Consumer Behaviour Is A Matter Term Paper

Length: 14 pages Sources: 14 Subject: Business - Management Type: Term Paper Paper: #28501594 Related Topics: Consumer Protection, Consumer Behavior, Consumer Psychology, Consumer Perception
Excerpt from Term Paper :

This conclusion is also supported by the fact that it is far more expensive to gain new customers than to make a satisfied customer come back. This is why it is worth investing in the development of the relationships with the already existing valuable clients from this point-of-view, it would be a right time to bring into discussion the concept of empowerment. Well chosen representatives of the organization can be given the power to establish and negotiate relationships of commitment with the customers. The organization must nevertheless keep in mind the fact that the relationship must be mutually advantageous. Consequently, a constant development of the products and services must be taken into consideration as well as a continuously adapted client management scheme.

The target clients must be thoroughly segmented and each of the needs must be addressed in a specific mode. Demographic data is important but is not relevant if taken into consideration alone. Geographic locations, attitudes, etc. also need to be taken into consideration. Just as Cobb says, a company will "need to apply an array of effective marketing mechanisms to deliver the right offer to the right customer at the right time at the right cost." In order to fulfil this obviously difficult task, an organization may need to take into consideration aspects such as risk, client profitability and communication.

Communication has proved to be essential in establishing and maintaining relationships. It is with its help that an organization may become aware of the changes which occur in the customers' preferences. Feedback helps the company come up with future strategies. At the same time, communication helps the organization keep an eye upon the surrounding environment (competitors included).

d. Cadillac is one of the companies which has had an important history as far as marketing to its customers is concerned. The company became famous for one of the choices that it made in time of crisis. Just as Berkowitz says, the "company managed to save itself by choosing to sell to the Afro-American population."

This statement is very interesting to analyze since it is obvious that the main criterion chosen for the segmentation of the target population was in this case ethnicity. Discussing this issue from the perspective of Customer Relationship Management, it can be said that the company took into consideration an important cultural element when addressing a new target public. Although it is known that it is cheaper to invest in the relationships with the already existing clients, there are times of crisis when a decision such as the one taken by Cadillac can prove to be wise. And wise it was, since it brought the company the desired amount of profit.

In order to benefit from an efficient Customer Relationship Marketing experience, a company must be in the possession of all the technologies which allow it to monitor the behaviour of the clients. Since Cadillac chose at some point to focus on the Americans of African origin, it was important for them to know how to address this particular target. The ethnic variable is important under these circumstances because it plays a great influence upon the construction of a social identity. Such a factor could not have been ignored in the context in which Cadillac could not afford a new failure.

It is known that life in the African-American communities is sometimes led according to rules and principles which are not too often to be found in the other communities. They can very well influence the acquisition behaviour of people, regardless of the type of item (from commodity goods to high-end luxury products).

Apparently, the already existing attributes of the Cadillac brand, as well as the already existing groups of clients are not enough in order to allow the company to maintain the desired profits quota. This is how one can explain the declared intention of the company to expand its range of customers. Such is the case of the campaign that Cadillac launched during the summer of 2007, under the name of "Life. Liberty. And the Pursuit."

The purpose of the campaign is to reignite America's love affair with the brand" (Webwire). Reading between the lines, one can see that the interest for this particular car brand has diminished. In order to refresh the attention and the interest among the already...


This campaign has the purpose to attract attention upon the brand and hopefully increase sales as well.

Since being product-centric has not proved to be beneficial for the company from long-term perspective, it is safe to say that it is a good an idea to consider becoming customer centric. Even if the new campaign is meant to draw the attention to the characteristics of the brand, to its most important attributes, the company must also understand that it has to keep an eye on the profitability margins of its customers. And it can do this through a perhaps more personalised campaign which also aims at obtaining relevant feedback about the Cadillac actions and products, allowing it to better understand the changes in the preferences, attitudes and desires of its current clients.

Section 10.

The importance of subcultures when it comes to the acquisition behaviour is no longer a secret. People carry their cultural background with them, regardless of the places where they go. It is a part of their identity. Therefore, kit is safe to say that is influences the way they think and the way they act. There are three main consumer subcultures which can be found in the United States of America. These are the Hispanics, the Asian and the African.

It is also interesting to know who and what buys within these subcultures. Who does not buy and the reasons for doing so. There are differences in the acquisition behaviour of these subcultures because the things that we buy reflect who we are. Thus, it could be said that a cultural difference will also be visible in the shopping lists.

Let us take for example the case of the Hispanic-Americans. "Their purchasing power has influenced the marketplace" (Heise). The demographic data can explain the situation here. As Hispanic families are usually formed from a large number of members, it is likely that the family will eat more. In order to eat more, one needs to buy more.

It is known for food to have an important part in the Hispanic culture. Fresh food is especially sought by the members of this particular consumer subculture. This means that the sales of fresh fruit and vegetables, as well as the sales of fresh bread and fresh meat will also be influenced by the preferences of this group. Their holidays and other religious or social events which involve ceremonial eating will also influence the patterns of the acquisition behaviour.

Another market segment which is influenced by the consumption habits of the Hispanics is represented by the dairy industry. Just as Heise (2002) says, " growing ethnic diversity, particularly an increase of Hispanics, may decrease per capita consumption of dairy products by U.S. consumers." third aspect that could be taken into consideration when discussing the consumer behaviour of the Hispanic subculture is represented by the manner in which their incomes influence their daily life. It could be stated that the major part of the immigrant families do not have high annual incomes. This is often because of the fact that they do not always the superior education that would otherwise allow them to. As a consequence, this particular subculture is not one of the important segments of people who buy high -end products.

Another subculture that is present in the United States and which influences the market is represented by the Asians. The number of Asians living in the U.S.A. is important enough to play a part in the way in which companies come up with new products and marketing strategies.

From this point-of-view, it is interesting to acknowledge the product areas which most benefit from the preferences of the members of this subculture.

Researches concluded in the past have demonstrated that the preference of Asian-Americans for the use of the internet. An overwhelming 90% of the people who were part of the Diversity Business study (Diversity Business, 2007) declared that they make an often use on the internet connection.

Not only do they enjoy spending their time online, but they also use the Internet as a means for shopping. "Asian Indians and Chinese spend the most hours on the Internet" and the online spending has been increasing, especially in the area of books and various apparels" (Diversity Business, 2007).

The fact that young people spend so much time on the internet can help companies come up with the profile of the future buyer that these children will grow up to be. Therefore, it is of great importance to create and maintain…

Sources Used in Documents:


2007). Annual Asian-American Consumer Behaviour Study reveals Key Findings in Retail, Automobile, Insurance and Telecom Industries. Retrieved November 26, 2007 from the Diversity Business Web site:

Berkowitz, J. (2007). Cadillac Flunks History. Again. Retrieved November 25, 2007 from the All about cars Web site:

2006).Cadillac introduces new " Life. Liberty. And the Pursuit." Marketing Campaign. Retrieved from the Webwire Web site:

Cobb, Russ (2007). Want value from your acquisition? Try a customer-centric approach. Retrieved Novemeber 25, 2007 from the SAS Web site:
CRM Training- Customer Relationship management Consultant. PHS Management Training. Retrieved November 24, 2007 from PHS Management Training Web site:
Heise, D. (2002). Hispanic-American Influence on the U.S. Food Industry. Retrieved November 25, 2007 from the USDA Web site:
High context vs. Low Context. Retrieved November 25, 2007 from the Communication across cultures Web site:
2005). Internet-enabled lead generation. Retrieved November 25, 2007 from Patent Storm Web site:
Perner, L. Consumer Behaviour: The psychology of marketing. Retrieved November 26, 2007 from the Web site:

Cite this Document:

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