions in a survey. Pre-requirements of the selection process were that participants had to be in age of 30 and above, be working professionals with an average income of 9000 SAG and above. Eight (n=8) out of the 14 participants were Swedish, three (n=3) British, one (n=l) Singapore, and two (n=2) Americans.

Thirteen of the participants were males, whereas one female. The median age of the participants where 34 (SD=2. 2). Five of the participants were singles, four were married, and four lived in cohabitation with a partner. All of the participants (except the two Singapore) where expatriates currently working in Singapore. Procedure The survey questions were distributed during different occasions. Some participants got their questions at different bars around in Singapore, others at lunch places during working hours in the CB area, and some answered the questionnaires via e- mail. Results

After the data was collected, a brief (analogue) analysis was done to find out the overall perceptions of subjects on quality, design, price, uniqueness and status, rah service, technical features- and how much interest the participants had in Virtue. See the distribution in Table 1 below. Table 1. As Table 1 demonstrates, subjects did most likely prefer quality, design and technical features over, for example, rah concierge service. In addition, based on the survey, price seems not to be a determinant factor when considering purchasing a mobile phone, but still perceived relevant.

Uniqueness and price attained equal portions of references among subjects, and interest in Virtue was overall quite low (e. G. When asked if they were likely to consider Virtue as an alternative when aiming to purchase a mobile phone). Discussion & Limitations The procedure and selection process has its limitations thus weakening the validity of the survey. First, the participants were not fully randomly selected since all were from the researchers (my) network of contacts and friends, hence, risk for biases (e. G. Response bias). In addition, those who received the questions in bars may have been inebriated while answering the questions.

Thus parts of the process were not adequately and seriously done. On the other hand, despite risk for some unethical issues, the questions were distributed in a ‘real world’ setting- in the midst of the targets lifestyles- which at least might be more relaxed for the participants, and may giving us a closer insight to targets values- than if the participant would do the survey on the street in a hurry, or in a artificial laboratory setting. Based on the result from the questionnaire, in advantage of Virtue, subjects preferred quality, design, technical features and in some sense the value of purchase unique things.

However, to the disadvantage of Virtue the subjects were slightly price conscious and did not consider the added value of rah concierge service that much. In addition, since some of the questions were based on a liker-scale (1-5) and some on a forced distribution, it is difficult to understand the underlying factors of why certain aspects were more preferred than others. Open ended questions and interviews may therefore be more advantageous if seeking underlying factors. Assuming, in terms of the concierge service, many of the subjects may already have access to similar service.

For example, American Express Platinum card provide its customers with the same type of service, hence, the subjects may not put value on another product with similar service- because they do not need it. Other cultural factors may also play a part in the perception of Virtue. 3. Target Decision Making Process 3. 1 Situation & Influences A situation is a set of factors, external from the individual consumer or the stimulus object (e. G. Product or advertisements) to which the consumer is reacting (Sequester et al, 2010).

Although various psychological and sociological factors contribute to explaining different patterns of consumer behavior, it is the context that mediates the different behaviors (Sequester et al, 2010). Hence, consumers behave differently in different situations. There are four main types of situations, such as: communication, purchase, usage, and disposal situation. Based on these, five dimension schemes have been developed which classifies and objectively measures situations such as: physical and social surroundings, temporal perspective, task definition and antecedent states.

For instance, communication situation refers to the context in which consumers receive information about certain products and services. This specific situation affects the degree of how receptive consumers are for marketing communications (e. G, advertisements or TV commercials). For example, research has shown a positive relationship between mood and receptiveness of communication (Sequester, et. Al, 2010). That is, people in a better mood tend to be more receptive for information Hence, the antecedent state (I. E. Momentary mood) is one variable that interact and influences the situation which lead to a certain behavior.

Other situations such as; if we are in a hurry or not (I. E. Temporal perspective); alone or in a group (I. E. Social rounding’s) also affecting our receptiveness for information and intentions to purchase (Sequester et al, 2010). Hence, it is imperative that Virtue understands the different contexts where its high- interest potential buyers are most likely to be receptive for information and what methods most suitable in order to get the targets attention. In addition, most people ‘create’ many of the situations they face.

For example, a person may deliberately choose to engage in physically challenging sports and therefore indirectly expose themselves to situations of ‘being thirsty or ‘being tired’ (Sequester, et al. 2010). Thus, peoples (or specific targets) lifestyles are highly important for marketers to study, in order to develop advertising and segmentation strategies based on the situations that individuals are likely to encounter. ‘The situation of Virtue” Research shows that a buyer often purchases products that reflect and enhance the self-concept (Seafarer, 1998; Pride et. L, 2007). A first-time buyer of Virtue’s signature mobile may be due to that person’s social situation. For example, the person is a member of the high-society and has a desire to express or reinforce his or her tanning in the society or group of people, and perhaps aiming to impress his or her social surrounding (see section 5). 3. 2 Information search High purchase involvement leads one to search for more information and spend more time in order to make the right selection ( Sequester 2011). Hence, making it to an extended decision making process.

This process involves both internal and external search. Internal search refers to a person’s cognitive ability to identify alternatives from memory. For example, a person may remember that a colleague was a satisfied owner of a Virtue phone. Hence, the person may place Virtue directly into his or her evoked set (I. E. Set of interesting brands to choose from). Research has shown that people with higher SEES (I. E. Socio-economic status) are more critical in their external search and going through many sources before decision takes place (Sequester, et. Al, 2010).

Examples of external search may be to ask other friends or colleagues that have opinions about Virtue (I. E. Informational influence), or seek sales staff to ask about the products features and benefits etc. This was also in line with the survey conducted in Singapore, where most subjects selected trends/colleagues and sales response as most frequently sources but also online sources and own earlier experiences was used when considering purchasing a mobile phone. In terms of evaluative criteria, the potential buyer of Virtue consider high quality of performance and design, and the uniqueness of the product as top criterion.

If the product do not meet the expected outcome (see section 4. 3), there is a high risk for the customer to experience cognitive dissonance. That is, the customer will start having doubts about the purchase which can result in disastrous consequences’ for Virtue’s reputation. For example, as mentioned in the process of decision making, Versus potential customers often go through friends and colleagues when searching for info about the product. Hence, dissatisfied customers will not recommend Virtue to others, instead may spread negative words about Virtue. 4.

Factors influencing consumer behavior 4. 1 Store Image & Serviceable Store image refers to all attributes that can be associated with the retail outlet (Sequester, et. Al, 2010). For example, merchandise, service, clientele, physical facilities, atmosphere, promotion and post-transaction. Virtue stores are strategically placed in exclusive shopping districts, close to other exclusive brands, thus, benefiting from a all effect. That is, if a new shop is placed in a cluster of luxury shops, people tend to also perceive the image of that shop as luxurious.

This phenomenon can also be explained by the Gestalt theory whit the emphasis on ;the sum is greater than its parts”- which means that the holistic view has a greater impact on a person than isolated details (e. G. Heterosexual, 2004). Therefore it is also imperative that the alt the small different attributes of a store gives a nice holistic view and reflects what the store ‘stands for’. For example, Virtue has put large amount of effort on its service- cape to create an exclusive atmosphere, and thereby differentiate itself from common mobile phone outlets.

The emphasis is put on consumers buying experience to creating a “gallery-like” feel to its retail environments. For example, original artworks commissioned and exhibited throughout the stores. In addition, each display case is made from architectural glass, limestone textures and floors combined with warm lighting, ultimately enhancing the ambiance of the store. Further, the offering of a first class personal service combined with extensive product knowledge gives the image of being reliable.

These service escape create the Whole’ of Virtue’s store image and are considered highly suitable for Virtue’s positioning of its brand and a good strategy to meet the sought targets expectations of a high-end store. Values are conceptions of desirable ways of behaving or desirable end states- for example, friendship, respect for tradition, living healthily, equality, ambition, or preserving the natural environment (Feather, 1996). Most values are culturally shared, but individuals differ in how they rank the importance of specific values.

Values tort important ingredients tot a person’s sell-concept an thus contribute too person’s sense of identity (Feather, 1996). For example, a person might consider him- or herself as being honest and might thus mention this value when asked to describe him- or herself. Values are sometimes shared with others and might constitute the basis of group, professional, political, or cultural identities (see section 4. 4). With regards to the expectancy theory developed by Broom (1964), people will decide to act in certain way (e. G. Purchase a product) because they are motivated to attain a desired and expected outcome of that specific behavior.

In addition, Fishbone & Zen (1975), emphasized that antecedents of behavior are modeled in terms of one’s expected utilities of outcomes. A choice alternative in a decision problem is thus characterized by the perceived likelihood of an outcome, which has a certain degree of attractiveness. That is, values may influence a choice by determining the attractiveness of outcomes that are relevant to those values (Everyplace ; Seven’s, 1997). In other words, a value might be perceived as important not only because it is part of a person’s self-concept (I. E. How the person perceive self) but also because of social norms (I. Common behaviors in society) or self-presentation (I. E. What image one wants to present to others; Feather, 1996). However, values need to be ;activated” to affect information processing and motivate certain behavior (Higgins, & Ukrainians, 1996). That means, although, a value can be important to a person, the activation determines whether the value will lead to a certain action. Activation occurs automatically when values are the primary focus of attention, and once this motivation is activated, goal-directed cognitive and behavioral processes may follow spontaneously (Barge, 1990).

Simply, values are motivational constructs: living up to a value fulfils a particular, highly abstract goal. Therefore, it is crucial for Virtue to raise the question of ;what can be done in order to be valued among the target group, and achieve their attention? ‘. An example can be to put effort on the product itself (e. G. High quality material, functions and design), and through a well done service-escape, store image and promoting its brand in an appropriate manner. But most important overall, may be to put effort on adequate research on target consumer and their values.

This because, values are not recitalists, instead ever changing in pace of political, economical, legal and all other changing factors of the global environment (e. G. The impact of a economic crisis,or natural disasters on consumers behavior). Marketers must therefore be aware of the macro environmental changes that occur, in order to forecast consumer behavior on a micro level. That is, we must follow the values and needs of the targets in the specific context and be quick to respond to these. Research (to be up- to-date of current situation), and based on that create innovative solutions to meet these needs.

Levy (1976) explicitly described social class variations as Variations in lifestyle’, with differences in the consumption behavior of classes being attributable to lifestyle differences. Virtue’s target market group consists of the social elite which can be related to the category tot upper social class. W n regards to the single-item index, the detrimental dimensions of a person being upper class refers to; higher education, perceived prestigious occupation and a higher income than other social classes. This view creates and defines distinctive social groups of different classes (e. G. Lower, working, middle, and upper class).

However, many people argue that it is more appropriate referring to ‘socioeconomic status’ (SEES) instead of social class because it is more equivalent occupational based classifications. The distinctions between classes have therefore been blurred, and many people seeking to avoid using the term class. This may especially be emphasized in countries such as Australia, New Zealand, and Scandinavia and parts of Europe, where notions of class hierarchies with associated privileges are very much against the egalitarian ideals expressed in other aspects of these countries culture (Weber,1978).

Nevertheless, social class (or SEES) is one of the external influences on consumer behavior (Sequester, et. AY, 2010) and is therefore an important factor to explore. According to Coleman & Rainwater’s reputation approach, social class structure refers to the reputation, and relying heavily on ‘person-in-the-street’ imagery (Sequester, et. Al, 2010). The approach is based on the US population where the social-standing class hierarchy of the upper class is divided into 3 categories; the upper-upper class (0. 3%), lower-upper class (1. %) and the upper-middle class (12. 5%). The upper-upper class consists of the royalty and people with aristocratic names ho often having an inherited wealth. The lower-upper are the newer social elite, with prestigious occupational roles or corporate leadership. Upper-middle class refers to university graduate managers and professionals. Although, all people in the same social class do not have exactly same lifestyles, some similar patterns of consumption behaviors, activities and shared values can be identified.

For example, the upper-upper class elite do not buy to impress, they tend to be conservative consumers and often have the same old suits or cars in many years and not keen to change until it is necessary. That because many of their things and belongings are to be kept within the family and passed on through generations (Seafarer, 1998). However, according to Morton (2004), the lower upper classes buy to impress. They purchase items such as expensive cars, large estates and expensive Jewelry to demonstrate their wealth.

They buy furnishing, artwork, and collectibles for their homes. They also purchase personal clothing (I. E. Mostly tailored clothes such as suits). They expect quality, one of a kind items and excellent service. Hence, they want to have unique products that make them feel unique (Morton, 2004). Therefore, Virtue’s strategy of making uniquely customized handsets (SUCH) can be considered as highly appealing to this market. Moreover, lower-upper class people spend on services that often save them time such as cleaning and cooking. They hire maids, chauffeurs, nannies and nurses.

They tend to live in large cities known as money and power centers and likely to owe their own properties. Examples of occupations within this group are often top managers, doctors and lawyers, or extremely well paid sportsmen and entertainment celebrities. Generally, those in the lower-upper group ant a lifestyle that blends the upper-uppers pursuit of gracious living and the upper-middles success drive (Morton, 2004). Examples of similar lifestyle patterns between upper-class members may be attending or performing prestigious sports such as Fl, tennis, skiing, sailing, and horse-polo.

Many playing golf (although nowadays the sport is no longer that prestigious as it ones was) or sail. They like taking vacations and are traveling frequently. They dining out, but also put much energy on ;home cooked” meals using finest cuts of meat, fine wines and high quality products. They value self-expression n their occupations and lives. In addition, they value competence and belong to more organizations and read more professional Journals than the general population (Wong, ; Aviva, 1998).

Hence, it is important for Virtue to understand what medium the targets use and train its sales staff to learn extraordinary customer service with an in-depth knowledge about the products. According to a U. S study where upper class people were asked to describe themselves from a list of 25 adjectives, very few respondents said they consider themselves as impulsive (17%), risk takers (18%) or entrepreneurial (24%). Instead, the greatest share of affluent Americans perceived themselves as; independent (65%), well organized (55%), goal-oriented (54%), and confident (51 %). Hess self-descriptions may not be the same if the upper elite in China or other countries were asked. Different cultures have different values, perspectives and behaviors, thus, the U. S study cannot be generalized to other cultures. Accordingly, the American study reflects much of Americans perspectives on ‘right’ behavior. For example, being ;independent” put emphasis on the cultural dimension of individualism (I. E. Elf before others), ;structured” with emphasis on planning refers to Americans perception on time, which can be explained as sequential and well planned.

In addition, goal oriented behaviors highlight the achievement-oriented approach that many westerners have, and last, ;confidence”, which can be associated with Americans bold approach towards the nature (I. E. The perception of having an internal locus of control and imposing their will on others). Interestingly would be to explore the self-perceptions of the social elite in Asian countries since the personal characteristics may differ from the Americans, assuming, with more emphasis on collectivism, ascription and external locus of control.

Perhaps, due to the larger power distance and ascribed status in China (and many other Asian cultures), social classes may also be more traditional (I. E. Distinct) than in other more egalitarian countries where power is not accepted and expected to be unequally distributed. Although, lifestyles of upper-class people may be quite similar across the world, culture differs and also determines certain patterns of behaviors’, or at least gives explanations of different values and why people behave in certain ways (Wong, & Aviva, 1998).

Hence, it is highly important for marketers to understand cultural differences in order to rely on peoples self-perceptions and from that knowledge reach targets by advertisements that ‘connects’ with that self-image. This to minimize the risk for international marketing mistakes. Moreover, one cross-sectional study was done in US, Jordan and India on the cultural dimension of uncertainty avoidance (I. E. Anxiety for the ‘unknown’ hence avoid uncomfortable situations, read Hefted, 1993), and the perceived risk on internet buying. The data was collected and analyses trot USA, Jordan, and India.

The results revealed that, in cultures where uncertainty avoidance is high (e. G. Asian countries and some European such as Germany) the perceived risk with internet buying was also high. Similar results in cultures where perceived risk is high, it impacts internet buying negatively. Hence, cross-cultural differences should also be taken into account when marketing online in different cultures (Englewood & Malaria,1986). In addition, more cross-cultural research on cultural dimensions would be necessary in today’s global market in order to implement an appropriate marketing mix.

Based on the survey done, and the theories explored, we may summarize Virtue’s target profile as living a ‘high-life’ where quality, design and uniqueness are valued. Virtue’s store image and service escape can therefore be concluded to reflect the target appropriately. The result from the survey revealed that most of the subjects were not very interested in the Virtue brand, neither in the concierge service that is one of the added-values that the company emphasizes. This may be because similar service is provided from certain credit cards, which many of ‘high-society already people have.

In addition, the subjects low interest of Virtue is hard to explain, but may lie in the low awareness of the brand, and that the subjects (although having the spending power) were slightly price conscious and therefore not interested after have done a cost versus benefit calculation. Moreover, it should also be taken into account that the largest portion of subjects were Swedish, which may explain lack of knowledge and awareness about Virtue (since there is no filial in Sweden).

In addition, due to the general Swedes egalitarian approach and the mindset of ‘everything in iteration’ (except from alcohol consumption which is remarkably high) luxurious high status brands may not appeal that much to Swedes. In fact, among the Swedish ‘elite’, it has been quite ‘UN-trendy to wear clothing and apparels from the most famous luxury brands. However, the generation X & Y of Swede’s ‘high- SEES’ people, do value quality, design and unique (e. G. One of a kind) things so Virtue might be somewhat attractive and appealing.

However, the sample size was too small thus cannot make a wider generalization. * Promotion/ Advertising Strategy Vaughn (1986) researched how advertising works, and how best to establish ammunitions objectives. He introduced the Foote, Cone, Belling (FCC) strategy matrix, suggesting that advertising works differently depending on the product involved. Vaughn work allows advertisers to select the communication method based on the type of product they are advertising, and the attitudes that consumers are likely to have towards the product.

The BBC matrix divides advertising strategy into two dimensions based on thinking versus feeling, and low involvement versus high involvement. Since Virtue is more of a high-involvement product only these will be explored below. High-involvement -Detective (telling) This product decision has high involvement but requires less specific information, therefore and attitude or feeling towards the product is more important. It is a psychological model, because the importance of the product is connected to the consumers’ self esteem (Vaughn, 1986).

The advertising strategy requires emotional involvement on the part of the consumers so that they become connected with the product being advertised and subsequently become “feelers”. Therefore, the proposed model is Feel – Learn – Do. The suggested tactics include using large dramatic print exposure for media considerations and use a high-profile person to rate attention and a ‘personality related to the product. However, Ogling (1985) warned against the use of celebrity endorsers and believed they are below average in their ability to change brand preferences since viewers remember the celebrity but forget the product.

Accordingly, since Virtue in fact is targeting celebrities itself, it may not be the most effective way to use a celebrity endorser in the advertisements (with the assumption that targets desire to be unique and not aspire to look like another). This approach may be more suitable to the (mass) middle market (who may aspire to upward mobility). On the other hand, it might be effective for Virtue if the advertisements create a feeling of uniqueness and reflects the lifestyle of the targets in order to ‘connect’.

Many social psychologists argue for that similar attract similar (Heterosexual, 2004). Therefore, creating advertisements that mirrors the similar lifestyle or self-image of target would be recommended. This can be done in selected business magazines, on fashion related events or in some ‘luxury lifestyle magazines. High involvement- Thinking (informative) Many major purchases such as cars, homes, electronic equipment are likely to convey message of what it is, its function, price and availability.

A large amount of information is necessary because of the importance of the product and the basic strategy model is to adopt the Learn – Feel – Do (instead of Feel-Learn-Do) sequence where information is designed to build attitudinal acceptance and subsequent purchase. With regards to targets relatively extended decision making, an informative advertisement may be appropriate to influence the potential consumer. In addition, men tend put more emphasis on technical features than females (who more likely will be affective and fall in love’ with the product; Nudism, 2006; Sequester, t al, 2010).

Therefore, when Virtue is promoting its more ‘masculine’ models, it may consider the informational advertisement appeal, whereas the affective appeal could be more suitable on its feminine’ phones. * Positioning Strategy Virtue is positioning itself away from other mobile phones and instead placed in the category of high-end fashion, Jewelry and watches (virtue. Com). Therefore it might be advisable if the advertisements are placed in the same type of mediums in orders to ‘connect’ Virtue with haute-couture, or as a piece of art. This creates awareness of

These different decision making models are approaches the problem of consumer decision making differently. The Engel-Koalas-Blackwell model is essentially a conscious problem solving and learning model of consumer behavior. This model has a good description of active information seeking and evaluation processes of consumer. The information processed in this model is the stimulus. The consumers decision processes act upon this stimulus in order to determine a response to it. These models attempt to explain each stage and show interrelated between the stages of consumer buyer behavior from the stimulus, through the purchase to post purchase behavior. The Howard-Sheet model (1969) is a learning model designed to explain the brand choice of an individual faced with several choice alternatives. Limitations and constraints of marketing

This model is an attempt to explain rational brand choice behavior within the constraints of limited individual capacities and incomplete information. This model can divided roughly into four fundamental parts

• stimulus input variables,
•  exogenous rabbles,
•  sequential output variables, and
• the assassinate state of buyer.

 ” However, the limitation of this model is that it has little practical value for marketing practitioners.

The two major advantages of the Howard-Sheet model are following:

• It has been partially tested empirically, thus establishing some credibility for the model
• The model is also a dynamic model Overall the Engel-Blackwell- Marinara model provides more comprehensive and accurate comparison with Howard- Sheet model. The two models are similar in as much as they both propose a rational nonuser, but one who is prepared to satisfies where appropriate.

The environmental influences of the Engel-Blackwell-Marinara model compare directly to the exogenous variables as outlined in the explanation of Howard-Sheet model. Another famous consumer behavior model is Nicosia model (1966). Francesco Nicosia was one of the first consumer behavior meddlers to shift focus from the act of purchase itself to the more complex decision process that consumers engage in about products and services. This model is characterized as a communications model hat begins with a firm communication to the consumer via advertising and culminates with consumer feedback to the firm.

This model contains four major components or fields:

• the firm attributes and outputs or communications and the consumers psychological attributes,
• the consumers search for and evaluation of the firm output and other available alternatives,
• the consumers motivated act of purchase, and
• the consumers storage or use of the product.

Francesco Nicosia assumes that the consumer is seeking to fulfilled specific goals and hat initially there is no history between the consumer and the firm, so no positive or negative predispositions toward the firm exist in the consumers mind. There are some limitations in Nicosia model which include an inadequate understanding of the influence and interrelationships among the consumer attributes represented by Subfield and the questionable assumption that no prior consumer knowledge or experience with the product exists. Consumer behavior By secretariat RI Component Model and its relevance tort marketers Model of Business Buyer Behavior.

Define Culture

Explain the effect of culture and subculture on consumer behavior. Give suitable examples to support your answer. Marks NAS) Every person carries him – or herself patterns of thinking, feel- inning, and potential acting that were learned throughout their lifetime. Using the analogy of the way computers are pro-grammar, this book will call such patterns of thinking, feeling, and acting mental programs, or software of the mind. A customary term for such mental software is culture. The sources of one’s mental programs lie within the social environ- meet in which one grew up and collected one’s life experiences. Culture consists of the unwritten rules of the social game. It is the collective programming of the mind that distinguishing the members of a group or category of people from others.

Parts of Culture

Culture: norms, roles, beliefs, values, customs, rituals, artifacts Culture classifies things into discontinuous units of value in society Codes classified units, develops behaviors, specifies priorities, legitimates and Justifies the classifications Consumer colonization – the process by which people develop their values, motivations, and habitual activity Culture creates meanings for everyday products We study how the use and/or collections of products and their meanings move through a society Nature of Culture components Norms: rules that designate forms of acceptable and unacceptable behavior

Customs: behaviors that lasted over time and passed down in the family setting Mores: moral standards of behavior Conventions: practices tied to the conduct of everyday life in various settings Ethnocentrism: the tendency to view one’s own culture as better or superior to others Key Points about Culture It is learned: transmitted from generation to generation It rewards acceptable behaviors It stays the same, yet can change Family, Religion, School and Peers: what is the relative influence of each? Values Transfusion Model shows how these combine Will any become more, less relevant?

Consumer colonization: the acquisition of consumption-related cognitions, attitudes, and behaviors. For instance… What determines a “hot” lunch and why it is desirable What determines holiday foods? What is a breakfast food? Colors of foods? Correct clothing tort various events Why do you turn around when entering an elevator? Why do men wear ties and women do not? Why do people shake hands, and not touch elbows? Why do you know what constitutes “good” vs “bad” manners?

Consumption Pattern at different stages of Family Life cycle NAS) Consumption is a major concept in economics and is also studied by many other social sciences. Economists are particularly interested in the relationship between consumption and income, and therefore in economics the consumption function plays a major role. Different schools of economists define production and consumption differently.

According to mainstream economists, only the final purchase f goods and services by individuals constitutes consumption, while other types of expenditure -in particular, fixed investment, intermediate consumption, and government spending  are placed in separate categories (See consumer choice). Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e. G. The selection, adoption, use, disposal and recycling of goods and services Consumption is defined in part by comparison to production. In the tradition f the Columbia School of Household Economics also known as the New Home Economics commercial consumption has to be analyzed in the context of household production.

Opportunity cost of time affects the cost of home-produced substitutes and therefore demand for commercial goods and The elasticity of demand for consumption goods is also a function of who performs chores in households and how their spouses compensate them for opportunity costs of home production  Behavioral Learning Theories NAS) Behavioral learning theories are a part of behaviorism, which is the study of the behavior of a person or animal reacting to something in the environment. The reaction is termed the “response,” and the thing causing the reaction is the “stimulus.” Psychologist B. F. Skinner began working on behavioral learning theories in the sass, and defined the terms “classical conditioning” and “operant conditioning. Classical Conditioning Peter Gravy’s “Psychology” defines classical conditioning as the “process by which a stimulus that previously did not elicit a response comes to elicit a response, in reflexive fashion, after it’s paired for one or more trials with a stimulus that already elicits a response.” Dry. Ivan Pavlov first experimented with this phenomenon in the early 20th century.

What started as a study of the types of saliva dogs produce when anticipating food turned into a study of learning, as Pavlov inadvertently taught the dogs to associate a ringing bell with feeding time. Soon, the dogs began salivating when the bell rang, even if no food was nearby. Pavlov called the dog’s natural response to the food the “unconditioned response,” and the food was “the unconditioned stimulus. ” The act of salivating to the food is the “unconditioned reflex. The act of salivating to the bell is the “conditioned reflex,” the bell is the “conditioned stimulus” and the salivation is the “conditioned response. ” In dog training, tort example, you could use classical conditioning to retrain a dog Jumps around when you’re putting on his leash to go for a walk.

If he knows to sit on command for a treat, tell him to sit down by the door with his leash on. When he does, give him a treat and take him outside for a few minutes. Bring him back in and repeat until he quickly sits for his treat, then start asking him to sit without a treat. Again, when he sits, take him out. Repeat until he sits by the door without being asked. Operant Conditioning Gray describes operant conditioning as the idea that “the consequences of a response increase or decrease the likelihood that the response will occur again. ” This type of response is called an “operant response. ” Psychologist Edward Lee Thornier studied operant conditioning at approximately the same time as Pavlov’s research.

He put a cat in what he termed a “puzzle box,” with food Just outside of the box. By scratching around the inside the box, the cat would eventually hit the trigger for the door and escape to the food. After many repetitions, the cat released itself as soon as it was placed in the box. To use operant conditioning to teach your dog to wait patiently as you’re getting ready to take him out, stand at the door with him. When he sits down accidentally, even if it takes a while, immediately open the door and take him out. Walk around for a few minutes, bring him back in, and repeat the procedure until he sits immediately when you bring him to the door.

Your task is to gather information on the market segment for this product, analyse consumer behaviour within this segment and recommend what marketing strategies Virgin should develop to appeal to this market segment. This must be written in report form.

Gather information on the market or market segment for Virgin Hotels in accordance with Virgin’s marketing plan.

1. List the sources of information you used to gather information. This must include at least five sources of information.  Please reference each source in strict accordance with Imagine Education Guidelines for referencing.
2. Prepare a basic customer profile/ profiles, identifying consumer attributes of the market segment or segments you are targeting. For example: Demographics, values or attitudes, lifestyle, cultural and social influences. Active or inactive customers. Business or public sector customers
3.  Explain how you could identify what consumer responses were to past marketing communications. For example, how could you analyse a consumer’s preferred frequency of contact/ medium of contact/ average order value, etc.  List an example of the questions you might ask. Include at least three  questions.

Consumer Analysis

1.  Demographics: Virgin Hotels targets people in they early 30s and older up to their 50s. These people have finished their study, have a well-paid job and can afford a stay in “a 4 1/2-star hotel at four-star prices”. They may also be business travelers, whose hotel rates are paid by their companies. I believe the “Limited Edition” packages also targets the mature-age markets not only because of their income, but also because they often look for extra service, the locations are all very private and quiet, suitable for resting periods, where people are just cared for by the staff.
2. Geographics: Virgin Hotels official website states that “Virgin Hotels’ target list includes major global cities (e.g. New York, San Francisco, Miami, Los Angeles, Boston, Washington DC, London, Paris, Madrid, Sao Paulo, Bogota, Mexico City). We are keen to discover a range of interesting, authentic and high quality 150-400 room properties in appealing 2 neighborhoods that will meet the expectations of travelers in the “creative class” – a culture and mindset that represent the values of our target guests.”
3. Psycographics: Virgin Hotels official website states that “Our valuable target audience includes the high income, well-educated, metropolitan creative class.”

Virgin Hotels’ customers are used to travel and have different cultures and backgrounds, but all enjoy technology and look for a place where they can work and socialize as well (as the Australian Business Traveller declares, Virgin Hotels “are also aiming to provide “unique communal spaces” where business travelers can work and also network with other businesspeople. If that sounds rather like an airport lounge, that’s probably deliberate.” Virgin website, under the section “Virgin Hotels” sums up the company’s vision saying that “Virgin Hotels will be a place where guests feel ownership, where they can be themselves (with a few delights and surprises sprinkled in!) and where they can’t wait to come back.”

Especially business travelers are supposedly returning customers, not only to just the hotel, but to/from other services the Virgin Group offers. The Virgin Hotels website affirms that the brand intends to capitalize “on the Virgin brand’s global appeal and cosmopolitan fan base” to significantly enhance their marketing promotion, most probably with “flight+hotel” packages. The official Income: considering that Virgin is offering not only the 4 star hotels, but also luxury, “Limited Edition” packages, the company definitely targets the higher-income segment of the market.

Depending on the type of marketing communications, we could identify what consumer responses in different ways. Virgin Hotels’ website states that “Virgin Hotels’ marketing efforts are strongly rooted in digital, CRM and public relations. Leveraging Virgin’s global brand awareness to create collaborative marketing strategies with its other companies will allow Virgin Hotels to quickly garner brand awareness in the hotel industry in a fraction of the time it would take another new hotel brand.

Digital marketing is at the core of our marketing strategy as it achieves the most optimal revenue results while providing the highest ROI. We place a large amount of resources against creating the best in class websites, SEO/SEM efforts, email and mobile marketing, social media, and visually engaging content. Understanding our customer all the way through is vital to our marketing campaigns as we strive to provide meaningful, and contextual offers as well as personalizing their stay by knowing their preferences. Our CRM will be centered on bringing in new ambassadors for the Virgin Hotels brand as well as introducing it to the 65 million Virgin consumers worldwide.

Virgin Hotels will immediately align itself with the over 8 million Virgin Atlantic, America and Australia frequent flyers converting them into frequent hotel guests through preferred offers and status.” Therefore I believe 3 sample questions – which could be asked at website registration before booking a hotel stay or a flight – could be the following:

1. “Would you like to receive offers from other Virgin Group companies?”. A selection of the single companies could be offered to the user, for him/her to select.
2.  “What is your preferred way of contact?”. Sms/Email/Post…
3. “What is your preferred frequency of contact?”. Daily/Weekly… CTR (Click-Through-Rate) of the links offered in a promotional email is a good way of understanding the customers’ response and specific interests.

Consider Virgin’s Vision and Brand Personality

Explain how this relates to the marketing strategy for Virgin Hotels. Explain how the following two (2) factors will be emphasised in the marketing strategy for Virgin Hotels:

• Benefits
• Features

I believe Sir Richard Branson’s desire to offer great value for money is reflected in his intention to integrate Virgin’s frequent flier program members into the hotel project. Not only Virgin Hotels will acquire a huge consumer database, but it will also give consumers a great way to save money through combined offers. However, I think the “give customers good value and high quality” policy collides a bit with their targeted consumer, who is “the high income, well-educated, metropolitan ‘creative class'”. What if you are not wealthy and stylish?

As for the willingness to be perceived as always creative and innovative, I am sure Sir Richard Branson will come up with many other ideas along his career. For example, in 2005 he commissioned a study about energy drinks (Virgin Vibe). Such product would target young males who are into sports and video games (i.e.: RedBull). The competition from other brands was probably too high, and at the end Virgin decided not to proceed with Vibe, but this gives an idea of the kind of marketing strategy the company has decided to pursue: products for young, cosmopolitan fan base, attracted by the brand’s global appeal.

Being more specific, I believe benefits will be highly emphasized in the marketing strategy for Virgin Hotels. So far, only integration with Virgin’s frequent flier program has been announced, but I am sure there will be another program for hotel customers only (although nowadays it’s difficult not to think that someone is staying at a hotel without any flight, ever). Special promotions from Virgin partner companies will be launched as well
(i.e.: Book a spaceflight and get a week stay at one of our hotels for free), lotteries among users of other Virgin services (i.e.: get a Virgin SIM card by the end of the month and win a stay at one of our hotels). The Virgin Group is so big that the possibilities for joint marketing promotions are nearly endless. As for the hotels features, press doesn’t say much about the construction of the Virgin Hotel Chicago, but from what Internet reports

Consider Virgin’s Customer Needs Orientation

Explain how the following might influence the behaviour of customers (Think about both current and potential Virgin customers):

• The Australian culture
• A person’s family
• The economy
• Brand loyalty
• Time constraints

List at least three other individuals, social and/ or lifestyle influences that might affect consumer behaviour. Provide an example for each. The Australian culture and the attitude of saving money Australians have can match really well the “good value and high quality” customer orientation. The latest Roy Morgan Air Travel Survey reports that “86% of domestic business travelers polled in July 2013 said they were ‘satisfied’ or ‘very satisfied’ with Virgin Australia, compared to 77% two years earlier at a time when Virgin was still a low-cost carrier. Satisfaction for Qantas, however, has declined from 88% in July 2011 to 82% in July 2013.” If Virgin behaves with the same high-satisfaction standards with its hotel business, I am sure it will have great success here in Australia.

A person’s family can influence his preference for Virgin Hotels. The press doesn’t say much about the services the hotels are going to offer, but if the Virgin Hotels provide great services for kids (baby sitting, guarded play rooms and swimming pool, special activities for children, etc.), a family with one or more kids will surely consider staying at a Virgin Hotel for their holiday. But if the Hotels are more focused on the “smart and
stylish” crowd, probably this will attract young couples with no children, business travelers, etc.

In these difficult times, economy impacts everyone’s lives, and we are now all more expense-conscious than 5 years ago, when the financial crisis hit. I believe the “good value and high quality” customer orientation of Virgin Hotels is a win-win situation both for Virgin and the customers. Brand loyalty can influence the behavior of customers. Consumers who shop by price will tend to look for bargains, making Virgin Hotels deals stand out (especially if combined in a flight+hotel package).

Also, Virgin intends to massively promote its hotels through digital marketing. I believe that creating brand awareness requires such a huge investment in advertising and other marketing activities that Virgin’s competitors can only match after much time has elapsed, making Virgin’s task to get new loyal customers a bit easier. Also, I believe Virgin has the strength (and budget) to reinforce promotional messages over and over again.

Also positive comments and recommendations by the first Virgin Hotels customers through blogs and social networks will have a huge importance in getting Virgin Hotels more customers. Time constraint can surely influence customers. Let’s assume Virgin Hotels offers great deals on weekend stays: this will keep business customers away, which is exactly what Virgin doesn’t want. Therefore I believe the firm will concentrate its efforts in affordable, singlenight rates along business days. Consumer behavior can also be influenced by:

• Psychological factors such as the size of the hotel: Virgin plans to acquire 150-400 room properties, which may be considered too big by someone who prefers quieter and more private places to stay;
• Social factors: Virgin Hotel Chicago has announced Rooftop bar and clubhouse. If these become THE places to be in the city, customers will flock;
• Some other ethical factors can influence customers: we know that Virgin has a “employee friendly” policy. Some customers may choose to book at a Virgin Hotel because he knows that no workers are underpaid or harassed, etc.

 Recommend a focus of appeal that addresses the needs of the target consumer. Outline how this appeals:

• To individual, social and/ or lifestyle influences
• To the motives that influence decision-making

Make a compliance checklist (at least five points) to ensure the focus of appeal meets legal, ethical and organisational requirements of the marketing plan. For example:

• Does it comply with the Vision and Mission Statement?
•  Do our HR department comply with our “employee friendly” policy?
• Do our hiring policies comply with our ethical policy (no racial/religious/sex discrimination)?
• Does our hotel comply with all national and regional safety laws?
• Does our marketing promotion comply with the national privacy legislation?
• Does our offer comply with our “Customer Needs Orientation” policy?

Reference

1. Real Commercial website, October 15 2013: “Virgin Hotels wants to join chain”
   http://news.realcommercial.com.au/general/virgin-hotels-wants-to-join-chain/ – Virgin Limited Edition website, October 15 2013: “About Us” http://www.virginlimitededition.com/en/vle/about_us
2. Virgin Hotels official website, October 15 2013: “Property Specs” http://www.virginhotels.com/boutique-hotel-investment-property-specs.htm – Virgin Hotels official website, October 15 2013: “The opportunity” http://www.virginhotels.com/hotel-investment-opportunities.htm
3. Australian Business Traveller, November 20, 2013: “Virgin Hotels: coming soon to Sydney and Melbourne?”, by Bill Bennet http://www.ausbt.com.au/virgin-hotels-coming-soon-to-sydney-and-melbourne
4. Virgin’s official website, October 15 2013: “Smart, sensuous and delightfully yours!”
   http://www.virgin.com/company/virgin-hotels
5. Virgin Hotels official website, October 15 2013: “Operations” http://www.virginhotels.com/real-estate-investments.htm
6.  Infinite Leg Room website, “The Virgin Hotel Chicago Announces Rooftop Bar And Clubhouse”, by Will K on June 14, 2013 http://infinitelegroom.com/2013/06/14/the-virgin-hotel-chicago-announcesrooftop-bar-and-clubhouse/ –
7. Australian Business Traveller, August 28, 2013: “Virgin Australia beats Qantas for business travel, says survey”, by David Flynn http://www.ausbt.com.au/virgin-australia-beats-qantas-for-business-travelsays-survey

Other than the categorizing of profiles, Cent also uses animated figures to better illustrate what each profile represents. Other than segmenting profiles to suit the efferent group of consumers, customization also comes into play. Customization allows consumers to express themselves to the fullest through the variety of designs to choose from. Marketers believe that an individual’s personality is the driving force of their behavior and self-concept makes up the individual’s thoughts and feelings in relation to themselves as an object.

Personality aids marketers in categorizing consumers into different segment base on a single strait or multiple traits, like in the article, marketers segment consumers base on phone usage and personality traits vying them more guide to developing better marketing strategies and communications. The article shows us how the Five-Factor Model of personality aid marketers in assessing consumers’ personality and how segmentation can effectively help marketers to target the right category of consumers.

In this case, trait theory was used to explain phone usage differences; looking through the chapter do you think there are other individual characteristics that could also be used to better explain mobile phone usage? From the case, the Five-Factor Model of Personality – Openness to experience, Consciousnesses, Extroversion, Agreeableness, and Neurotics, was used to measure and asses the personality traits of mobile phone users. Besides the trait theory, individual characteristics such as the need for uniqueness and susceptibility to interpersonal influence could be used to better explain mobile phone usage.

Individual who has the needs for uniqueness tends to be unique. Those who have high needs for uniqueness tends to seek individuality and are constantly finding ways to stand out among the crowd. These individuals are unconcerned about criticism for their choices, as they do not need to fulfill to other’s expectations or tankards either in appearance or possessions. Being unique can be identified by the choice of how mobile phone are being used in terms of its functionality, design, multiple Remington, and the user’s customization such as clip-on phone accessories. These help to express their unique personality and/or self.

Similarly, individuals may tend to be consumer susceptibility to interpersonal influence (ASCII). Individuals expect others to evaluate their choice decisions, which might lead them to make choices different from the ones they would have made in the absence of public observation. ASCII have an influence on information processing, attitude development and purchase behavior. Individual use other’s norms, values Consumer Behavior By ameliorates and behaviors as a model tort their own attitudes and behaviors, the willingness to comply with the expectations of others and gather information by observing others.

Those high in ASCII use specific brands to either fit into their social groups or stand out, which may lead to different choice decisions and less personal satisfaction. Using Hornet’s compliant personality, these individuals desire to be loved, wanted ND appreciated within their social groups. Hence, they have the tendency to manifest interpersonal influence, on individual decision on their mobile phone choices and how they personalized their mobile phone. Why is it important that marketers have an understanding of personality traits and how they affect consumer behavior?

No two consumers are exactly alike as their personalities, no matter how similar, are bound to differ in certain characteristics. Two parties may be highly dogmatic but possess different levels of self-monitoring. As such, it is beneficial for marketers to understand personality traits to market reduces effectively to different market segments, and not via the “one-size-fits-all” method. It allows marketers to understand their consumers better and to effectively segment and target consumers who are more probable to responding positively to their product or services.

With reference to Case Study 3. , Table 1 shows a comprehensive list of profiles matched with consumer benefits and phone features. Each set of features attract different consumers who feel that such features are necessary for their work or lifestyle. Some phone users may choose to customize their phones by changing their ingestion, wallpaper or even “billing-inning” the phone when out at nightclubs. Using the knowledge of how personality traits influence consumer behavior, marketers are able to categories consumers based on their personalities and requirements and market products that best suit their needs.

In this chapter three main types of personality were discussed, Freudian theory, Neo- Freudian theory and trait theory. Why do you think trait theory has proven to be a popular approach to understand consumer behavior? The Freudian theory, from Sigmund Freud, is developed from the basis that unconscious needs or drives are at the heart of human motivation and personality (Coffman et al. , 2011). It was proposed that the human personality consists of three interacting systems, the ‘d, the superego and the ego.

The id is deemed as the Warehouse’ of primitive and impulsive drives and is concerned with maximizing immediate pleasure and minimizing pain. The individual seeks to satisfy one’s desire impulsively, without much consideration for the method of satisfaction. The superego is the individual’s internationalist of the society’s morals and ethics. It prevents the impulsive forces of the id. The ego is the individual’s conscious control. It acts as a balance between the impulsiveness of the id and social restraints of the superego.

The Neo-Freudian Personality theory believes that social relationships are essential to the titration and development tot an individual’s personalities. There are three personality groups of individuals: compliant, aggressive, and detached. Compliant individuals are those who desire to be loved and wanted, and thus move towards others. Aggressive individuals desire excellence and move against others. Detached individuals move away from others as they desire independence and self- efficiency. The Trait theory is significantly different from qualitative approaches that define the Freudian and neo-Freudian theories.

Trait theory is a quantitative measurement of personalities and focuses on individual differences, strengths, and weaknesses. It describes individuals with a combination of traits and is, therefore, more multi-dimensional than the first two theories aforementioned. The ‘Big Five’ model also provides depth to the myriad of personalities that can be found in consumers. The Trait theory is a more popular choice as marketers can better understand how nonusers response to different forms of marketing.

It provides a clearer understanding to the different traits that constitute an individual’s personality, hence allowing marketers to marketers to carry out different types of marketing campaigns that will appeal to specific personality traits. This case mentioned the self-concept. Explain the make-up of the self-image. Self- image is how we view ourselves as a person, this includes the traits we have, our habits and the way we behave. Our self-image is very distinctive and varies between people, Just like how our personality and character differ.

Most of our permanent beliefs about our self-image are developed in our childhood, through interactions with people such as our parents. This goes on to our adolescent years, teenage years and so on. The people whom we interact with play a huge role in forming our self- image. Our concept of self-image can transform through our lives as our social circle changes. There are four kinds of self-image:

1. actual self-image,
2. ideal self-image,
3. social self-image
4. ideal social self-image.

Actual self-image is how they are really; ideal self-image is how they would like to be ND ambitious; social self-image is how they feel they are seen by others; ideal social self-image is how they would like others to see them. The products and brands we purchase are based on how consistent they are with our self-image. We tend to buy only products that match or enhance our self-image and products that do not are generally not taken into consideration. Consumers are guided by their actual self- image when they are purchasing personal or household goods (Toothpaste) but they are guided by either social self-image or ideal social self-image when they are purchasing other luxury goods such as cars. Marketers can make use of the concept of self-image to market their product to consumers. By studying the basis of the relevant consumer self-images, they will be able to segment their products, then position it as “symbols” of these self-images. The needs of the consumer segment has to be identified before marketers can proceed to develop and market a product.

This product has to meet the product category as well as bee an appropriate symbol of self-image for it to be successfully marketed. Explain in your own words now marketers can use concepts like personality self-concept to better market products like perfume or cars. As personality is insistent and enduring, marketers must learn the personality traits that will influence the specific consumer group that they are reaching out to, so as to effectively appeal to this targeted group of consumers. Other than personality traits, self-concept is also important.

Using Lampooning as example for this question, marketers of Lampooning must find out about the personality trait as well as the self- concept of the targeted consumers which are the car lovers and Lampooning fanatics. Lampooning has always been a bull brand and targeting at car lovers who are daring, like to stand out from the crowd and likes to be in control. Lampooning has previously created the ‘Ad personae’ Lampooning extensive customization program where the highest degree of individuality and exclusivity are met, giving buyers every possibility of making their very own Lampooning.

Previously, the car’s interior and exterior can all be customize to the very last detail, such as stitching onto car seats, changing of rims and colors of the car exterior. However, Lampooning has yet to stretch it limits to letting its clients design their very own car structure. Lampooning can have a its designer sit down and draft out the client’s ideal car and eater on provide professional suggestions to further improve the overall car outlook.