Porters Five Forces Analysis of Samsung
Introduction Porter’s Five Forces methodology is used in this article to analyze the business strategies of white goods makers like Samsung. This tool is a handy method to assess how each of the market drivers impact the companies like Samsung and then based on the analysis, suitable business strategies can be devised. Further, companies like […]
Development of International Logistics and International Retail
Logistics services happen to be the backbone of Retail Operations. Traditional Logistics was referred to mean transportation services by road, rail, air and ocean freight. However, along with the evolution of International Retailing, Logistics too grew as a discipline encompassing not only freight but a host of logistics related activities including Origin and Destination Services, […]
The Changing Face of Services Marketing
Marketing of Services has emerged as an important sub discipline of marketing in its own right. It has evolved phenomenally to emerge as a major field of study with far reaching implications in today’s increasingly service driven economies. It is then, only natural, to wonder what is the future course that this field of study […]
Building Strong Brand Equity
Strategic brand management’s goal is to develop strong consumer based brand equity. To reach these goal companies have to design and execute well thought marketing programs. However, task does not end at executing marketing programs, companies to have to construct brand equity measurement system to understand the impact of on consumer mind. One thing to […]
Leveraging Secondary Brand Association to Build Brand Equity
There are various ways to create brand equity. Brand elements offer many alternatives style, logo unique selling proposition etc. Then there are marketing strategies aimed at product, price and distribution network. Here focus is on product and its attributes, correct and convincing price structure, and finally choice of product reaches consumer. Marketing communication is also […]
Consumer Behaviour deals with the study of buying behaviour of consumers.
Let us understand the effect of psychological factors on consumer behaviour:
Nancy went to a nearby restaurant and ordered pizza for herself.
Why did Nancy buy pizza ?
Answer - She was feeling hungry and wanted to eat something.
In the above example, Hunger was the motivating factor for Nancy to purchase pizza. There are several other factors which motivate individuals to purchase products and services.
An individual who is thirsty would definitely not mind spending on soft drinks, packaged water, juice and so on. Recognition and self esteem also influence the buying decision of individuals.
Why do people wear branded clothes ?
Individuals prefer to spend on premium brands and unique merchandise for others to look up to them. Certain products become their status symbol and people know them by their choice of picking up products that are exclusive. An individual who wears a Tag Heuer watch would never purchase a local watch as this would be against his image.
What is Perception ?
What an individual thinks about a particular product or service is his/her perception towards the same. For someone a Dell Laptop might be the best laptop while for others it could be just one of the best brands available.
Individuals with the same needs might not purchase similar products due to difference in perception.
Catherine and Roselyn had a hectic day at work and thus wanted to have something while returning from work. Catherine ordered a large chicken pizza with French fries and coke while Roselyn preferred a baked vegetable sandwich. Though both Catherine and Roselyn had the same motivation (hunger), but the products they purchased were entirely different as Roselyn perceived pizza to be a calorie laden food. Individuals think differently and their perceptions do not match.
Individuals perceive similar situation differently due to difference in the way they interpret information.
There are three different processes which lead to difference in perception:
Learning comes only through experience. An individual comes to know about a product and service only after he/she uses the same. An individual who is satisfied with a particular product/service will show a strong inclination towards buying the same product again.
Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals create a certain image of every product or service available in the market. Every brand has an image attached to it, also called its brand image.
Consumers purchase products/services based on their opinions which they form towards a particular product or service. A product might be really good but if the consumer feels it is useless, he would never buy it.
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