THEORY AND MODEL Philip Kotler (1995) has developed model of consumer decision making process which is widely used to understanding customers purchasing decision. Kotler (1995) stated that a purchasing decision is determined by the customer’s personal characteristic and evaluation process, along with the external stimulation environment. The detail of theories will be state in the sequel: By theory of Kotler (1995), external stimulation can be divided in two groups. 1. Marketing stimulation which is linked to marketing mix (Price, Place, Product, and Promotion).
For concentrated marketing, Nanda can focus all resources on promoting and distributing in the specific market segment which can increase effective use of resources, bringing the most efficient outcome. It also reduces direct competition with competitors as she focuses on a smaller market. However, risk diversification is not likely in concentrated marketing, as in a smaller and targeted market. If the demand declines in that market, it has a direct effect on revenue and the profitability. For product differentiation, Clocky is a new and advanced product that it is hard to have similar products to compete.
These insight can be gathered from consumer surveys, both qualitative and quantitative in nature, which can help the company to gather data on the strength and weakness of the brand and product attributes that are associated with frequency of purchase and usage of the product. Moreover these consumer insights help companies optimize their marketing budget, where in case of Pillsbury same advertising that was shown in
A certain practice was discussed in this article, and that is “Consumer Elective Pricing.” As it is defined in the article, it is “any commercial transaction, in which the buyer can pay any price for a good or service. Furthermore, it offers an opportunity to test the extent to which people deviate from pure self-interest in transactions that are both commercial and social. It provides a conservative setting for evaluating generous behaviors.” Under the Consumer Elective Pricing, there are two practices that were compared. Those are “Pay What You Want (PWYW)” and “Pay It Forward (PIF).” The pay-what-you-want (PWYW) pricing is the well-documented form of consumer elective pricing. Pay-what-you-want (PWYW) pricing is where people get to decide how much they want to pay for something.
Low-involvement products are the products that consumers purchase it frequently and since low-involvement products are low-cost products, consumers’ purchase decision do not involve any comprehensive process and consumer often make purchase decision on the basis of advertisements and in-store cues and extrinsic cues like endorsement of product by celebrity. 2. Objectives of the Study : `1) To determine the relative effectiveness of Single celebrity endorsed advertisements and multiple celebrity endorsed advertisements for low-involvement product on consumers’ attitude towards advertisement. 2) To examine the comparative influence of Single celebrity endorsement with multiple celebrity endorsement on consumers’ perception about Celebrity’s credibility, sincerity, attractiveness, expertise and trustworthiness. 3) To analyse the comparative influence of Single celebrity endorsed advertisements and multiple celebrity endorsed advertisements for low-involvement product on consumers’ purchase intention for the advertised
Purchases shared with others tend to yield more benefits, compared to products bought directly off the shelf, for the reason that shoppers do not experience the bonding and building of relationships, thus making them less content with their purchases. Experiential purchases are also “more self-defining than material purchases” (Dunn 8). This is due to the fact that they are unique to the individual, causing more cheerfulness, whereas material items can be bought by anybody with the
A creative advertising can lead to more memorable, longer lasting, works with less media spending, and builds a community faster. Lack of creative advertising, Pensonic Holdings Berhad is hard to inspiring people to buy their products. Ads that simply catalogue product attributes or benefits were not enough to attract the customer attention and positive attitudes about the products being marketed cannot lead to the customers (Werner & Peter, 2013). Effective advertisements are advertisements that help the advertiser to reach its goals (Doyle & Saunders, 1990). Other than that, According to most studies in different countries, revealed that TV has the biggest effects on audiences and persuade them to start purchasing processes.
There maybe or no non-price competition like advertising, sales promotions and other market strategies, because the monopolist is the only source of the product. 4. Price and Output Determination under Monopoly Monopolist’s demand curve slopes downwards to the right. This means that he can increase his sales only by decreasing the price of his product and maximize his profit. The marginal revenue curve of a monopolist is below the average revenue curve and the MR curve falls faster than the AR curve, because he has to decrease the price of his product to sell an additional unit.
The aim of sales promotion is goal-oriented to achieve sales/marketing objectives which are short term and immediate. Sales promotion has been traditionally viewed as a non-recurrent selling activity, but in the present marketing situation, sales promotion programmes have become necessary to maintain business in many product categories. 4.10 OBJECTIVES OF SALES PROMOTION Sarangi S.(2011b) narrated sales promotion as dual objectives: I. to increase buying response by ultimate consumers. II. to increase selling efforts and intensity by dealers and by sales personnel.
The Better Business Bureau (BBB) was founded in 1912 as a non-profit organization designed to monitor advertising and retail trade and advance market place confidence. The actual concept was to keep business files on business, research and scams, to report them to local authorities. Every business organization, no matter the size or scope will benefit have a set of rules and guidelines that the company must follow. The association received controversy with its rating system, even though it has been credible resource for consumer by providing ethical information regarding business ( Farell, Fraedrich, & Ferrell, 2013). The Better Business controversial past included reports of alleged pay to play schemes which awarded business satisfactory ratings to business that paid their membership dues.
The everyday low pricing strategy works best in a broader store positioning strategy and supported with advertising. Hi-Value doesn’t need to be the lowest priced supermarket in the area for the everyday low pricing strategy to work. Lowering pricing needs to be used by all in the area or else Hi-Value will confuse our store image and positioning. Hi-Value must look at recent consumer research to see how we are positioned and how this pricing will change our image. There is potential to reduce operating costs.