Fictuality -- Each mini project separately consist 2 pages APA format. 5 mini project total pages. Additionally a final project totals 10 pages (based mini projects). Final project combining mini project a final project presented a company (management) cut paste.
Consumer decision-making is a process that often involves the word-of-mouth testament of a product or service where the opinion from the use of a consumer is favourable. The process seductively involves the product marketing team's portrayal to the consumer of the brand appeal and in-store value against the competitor. The consumer choice is ostensibly immense in the global market. Stores that range the spectrum of offerings, from specialty goods stores to large supermarkets and to stores such as Costco, Wal-Mart and the Dollar Store, consumers have a cornucopia of choice available.
The consumer decision process (Ashley, Wei, Sharyn, Carolyn, 2005) potentially requires multiple decisions made in a chain-process when considering a purchase choice. For example, when a consumer is considering a car, the decisions involved in the price paid are a function of numerous decisions regarding the entire selection and purchasing process. Consumers may pursue a course that involves screening session or "decision waves" (Ashley, Wei, Sharyn, Carolyn, 2005) with the underlying notion of reducing the overall complexity of the decision process to a manageable level. Consumers then reach the final decision stage, comparing the alternatives and rendering a final choice of which item to purchase.
The complex process is a function of a multitude of inputs certainly the over-riding input is word-of-mouth, as research into consumer decision-making has shown however, the Ashley et al. research indicates that where word-of-mouth or where written reviews are not available, consumers rely on alternative information sources to render a decision.
The process involves the identification of a brand name that consumers identify with a trigger word such as quality (BMW), or strength (Mr. Clean). A study considering store choice consumer behaviour selection choices among audio equipment shoppers, Dash et al. (1976) found that the amount of pre-purchase information obtained on the brand was a determinant of the type of store chosen. Shoppers with high asymmetric information of pre-purchase information usually shopped at the specialty store, contrast to shoppers with low asymmetric information purchased at departmental stores. The researcher points to customers integrating risk reduction behaviour regarding their impending purchase.
The implication is uninformed shoppers will pursue the retail outlets where the level of specialization is lower whereas the more knowledgeable shopper is willing to pay more and hence shops at the specialty store. The dependant variable here is not education or consumer brand knowledge however, the dependant variable is and always will be income as a function of disposable income required to sustain an inelastic demand curve for a basket of specialty goods, or items as in this case.
The post purchase evaluation is a battle between purchase approval and the avoidance of the looming cognitive dissonance. Concept of cognitive dissonance, discussed broadly in research covering consumer behaviour, yet the literature, paradoxically, provides is no agreed upon means of scale to measure. Important is the notion that dissonance is not aroused in every purchase. Three main conditions for such arousal have been suggested (Cummings & Venkatesan, 1976; Korgaonkar & Moschis, 1982; Mowen, 1995; Oliver, 1997). Of primary concern, the decision requires to solve a vital need to the consumer. In other words, the consumer must be a stakeholder in the decision by having personally invested a substantial portion of assets or psychological cost in the decision.
The result must have a substantial degree of personal attachment to the consumer. Consumer must remain free in making their personal selection. In other words, the decision requires a voluntarily and unabated consumer dedicated response. Third, consumers need to evoke personal commitment to the decision once made. This is to say the decision need be final. According to Korgaonkar et al., major consumer-based purchase decisions, containing long-term consequences, remain most likely to create dissonance conditions (Korgaonkar & Moschis, 1982; Oliver, 1997) (Sweeney, Hausknecht, Soutar, 2000)
The societal implications of Brand and Store Loyalty is a socio-culture change toward the dominant marketing consumer campaign. A society that functions as a standard of the brand name culture can isolate those that cannot afford to buy brand name items for their family. This is to include not only food and toiletry items, but clothing, automobiles, and interior furnishing as well. The strength of the marketing to enhance brand loyalty forces a decision among individual members of society to allocate income from discretionary to disposable income when making the choice from selecting generic brand goods to brand name items.
Dash, Schiffman, Berenson. Risk- and Personality-Related Dimensions of Store Choice
The Journal of Marketing Vol. 40, No. 1 (Jan., 1976), pp. 32-39
(article consists of 8 pages) Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/125067
Lye, A., Shao, W., Thiele, S.R., & Fausnaugh, C. (2005). Decision waves: Consumer decisions in today's complex world. European Journal of Marketing, 39(1), 216. Retrieved from http://search.proquest.com/docview/237027902?accountid=13044
Sweeney, J.C., Hausknecht, D., & Soutar, G.N. (2000). Cognitive dissonance after purchase: A multidimensional scale. Psychology & Marketing, 17(5), 369. Retrieved from http://search.proquest.com/docview/227688810?accountid=13044
Mini Project 2
Firm profitability is a function of consumer behaviour. To increase market share of a corporate generated brand name product, an investment into the long-term brand culturing to the environment is critical. Much the way the Pepsi Corporation maintains its brand of Pepsi.
Through analyzing spending habits and money expenditure patters of a company's existing customer base, data miners can make accurate forecasts regarding consumer choice. Hence, improving the efficiency and effectiveness of the way a company sells its products. A comprehensive understanding regarding consumer behaviour (Donaldson, 2007) enables company leadership the relevant, lucid and actionable information necessary to grow their business.
Consumer behaviour is detectable as the process of decision-making involves purchases and ultimately a road map of why the purchaser made the decision. Additionally, survey and other material that provides an insight into the decision-making process will enable marketing departments to administer brand strategies to increase market share by targeting consumers via specific criteria. By acquiring a unique understanding of the preferences of the target market, market share can increase as a function of data mining techniques requisite to increasing brand loyalty.
Customer Service Management (CSM) (Babu, Kumar, 2010) is the focal point of modern service-based business strategy. Loyal customers are central to the CSM strategy, as customer loyalty reflects greater profitability over a life-time, as purchases of new products, updates an obsolescence, and supplies and services. Additionally, customer loyalty perhaps is the most critical catalyst of growth and profitability. Customer retention can also create a tremendous competitive advantage, boost employee morale, produce unexpected bonuses in productivity and growth, and reduce the cost of capital.
Corporations are essentially in the business of increasing customer loyalty across all brands of products in the product mix. Their ability to increase market share is the most important driver of future success in the industry. Therefore, the ability to forecast changes in consumer preference and market dynamics will create a competitive advantage likely to increase market share and prevent the loss of market share to competitors.
Globalization has further enhanced the profitability of brand loyalty. Given the imprecise product knowledge of goods coming from foreign markets, the product brand is essential for consumers to know what they are getting for their money. A generic product produced by a factory from China may yield undesirable results when considering the performance of brand name products and their use in the past.
Brand recognition and brand awareness are also imperative to increasing profitability and brand loyalty. Consumers must have YOUR product in mind when thinking of satisfying a want or need. McDonalds restaurant is a sign of a specific product and quality when travelling domestically and abroad. One can walk into a McDonalds restaurant and have any item from the menu and enjoy a low variance in product quality. A quality and standard of operation exist within the framework of these businesses and remain in place when operating in countries where operating and manufacturing restrictions may not exist.
Raising the intrinsic value of each loyal and marginal customer is the ultimate goal of any CSM strategy. As new-customer acquisition has proven difficult and expensive, the acquisition process only makes sense when the capacity of the ensuing relationship can result in a positive cost-benefit and exceed the cost of acquisition. Organizations by-and-large, conceptualize the value of each customer in terms of their life-time value, that is, cost of acquiring and retaining the customer relative to their life-time purchase value. Growth strategies (Babu, Kumar, 2010) aimed to increase profitability generally seek to expand the product line to entice the customer to spend on products that tacitly reflect the brand recognition of the customer loyalty.
Babu, K.S., & Kumar, B.R. (2010). Customer service management - turning customer loyalty into profitability. Synergy, 8(2), 93. Retrieved from http://search.proquest.com/docview/820159356?accountid=13044
Donaldson, S.A. (2007, Profiting from consumer behavior. Black Enterprise, 37, 94. Retrieved from http://search.proquest.com/docview/217928442?accountid=13044…