Yet there are some problems in defining and measuring involvement which tend to limit the usefulness of the theory. To examine the usefulness of consumer involvement theory, some questions need to be answered: how could involvement influence consumers’ purchase decision and companies’ marketing strategies? And how to measure the degree of involvement? This assignment will introduce the theory of consumer involvement, explain the relationship between consumer involvement and marketing strategies making, and then explicate the different measurements of involvement and difficulty in measuring. Finally, a conclusion will be given.
(Anon., 2015) Their product which is food needs to be of a quality which is acceptable for the customer’s satisfaction. The price is the amount of how much money the franchise is charging the customer for their food. If the food that McDonalds offers is of a good quality but a high price, customers may look elsewhere. Promotion Used by the company to get their product out to the customer’s eye and provide information from McDonalds. (Anon., 2015) .
He defines customer-based brand equity as “the differential effect that brand knowledge has on consumer response to the marketing of that brand”. Brand knowledge consists of brand awareness and brand image. From consumer aspects, brand equity is the value of the business and expectations of consumers to the organization, products and services, including the experience of communication and awareness of the brand (Auken, 2002). Brand equity management can be measured by brand loyalty or willingness to pay higher prices (Blackstone, 1995). Thus, manufacturers have to create brand loyalty in mind of the consumer by building a strong brand which consists of developing the product features and makes a difference until it protects the brand and attract consumers.
A loyal customer not only associates itself with the company but also brings in other customers for the brand because they believe in it. Source: Primary Data • KFC and Dominos may have a good menu, variety, taste and even more nutrition, but, McDonalds on Cunningham road makes the customer feel more valued and therefore, they are more inclined to recommend the restaurant to a friend. • The above data helps to infer whether the customers are attitudinally loyal or behaviorally loyal. It also shows the tendency of a loyal customer to switch to another brand. • Ironically, when it comes to how valued the customer feels in the restaurant and the most important task of recommending to a friend, McDonalds takes the lead.
At Wing Zone, there is a wide variety of dishes suitable for both vegetarians and non-vegetarians. Price The customers’ perception of value is an important determinant of the price charged. Wing Zone customers should get what they pay for or they won’t return. Furthermore, the price should not be too low that the profit margin decreases without increasing sales. Promotion It is a very important aspect of marketing mix to promote the products.
Task 1.1: The Consumer decision making process: Problem recognition The decision making process triggers when a consumer has a need or a problem which has to be satisfied/ solved – (i.e. Consumer needs to purchase a new kitchen appliance) The black box theory helps to understand this process and shows the interaction between the stimuli, consumer characteristics and response, and the decision process. The Black box theory This theory is split into two stages: 1. The Environmental Factors – the Marketing Stimuli (product, price, place and promotion) are strategically prepared and applied by the marketing team, whilst the Environmental Stimuli are influenced by the social factors based on economical, technical, political and cultural circumstances.
2.3 Theoretical Literature Review 2.3.1 Consumer Behavior In promoting of merchandise and services, perception of end-user habit has been significant since, organizations contract with end users who are dissimilar in life. To assist spot what is imperative to the buyer, knowledge of customer conduct is important. This will help suggest the important influences on consumers’ decision making enabling marketers to give goods and services that meet the needs of their target market. Loudon and Bita (1994) gave this definition of consumer behaviour as “the physical activity and decision process people engage in when evaluating, acquiring, using or disposing of goods and services” Consumer buying behavior refers to the buying behaviour of last consumers—people
Some well-known names have begun to implement the moral position on the issues that affect us all. For example, working with consumer walker’s change in their mind as they make changes to their products. So it would be KFC to bear in mind the welfare of consumers when making products. The benefits to the KFC Company’s is that they can make products with the fact to meet the needs of consumers. The disadvantage of the KFC is that they have to bear in mind what consumers will think of their products, and that can be benefit them.
Each consumer is different in how they make purchase decisions, depending on the variables like family, income, occupation, status and their role in decision process. It is indeed important for marketers to understand the behavior of consumers, which leads to purchase decision. Change in consumer attitude is of paramount importance to marketers who consumer focused often is customizing the product to match the tastes and preference of the consumers by proper positioning and targeting strategies. The research paper by Rani. J focuses to study the consumers purchase, tenure and usage of Refrigerators to understand in-depth of consumers purchase pattern resulting in framing right strategies to acquire new customers, enhance loyal customers, and compete with competitors.