Business - Consumer Behavior Business:

Business - Consumer Behavior Business: PRODUCT MARKETING and CONSUMER BEHAVIOR Carbonated cola drinks are very similar in terms of ingredients and formula, but the major companies like Pepsi and Coca Cola that dominate the market invest tremendous resources in marketing efforts designed to appeal to consumers and promote brand loyalty. Smaller companies like RC Cola emphasize cost savings and wholesalers like Sam's Club target consumers who tend to purchase so-called "off-brands" and "store brands" in bulk for even more economical prices.

Because the products are so similar and practically indistinguishable in any objective sense, Coca Cola and Pepsi marketing efforts must rely on indirect references and image association rather than on any actual differences in product quality or other quantifiable differences, such as their relative concentration of cola nuts (Howard 2005). Therefore, advertising campaigns for both products focus on indirect inferences, such as the connection between use of their product and attractiveness to the opposite gender, perception of trendiness, and association with high-profile role models like professional athletes and sports franchises.

Because their advertising relates more to imagery and association rather than to tangible product qualities and claims, consumers do not necessarily have specific expectations about them that are capable of being satisfied or frustrated. More than anything else, their choice of product simply reflects their desire to affiliate with the role models and imagery promoted by product advertising campaigns. Curiously, practical elements like pricing are much less likely to motivate product choice among the lowest income consumers than among consumers with the highest income (Stanley 1996).

Consumer Profile #1: Cheryl Williams is a lower-middle-class working mother of four living in Henderson, Nevada. She does most of her general shopping at Wal-Mart and Target, and much of her food shopping at wholesale outlets like Sam's Club.

Generally, she avoids national brand, despite protests from her children who would prefer Coca Cola and Pepsi to RC Cola and any "store brands." Cheryl shops mainly by value and will gladly substitute national brands for store brands or off-brands like RC Cola whenever they are available at competitive sales prices to accommodate her children.

Consumer Profile #2: Harry Valone is a self-made millionaire who runs a small chain of Arizona laundry mats which he purchased one at a time after running a single facility that he originally funded with a bank loan and financial assistance from his parents. Like other self-made financial successes, Harry emphasizes careful budgeting in every aspect of his business and personal affairs, religiously avoiding any unnecessary or unjustified expenses, such as paying more for brand name products that are virtually indistinguishable from much.