Consumer Behavior Case Solutions (Ch09-Ch14) Chapter 9 Rollerblade In Line skates Q#1: The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people. Usually, when new products or ideas come about, they are only adopted by a small group of people initially; later, many innovations spread to other people. Modeling plays an integral role in spreading new products within targeted segment, it instruct people in new styles of behavior, accelerate diffusion, and serve as advocates for products Q#2:
Modeling Employed | Desired Response| Showing him an ad of Rollerblade | Show him the product and get information about it| Showing him a video tape of how Rollerblade skates can be used| Using skates in correct| Showing him a video tape of how Rollerblade skates can be used in new ways| Using skates in new enjoyable ways| Using Rollerblade skates in front of our friend| Using skates in correct| Q#3: Stimulus| Response| Influence|
Familiar voices| Attention, excitement | Using a celebrity in the commercial to show consumers how exciting is skates | Teenagers music| excitement| Using teenagers music will make them feel excitement | Professionals | Excitement & fun| Using some skates experts to show how enjoyable and healthier you can be if you used Rollerblade skates | Chapter 10 Cub- Foods 1-List at least 5 marketing tactics CUB food employed in its stores to increase the probability of purchases. a) Convenience: Super Large stores that contains thousands of different products and brands under the same oof. b) Everyday low prices: by keeping cost at minimum and acquiring low margins at 15% (10 points less than average stores). c) Well-designed Layout: that guides shoppers through a sequential shopping steps based on a well-studied consumer behavior approach. d) Large Shopping carts: to stimulate customers to by large quantities. e) Using many psychological effects to stimulate purchasing behavior: Entry large discounted Aisles. 2- What accounts for cub’s success in generating such large sales per customer and per store.
Cub stores management had an excellent consumer behavior approach application, they were able to define their consumer needs, what type of effects that can stimulate consumers decision making and purchase behavior. Accordingly they designed their marketing Mix to maximize purchases per consumer: * Products: Huge Varity of high quality product with different types and brands. * Price: Everyday low price strategy, less than another stores. * Promotion: large discounts, displayed at entrances to create excitement. Distribution: large no of super large stores. 3- Given cup’s lower prices, quality merchandized, excellent location, and superior assortment, offer reasons why many consumers in its trading areas refuse to shop there? * Given the strategy Cub is following to stimulate large quantity purchases, some people well have fears of being seduced to spend more than budgets if they do shopping at Cub stores. * The super large size of the store with the huge verity of items may create confusion and frustration among some customers.
Chapter 11 America’s Movie Theaters Q#1: Activity| Physical Aspect| Social Aspect| Affect/Cognition| Behavior| Watching movie in a theater | Huge screens, concession stand, first rate sound, projections, spacious auditorium, comfortable seats, and attractive decorated place| Watching a movie with different kinds of people who share one or more of interests | No routine, Enjoyable environment, happy to be out home| Eating popcorn and enjoy the movie| Watching a movie at home |
Home screen, home theater sound system | Watching a movie alone at home in relaxed and calm environment| Relaxed, quite, happy to be home, controllable watching| Eating at home and enjoy the movie in any time we want| We think that in home VCR environment will attract moviegoing segment, therefore movie theaters needs to develop a marketing mix that can attract such segment through full understanding of their needs and wants (i. e. ost moviegoing going cinema with their friends to enjoy latest movies with 3D display, accordingly movie theaters need to develop group ticket for such segment and have proper design for environmental and physical aspects to be modern with high tech theaters) Q#2: * Macro-environmental factors 1. Social factors distort theater environment (talking, cell phones, babies crying, etc. ) 2. Sacrificing long term relationships with theater-goers for the increase in short term profitability (commercials, etc…) 3.
Higher quality experience elsewhere (Home theater) 4. Declining quality of mainstream movies 5. Easily available long tail content alternatives (Netflix, Amazon) 6. Price 7. Demographics: Aging baby boomers simply go out to movies less. * Marketing implications A smart theater owner shall recognize that people go out to the movies for the overall social experience, the better the experience, the better you can do.
Everyone can always eat dinner for less money at home, but they go out to eat at restaurants for the experience and the ambiance and the fact that others do the work and take care of the details, the same is true for movies as well, therefore theater owners simply need to make people feel more enjoyable and relaxed with moviegoing experience by developing new experience of having dinner during watching their favorite movie! Q#3:
Situations| Specific behaviors and environment | Recommendation| Information Acquisition | Reading movies ads on newspapers, hearing about specific movie from friends, watching movies rate on TV| Increase customers exposure to marketing information related to movie theater through advertisement| Purchasing | Paying at the counter of movie theater to obtain a ticket, paying at concession stands| Offering food service through fast food restaurants and concession stands that contains several alternatives of food kinds / offering new channels of ticket sales| Consumption | Watching a movie, eating at concession stand| Offering relaxed and quite environment through studying consumer behavior during watching movies at home to develop an environment that have the key features as home’s environment / offering VIP screens to target segments of the audience whose willingness to pay for more space and comfort | Q#4:
Situations| Specific behaviors and environment | Recommendation| Consumption | Watching a movie, eating at concession stand| Offering relaxed and quite environment through studying consumer behavior during watching movies at home to develop an environment that have the key features as home’s environment / offering VIP screens to target segments of the audience whose willingness to pay for more space and comfort | 1- Develop more varied menu of offerings, including nachos, candy, hot dogs, ice-cream, specialty coffees and desserts 2- Offering lower “unit” prices to those consumers with demand for larger quantities (i. e. volume discounts). – Operate “luxury cinemas” or “VIP screens” within a regular theatre. These luxurious screens target segments of the audience whose willingness to pay for more space and comfort is clearly higher than the rest of the audience. These screens also provide the possibility of ordering from a full menu of food choices. Chapter 12 Sony case Study Q1) Cultural meanings for Sony: At Jordan, the brand name SONY carries a lot of meanings in customers mind being the first introducer of tape castes, Walkman caste, SONY play station and PSP in addition to many other innovations that was firstly introduced by SONY, all of that embossed many cultural changes: * Leisure time culture. * Kids playing culture.
Marketing strategies should mean using organizational resources, like men, material and capital in such a way that the consumption of the products/services produced by them (within the macro and micro environment) will generate satisfied customers, and higher organizational profits, while creating least harm to the society. The above statement should reflect the ideal goals of business, which is to produce goods and services which promote happiness among customers. When the needs are taken care of well, who is unhappy? The marketing strategies reflect the company policy and its mission. Usually the mission statements of great organizations are long lasting and promotes value to people and a society. Such company initiatives which create positive changes in the lifestyle, educational levels and a general or partial enhancement of the living styles of the people are reflections of cultural changes for the better in a market.
The strategies could also have deleterious negative effects too, but they are obviously not as appealing, or respected, compared to the positive cultural inroads that good marketing strategies can initiate in any society. Q2) SONY Marketing challenges: The increase in communication technology was one of the most important factors that help SONY and other electronic companies to grow their business due to: * High tech. created opportunities for new products and new ideas. * High tech. moved the electronic market into a new dimension. * Advanced communication tech, lowered the communication cost, thus increased the market size. The marketing challenges for SONY may be: * Hyper- Dynamic markets. * Short product life cycle. * Hot Compaction & Possibility to copy innovations with less cost. * Sophisticated consumers. Q3) e think that those specific marketing strategies are better for SONY, although the unified marketing strategy will have less cost, but the Region- Specific strategy will yield much better outcomes in terms of customer satisfaction levels. Sony as an international marketer should consider all aspects of different between nations and countries. Not necessarily for the product itself, but mainly for the remaining marketing mix elements (Price, promotion, place). While it should maintain the product aspect unchanged across different regions other elements should be tailored to suit each cutler. Q4) Factors that SONY may consider in marketing their products: * Income level * Education. * Age demographics. * Internet and connectivity market status (coverage, prices, penetration, market size). Mobile services market status (coverage, prices, penetration, market size). * Competition. * Computer literature level. Q5) Benefits of alliances: Sony can benefit from the alliances that she did with many other international companies are: * Market share increase benefiting from the partner market existence. * Knowledge share and gaining know how for new products. * Some financial benefits. We think that sony should be more aggressive in order to protect its strong brand name in the market, any un- balanced partnership could negatively affect SONY brand name. Chapter 14 The Saturn Family case study Q)1 * Saturn’s target market is college educated, men and women ages 25-49. The benefits that they are looking for are: * safety, utility, and value * This does not make Saturn’s target market very homogeneous * More than one price, however, * Single promotion * One distribution system * State of Being(demographics) * Age: 25-49 * Gender: male & female * Education: College * State of Mind * American can do attitude * American made * Common people * Segment Approaches * customized marketing : product varies slightly * Multi segment option: coupe, sedan, electric car, station wagon Q3) Low involvement product doesn’t impose much self-relevance for the consumer unless the product was connected emotionally to the consumer affective system.
This can be only created by a strong marketing strategy that is directed to alter consumer’s psychological benefit of the product. One example is Nestle’ products in general, all nestle product are consumer goods with low involvement level, although you can find a high loyalty level among consumers who are buying those products. Q4) The role of traditional mass media is to be used as informative channel about major events, while customers being contacted through other direct communication meanings, traditional mass media could be used to convey general massages that tell about products and enhancing the overall brand image. This could affect non users and stimulates their curiosity.