Consumer behavior and product types in marketing

Consumer Behavior

Three types of needs are biological needs, utilitarian needs and hedonic needs. Biologic needs are those needed to sustain life (shelter, food, water). Utilitarian needs are those that "emphasize the objective, tangible attributes of products" (Miller, 2010). These are practical products that provide a specific function (toiletries, clothes, pots and pans). A third type of need is hedonic needs, and these are products that are "subjective and experiential" (Ibid). These are products that we buy because we enjoy them, and derive pleasure from their use. Some products can combine attributes -- such as paying more for better clothes because we like them.

Aisner and Fournier (1999) outline the concept of brand relationships. These are one-way sentiments that a consumer has with respect to a brand, and perhaps the relationship also consists of attributes in the brand that reflect back on the consumer as a mirror. A meek accountant might be a Harley to feel edgier. The bike is just a piece of metal -- it has no personality of its own. But the brand conveys something back to the consumer and the consumer responds to that. The result is that the consumer perceives a relationship wherein he/she relates differently to different brands based on attributes those brands are imbued with by marketers.

3. Surface-level processing occurs at the sensory level. For example, when driving I see a red octagon in front of me. Meaning-level processing is where the brain interprets the surface-level signals. This is when my brain tells me that a red octagon is probably a stop sign. As a consumer, I respond to the meaning-level processing, but the surface-level processing helps me to derive meaning from things in my sensory environment. If I smell coffee while driving past a Starbucks, that is sensory level, but I derive meaning from that smell, and this can trigger a reaction in me, for example to pull in and order a cup.

1. Nextel is currently targeting business customers. It has 95% of Fortune 500 companies and is active in 297 of the country's top 300 markets. Nextel has applications for truck fleets, and other specialized corporate services. Despite its corporate presence, Nextel is only the fifth-largest wireless company in the nation, indicating that it does not have a strong presence among consumers. With Boost, Nextel is making an effort to target younger and ethnic consumers.

2. Nextel probably has an image as a corporate provider. Boost is the brand that is better associated with younger consumers right now. Nextel should target younger customers, yes. The market is growing and these consumers are heavy data users. Brand user image isn't really a factor in this decision -- strategically, bandwidth constraints and increased data usage point to a market that is likely to consolidate so Nextel needs to improve its market position in order to survive in the long-run. If the company needs to introduce a new brand to capture different customers, it should do that.

3. Nextel's corporate image is probably a turnoff for young adult customers, so the company probably will need another brand -- if Boost isn't getting the job done -- to appeal to this target market. The key thing for Nextel to remember, however, is that consumers have more loyalty to their phones than to the providers. The provider just needs to facilitate what the consumer wants to do with their device. Partnering with devices and phones that appeal to this target market is more important in terms of building strong brand associations than the Nextel brand itself.

4. I think this is definitely the case that more young consumers are cutting the cord. In addition to the desire to be constantly connected, home phone service is becoming increasingly expensive and increasingly useless for younger consumers. They don't need it and they don't want it.

5. I have not seen a Nextel ad. They are a subsidiary of Sprint now and are not heard from very much. That said, the ads from the companies listed there are obviously not very effective because they are not reaching me. I spend a lot of time on the Internet and do not watch much television at all. Therefore, these companies are doing a poor job of reaching their audience if they are focused on television ads. The first rule of marketing should be that you have to actually reach your audience to be effective, and in this case clearly these companies are not effective.