Answer the questions of chapter 14
(Group) Isam Al-Darraji - Salam ALRamadan
Introduction to Dr. Movaghar.
Q-14.1. What kinds of marketing and sociocultural inputs would
influence the purchase of: (a) HDTV set, (b) Concentrated liquid
laundry detergent, and (c) Fat-free ice cream ? Explain your
answers.
The solution between the differences is The degree of post-purchase
analysis that consumers undertake depends on the importance of the
product decision and the experience acquired in using the product.
When the product lives up to expectations, the consumers probably
will buy it again. When the product performance is disappointing or
does not meet expectations, they will search for better alternatives.
Thus, the consumer’s post-purchase evaluation “feeds back” to the
consumer’s psychological field and influences similar decisions in the
future.
should see marketing inputs as the firm’s marketing efforts to reach,
inform, and persuade consumers to buy and use its products. These inputs
take the form of specific marketing-mix strategies that consist of the
product itself (including its package, size, and guarantees); mass-media
advertising, direct marketing, personal selling, and other promotional
efforts; pricing policy; and the selection of distribution channels to move
the product from the manufacturer to the consumer. Sociocultural inputs
consist of a wide range of noncommercial influences, such as the
comments of a friend, an editorial in the newspaper, or usage by a family
member or an article in Consumer Reports. The influences of social class,
culture, and subculture, though less tangible, are important input factors
that are internalized and affect how consumers evaluate and ultimately
adopt (or reject) products. Unlike the firm’s marketing efforts,
sociocultural inputs do not necessarily support the purchase or
consumption of a specific product, but may influence consumers to avoid
a product.
Q-14.2. What are the differences among the three problem-solving
decision-making approaches? What type of decision process would
you expect most consumers to follow in their first purchase of a
new product or brand in each of the following areas: (a) Chewing
gum, (b) Sugar, (c) Men’s aftershave lotion, (d) Carpeting, (e) Paper
towels, (f) Smartphone, and (g) Luxury car? Explain your answers.
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Consumers make three types of purchases. When a consumer purchases
a product (or brand) for the first time and buys a smaller quantity than
usual, the purchase is a trial. Thus, a trial is the exploratory phase of
purchase behavior in which consumers attempt to evaluate a product
through direct use. For instance, when consumers purchase a new brand of
laundry detergent, Men’s aftershave , about which they may be uncertain,
they are likely to purchase a smaller quantity than if it were a familiar brand.
Consumers can also be encouraged to try a new product through such
promotional tactics as free samples, coupons, and/or sale prices.
When a new brand in an established product category (cookies, cold
cereal, yogurt, Chewing gum, Sugar) is found by trial to be more satisfactory
or better than other brands, consumers are likely to repeat the purchase.
Repeat purchase behavior represents brand loyalty. Unlike a trial, in which
the consumer uses the product on a small scale and without any
commitment, a repeat purchase usually signifies that the product meets
with the consumer’s approval and that he or she is willing to use it again
and in larger quantities.
Trial purchases are not always feasible. For example, with most durable
goods (e.g., refrigerators, washing machines, Carpeting, Smartphone, and
Luxury car), a consumer usually moves directly from evaluation to a
purchase and long-term commitment without an actual trial. While
purchasers of a new Volkswagen Beetle were awaiting delivery of their just-
purchased cars, they were kept “warm” by receiving a mailing that included
a psychographic tool called “Total Visual Imagery” that was personalized to
the point that it showed them the precise model and color they had
ordered.
Still further, post-purchase evaluation occurs after consumers have used
the product, and in the context of their expectations. When a product’s
performance matches expectations, consumers feel neutral. Positive
disconfirmation of expectations occurs when the product’s performance
exceeds expectations and the consumer is satisfied. Negative
disconfirmation of expectations occurs when performance is below
expectations and the consumer is dissatisfied.
Q-14.3. Assume that this coming summer you are planning to spend a
month touring Europe and looking for an advanced digital camera.
(a) Develop a list of product attributes that you will use as the
purchase criteria in evaluating various digital cameras. (b)
Distinguish the differences that would occur in your decision
process if you were to use compensatory versus no compensatory
decision rules.
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Q-14.3-A-
Exhibit 4.17 presents a brand-attribute matrix (decision matrix). This chart
shows brand ratings on determinant attributes for a product, in this case a
camera. Exhibit 4.17 could represent marketplace data collected from a
sample survey of camera buyers, or it could be brand-attribute information
for an individual consumer. The first column in this exhibit shows that
when buying a camera, consumers consider a brand's performance on four
very general determinant evaluative criteria: image quality, ease of use,
camera size, and price. The second column reveals the importance weight
for each criterion, which could be on either a rating scale of 1 (very
unimportant) to 4 (very important) or a ranking secale, where "4" is the
most important attribute and "1" is the least important attribute. The next
five columns list the five brands under consideration: Alpha, Beta, Gamma,
Delta, and Epsilon. Listed in the column under each brand are consumer
beliefs or ratings of that alternative's performance on each of the four
criteria. These beliefs are scored on a scale of 1 (very poor) to 10
(excellent). The brand selected by the consumer depends on which of the
four decision rules is used.
Q-14.3-B-
Compensatory decision rules come into play when a consumer evaluates
brand or model options in terms of each relevant attribute and computes
a weighted or summated score for each brand. The computed score
reflects the brand’s relative merit as a potential purchase choice. The
assumption is that the consumer will select the brand that scores highest
among the alternatives evaluated. These rules reduce the burden of
making complex decisions by providing guidelines or routines that make
the process less taxing .
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Q-14.4. How can Apple use its knowledge of customers’ expectations
in designing a marketing strategy for a new iPad ?
Research focused on the consumer provides specific insight involving
affect and cognition, consumer behavior, and the consumer environment
that the company can use to reach its target audience effectively guiding
the knowledge structure and decision process of the consumer.
Apple’s hardware devices are supported by the iTunes software.
Hardware devices are purchased through online and offline retailers, and a
limited number of retailers providing a tight vertically-integrated
ecosystem. Apple captures detailed information about consumer behavior.
A detailed understanding of Apple’s customers allowed the company to
analyze consumer behavior more effectively.
Apple uses this insight to tailor products and brand messages that
resonate with the target audience making products that work better and are
simple to use.
A consumer’s environment is based on the social and physical attributes
of the world around them that includes spatial relationships, physical
objects, and the social behavior of other individuals.
The physical environment including influences such as reference groups
and online and offline retail environments also have a large impact on
Apple’s success. The Apple retail environment, word of mouth, product
experience, and Apple’s mission and values play a large part influencing
the purchase behavior of Apple products in the marketplace.
The brand loyalty of Apple dominates the physical environment and
therefore captures significant attention and focus in the retail (consumer)
environment.
Q-14.5. How do consumers reduce post-purchase dissonance? How
can marketers provide positive reinforcement to consumers
after the purchase to reduce dissonance?
consumers can go to manufacturers’ websites to find much of the
information they need about the products and services they are considering.
Many websites provide product specifications, prices, and dealer cost
information, Uses web because it’s so easy to find information, and it’s
easy to use.
However, found that an individual searching the Internet gets frustrated
in about 12 minutes, on average; be consumers’ post-purchase dissonance
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results from an unsuccessful pre-purchase search. Furthermore, that failure
can also have a damaging effect on retailers.
However, retailers can help eliminate or reduce search regret by
providing ample information, trying to reduce out-of-stock situations, and
giving salespeople proper training.
Q-14.6. Sony is introducing a 65” Ultra HD TV that has a higher screen
resolution than other TVs and advanced signal processing. The
TV’s introductory price is $ 10,000.
a. Who should be Sony’s initial target market? What are the target
consumers’ demographics and psychographics?
b. How would you identify the innovators for this product?
c. Is the new model a continuous, dynamically continuous, or
discontinuous innovation? Explain your answer.
Consumers are desired state types, for whom the desire for something
new may trigger the decision process. It targets the demographics of
people with a high income level .
The new model: is discontinuous innovation the new model is
consumers to adopt new behavior. Discontinuous innovation can also be
referred to as breakthrough, radical or disruptive and is an innovation
that, if adopted, requires a significant change in behavior.
Which is the implementation of new technologies, products, or business
models that represent a dramatic departure from the current state of the
art in the industry. Examples include airplanes, radios, TVs,
automobiles.
Q-14.7. Describe how Sony can use the five product features that affect
adoption in order to speed up the diffusion of its new TV model.
1- Comparative advantage. Comparative advantage refers to the degree to
which an innovation appears to be better than existing products. Sony
HDTV offers significantly improved picture quality and advanced signal
processing, which has accelerated its adoption rate.
2- Compatibility. Compatibility is the degree to which an innovation fits with
the values and experiences of potential consumers. It belongs to the
characteristics of the product that influence the rate of adoption because
consumers will only slowly start adopting the product if it is not compatible
with their way of thinking. Sony HDTV is very much compatible with the
lifestyles of TV viewers.
3- Complication. The degree to which an innovation is difficult to understand
or use is also a characteristic of a product that affects the rate of adoption.
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Sony HDTVs are not so complicated. Therefore, as more programs become
available and prices come down, Sony's HDTV adoption rate is growing
faster than more complex innovations.
4- Independence. Divisibility refers to the degree to which an innovation can be
tried on a limited basis. Would you buy a new innovative HDTV from Sony
without having the opportunity to test it before? Early HDTVs and HD cable
and satellite systems were expensive, slowing the rate of adoption. As prices
fall, adoption rates increase.
5- Communication. Even if all other product characteristics that influence the
rate of adoption are favourable, communication can still significantly slow
adoption. Communication is the degree to which the results of using an
innovation can be observed or described to others. Since Sony HDTV lends
itself to clarification and description, its use has spread even faster among
consumers. Comparative advantage. Comparative advantage refers to the
degree to which an innovation appears to be better than existing products.
Sony HDTV offers significantly improved picture quality and advanced
signal processing, which has accelerated its adoption rate.