MARKETING FUNDAMENTALS ASSIGNMENT Porsche: Guarding the old While bringing in the new Q 1: From the case identify and briefly explain three specific factors that may influence a consumer to purchase a Porsche (hint: select specific influences from the social and psychological group) Factors influencing the consumer behavior are the situational, group and individual. (Elliott, Rundle-Thiele & Waller, 2010, pg.
104). Kotler and Armstrong (2012, pg. 186) state customers of Porsche are strongly influenced by the group and individual factors.Aspirational reference group, motivation and beliefs and attitudes are the influencing factors under the group and individual factor. The reference group is a social factor where the individual or group looks for guidance for appropriate beliefs attitudes and values.
Aspirational reference group are “groups of which the individual would like to be considered a member” where the individual likes to adapt the values, attitudes and behavior of the Aspirational group (Elliott et al, 2010, pg110). Customers of Porsche are a small group of financially successful and high achievers in their field of work.They see themselves apart from the real world, which inspires people to different levels (Kotler et al 2012, pg 186). Porsche decided to extend outside the box, they brought in a new model that was less expensive to expand its sales volume and spread out their range of customers and it became the top selling model of Porsche and also increased the sales by a decent margin. Though success was seen by Porsche, loyalists never accepted these models as real Porsche and felt their exclusivity was glided away.Due to tough competition and struggling economy, the company recognized the errors and targeted the high end market to avoid bankruptcy. (Kotler et al, 2012 pg. 186).
The consumers of Porsche prefer to be different and stay exclusive. This refers to Aspirational reference group. Motivation is used to describe the individual’s internal drive to act and move from an actual, current state to the desired state. It often made up of the individual motives and particular drive which is an important psychological factor (Elliott et al, 2010, pg118).
The most widely recognized theory of otivation is “Maslow’s hierarchy of needs”, it suggests that people satisfy the lower level of needs and then move up the hierarchy of needs (physiological, safety, love of belongingness, esteem and self actualization). Physiological is the most basic need among all, the fundamentals of survival. When the individual feels safe and secure, love of belongingness would be achieved too. Self esteem is the next in the hierarchy and where the individual are recognized and respected by others. Self actualization is at the top, one individual choose to improve and achieve.
Porsche is a very high end product and expensive, its customers are financially successfully, achievers in their field of work. They are unique people who face challenges caused by the dangerous characteristics over Porsche. (Kotler et al, 2012, pg. 186). Kotler et al (2012, pg.
186) understood their customers see themselves apart of the real world and purchase “Porsches to portray their self image”. “The main attention was focused upon the image projected by various products; consumers prefer brands which are congruent with self-image with every purchase” (Douglas et al. 1967 cited in Laird 1974, pp.
44). Beliefs and attitudes is another factor that influences a consumer to buy a Porsche, mental map provides the context in which decisions are made. Positive, neutral or negative context has significant implication for marketing campaigns and initiatives to introduce new products or communication concepts. (Elliott et al, 2010, pg 120).
Elliott et al (2010, pp. 121) describes positive attitude clearly relates to reputation of brand image and brand equity and brand loyalty, negative attitudes can destroy the brand image, brand equity and brand loyalty.Porsche customers are faithful to the brand where as there are people who are waiting with eagerness to have their own Porsche. The owners of Porsche was more aware and had more knowledge of the brand, they built a “personal relationship with their Porsche and did not buy them because of any other reason”, they portrayed their intentions and performance towards their car and they loved driving (Kotler et al 2012.
, pg186). The consumer’s belief and attitude towards the product, motivation to have a Porsche and aspiration to be one among the Porsche owners are the three influencing factors which influence the consumer to purchase the porsche.Q 2: a) Briefly outline the stages in the conventional consumer decision making process. The consumer decision making process involves five stages. They are need/want recognition, information search, evaluation of options, purchase and post-purchase evaluation. These stages are considered in consumer buying (Elliott et al.
, 2010,pg. 124). Once we feel confident about the customer’s needs and concerns, our next challenge is to decide how to present the information to the customers in a way that supports the decision-making process (Oslen, 2003).
First the consumer finds out his unsatisfied need.If the consumer decides to fulfill the need then he searches for liable information from family, friends, relatives and internet. The word of mouth plays a vital role in the information search. The consumer then evaluates the information researched by combining multiple options such as cost, feeling of the product, style. The consumer would look for their features, benefits and also additional facilities. The consumer would finalize what to purchase or not to purchase. The consumer would then purchase the required products. There could be a probability if the consumer is viewing to see if the decision is to not purchase.
The consumer would then re-assess the product to see if it matches the expectations. The consumer would also check if the product was worth money or not (Elliott et al, 2010, pp124-127). The need/want recognition, information search, evaluation of options, purchase and post-purchase evaluation are the stages of the consumer decision making process.
b) Which stages of the consumer decision-making process are going to be most influenced by the influencing factor chosen in Q1? Justify and provide examples. The consumer decision making process is having five stages.Need recognition, evaluation of options and post-purchase evaluation are the factors influenced by motivation, aspirational reference group and beliefs and attitudes. The first stage is influenced by the psychological factors: motivation and aspirational reference group. “The problem may exist, but unless customers are aware of their need and able to identify potential solutions to it” (Marketing Minds, 2007). The first influencing factor is the need/ wants recognition is where a consumer wants to portray his self-image and gets motivated by looking at others.Kotler et al (2012, pg186) describes Porsche consumers would like to portray their self image through their car.
for example, when a consumer who has self esteem watches luxury car-owners driving and portraying their self esteem, the consumer would get motivated to own a luxury car and would want to portray his self-esteem like the other luxury car owners. It would also allow the consumer to be exclusive along with the Porsche owners so this would also become an internal factor of motivation. The consumer would also evaluate Porsche by which the consumer would achieve self esteem.Therefore this is an example on how motivation and aspirational reference group is influenced by the need/want recognition. The evaluation of option is also influenced by the influencing factors chosen. The consumer needs to sort the information which would help the consumer to purchase, large number of customers drop out at this stage simply because the product information was so inadequate, that they couldn’t decide whether the products they were interested in would fit their needs (Olsen, H.
, 2003). Self esteem and aspirational reference group would make the consumer believe.For example, prosche is exclusive, is custom made car and for customers who enjoy driving. This would make him evaluate Porsche as a better car than the others. Therefore evaluating of option is also a stage influenced by the influencing factors chosen. The third stage influencing the factors chosen is post-purchase evaluation.
The outcome of the post-purchase evaluation stage is a level of customer satisfaction or dissatisfaction, which is determined by the customer’s overall feelings about the product and buying experience (Olsen, H. 2003). The motivation and the aspirational reference group has made the consumer purchase the product, the consumer would be in a position to evaluate the product. So the consumer does a post-purchase evaluation to believe that it is a good value for money and needs to reassure that it is a right decision. For example the Porsche customer would re-consider because it is a custom made car and it gives the customer exclusivity, so the customer would believe that Porsche is a right decision.The example show how post- purchase evaluation is also a stage influenced by the influencing factors chosen. The need/ want recognition, evaluation of options and post-purchase evaluation are the stages influenced by the influencing factors of psychological and social group. The aspirational reference group, motivation and beliefs and attitudes are the factors of psychological and social group.
Q 3: As the marketing manager for Porsche identify three strategies that could reduce the cognitive dissonance of consumer who have recently purchased a Porsche.Cognitive dissonance is defined as “the purchaser’s second thoughts or doubts about the wisdom of a purchase they have made”. It occurs when the purchaser has second thoughts or doubts about the purchase made (Elliott et al, 2010, pp. 127). As the marketing manager for Porsche I would recommend these three strategies which could be implemented to reduce the cognitive dissonance of consumers who have recently purchase a Porsche by giving basic training and in house service, customer feedback and giving the consumer coupons for exclusive dinners and races around the world.Porsche manufactures custom made cars for their customers so having a cognitive dissonance is not needed although there may be certain clarifications for the customer. I would recommend Porsche to build a team of professional engineers who could give basic training to the owner personally so they understand their Porsche better, if there is a minor problem they could fix it on their own. They could also send their professional engineers in a vehicle specially designed to service their customers Porsche at their respective home so they don’t need to get their Porsche to the service station.
This would also save time for the customer. I would recommend this as my second strategy to Porsche as they could send their customer an e-mail or give them a call on to find out whether if they are facing a problem or ask how their car was serviced. They could also send them a mail when there is a change in the price of their models. As, they are looking for exclusivity they could also create a card, the card could be used to gain points when a service is done, once they have reached a limit they can claim it back, by using it they could get valuable discounts for their service or to buy another Porsche.This would develop a better customer feedback for their Porsche and they would also improve their services and live up to their customer’s expectation. “Porsche is having exclusive customers who expect no less from the clothes they wear or the restaurant’s they go to or the cars they drive”. (Kotler et al, 2012, pp.
186-187). I would recommend Porsche to give passes to their customers for the Formula1 or Moto GP or give them an invitation if they are launching a new model.This could apply if to the customers who are servicing their car in the month before the event by having a lucky draw and the customer who wins could go for the Formula1 or Moto GP. These strategies would reduce the cognitive dissonance of consumers and the customers would also have a sense of satisfaction that there is value for the money.
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