How would these differences influence the process in which value are assigned to competing offers which are being compared? The motivation behind purchasing decisions made by businesses and consumers differ significantly. When organization purchase equipment, they plan to utilize them in ways that will help the business attain the set goals and objectives. The purchased items are strategically sought after as they play a major part in helping the organization generate value in ways that will help cover the costs incurred and increase the overall profit. On the other hand, the consumers buy products depending on their need and wants.
In addition companies need to deliver their products while keeping cost effectiveness in consideration. If they understand the perceived benefits of their target audience and are able to engage with them on a personal level, they can attain customer satisfaction and ultimately can have increased sales. In conclusion, conveying Unique Value proposition clearly to the customers could be a complete win/win for any business. Brand equity Formal Definition: The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. Alternative Definition: Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.
Consumers’ self-image can be inferred from the brands they use, their attitudes toward different brands and the meanings brands have for them. The perceptions consumers have of themselves influences their brand decisions. Consumers form favourable attitudes toward those products which possess images most similar to the images they either prefer or wish of themselves. Accordingly, they buy those products which match their desired self-image because those products help consumers express themselves (Zinkham& Hong,
They explain that according to this theory, people acquire attitudes by observing their own behaviour and considering why they acted in a certain manner. They further contend that consumers who consistently purchase a brand because of a coupon or price-off deal may attribute their behaviour to the external promotional incentive rather than to a favourable attitude toward the brand. By contrast, when no external incentive is available, consumers are more likely to attribute their purchase behaviour to favourable underlying feelings about the brand. Sawyer and Dickson (2015) further contend that another potential problem with consumer-oriented promotions is that a sales promotion trap or spiral can result when several competitors use promotions extensively. Often a firm begins using sales promotions to differentiate its product or service from the competition.
As mentioned previously, one can use a product, not based on its function but based on the value it gives them as a consumer. One must also take into consideration the concept of ‘the ideal self’ in order to gain a clearer interpretation. People consume products in order to become who they aspire to be. Marketers utilise this in their campaigns by portraying some sort of ideal realm in the hope that the consumer will buy into it. Consumers have multiple different personalities.
Therefore, it can also be stated that mass media helps in developing an excellent communication with the customers. According to La Rocca et al. (2015:170) stated that by communicating well with the customers assist the organisations to understand the expectation of their customers. The proper means of communication enable the companies to enhance their sales level thereby increasing the profit margin as well. The mass media is primarily employed by the companies in order to reach a mass audience thereby making the process of marketing more