Question 1 (a): Consumer Perceptions driving Marketing Strategy (50 marks). Using your knowledge of the principles that influence consumers’ perception and interpretation of the world, explain how Tim Tam marketing strategy has created a perception of quality in the minds of the consumer. (20 marks)

According to Schiffman et al. (2014, pp. 174-175), the perception of quality of a product is influenced by cues that are either intrinsic or extrinsic to the product. Intrinsic qualities include the physical characteristic of the product such as size, flavour, colour and aroma. Based on Tim Tam’s outer packaging, the Tim Tam logo is located at the top of the packaging. Dong & Gleim (2018, p. 29) explain that designing the brand logo at the higher position gives the impression of a more powerful brand, and thus incites more favourable impressions towards the product and its quality.

Meanwhile, Tim Tam’s extrinsic cues include price, store image, service environment, brand image and promotional messages (Schiffman et al. 2014, p. 175). The first extrinsic cue to be discussed is price. Tim Tam is a chocolate biscuit and belongs to the same product categories such as Oreos and Cadbury Fingers. However, its observed that Woolworths Australia (n.d.) retails Tim Tams at a significantly higher price at A$ 4.19 as compared to Oreos and Cadbury fingers at A$ 2.00 and A$ 2.80 respectively. Baishya & Kakati (2019, p. 40) explain that the introduction of a higher price above the upper limit of an acceptable price range results in a consumer perception that the product is of a superior quality and value. The higher the perceived value of a product, the greater the willingness to buy (Baishya & Kakati 2019, p. 41).

The second extrinsic cue to be discussed is the brand image. Arnott’s is the parent organization of Tim Tam (Arnott’s 2019). The company has been specialized in baked confectionaries ranging from biscuits, crackers, and snacks with over 150 years in operation and is exclusively produced in Australia (Arnott’s 2019). In addition, the company is well-known for competing based on product quality instead of a cost advantage strategy as they use high quality ingredients (Arnott’s 2019). Therefore, the brand image projected by this organization is the prioritization of product quality across their product lines (Arnott’s 2019). Also, from a consumer’s perspective, international customers will assume that the product (Tim Tam) will have a higher perceived value and quality because it is an imported good (Kim et al. 2015, p. 390). Meanwhile, Cadbury and Oreo, which are owned by their parent organization Mondelez International, are developed to compete based on a mass production concept with competitive cost advantages strategies (Mondelez International 2019). These two brands carry the image of being affordable and easily accessible throughout the world, so they are not considered exclusive to any markets nor very high in quality in the eyes of consumers (Kim et al. 2015, p. 390).

The third extrinsic cue to be discussed is promotional messages. Hammond (2012) reports that Tim Tam targets their promotional messages using personalized advertising or otherwise known as narrowcasting. Narrowcasting is defined as a marketing method that allows marketers to develop and deliver more customised messages to increasingly smaller market segments on an ongoing basis (Schiffman et al. 2014, p. 135). In the “Truly, Madly Tim Tam” campaign, marketers of Tim Tam first identify lovers of Tim Tam products based on the people who “Liked” an orchard event online on Facebook. Later, the company creates an alternate version of the advertisement with people’s names in it and posts it onto their customer’s Facebook wall (Hammond 2012). In contrast, Cadbury and Oreo focus on broadcasting where their advertisements are directed to the mass media such as radio, television and broadband services. Personalized messages can give consumers the impression that they are special and are therefore purchasing a product which is more exclusive and limited. Exclusivity can give the perception of higher product quality because consumers assume that production of the product is increasingly well monitored (Hammond 2012).

Question 1 (b): Consumer Perceptions driving Marketing Strategy: Packaging
With reference to TIM TAM, comment particularly on the packaging, describing the quality perceptions of the product that are communicated by the packaging (20 marks) Compare and contrast your (students’) examples of packaging with each other and the Zealong packaging (10 marks)

Based on Tim Tam’s packaging, it can be observed that the main colour theme used is chocolate brown. The chocolate brown colour allows consumers to easily identify the food product as something that is related to chocolate. Kimbarovsy (2018) notes that marketers who give realistic expectations to their consumer can increase their willingness to purchase a product. In addition, Tim Tam has included a realistic picture of their chocolate biscuit to allow consumers to envision what the product looks like. While it is normal for most brands to edit their food product pictures to make them look more attractive, dramatically changing its image will give consumers false expectations that cannot be met by the producer, causing them to be unsatisfied. In comparison, Zealong’s packaging communicates what they are selling in a more subtle way with a small green lead logo above its brand name. Consumers who are not familiar with the product nor brand will not be able to identify what product it is at first glance.

Secondly, marketers also highlight that the fonts used in packaging should be legible, bold and easily identified. The name of the product “Tim Tam” is printed in a bold and large font on the packaging of the product. The font size takes up a considerable amount of space – more than 60% of the packaging itself. The advantage to this large font size is that it commands the attention of the consumer. Consumers in average spend about two thirds of a second looking at a product when they are browsing in aisles, so it is important that the brand name is communicated easily to the customer within the short time span. In addition, its observed that Tim Tam uses the contrast strategy in their font placement where their font is white in colour as compared to the darker brown background (Arnott’s 2019). Schiffman et al. (2014, p. 157) note that contrast allow a degree of differentiation between the figure and ground and is therefore able to grab the attention of the consumer. In comparison, the Zealong brand uses a similar strategy where their brand name font is in white while the background is black in colour to achieve high contrast.

Thirdly, while aesthetics in packaging captures the attention of a consumer, the packaging should also be usable and easily opened. As the product involved is chocolate biscuits, the material used must be rigid and sturdy enough to prevent the biscuits from being crushed before they reach the consumer. Therefore, Arnott’s uses a plastic tray design that can slide out when the consumer opens one end of the packaging (Arnott’s 2019). Plastic is also effective in preventing the chocolate from sticking onto the tray and creating a messy presentation to the consumer (Celentano 2018). However, while Tim Tams are significantly more expensive compared to products such as Cadbury fingers and Oreos, they are still not considered premium products in their product category. Therefore, the use of single use and unseal-able plastic packaging communicates this expectation to the consumer. In contrast, Zealong is a premium tea which retails to an exclusive market. Therefore, their packaging communicates this expectation by going beyond the importance of practicality and focuses highly on aesthetics. As shown in the photograph, Zealong tea is sold in metal tins that are fitted into another cardboard box instead of regular plastic or paper packs.

Lastly, quality food packaging also requires the use of the correct labels, instructions and nutritional factors. For example, food product labels are required by law include the name of the product, the manufacturer’s name and address, the weight, the ingredients, the calorie count, the total fat, cholesterol, protein and carbohydrate count and the presence of any artificial flavours or colouring. In addition, the packaging should also convey the expiration date and manufacturing date as mandated by the Malaysian Food Regulations 1985. Failure to comply can reduce consumer trust in the product as well as have the license for operation revoked by local authorities. In addition, if the imported item is sold in Malaysia the labels can be in Bahasa Malaysia or English. In contrast, Zealong is not sold in Malaysia and has labels that are exclusively in English.

Question 2 (50 marks)
Find three ads that contain symbolism. Examine the symbols and discuss the meaning the symbols convey. Identify the different types of signs used in the ads and the product qualities being communicated by each.

The use of symbolism in advertising is related to the abstract use of arts to attract consumer’s attraction and convey certain perceptions, meanings and messages associated to a particular brand or product. Some brands or products can convey a certain lifestyle that is desired by a consumer. For example, an advertisement showing camping gear or an SUV can convey the message of a desire for a rugged lifestyle. Such symbols will command the attention of people who favour outdoor activities and the wilderness. In addition, symbolism is also a powerful tool in communicating the values of a brand. In this question, I would like to discuss three concepts of different advertisements.

The first advertisement is from SK-II where a famous Japanese ballerina by the name of Misa Kuranaga explains the limitations of her physical stature as an Asian in the art of professional ballet. In the advertisement, she says that her narrow hips will limit the range of her movements, her facial features are too flat to show emotion, and that her petite figure puts her at a disadvantage in standing out in a performance (SK-II 2015). However, she notes that her DNA dictates that she shouldn’t allow the limitations of her physical stature to limit the full potential of her career. She has become the first Asian ever to be appointed as a principal ballerina at the Boston Ballet. While the advertisement by SK-II doesn’t even show the product, the symbolic message conveyed in the advertisement is that people have the potential to change their destiny if they choose and put in effort to do so. The advertisement conveys that SK-II beauty products allow women to become empowered through confidence in their beauty to change their destiny.

The second advertisement is by Apple which features the new iPhone using a comparative advertising strategy. Comparative advertisements are defined as advertisements that make relative judgements about the advantages of their brand over their competitors (Yucel & Kramer 2018, p. 198). Advertisers may depict consumers who use their product as happier, healthier or better off than the consumers who use their competitor products. According to research, competitive individuals who value power, luxury and influence were more likely to respond positively to comparative advertisements. In Apple’s case, the company shows two columns labelled ‘your phone’ and ‘iPhone’ (Apple 2018). A man runs past the two columns across the screen (Apple 2018). In the ‘your phone’ section, the man appears to be jogging but when he reaches the ‘iPhone’ column he disappears within a blink of an eye (Apple 2018). The symbolic message behind this advertisement is that iPhones are significantly faster than other smartphones within the market, despite the iPhone being absent from the advertisement.

The third advertisement to be discussed is by the premium chocolatier, Godiva. In this advertisement, the video shows a woman chewing the Godiva chocolate in a field of flowers, riding a horse and wearing long beautiful gowns (Godiva 2017). The theory behind this advertisement is grouping which can be defined as the tendency of individuals to group stimuli automatically so that they form a unified impression or picture (Schiffman et al. 2014, p. 163). Grouping is used by marketers to imply certain meanings to their produtcs. In Godiva’s case, the luxurious settings of riding a horse in a beautiful beach implies living to the best of life with a hedonistic lifestyle. Meanwhile, the field of flowers imply a life of romance and love, while the beautiful gowns signify wealth and beauty. Thus, from the advertisement, consumers will know that the Godiva brand caters to the high class and is associated to a life of comfort and ease.   

Written by:

Sak Jeng Mun (5506487)

Lin Yi Wei (5586483)

Li Yunzhe (5674268)

Huang Lei (5930571)

References

Apple 2018, Switch To iPhone – Commercial by Apple, online video, 19 October, Apple, accessed 16/5/2019, <https://www.youtube.com/watch?v=kQcq3rpne78&gt;

Arnott’s 2019, Our Products, accessed 14/5/2019, <https://www.arnotts.com/products/&gt;

Baishya, S & Kakati, M 2019, ‘Consumers’ Perception of Quality and Value Under Different Price Ranges and Price Positions Within a Product Line: A Study of the Indian Passenger Car Market’, IUP Journal of Marketing Management, vol. 18, no. 1, pp. 39-76, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edb&AN=134816724&site=eds-live&gt;.

Celentano, D 2018, ‘Tips for Designing Great Food Packaging’, small business, 17 December, accessed 14/5/2019, <https://www.thebalancesmb.com/food-packaging-marketing-tips-1326308&gt;

Dong, R & Gleim, MR 2018, ‘High or low: The impact of brand logo location on consumers product perceptions’, Food Quality And Preference, vol. 69, pp. 28–35, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edswss&AN=000436052700004&site=eds-live&gt;.

Godiva 2017, New GODIVA Masterpieces Chocolate TV Commercial, online video, 22 November, Godiva, accessed 16/5/2019, <https://www.youtube.com/watch?v=l-COuzsEP9k&gt;

Greenblat, E 2013, ‘Secret strategy to keep Tim Tams tip top’, The Sydney Morning Herald, 25 July, accessed 14/5/2019, <https://www.smh.com.au/business/secret-strategy-to-keep-tim-tams-tip-top-20130725-2qkvy.html&gt;

Hammond, M 2012, ‘Tim Tam campaign highlights merits of personalised ads’, Smart Company, 25 May, accessed 14/5/2019, <https://www.smartcompany.com.au/startupsmart/news/local/tim-tam-campaign-highlights-merits-of-personalised-ads/&gt;

Kim, SJ, Choi, YK, Kim, KH & Liu, H 2015, ‘Country of origin and brand image influences on perceptions of online game quality’, Journal of Consumer Behaviour, vol. 14, no. 6, pp. 389–398, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=pbh&AN=111509323&site=eds-live&gt;.

Kimbarovsky, A 2018, ‘6 Proven Tips for Successful Food Packaging’, crowdspring, 18 April, accessed 14/5/2019, <https://www.crowdspring.com/blog/successful-food-packaging/&gt;

SK-II 2015, SK-II #changedestiny stories – Beyond the Limits of DNA with Misa Kuranaga, online video, 14 January, SK-II, accessed 16/5/2019, <https://www.youtube.com/watch?v=R6HDugp9msQ&gt;

Yucel, AO & Kramer, T 2018, ‘The Impact of Competitiveness on Consumer Responses to Comparative Advertisements’, Journal of Advertising, vol. 47, no. 2, pp. 198–212, accessed 14/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=129424572&site=eds-live&gt;.

This blog examines two topics which are brand focus and consumer behavior concepts with the use of Scopus journal articles. Scopus journal articles can be identified by their range of publishers such as Sage, Oxford, Wiley or Emerald. The journals also have a specific ISSN or DOI number, and can be linked directly with Reference Managers such as Mendeley, RefWorks, and EndNote. In addition, an accession number will also be listed in Scopus journals which can be used to track the article in full text from the selected databases.

Blog Topic 1 – Brand Focus: ZARA

In the first blog topic, brand focus, I will discuss the concepts of brand equity, motivations and the role of cognitive dissonance in the creation of brand loyalty. Who are ZARA’s customers? I am. As a young, price-sensitive female who has a penchant for high-end fashion styles, ZARA is my go-to. Nevertheless, it is not surprising that consumers like me encompass more than half of ZARA’s target market, while men and kids apparel make up the remaining 40% (Willems et al. 2012, p. 1488).

The first concept to be discussed is brand equity which is defined as the added value of a brand, symbol and name in the perception of consumers (Schiffman et al. 2014, p. 236). A positive brand equity is a strong influencer on brand loyalty and satisfaction as there is an established sense of trust (Su & Chang 2018, pp. 92-93). An example of ZARA’s unique added value comes from their vertically integrated supply chain which allows their customers to be amongst the early adopters of a new fashion trend (Anwar 2017, p. 26). ZARA’s business model allows design, production, distribution and sales to take place just three weeks after a luxury brand fashion show (Anwar 2017, p. 26). The ability of a firm’s supply chain to deliver what has been promised is important for the development of long-term customer relationships (Molinillo, Ekinci & Japutra 2019, p. 98). ZARA’s brand image is also attributed to their active role in promoting sustainable clothing materials through their membership in the Textile Exchange which recycles polyester and incorporates the use organic cotton in production to decrease waste (ZARA 2019). Gupta (2015) observes that genuine attempts to incorporate sustainable business practices reflect a positive brand equity.

Next, I would like to discuss the motivations that motivate consumer purchase amongst young people with the use of Maslow’s Hierarchy of Needs. Maslow (1943, p. 371) notes that people are motivated by five different levels of needs and once a lower order need has been met, the individual would seek to satisfy a higher order need. The first is Physiological Need which includes our basic needs that are essential for survival (Sadri & Bowen 2011, p. 50). Clothing is a basic need as it protects us from changing weather patterns and various environments. ZARA’s collections ranges from winter apparel to swimsuits and are suitable for keeping us warm or cool as their garments are used for various seasons and recreational activities (ZARA Malaysia 2019). The second level is the Safety Need where we avoid physical or psychological harm (Sadri & Bowen 2011, p. 50). An example of ZARA’s product range includes shoes which can protect our feet from rough or dirty terrains (ZARA Malaysia 2019). The third level is Social Needs where the need to belong and accepted within a society emerges (Sadri & Bowen 2011, p. 50). Datta (2010, p.40) observes that the way we dress conveys our social groupings and associations. Therefore, if I want to assimilate myself with a group of rock n’ roll fashion enthusiasts, ZARA’s collection of leather jackets will convey that image (ZARA Malaysia 2019). The fourth level is Esteem Needs where we seek prestige, status and respect amongst our peers (Sadri & Bowen 2011, p. 50). Clothes can be a means of garnering respect from peers (Martínez, Errasti & Rudberg 2015, p. 723). For example, women don’t wear high heels just to appear taller, but also to feel psychologically more powerful, attractive and dominating (Kodzoman 2019, p. 4). This is how ZARA’s collection of high heels fulfil women’s desire for luxury and power. The final level is Self-Actualization where people seek maximize their talents and potential to become the best versions of themselves (Sadri & Bowen 2011, p. 50). ZARA’s collection of apparel allows middle-class fashion enthusiasts to experiment, discover, and challenge themselves with various styles that are synonymous with their identity because they are affordable and innovative (Tungate 2012, p. 32; ZARA Malaysia 2019).

The third concept to be discussed is post-purchase cognitive dissonance which is defined as feelings of psychological conflict and tension about a product or service after purchase (Mao & Oppewal 2010, p. 28). For example, I have experienced this phenomenon when the dress I purchased from ZARA didn’t look as nice as it did when I tried it on in the fitting room. Chang & Tseng (2014, p. 393) note that the higher the involvement of the consumer in the initial stages of purchasing decision, the higher the tendency to experience post-purchase dissonance. In addition, when a consumer experiences post-purchase dissonance continuously with a brand, the possibility of repeat purchase dwindles due to decreasing consumer confidence (Chang & Tseng 2014, p. 393). Wilkins, Beckenuyte & Butt (2016, pp. 215-216) note that marketers need to anticipate these issues and take corrective action before the consumer engages in negative word-of-mouth. ZARA avoids this issue by offering a full refund within 30 days after purchase for customers who are dissatisfied (ZARA Malaysia 2019).

Word count: 802 words

References

Anwar, ST 2017, ‘Zara vs. Uniqlo: Leadership strategies in the competitive textile and apparel industry’, Global Business & Organizational Excellence, vol. 36, no. 5, pp. 26–35, accessed 1/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=123411760&site=eds-live&gt;.

Chang, CC & Tseng, AH 2014, ‘The post-purchase communication strategies for supporting online impulse buying’, Computers in Human Behavior, vol. 39, pp. 393–403, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=ehh&AN=98481811&site=eds-live&gt;.

Datta, Y 2010, ‘Maslow’s Hierarchy of Basic Needs: An Ecological View’, Oxford Journal, vol. 9, no. 1, pp. 39-57, accessed 24/4/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=60881294&site=eds-live&gt;.

Gupta, S 2015, ‘Enhancing Brand Equity Through Sustainability: Waste Recycling’, Thunderbird International Business Review, vol. 58, no. 3, pp. 213–223, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselc&AN=edselc.2-52.0-84962821142&site=eds-live&gt;.

Kodzoman, D 2019, ‘The Psychology of Clothing: Meaning of Colors, Body Image and Gender Expression in Fashion’, Textile & Leather Review, vol. 2, no. 90, pp. 1-43, accessed 24/4/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edsdoj&AN=edsdoj.9ea724cb92ef406682f117d36a3e1aa8&site=eds-live&gt;.

Mao, W & Oppewal, H 2010, ‘Did I choose the right university? How post-purchase information affects cognitive dissonance, satisfaction and perceived service quality’, Australasian Marketing Journal (AMJ), vol. 18, no. 1, pp. 28–35, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselp&AN=S1441358209000950&site=eds-live&gt;.

Martínez, S, Errasti, A & Rudberg, M 2015, ‘Adapting Zara’s “Pronto Moda” to a value brand retailer’, Production Planning and Control, vol. 26, no. 9, pp. 723–737, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselc&AN=edselc.2-52.0-84937970428&site=eds-live&gt;.

Maslow, A 1943, ‘A Theory of Human Motivation’, Psychological Review, vol. 50, no. 4, pp. 370-396.

Molinillo, S, Ekinci, Y & Japutra, A 2019, ‘A consumer-based brand performance model for assessing brand success’, International Journal of Market Research, vol. 61, no. 1, pp. 93–110, accessed 9/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=134679377&site=eds-live&gt;. 

Sadri, G & Bowen, RC 2011, ‘Meeting Employee Requirements: Maslow’s hierarchy of needs is still a reliable guide to motivating staff’, Industrial Engineer, vol. 43, no. 10, pp. 44-60, accessed 24/4/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=eih&AN=66247063&site=eds-live&gt;.

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

Su, J & Chang, A 2018, ‘Factors affecting college students’ brand loyalty toward fast fashion: A consumer-based brand equity approach’, International Journal of Retail & Distribution Management, vol. 46, no. 1, pp. 90-107, accessed 24/4/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edsemr&AN=edsemr.10.1108.IJRDM.01.2016.0015&site=eds-live&gt;.

Tungate, M 2012, Fashion brands branding style from Armani to Zara, accessed 20/4/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=cat03332a&AN=uow.b2050976&site=eds-live&gt;.

University of Wollongong Australia’s Online Library 2018, accessed 24/4/2019, <https://www.library.uow.edu.au/index.html&gt;

Willems, K, Janssens, W, Swinnen, G, Brengman, M, Streukens, S & Vancauteren, M 2012, ‘From Armani to Zara: Impression formation based on fashion store patronage’, Journal of Business Research, vol. 65, no. 10, pp. 1487–1494, accessed 1/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselp&AN=S0148296311003596&site=eds-live&gt;.

ZARA 2019, ZARA: The Green Web, ZARA, accessed 24/4/2019, <https://www.zara.com/my/en/sustainability-green-web-l1453.html?v1=967753&gt;

ZARA Malaysia 2019, ZARA: Collection 19, ZARA, accessed 24/4/2019, <https://www.zara.com/my/en/woman-jackets-l1114.html?v1=1180323&gt;.

Blog Topic 2 – CB Concept Focus

This second blog topic explores three concepts of Consumer Behaviour which include an issue, Viral Marketing and the Sociocultural element from the PEST Analysis.

For the first concept, the issue that I have chosen is the case of Apple who had deliberately slowed down older iPhone models to get consumers to buy newer iPhone devices. Kirby (2017) reports that the company achieves this by getting consumers to update their devices to the latest operating system (iOS) which slows performance and lags the phone. This incident has caused some of its users to exhibit behavior related to post-purchase cognitive dissonance which is defined as an emotional state of psychological conflict after a purchase has been made (Mao & Oppewal 2010, p. 28). Botsman (2018) observes that some Apple brand loyalists continue to purchase and upgrade their iPhones because they evaluate the brand based on Apple’s previous consistent performance in delivering expertise, reliability, and integrity in their products. This behavior is a form of post-purchase cognitive dissonance where the consumer selects information that rationalizes the decision for their purchase and avoids information that contradicts this rationale (Schiffman et al. 2014, p. 268). A research by Wilkins, Beckenuyte & Butt (2016, pp. 215-216) adds that consumers will latch onto a single source of evidence, despite limited information to confirm their beliefs, while ignoring the credibility of the author or information source. However, smartphone manufacturers in the industry should avoid using impartial PR statements to appease customer concerns like what Apple has done because, the high involvement of customers in purchasing an expensive smartphone can incite a loss of trust with the company leading to market share loss (Sharifi & Esfidani 2014, p. 553).

In the second concept, I would like to discuss about Viral Marketing which is defined as the use of electronic word-of-mouth (eWOM) strategies that utilizes the role of consumers in spreading information and messages to other consumers (Seo et al. 2018, p. 83). A real-life example is the case of Pepsi who faced backlash after posting an advertisement featuring Kendall Jenner which gained 1.6 million views on Instagram within 48 hours on social media (Batchelor & Hooton 2017). Batchelor & Hooton (2017) reported that the advertisement portrayed a demonstration of the Black Lives Matter movement (BLM), and Kendall Jenner who was approaching armed officers to offer them a can of Pepsi to calm the intense situation. The advertisement was criticized to belittle and disrespect the importance of the movement, thus garnering the anger of the public (Batchelor & Hooton 2017). While the overall reception to the advertisement was negative, Pepsi had managed to capture the market’s attention as negative eWOM is more memorable and influential as compared to positive eWOM (Herhausen 2019, p. 2). Herhausen (2019, p. 3) observes that negative eWOMs invite consumers to give criticisms and feedback about a brand’s actions, which increases their involvement and attention to the advertisement. In addition, the appointment of an influential socialite to star in the advertisement boosts ad and brand recall in an individual’s memory (Nguyen & Chaudhuri 2019, p. 420). Pepsi had posted an apology on Twitter following the backlash, but Seo et al. (2018, p. 89) found that negative eWOMs that incite highly provoking emotions require more detailed explanations to justify actions to consumers.

The third concept to be discussed is the Sociocultural factor from the PEST Analysis. PEST Analysis is an acronym for Political, Economic, Sociocultural, and Technological and is beneficial for outlining an organization’s strategic direction, goal and values (Thompson et al. 2018, p. 47). The element that I have selected is the Sociocultural element which can be defined as the societal values, norms and lifestyles that influences buying behaviour (Thompson et al. 2018, p. 50). Now, I would like to apply this element onto the case of TOMS Shoes which was established in 2006 after its founder, Mycoskie witnessed widespread child poverty amongst rural Argentina (Peteraf, Zhang & Cooney 2016, p. 57). The company’s business model is based on a ‘One-for-One’ strategy where a pair of TOMS shoes is donated for every pair purchased (Peteraf, Zhang & Cooney 2016, p. 57). Kingston & Guellil (2016, p. 287) note that customers of TOMS disagree with the injustice of wealth inequality and, by purchasing these shoes, they are playing a role to help bridge the poverty gap. Customers who feel involved in the social causes and the co-creation process will also experience positive brand evaluations where they were more likely to subscribe to repeat purchases (Roncha & Radclyffe 2016, p. 302). However, there can a fine line between the misuse of corporate social responsibility for profit and actual intentions to improve societal welfare. A research by Kingston & Guellil (2016, p. 294) suggests that transparent financial reporting and accountability is crucial for any organization undertaking CSR activities to instil consumer confidence. TOMS financial report covers their various social activities and explicitly states the percentage of donations of each shoe model (TOMS Shoes n.d.).

Word count: 699 words

Total Word Count: 1501 words

References

Batchelor, T & Hooton, C 2017, ‘Pepsi advert with Kendall Jenner pulled after huge backlash’, 5 April, accessed 9/5/2019, <https://www.independent.co.uk/arts-entertainment/tv/news/pepsi-advert-pulled-kendall-jenner-protest-video-cancelled-removed-a7668986.html&gt;.

Botsman, R 2018, ‘Apple needs to be more upfront about the iPhone’s black box’, Wired News, 12 April, accessed 2/5/2019, <https://www.wired.co.uk/article/iphone-battery-replacement-throttling-ios&gt;

Herhausen, D, Ludwig, S, Grewal, D, Wulf, J & Schoegel, M 2019, ‘Detecting, Preventing, and Mitigating Online Firestorms in Brand Communities’, Journal of Marketing, vol. 83, no. 3, pp. 1-21, accessed 8/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edb&AN=135774461&site=eds-live&gt;.

Kingston, LN & Guellil, J 2016, ‘TOMS and the Citizen-Consumer: Assessing the Impacts of Socially-Minded Consumption’, Journal of Human Rights Practice, vol. 8, no. 2, pp. 284–297, accessed 8/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=poh&AN=116608856&site=eds-live&gt;.

Kirby, J 2017, ‘Apple admitted it’s slowing down certain iPhones’, Vox, 28 December, accessed 2/5/2019, <https://www.vox.com/2017/12/22/16807056/apple-slow-iphone-batteries&gt;.

Mao, W & Oppewal, H 2010, ‘Did I choose the right university? How post-purchase information affects cognitive dissonance, satisfaction and perceived service quality’, Australasian Marketing Journal (AMJ), vol. 18, no. 1, pp. 28–35, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselp&AN=S1441358209000950&site=eds-live&gt;.

Nguyen, HT & Chaudhuri, M 2019, ‘Making new products go viral and succeed’, International Journal of Research in Marketing, vol. 36, no. 1, pp. 39–62, accessed 8/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=135744224&site=eds-live&gt;.

Roncha, A & Radclyffe, TN 2016, ‘How TOMS’ “one day without shoes” campaign brings stakeholders together and co-creates value for the brand using Instagram as a platform’, Journal of Fashion Marketing and Management, vol. 20, no. 3, pp. 300–321, accessed 8/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=edselc&AN=edselc.2-52.0-84977642886&site=eds-live&gt;.

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

Seo, Y, Li, X, Choi, YK & Yoon, S 2018, ‘Narrative Transportation and Paratextual Features of Social Media in Viral Advertising’, Journal of Advertising, vol. 47, no. 1, pp. 83–95, accessed 8/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=128213410&site=eds-live&gt;.

Sharifi, SS & Esfidani, MR 2014, ‘The impacts of relationship marketing on cognitive dissonance, satisfaction, and loyalty: the mediating role of trust and cognitive dissonance’, International Journal of Retail & Distribution Management, vol. 42, no. 6, pp. 553–575, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=inh&AN=14688446&site=eds-live&gt;.

Thompson, A, Peteraf, M, Gamble, J & Strickland, A 2018, Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases, 21st edn., McGraw-Hill, New York.

TOMS n.d., TOMS Stories: The Stories Behind Your Impact, TOMS, accessed 8/5/2019, <https://stories.toms.com/&gt;

University of Wollongong Australia’s Online Library 2018, accessed 24/4/2019, <https://www.library.uow.edu.au/index.html&gt;

Wilkins, S, Beckenuyte, C & Butt, MM 2016, ‘Consumers’ behavioural intentions after experiencing deception or cognitive dissonance caused by deceptive packaging, package downsizing or slack filling’, European Journal of Marketing, vol. 50, no. 1, pp. 213–235, accessed 2/5/2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=inh&AN=16030971&site=eds-live&gt;.

Turnitin Report

In this week’s tutorial, the following questions will be discussed.

Question 1
A marketer of health foods is attempting to segment its market on the basis of Australian consumers’ self‐image.
Describe the types of consumer self‐image and discuss which one(s) would be most effective for the stated purpose.

A consumer’s self-image or perception is closely associated to a consumer’s personality (Schiffman et al. 2014, p. 132). According to the theory, we all have multiple selves where we play a multitude of roles in different settings or scenarios Schiffman et al. 2014, p. 132). For instance, we play the role of a son or daughter in the presence of our parents, and a friend in the presence of our peers. In a marketer’s point of view, its important for them to distinguish each of these roles we play so that they can develop goods and services that are able to meet the needs of each actor. Self-image doesn’t develop overnight but develops as we grow in our background and experience. We also develop a self-image as we communicate with a variety of people – which is a form of learning from the external environment.

According to Schiffman et al. (2014, p. 133), there are five types of consumer self-image:

1. Actual self-image – Consists of how consumers see themselves. For example, a consumer who assumes themselves as a participant of an active or rugged lifestyle would be more inclined to camping products and SUVs as these goods have a symbolic meaning for being ‘active and rugged’
2. Ideal self-image – Consists of how consumers would like to see themselves. We all have an ideal self where we aim to ascribe positive traits commonly found in our role models.
3. Social self-image – Consists of how consumers feel others see them. For instance, we may feel that others view us as a humorous person if they subscribe to our jokes, humour or sarcasm.
4. Ideal social self-image – Consists of how consumers would like others to see them. An ideal social-image is important in our effort to become part of the social groups we wish to join and stay in. This concept can be linked to in-group tendencies in consumers who change their behaviour in order to feel accepted by a social group.
5. Expected self-image – Consists of how consumers expect to see themselves at some specific point in future. The expected self-image is noted to be between the actual and ideal self-image and is future-oriented in nature where we observe the question of “What would we like to be?”

In our opinion, an actual self-image is the most important in determining the market segment. This is because a lot of purchasing behaviour is dependent on the perceptions of differences between the actual and desired state of an individual (Schiffman et al. 2014, p. 102). When a high enough difference is perceived, the tension is transformed to a need which is able to guide our behaviour primarily. For example, when a consumer is hungry, they would buy or cook some food. A health food marketer needs to know what types of healthy options of food a consumer would go for when they are hungry in order to satisfy the market needs. While friends and families (external influences) can motivate or demotivate an individual towards or away from health foods, it is ultimately up to the individual in choosing their choice of action. Therefore, the actual self-image is the most crucial focus in marketing research.

Question 2
(a) What is motivational research?
(b) What are its strengths and weaknesses?
(c) How did Ernest Dichter apply Freudian theory to consumer behavior?
(d) How was motivational research used in the 1950s?
(e) How do marketers use the technique today?

a) Motivational research is defined as the research of human behaviour in determining the discrepancies between what people say, do, and think (Rothwell 1955, p. 150). Motivational research is generally based on qualitative research designs such as in-depth interviews, focus groups and ethnographic research in order to discover the consumer’s subconscious or hidden motives (Schiffman et al. 2014, p. 99). Motivational research is useful for marketers in determining why some products are favoured and noticed while others are not.

b) The strengths of the motivational research includes a positive recognition in the marketing world. According to Sharma (n.d.), motivational research has encouraged marketers to focus less on the demographic and statistical results from marketing research. For instance, repeat purchases don’t necessarily mean that a marketer has fulfilled a consumer needs but merely because the location of the purchase was convenient for the consumer. High purchase frequency also can’t be confused with consumer loyalty, as a consumer may stick with one product simply because they assume that there are no other alternatives in the market.

Meanwhile, the weakness of motivational research is evident in the psychoanalytic theory. The psychoanalytic theory, developed by Dr Ernest Dichter is based on a research conducted on disturbed people who may or may not have different mental models or cognitive skills compared to the average consumer (Schiffman et al. 2014, p. 99). Secondly, as part of a qualitative research design, the results of motivational research are highly dependent on the interpretation of the researcher. Thus, any biases towards a particular subject or matter can block certain information from enabling the researcher in making inferences (Sharma, n.d.).

c) According to Schiffman et al. (2014, p. 99), Dr Ernest Dichter used Freud’s psychological analytical techniques to study consumer buying habits. He developed certain product profiles which explained consumer behaviour based on their origins in sex. For instance, baking is perceived as a sexual symbol of femininity and motherhood. This is because the act of baking is similar to the act of giving birth where a woman nourishes a child in her womb (oven) until it is time to deliver said child (baking completed).

d) Back in the 1950s, marketers were focused on what consumer did instead of why they did it (Schiffman et al. 2014, p. 99). Motivational marketing started gaining popularity in the 1950s post Word War II where demand for consumer goods shot high. To cope with such an increase, marketers changed their viewpoint from focussing on the interests of marketers themselves to the interests of the consumer. Dr Ernest Dichter summarised that motivational research is a psychoanalytic interpretation of motives linked to sexual intentions. Thus, research of a certain product, such as a car was linked to the view that a car is a man’s mistress, as they spent considerable amount of time maintaining it along with identifying the car with an identity of a ‘she’ (Schiffman et al. 2014, p. 99).

e) Today, marketers don’t focus on the sexual aspects of a product alone, but instead look into the subconscious and conscious minds of consumers in determining what motivates them for the purposes of developing relevant promotional and distribution materials that are more likely to entice or engage the consumer (Schiffman et al. 2014, p. 100). At the same time, it also looks at the internal and external influences of consumer decision making such as the economic conditions, opinions of social groups, and the efforts of advertisers in gaining market share. Lake (2019) observes that a successful market positioning and later, selection of market niche or target market is highly dependent on understanding what a marketer can do in fulfilling a consumer need based on their own capability and knowledge in serving this group.

Written by:

Sak Jeng Mun (5506487)

Lin Yi Wei (5586483)

Li Yunzhe (5674268)

Huang Lei (5930571)

References

Lake, L 2019, ‘Motivation Research and How It Is Used’, the balance small business, 1 February, accessed 2/5/2019, <https://www.thebalancesmb.com/what-is-motivation-research-2295518&gt;.

Rothwell, ND 1955, ‘Motivational Research Revisited’, Journal of Marketing, vol. 20, no. 2, pp. 150–154, viewed 2 May 2019, <https://search-ebscohost-com.ezproxy.uow.edu.au/login.aspx?direct=true&db=bth&AN=6746070&site=eds-live&gt;.

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

Sharma, M n.d., ‘Motivation Research: Strengths and Weaknesses’, YourArticleLibrary, accessed 2/5/2019, <http://www.yourarticlelibrary.com/motivation/motivation-research-strengths-and-weaknesses/48949&gt;.

1. Identify a product, service, or style that was recently adopted by you and/or some of your friends. Identify what type of innovation it is and describe its diffusion process up to this point in time. What are the characteristics of the people who adopted it first? What types of people did not adopt it? What feature of the product, service or style are likely to determine its eventual success or failure? – Chapter 14 11th Edition (Page 379) – 20 marks

The product that our team has chosen is the Samsung Galaxy S10 which has been launched on the 4^th of June in 2019 (Samsung Mobile 2019). The Galaxy S10 or S10 in short belongs to the premium segment of the Android-powered smartphone market and was established to compete directly with Apple’s own flagships, the iPhones. The S10 belongs to a product-oriented type of innovation – the continuous innovation. Schiffman et al. (2014, p. 537) defines continuous innovation as the introduction of a modified product rather than a totally new product. This is due to the fact that the S10 is the successor of previous S series devices such as the S7, S8 and S9 (Samsung Mobile 2019).  The modifications that came with the S10 include a longer battery life, better-quality speed and performance, and an improved camera (Samsung Mobile 2019). However, with the introduction of new features that were not available in any other smartphone devices at the time of the launch, the S10 also shows a dynamically continuous innovation. The dynamically continuous innovation is defined as a more disruptive form of innovation that doesn’t change existing consumer behaviour patterns (Schiffman et al. 2014, p. 537). An example of a feature that were yet to be discovered is the Ultrasonic Fingerprint scanner which has been infused into the screen (Samsung Mobile 2019).

The diffusion of innovations is the framework of consumer acceptance towards a new product, and the diffusion process is concerned with how innovation is spread or assimilated within a market (Schiffman et al. 2014, p. 536). Diffusion is defined by five characteristics namely: relative advantage, compatibility, complexity, trialability, and observability (Schiffman et al. 2014, p. 539). These five characteristics will be elaborated in the S10’s context.

Relative advantage: Relative advantage is the degree to which potential customers perceive a new product as superior to existing substitutes (Schiffman et al. 2014, p. 539). The superiority of new technologies is easily discernible to customers today as there is an influx of information available on the internet for product comparisons. YouTube stars are noted to have a high impact on youth decision making and purchasing decisions, and the platform’s top tech influencers such as MKBHD have given a thorough reviews on the specifications of the S10 as well as compared its performance with the iPhone in terms of value for money (Arnold 2017).

Compatibility: Compatibility is the degree to which potential customers feel that a product is consistent with their present needs, values and practices. For instance, Samsung has placed heavy marketing on the S10 which doesn’t just focus on the physical aspects of the device, but also how the device is to be integrated with our hectic modern lifestyles which requires access to information and communication at anytime and anywhere (Samsung Mobile 2019).

Complexity: Complexity is the degree to which a new product is difficult to understand or use (Schiffman et al. 2014, p. 540). To allow consumers to transition between different operating systems such as the iOS, Samsung has created step by step tutorials on the usage of the phone as the consumer explores the device (Samsung Mobile 2019). Therefore, the dominant ‘technological fear’ of technical complexity can thus be overcome.

Trialability: Trialability is the degree to whicha new product is being tried on a limited basis (Schiffman et al. 2014, p. 540). As with all other smartphone manufacturers, Samsung has physical stores located all over Malaysia to allow consumers to test the device out for themselves prior to making a purchase decision (Samsung Malaysia 2019). In Klang Valley alone, there are 26 ‘Samsung Experience Stores’ for consumers to choose from (Samsung Malaysia 2019).   

Observability: Observability is defined as the ease of which a product’s benefits or attributes can be observed, imagined, or described to a potential customer (Schiffman et al. 2014, p. 540). Its noted that tangible products are much easier to be observed as compared to intangible products. Since S10 is a smartphone, it falls under the category of a physical product, and can therefore be easily visible.

Based on the Product Life Cycle (PLC), the S10 is now at the growth stage where sales are increasing at the fastest rate. According to Schoon (2019), the S10’s sales are growing faster than ever with an increase of 19% in sales numbers compared to its predecessor, the S9. Its success has also translated to a higher market share for Samsung in the mobile industry with higher volume transactions (Schoon 2019). To maintain such numbers, the company has launched numerous marketing initiatives such as advertisements on social media platforms (Samsung Malaysia 2019). Despite being a premium smartphone, the target market for the early adopters were actually youths and the working class. Triggs (2019) notes that a variation of the S10, called the S10e was developed specifically for younger budget conscious youths who had a penchant for advanced technologies. His research dictates that younger people were conscious of the specifications and performance of their smartphones, and that the international branding of Samsung played a big role in attracting this segment. However, there are also reasons as to why the product was not adopted by some people. One of the reasons is that early adopters are noted to experience glitches with the new products. These glitches can come in the form of quality control or software bugs. A notable incidence of inconsistent manufacturing quality by Samsung is the case of the Note 7 which caught on fire due to quality control issues with their lithium battery suppliers in China (Jones 2016).

While there has been quality issues, the company still successfully attracts consumer by radical innovations and a string of patented technology that cannot be copied or replicated by competitors. An example of such technology is the OLED screen which allows screens to be thinner, lighter and more energy efficient. While Samsung does make a portion of its profit from OLED sales to other smartphone manufacturers such as Apple, the company still reserves the best quality screens for their own devices.  Therefore, it can be concluded that a determining factor for its success in the industry is its radical Research and Development (R&D).

2. The key characteristics that influence buyer behaviour toward new products are perceived risk, media influence, social characteristics, and demographic characteristics. Imagine that you are planning to purchase a brand new luxury motor vehicle, and explain how each of these factors would affect your purchase decision. Please use examples to support your responses – Chapter 14 11th Edition (Page 379) – 20 marks

The luxury motor vehicles that my team and I have picked to be compared are BMW and Lexus. Specifically, we have chose the BMW X5 and the Lexus RX for comparison as both of these vehicles belong in the midsize SUV category.

The first characteristic to be discussed is perceived risks. Perceived risks are defined as the likelihood of a consumer trying a new brand or product, and it is also the degree of uncertainty or fear about the consequences of product purchase (Schiffman et al. 2014, p. 557). A form of perceived risk is physical risk which can be attributed to the safety of a vehicle. The Lexus RX has been extensively reviewed for safety by the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) (Lexus 2019). The vehicle has received the best crash scores from both parties with its adaptive cruise control, rear-view camera, forward collision warning, automatic emergency braking, lane departure warning, and pedestrian detection. In addition, the vehicle also has a head-up display, a surround-view parking camera, front and rear parking sensors, and blind spot monitoring with rear cross traffic alert (Lexus 2019). In comparison, the X5 is equipped with BMW’s Active Protection System, a head-up display, night vision, Evasion Assistant, a surround-view camera, and parallel and perpendicular park assist (BMW Malaysia 2019). Therefore, the Lexus successfully wins in the category of perceived risks as it has more features that cover the safety of not just the driver but also the passengers.

The second factor is media influence which involves the role of the innovator in exposing their new products to their target market or audience (Schiffman et al. 2014, p. 557).  Lexus has recently launched a product placement in the movie ‘Black Panther’, which is one of the highest grossing films of 2018. Meanwhile, BMW has stuck to their traditional advertising channels such as car magazines. Therefore, the winner of this round is Lexus.

The third factor is social characteristics the ability of innovators to integrate themselves into the community and belong to social groups and organizations (Schiffman et al. 2014, p. 558). In the United States, there is a Lexus Owner’s Club where a community of Lexus drivers openly discuss about the general public perception of Lexus vehicles (Lexus 2019). From this ‘club’, innovators at Lexus are able to gauge the perception that Lexus vehicles are family-friendly cars meant for older people with children. These feedbacks have allowed the car designers to create and develop sportier and more modern designs (Lexus 2019). On the other hand, BMW also has similar initiatives in forming a social group for their driver through the ‘BMW Club’ (BMW Malaysia 2019). Similarly, this club discusses general issues of various car models. An advantage BMW has over Lexus is that this club goes beyond online discussions, but also sets up physical meetups for their members by inviting them for new product launches and forums (BMW Malaysia 2019). Another advantage BMW has over Lexus is that the club is focussed on Malaysia, so there will be minimal cultural differences in the communication of the members. As a potential customer, we choose BMW as the winner in this round as we feel that they are more active in reaching out to customers.     

The final factor is demographic characteristics which studies the consumer innovator’s age, formal education, family background, income and other similar attributes (Schiffman et al. 2014, p. 557). According to MotorTrend (2019), Lexus is on the hunt for younger, more diverse customers. Their justification for this decision is that the White baby boomer generation aren’t the only ones earning higher than average median incomes in today’s economy. The rise of developing economies such as Malaysia, India and China over the years have attracted attention as a number of their recoded billionaires are below thirty. Meanwhile, according to the Hedge Company (2019), BMW is still targeting the generation of baby boomers as they perceive this generation as able in financial capability as compared to younger generations.

Overall, we prefer Lexus over BMW in their effort to seek out new markets and effort to enhance the safety of consumers.

Written by:

Sak Jeng Mun (5506487)

Lin Yi Wei (5586483)

Li Yunzhe (5674268)

Huang Lei (5930571)

References

Arnold, A 2017, ‘Why YouTube Stars Influence Millennials More Than Traditional Celebrities’, Forbes, 20 June, accessed 24/4/2019, <https://www.forbes.com/sites/under30network/2017/06/20/why-youtube-stars-influence-millennials-more-than-traditional-celebrities/#776a610648c6&gt;

BMW Malaysia 2019, ‘BMW Club Malaysia’, BMW, accessed 24/4/2019, < http://www.bmwclubmalaysia.com/forums/index.php&gt;

Hooley, G, Piercy, NF, Nicoulaud, B & Rudd, JM 2017, Marketing Strategy & Competitive Positioning, 6th edn., Pearson, Harlow, UK.

Jones, RC 2019, ‘Samsung Galaxy Note 7: What went wrong?’, BBC News, 11 October, accessed 24/4/2019, <https://www.bbc.com/news/av/business-37622076/samsung-galaxy-note-7-what-went-wrong&gt;

Lexus 2019, ‘Lexus Buyer’s Club’, Lexus, accessed 24/4/2019, < https://au.lexusownersclub.com/forums/topic/10994-general-public-perception-on-lexus/&gt;

MotorTrend 2019, ‘Lexus Is On The Hunt For Younger, More Diverse Customers’, MotorTrend, 22 January, accessed 24/4/2019, <https://www.motortrend.com/news/lexus-hunt-younger-diverse-customers/&gt;

Samsung Malaysia 2019, ‘Samsung Galaxy S10’, Samsung, accessed 24/4/2019, <https://www.samsung.com/my/smartphones/all-smartphones/&gt;

Samsung Mobile 2019, ‘Samsung Galaxy S10’, Samsung, accessed 24/4/2019, < https://www.samsung.com/my/smartphones/?cid=MY_Paid_SEM_GS_IMMULTI_AO_Brand_Mobile&gt;

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

Schoon, B 2019, ‘Report: Samsung Galaxy S10, S10+ sales on par w/ S9 so far, S10e offers slight edge’, 9TO5Google, 22 April, accessed 24/4/2019, <https://9to5google.com/2019/04/22/samsung-galaxy-s10-sales-report/&gt;

Triggs, R 2019, ‘Who is the Samsung Galaxy S10e for?’, Android Authority, 26 February, accessed 24/4/2019, <https://www.androidauthority.com/samsung-galaxy-s10e-target-market-957489/&gt;

This week’s tutorial poses three questions which will be discussed in the following:
     
1. Neutrogena is a manufacturer of personal care products for young adults. The company would like to extend its facial cleansers product line. Design (a) a qualitative and (b) a quantitative research design for the company focused on this objective

Based on the Product Life Cycle, Neutrogena is currently at the Mature stage where their primary concern is to defend their market share against other beauty giants such as L’Oréal. One way of maintaining market share is to continuously enhance a product or serve a market niche that is underserved or unexplored.  According to Schiffman et al. (2014, p. 65), a concentrated marketing is crucial for products at the latter stages of the product life cycle because competition is at its peak with strong competitors who have comparably high amount of resources.

a. Quantitative Research

Based on the problem statement above, my team and I would like to propose a research objective which is to determine the main type of skin concerns that are prominent for young adults. Firstly, we have decided to use a quantitative research, consisting of a survey to study the types of facial cleansers desired by young adults. Pasek et al. (2014, p. 889) note that a survey or questionnaire must be worded correctly, accurately, and without bias in order to communicate properly with respondents. The sample we have chosen for this research consists of 100 young men and women in Subang Jaya at a ratio of 3:7 respectively to generalise the population of Selangor. The respondents are aged between 16 to 28 and are chosen based on a random sampling. In the questionnaire, the participants would be required to fill in details such as their name, allergies, age group, gender, skin type, skin concerns and frequency of using cleanser. In addition to these questions, the survey also enquires about the effectiveness and scope of reach of Neutrogena’s promotional mediums.

b. Qualitative Research

Burns, Veeck & Bush (2017, p. 144) define qualitative research as a research method that involves collecting, analysing, and interpreting unstructured data by observing what people experience and say. The qualitative research method we are going to choose is a focus group which allows various participants to discuss the concept of facial cleansers freely under the guidance of a moderator (Burns, Veeck & Bush 2017, p. 144). Such method allows the participants to brainstorm and give feedback to one another. The focus of our qualitative research would be to gauge the participant’s point of view about what new features, skin concerns and deliberations should be taken into consideration in the creation of the new product. An example of an open-ended question that would be asked is, “In your opinion, are there any ingredients listed in our skin care that irritate your skin? If yes, how does it affect you?”.  It will involve a total of 8 participants, with 2 participants each from every age group found in the survey. The participants will be selected by choosing people of different skin concerns and skin types to ensure that we eliminate any biases.

2. Which methods of survey would you adopt to investigate the attitudes of a group regarding the shopping experience in Japanese department stores such as Isetan, Sogo and Mitsukoshi?

We will choose the Quantitative method which involves a questionnaire or survey. There are a few methods of survey which include person-administrated surveys, computer-administrated surveys and self-administrated surveys (Burns, Veeck & Bush 2017, p. 181). In our opinion, a computer-administrated survey, the online survey specifically will be chosen as our medium. There are several advantages to this choice. These surveys are inexpensive, easy to administer, and easily spread as most people own a smartphone these days. In Malaysia, the smartphone penetration rate is at 54% while users spend an average of eight hours online (Statista 2019; The Sun Daily 2019). Also, these surveys can be customized to actively engage participants through the input of a variety of media such as pictures, videos, graphs and diagrams so they won’t be bored throughout the session. Last but not least, online surveys are advantageous because the researcher can accumulate and monitor data on a continuous basis with the help of software.

Based on the above reasoning, we have come up with three sample questions which will be answered using a Likert scale (Very Unsatisfied, Unsatisfied, Neutral, Satisfied, Very Satisfied):

• How will you rate the responsiveness of front-line employees (cashiers, sales assistants) in Japanese department stores as compared to conventional departmental stores?
• How will you rate the quality of selection of goods sold in the Women’s department of Japanese department stores?
• What is your opinion towards the interior furnishings and design of Japanese departmental stores?

3. Nestle conducted extensive and accurate market research before deciding to put Nespresso in production. Using web sources, press articles, and the corporate website, outline your background research and provide the reason for the success of the famous espresso brand, which featured George Clooney and Matt Damon in a testimonial and has become a veritable case of successful marketing.

The reason for success of the Nespresso brand is Nestle’s achievement in determining the correct target market from the market segmentation. Slywotzky (2011) describes Nespresso as “the Armani of coffee”, which means that the brand caters to passionate coffee lovers who are able to afford higher-end coffee products. These people were usually white-collared professionals who do not have the luxury of time to prepare a cup of coffee from scratch. They were also most likely to be Gen X or Baby Boomers who had a higher median of disposable income and whom were more focussed on high quality than practicality. Nespresso (n.d.), states that their products are of unsurpassed quality, and that their unique capsules and machines offer the convenience of preparing coffee at the right water temperature, quantity, speed and pressure.

From the identification of their target market, they were able to select celebrities that would most likely to appeal to these two generations – Matt Damon and George Clooney, both whom are veterans in show business. Osei-Frimpong, Donkor & Owusu-Frimpong (2019, p. 104) observe that celebrity-endorsed advertising messages garner more audience attention, appeal, and ad recall as compared to noncelebrity-driven advertisements. In addition, celebrities whose likeability and familiarity resonate with their audiences also tend to have more power in influencing their purchase decisions (Osei-Frimpong, Donkor & Owusu-Frimpong 2019, p. 106). Agrawal (2016) notes that young people, are especially easily impacted by the actions of their idols, because they love to wear what their idols are wearing and using to try to emulate them.  Apart from the ability to relate to consumers, the apt usage of humour in the advertisement also contributed to its success. Schiffman et al. (2014, pp. 258-259), note that humour is an effective way of helping consumers think more broadly and to understand complex and elusive relationships.

Written by:

Sak Jeng Mun (5506487)

Lin Yi Wei (5586483)

Li Yunzhe (5674268)

Huang Lei (5930571)

References

Agrawal, AJ, 2016, ‘The Benefit of Companies Using A Celebrity Spokesperson’, Forbes, 12 April, accessed 16/4/2019, <https://www.forbes.com/sites/ajagrawal/2016/04/12/the-benefits-of-companies-using-a-celebrity-spokesperson/#6fbeea923d5d&gt;

Burns, AC, Veeck, A & Bush, RF 2017, Marketing Research, Global Edition, vol Eighth edition, Pearson, Harlow, England

Nespresso n.d., ‘Creating Highest Quality Grand Cru Coffees’, Nestle: Nespresso, accessed 13/4/2019, <https://www.nestle-nespresso.com/about-us/strategy/creating-highest-quality-grand-cru-coffees&gt;

Osei-Frimpong, K, Donkor, G & Owusu-Frimpong, N 2019, ‘The Impact of Celebrity Endorsement on Consumer Purchase Intention: An Emerging Market Perspective’, Journal of Marketing Theory & Practice, vol. 27, no. 1, pp. 103–121, accessed 12/4/2019, Scopus database.   

Pasek, J, Jang, SM, Cobb III, Cl, Dennis, JM & Disogra, C 2014, ‘Can Marketing Data Aid Survey Research?’, Public Opinion Quarterly, vol. 78, no. 4, pp. 889–916, accessed 12/4/2019, Scopus database.   

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

Slywotzky, A 2011, ‘Triggering Demand: How Coffee-Maker Nespresso Turned Drips Into Gushers’, Fast Company, 3 October, accessed 13/4/2019, <https://www.fastcompany.com/1781304/triggering-demand-how-coffee-maker-nespresso-turned-drips-gushers&gt;

Statista 2019, ‘Smartphone penetration rate as share of the population in Malaysia from 2017 to 2023’, Statista, accessed 13/4/2019, <https://www.statista.com/statistics/625418/smartphone-user-penetration-in-malaysia/&gt;

The Sun Daily 2019, ‘Malaysia ranks top 5 globally in mobile social media penetration, highest in region’, The Sun Daily, 31 January, <https://www.thesundaily.my/local/malaysia-ranks-top-5-globally-in-mobile-social-media-penetration-highest-in-region-DI468306&gt;

The purchase of consumer goods and services have come a long way since the traditional brick-and-mortar days. The evolution of the Internet has invaded every aspect of our lives. A notable effect of the internet is its impact on consumers’ purchasing decisions. Today, consumers hold more power than ever with a myriad of information sources and knowledge about the goods and services we wish to purchase. Thus, it is imperative that firms understand what consumers value, believe and want from the goods and services they are purchasing through marketing research. From the sample survey provided in this week’s tutorial session, there are a few observed areas for improvement.

Firstly, while this survey is catered for people aged 20 years and below, it assumes that every person within this age range possesses a salary with the lowest option being “below RM1000”. This can be misleading for the researcher as there is a distinction between the payer, the buyer and the user of the actual product (Schiffman et al. 2014, p. 47). A number of younger people may be engaged with full-time education, and thus, may be relying on external financial assistance from their parents who are the actual payers of the transaction.

Secondly, some of the questions are not grammatically simple where they contain multiple subjects, predicates and complements. Burns, Veeck & Bush (2017, p. 218) note that the more subjects and predicates in a sentence, the greater the potential for respondent error and the waning of their attention. For instance, under the trustworthiness section, the B1 questions states that “I believe the same situation mentioned by different Instagram user verifies the actual quality fitness product endorses by Instagram social influencer.”. It is evident here that there are multiple subjects here: the participant, the different Instagram user and the Instagram social influencer, all which can potentially confuse the participant of the survey.

Thirdly, some questions which target the psychographic segmentation are also not crystal clear where the implication is obvious nor easy to understand (Burns, Veeck & Bush 2017, p. 219). The question C3 states that, “I want to be as successful as the Instagram influencer appearing on Instragram posts.” A better way of wording this would be to define the meaning of success that is easily interpreted by the reader. For instance, it can be changed to “I want have as many as 10,000 likes as the Instagram influencer appearing on Instragram posts”.

Fourthly, there are also questions that are leading questions that insinuate that the reader or participant should feel a certain way. For instance, question E3 states that “I am proud to tell people I am on Instagram and Instagram has become part of my daily routine”. This question implies that the reader should feel proud and can affect respondents who don’t have a strong opinion on the matter (Burns, Veeck & Bush 2017, p. 220).

References

Burns, AC, Veeck, A & Bush, RF 2017, Marketing Research, Global Edition, vol Eighth edition, Pearson, Harlow, England

Schiffman, LG, O’Cass, A, Paladino, A & Carlson, J 2014, Consumer Behaviour, Pearson, Australia.

This blog post is dedicated to a breakdown of the data collection and measurements used in the article written by Mr Darel Luna who discusses the concept of Viral Marketing, otherwise known as electronic word-of-mouth (e-WOM). The marketing research was based on the impact of viral marketing on the brand awareness of a Malaysian clothing line brand, Martin Shakir. The research was carried out with the use of a questionnaire that was distributed to 100 respondents on Instagram and Facebook. The sample was chosen from Martin Shakir’s Instagram followers who have a history of purchasing the clothing line, and was distributed based on Krejcie Morgan’s table of population. Then, the collected data was tabulated using a statistical software package into categories.

From the research, four implications were assessed. Firstly, eighty-nine respondents prefer Instagram over Facebook. Instagram’s success could be accounted by factors such as its ease of use, visibility or imaginative platform as discussed by the author. Secondly, viral marketing allows consumers the freedom to discuss about the fashion line. An open and free platform allows consumers to share positive and negative experiences, which also serve as a feedback for organizations in improving product quality. Thirdly, half of the respondents agree that the company became more well-known after engaging viral marketing through Instagram repost. This implication was observed after a post went viral following the Kuala Lumpur Fashion Week. Lastly, Instagram allows the sharing of the latest information on product and collections of the brand. In addition, the platform allowed the brand to connect directly with consumers to clarify enquiries.   

Everyone is a consumer. As part of this community, we all have our share of good and bad experiences. Notably, one of the worst experiences that I had experienced as a consumer was when I had engaged with a catering service for a school event. The catering service was booked up to a month in advance. To ensure that the caterers understood our requirements, my friends and I had paid a visit to their physical store. We had spent hours pouring over details such as the colour of table cloths and chairs, the utensils that were needed, types of food and the hygienic amenities that were to be provided. Before we confirmed what meals were to be served, the caterers allowed us to sample some of their dishes and we made our decision as to which tasted best based on these samples. All was well until the day of the event. They were late. It wasn’t a trivial 5 minute delay, but a delay of over 2 hours. We had panicked and called them multiple times to which they ignored most of our calls. Thus, we had to find ways to delay the lunch. When they finally arrived to set up the food, we noticed that the selection of dishes were different as to what was promised. Some of the dishes were switched to cheaper alternatives. For instance, the mutton briyani was switched with ordinary fried rice without our knowledge. Meanwhile, the desserts that were agreed upon such as Tiramisu flavoured cakes, and other pastries were bland in taste. The quality was miles apart from the sample desserts served in the physical store. In addition, the table cloths used were old and grimy, unlike the ones that were displayed in the showroom. When the meals were being served, we received endless complains of how rude the servers were. Some guests were even deprived of cutleries because the servers assumed that most Malays and Indians ate with their hands. At the end of the day, we had demanded a refund as they had failed to deliver upon their promises. The refund process was lengthy and had extended into weeks with a lot disagreements and angst as the caterers had denied all of the allegations of not fulfilling their part of the deal.

This bad experience has given me a bad outlook towards caterers. This perception was also fuelled by similar stories and experiences from friends and families. As a result, I have refused to engage with the services provided by caterers for the following school events. Instead, my friends and I engaged with fast food joints such as McDonald’s and Dominos Pizza to supply food. We discovered that fast food joints were more ideal than caterers as the process of ordering the food was much simpler. They were able to accurately estimate the amount of food needed, as well as cater to the needs of different races such as the Muslims who required halal food. Fast food joints also made it easier to track our orders as all the details of the order were sent in black and white to our emails. The details were also inclusive of the terms and conditions for late deliveries along with the compensations that would be provided. Thus, should such a situation repeat, my friends and I wouldn’t have to haggle with the company for refunds and compensations.

It was also damaging to our school’s name and reputation as the guests who were promised lunch had a tea break instead. It was upsetting to hear the guests gossiping of how poor our planning was as most of them were stuck in the hall for hours in hunger and thirst. When we realized that most of the food were switched with cheaper options, we also felt cheated and that the money paid was more than the value of what was received. Their excuses of how they had run out of certain ingredients didn’t sound sincere nor convincing, as we had booked the order up to a month in advance. Whether or not they were telling the truth showed incompetence in planning on their part where they had failed to procure the necessary ingredients for an order. Their staff had also left a bad impression with their rude behavior when they were serving the guests. We felt that the staff weren’t motivated to do their jobs. Customer service also needed work as they were slow to respond to requests through phone calls and emails.

Lastly, while the experience was traumatizing, it had also served as an important lesson. My friends and I had learned to always have a backup plan should any situation arise. Secondly, we also learned that to solve problems spontaneously. To appease our guests, we came up with some games on the spot to entertain them. Lastly, we learned to do a background check on the services that we are going to hire. Today, Google allows us to post reviews about the quality of a service provider. These reviews are able to eliminate the bias perceptions or false promises that some service providers push for.

Thanks for joining me!

Good company in a journey makes the way seem shorter. — Izaak Walton