Summery of expected answer for the mid term paper You can use examples of your choice 1 Describe the interrelationship between consumer behavior as an academic discipline and the marketing concept. The study of consumer behaviour is the study of how individuals make consumption-related decisions. There are many academic reports on consumer behaviour available Academically should know consumption related behaviour, and marketer use these knowledge for altering and changing behaviour
The key assumption underlying the marketing concept is that a company must determine the needs and wants of specific target markets, and deliver the desired satisfaction better than the competition. The marketing mar keting concept is based on the premise that a marketer should make what they can sell, instead of trying to sell what they have made. Thus, a company which adopts the marketing concept must continuously research and monitor its customers’ and potential clients’ needs and consumption-related behavior in order to develop, effectively promote, and deliver products and services which satisfy clients needs better than the competition. 2. Discuss the ethical issues related r elated to the statement “marketers don’t create needs; needs pre-exist marketers.” Can marketing mar keting efforts change consumers’ needs? Why or why not? a. Mark Market eter erss do do not not crea create te need needs, s, thou though gh in some some inst instan ance cess the they y may may make consumers more keenly aware of unfelt needs. The tact that many new products take illustrates that marketers often do not recognize or understand consumer needs and that they cannot create a need for products. On the other hand, there are countless examples of products that have succeeded in the marketplace because they fulfill consumer needs. b. b. Mark Market etin ing g effo efforts rts are are gen gener eral ally ly not not des desig igne ned d to to cha chang ngee con consu sume mer r needs but to create or trigger “wants” for products/services that consumers would then purchase to satisfy needs that already exist. Market-oriented companies use consumer research to uncover relevant needs, translate them into “wants” by designing appropriate products and services, and position
their offerings as satisfying needs and wants better than competitors’ products/services. 3. Describe the type of promotional message that would be most suitable for each of the following personality market segments and give an example of each: (a) highly dogmatic consumers, (b) inner-directed consumers, (c) consumers with high optimum stimulation levels, (d) consumers with a high need for cognition, and (e) consumers who are visualizers versus consumers who are verbalizers . a) Highly dogmatic consumers are likely to respond favorably to a new product when the advertising message is presented in an authoritarian manner (e.g., celebrity endorsement or expert testimonials). b) Inner-directed consumers tend to use their own values and standards in evaluating a new product; therefore, ads aimed at them should depict the attainment of personal achievement and satisfaction. c) Consumers with a high optimum stimulation level are more open to risk-taking, more likely to be innovative, try products with many novel features, and shop in new retail outlets. Consumers with high OSL are likely to respond favorably to promotional messages stressing more rather than less risk, novelty, or excitement. d) Consumers with a high need for cognition are ones who often crave or enjoy thinking. They are likely to be responsive to ads that are rich in product-related information or description and are unresponsive to the auxiliary or contextual aspects of an advertisement. e) Marketers should stress visual dimensions in attracting visualizers (i.e., consumers who prefer visual information, products that stress the visual) and detailed descriptions and explanations in targeting verbalizers (i.e., consumers who prefer written and verbal product information). 4. For each of these products—chocolate bars and bottles of expensive perfume—describe how marketers can apply their knowledge of differential threshold to packaging, pricing, and promotional claims during periods of (a) rising ingredient and materials costs and (b) increasing competition.
The differential threshold is the minimal difference that can be detected between two stimuli. It is also called j.n.d. (just noticeable difference). Weber’s law states that the stronger the initial stimulus, the greater the
additional intensity needed for the second stimulus to be perceived as different. Also, an additional level of stimulus, equivalent to the j.n.d., must be added for the majority of people to perceive a difference between the resulting stimulus and the initial stimulus. In the (a) case, manufacturers and marketers endeavor to determine the relevant j.n.d. for their products so that negative changes—reductions size or increases in price , or reduced quality—are not readily discernible to the public and so that product improvements are readily discernible to the consumer without being wastefully extravagant.
Improvement in product and promotion is desirable In the (b) case, marketers use the j.n.d. to determine the amount of change or updating they should make in their products to avoid losing the readily recognized aspects of their products. Marketers want to meet the consumers’ differential threshold so that they readily perceive the improvements made in the original product. This could create a competitive differential advantage. For example, the subtle incremental changes in product and changes in labeling could produce changes and better meet competition. 5. Nivea, the cosmetic company, has introduced a new line of shaving products for men. How can the company use stimulus generalization to market these products? Is instrumental conditioning applicable to this marketing situation? If so, how? According to classical conditioning theorists, learning depends not only on repetition, but also on the ability of individuals to generalize. Stimulus generalization explains why imitative “me too” products succeed in the marketplace: consumers confuse them with the original product they have seen advertised. In extending its product line, the marketer adds related products to an already established brand, knowing that the new product is more likely to be adopted when it is associated with a known and trusted brand name. Conversely, it is much more difficult to develop a totally new brand. Application of classical conditioning theory Repitition Stimulus generalization Product line , form, category extention
Family branding Licencing Stimulus discrimination What might be the reward from using the new product (i.e., instrumental conditioning)? Because Nivea has a good reputation in skin care, the new shaving line can build on this reputation and add skin care value to the male segment. Like classical conditioning, instrumental conditioning requires a link between a stimulus and a response. In instrumental conditioning, however, the stimulus that results in the most satisfactory response is the one that is learned. Instrumental learning theorists believe that learning occurs through a trial-and-error process, with habits formed as a result of rewards received for certain responses or behaviors. Although classical conditioning is useful in explaining how consumers learn very simple kinds of behaviors, instrumental conditioning is more helpful in explaining complex, goal-directed activities. Therefore, for company to use instrumental conditioning, they must provide consumers the opportunity to try the product and then like what they try.
