Title:
Two (2) Past Semester Questions
Prepared for:
Prof. Madya Abdullah bin Abdul Kadir
Prepared by:
Syahida Bt Abd Aziz 2011253056
Group: BMB3Ad
Due date: 19th December 2011
September 2011 – January 2012
Bachelor of Business Administration (Hons) Marketing
Faculty of Business Management
Universiti Teknologi MARA Perlis
02600 Arau, PERLIS.
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OCTOBER 2008
QUESTION 1
a) Compare and contrast innate needs and acquired needs
Innate needs and acquired needs are the needs that every individual has. The individuals wish to achieve and want to fulfil these needs. Needs occur when there is deprivation which means the situation in which we do not have.
Innate needs
Innate needs are physiological that is biogenic. They include the needs for food, water, air, clothing, shelter and sex. Because they are needed to sustain biological life, the biogenic needs are considered primary needs or motives. For example, a person need to buy food when he/she hungry. This is because food is the physiological need. Individuals are usually somewhat more aware of their physiological needs than they are of their psychological needs.
Acquired needs
Acquired needs are needs that we learn in response to our culture or environment. These may include needs for self- esteem, prestige, affection, power and learning. Because acquired needs are generally psychological that is psychogenic, they are considered secondary needs or motives. For example, all individuals need shelter from the elements. Thus, finding a place to live fulfils an important primary need for a newly transferred executive. However, the kind of home she rents of buys may be the result of secondary needs. She may seek a place in which she and her husband can entertain large groups of people and this will fulfil her social needs. The place where an individual ultimately chooses to live may thus serve to fulfil both primary and secondary needs.
b) Five (5) defense mechanisms to defense self-esteem
Failure to achieve a goal often results in feelings or frustration. At one time or another, everyone has experienced the frustration that comes from the inability to attain a goal. People who cannot cope with frustration often mentally redefine their frustrating situations in order to protect their self-images and defend their self-esteem. The defense mechanism are:
1. Aggression
In response to frustration, individuals may resort to aggressive behaviour in attempting to protect their self-esteem. For example, a tennis pro slams his tennis racquet to the ground when disappointed with his game. This behaviour show that the tennis pro is frustrating with the result of the game.
2. Rationalisation
People sometimes resolve frustration by inventing plausible reasons for being unable to attain their goals. For example, an individual who lost in a game will think that the lost he faced is because of not enough time for him to practice. Besides, people resolve frustration by deciding that the goal is not really worth pursuing. For instance, the individual may thought that the achieving of bowling score are not so important to affect his life.
3. Regression
An individual may react to a frustration situation with childish or immature behaviour. For example, a shopper who attending a bargain sale may fight over merchandise and even rip a garment that another shopper will not relinquish rather than allow the other person to have it.
4. Withdrawal
Frustration may be resolved by simply withdrawing from the situation. For instance, a person who has difficulty achieving officer status in an organization may decide he can use his time more constructively in other activities and simply resign from that organization.
5. Projection
An individual may redefine a frustrating situation by projecting blame for his or her own failures and inabilities on other objects or persons. In simple word, individuals that fail to achieve their goals will blame other people for their mistakes. For example, the golfer who misses a stroke may blame his golf clubs or his caddy.
QUESTION 2
a) Stages that a consumer has to go through in adopting or rejecting a new Proton Saga
Adoption process is the second major process in the diffusion of innovations. The focus of this process is the stage through which an individual consumer passes while arriving at decision to try or not to try or to continue using or to discontinue using a new product. There are five stages in the adoption process which are:
1. Awareness
During this stage, consumer is first exposed to the product innovation. The consumer aware of the product availability in the market. For example, Encik Haris sees an advertisement for a new Proton Saga through a television.
2. Interest
During this stage, consumer is interested in the products and searches for additional information. The consumer want to know more about the product. For example, Encik Haris read about the new Proton Saga on the Proton’s website and then go to a nearest showroom near his town and ask the sales person to show him the new Proton Saga and ask some description of the car.
3. Evaluation
During this stage, consumer decides whether or not to believe that this product or service will satisfy the need. It is a kind of ‘mental trial’. For example, after talking to a friend who had experienced in using the new Proton Saga car, Encik Haris decides that this new Proton Saga car will allow him to easily go to his office which is far from his house. He also feels that this car has an elegance design that he really look for.
4. Trial
During this stage, consumer uses the product on the limited basis. For example, since a new Proton Saga car cannot be ‘tried’ like a small tube of toothpaste, Encik Haris buys the new Proton Saga car from the nearest car retailer, which offer him free services and maintenance for two years. Besides, there is also a warranty for the car if something happens to the car.
5. Adoption
During this stage, if the trial is favourable, the consumer decides to use the product on the full rather than a limited basis. If it is unfavourable, the consumer decides to reject it. For example, Encik Haris finds that the new Proton Saga car is more comfortable to use when driving for a long journey. Besides, the car is moving smoothly on the road without making loud sounds. He keeps driving this new Proton Saga car.
b) Five (5) product characteristics that influence consumers to accept or reject a new Proton Saga
There are characteristics that set the innovator apart from later adopters and from those who never purchase. There are five product characteristics that influence consumers to accept or reject a new Proton Saga which are:
1. Product Interest
Consumer innovators are much more interested than either later adopters or non-adopters in the product categories that they are among the first to purchase. For example, the earliest purchasers of elegance look cars are likely to have substantially greater interest in the cars such as they will enjoy looking at motoring magazines and will be interested in the new looks of cars than those who purchased conventional small cars during the same period or these who purchased elegance look cars during a later period. For example, the outside appearance of new Proton Saga attracts Encik Haris to buy the new Proton Saga car.
2. Opinion Leader
Consumer innovators provide other consumers with information and advice frequently follow it. Thus, in the role of opinion leader, the consumer innovator often influences the acceptance or rejection of new products. When innovators are enthusiastic about a new product and encourage others to try it, the product is likely to receive broader and quicker acceptance. For example, when friends of Encik Haris tell him every good things of using new Proton Saga car, Encik Haris will has much excitement and the rate of acceptance of the new car will become faster.
3. Personal Traits
Consumer innovators generally are less dogmatic than non-innovators. They tend to approach new or unfamiliar products with considerable openness and little anxiety. Besides, consumer innovators are consistent with their open-mindedness and it appears that innovative behaviour is an expression of an individual’s need for uniqueness. To gain more rapid acceptance of a new product, marketers might consider appealing to a consumer’s need for uniqueness. For example, the uniqueness design of new Proton Saga car had attracted people to buy it which includes Encik Haris.
4. Purchase and Consumption Trait
Consumer innovators posses purchase and usage traits that set them apart from non-innovators. For example, consumer innovator are less brand loyal, that is they are more apt to switch brands. Consumer innovators are more likely to be deal prone which means to take advantage of special promotional offers such as free samples and money off coupons. In the case of this new Proton Saga, more consumer will purchase the Proton Saga car if Proton’s company offering its consumers with discounted price and let them have a trial drive for a few days.
5. Demographic Characteristic
Consumer innovator tend to be younger than either late adopters or non-adopters. This is because many of the products selected for research attention are particularly attractive to younger consumers. Besides, consumer innovator have more formal education, have higher personal or family incomes and more likely to have higher occupational status than late adopters or non-adopters. For example, consumers who buy new Proton Saga cars are having high personal or family income. This is because, they can change their cars many times in a year without facing any financial problem. Thus, people with high income tend to purchase new Proton Saga car immediately after the car being introduced in the market.
QUESTION 3
Advice for foreign investors who want to market food products in Malaysia
International investors must understand the nature and the extent of cross-cultural similarities and differences so that they can develop effective marketing strategies to be used in each foreign market of interest. To market food products in Malaysia, investor should consider about these things:
1. Segmentation
The investors need to segment their product effectively. In term of people, different countries have different taste and preference. For example, Malaysian citizen prefer spicy foods. Thus, KFC produce hot and spicy chicken which suit Malaysian’s taste and preference.
2. Targeting
The investors need to make sure that they are targeting the right person to buy their product. In Malaysia, most of young people enjoy having meals in fast food restaurant. In contrast, most of old people or old folk prefer to eat at home. Therefore, food investor need to have knowledge on how to target youngster. For example, Pizza-Hut are targeting youngster to come to his fast food restaurant by offering special goods to youngster.
3. Positioning
Positioning is another important aspect that need to be considered by food investors before entering Malaysia market. To place the product, it should be far from its competitor. For example, food investors who want to market their product in Malaysia should not set up the business near their competitors such as KFC, McDonald and Pizza-Hut.
Investor also need to understand the different cultures of several countries. The failure to adopt marketing strategy to the target market’s distinctive cultural traits can lead to costly mistakes.
1. Product Problems
International marketers frequently neglect to modify their products to meet local customer and tastes. Food investor who want to market in Malaysia must alter traditional product characteristics. For example, Pizza-Hut failed to sustain sales momentum in Malaysia because citizens in Malaysia preferred a healthy food. Therefore, Pizza-Hut are now introducing a pizza which contains vegetables for those who prefer healthy foods. Besides, the food companies of Maggi or Adabi need to reduce the level of salt in the content of the flavour of instant noodles. This is because Malaysian citizens are now aware of their health and they will choose the right foods to eat.
2. Promotion Problem
When communicating with consumers in different parts of the world, the promotional message must be consistent with the language and customs of the particular target society. For food investors who want to market products in Malaysia, they need to advertise the product through local television and radio channels which mostly viewed and heard by Malaysian citizens. The product name also cause considerable problems for international marketers. For example, the brand name of a toothpaste, ‘Darkie’ had changed into ‘Darlie’.
3. Pricing Problem
Food investors need to know about the Malaysia’s economy before setting the price. Poor planned in setting price will lead to a chronic problem in marketing the product. In many developing nations, small sized product packages often are a necessity because consumers cannot afford the cash outlay required for the larger sizes popular in the United States and other affluent countries. The small-sized package will cost low price. Therefore, it is affordable to middle and low income person. Malaysia who is a developing country will prefer small-sized product packages which it is in low price. The smaller the size of product packages the easier for people to buy it.
4. Distribution Problem
Food investors need to know the distribution system of Malaysia before they can decide to market the product. Malaysia’s traditional distribution system differs from the system in the United States in that a close, complex relationship exists among the larger Malaysia manufacturer and their distributors and retailers. For example, it took several years before Malaysia can distribute them in the market. This is because all the foods imported need to be inspected before distributing them.
QUESTION 4
a) Describe consumer learning from a marketing perspective, naming and explaining the elements involved.
From a marketing perspective, consumer learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge and experience that they can apply to future related behaviour. First, consumer learning is a process that is, it continually evolves and change as a result of newly-acquired knowledge or from actual experience. Learning is intentional and also incidental which acquired by accident or without much effort. The elements involved in learning are:
1. Motivation
Motivation is based on needs and goals. It acts as a spur to learning. For example, men and women who want to become a good badminton player are motivated to learn all they can about badminton and to practice whenever they can. They may seek information concerning the prices, quality and characteristics of badminton racquets if they ‘learn’ that a good racquet is instrumental to play a good game.
2. Cues
It motives serve to stimulate learning, cues are the stimuli that give direction to these motives. Before buying the products, consumers will see the cues of advertisements. For example, an advertisement for a tennis camp may serve as a cue for tennis buffs, who may suddenly ‘recognise’ that attending tennis camp is a concentrated way to improve their game while taking a holiday. The advertisement is the cue or stimulus that suggests a specific way to satisfy a salient motive.
3. Response
How individuals react to a drive or cue and how they behave constitute their response. The car manufacturer that provides consistent cues to a customer may not always succeed in forming a favourable image of a particular model in the consumer’s mind, when the consumer is ready to buy, it is likely that he or she will consider that make or model. For example, consumers who want to buy a car will give response whether they like the car and want to buy it or not.
4. Reinforcement
Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli. If Nancy, an employee of a big company who want to purchase a car has more information about it. She also find that the information given is true. Therefore, learning has taken place through positive reinforcement since the function and design of the car is up to her expectations.
b) Give examples where applicable. How classical conditioning theory be applied to the development of marketing strategies. Provide examples where possible.
Early classical conditioning theorists regarded all organisms as relatively passive entities that could be taught certain behaviours through repetition. This classical conditioning making stimulus similar to the condition of stimulus. There are three (3) strategies applications of classical conditioning which are:
1. Repetition
Repetition increases the strength of the association between a conditional stimulus and an unconditioned stimulus and slows the process or forgetting. However, research suggests that there is a limit to the amount of repetition that will aid retention. For example, individuals don’t like to see the advertisement of toothpaste, Colgate on the televisions. But after several time seeing the advertisement, the individuals will give their response. They repeat to see the things that they are not familiar with will attract them to buy the products.
2. Stimulus Generalisation
Stimulus generalisation can be defined as making the same response to slightly different stimuli and not much learning would take place. This explains why manufactures of private-label brands try to make their packaging closely resemble the national brand leaders. They are hoping that consumers will confuse their packages with the leading brand and buy their product rather than the leading brand. For example, a new detergent company Daya try to make their packaging closely resemble to a leading detergent company, Daia which already expert in the manufacturing of detergent. Besides, marketers also using family branding. This is a practice of marketing a whole line of company products under the same brand name. For example, Dunhill who is well-known in producing high quality of cigarette. When company of Dunhill produces clothes and perfumes, consumers will perceived that the clothes and perfumes are also in high quality.
3. Stimulus Discrimination
It is the opposite of stimulus generalisation and results in the selection of a specific stimulus from among similar stimuli. The consumer’s ability to discriminate among similar stimuli is the basis of positioning strategy, which seeks to establish a unique image for a brand in the consumer’s mind. One of the key to stimulus discrimination is effective positioning, a major competitive advantage. Market leaders want the consumer to discriminate among similar stimuli. Major marketers are constantly vigilant concerning store brand look-alikes, and they quickly take legal action against retailers that they believe are cannibalising their sales. They want their products to be recognized as uniquely fulfilling consumers’ needs. For example, in the market there are a lot of Rolex watch which are not the original made. Therefore, Rolex company want its consumers to discriminate which one is the original and which one is the imposter.
QUESTION 5
a) Four (4) main influences of attitude formation with examples.
The information of consumer attitudes is strongly influenced by personal experience, the influence of family and friends, direct marketing and mass media.
1. Personal experience
The primary means by which attitudes towards goods and services are formed in through the consumer’s direct experience in trying and evaluating them. Recognising the importance of direct experience, marketers frequently attempt to stimulate trial of new products by offering price cuts or even free samples. For example, a shampoo marketers will give free sample to consumers to use it. If the consumers like the shampoo, they will probably form a positive attitude and be likely to repurchase the product.
2. Influences of family and friend
As we came in contact with others, especially family and close friends, we form attitudes that influence our lives. The family is an extremely important source of influence on the formation of attitudes, for it is the family that provides us with many of our basic values and a wide range of less central beliefs. For example, when a student want to buy a computer, her family such as his parent, his brother or sister will give advice to him and influence him to buy computer with the brand that they had experienced with and they had trusted with the quality of the computer.
3. Direct marketing
Marketers are increasingly using highly focused direct-marketing programmes to target small consumer niches with products and services that fit their interests and lifestyles. Marketers very carefully target customers on the basis of their demographic, psychographic or geodemographic profiles with highly personalised product offerings and messages that show they understand their special needs and desires. For example, marketers who segment their products after targeting their consumer will produced hunting rifles for left-handed people. This shows that the marketers are concern about their consumers and finally consumers will buy the product.
4. Mass Media
With the easy access to newspaper and variety of general and special-interest magazines and television channels, consumers are constantly exposed to new ideas, products, opinions and advertisement. These mass media communications provide an important source of information that influences the formation of consumer attitudes. For example, after individuals see advertisement on televisions and newspapers on the product that they are not familiar with, they will have interest on it and finally search for it at nearest stores or supermarkets.
b) Five (5) attitude change strategies that can be employed by a company who want to encourage people to switch from using private cars to mass transit.
Altering consumer attitudes is a key strategy consideration for most marketers. Among the attitude-change strategies that are available to them are:
1. Changing the consumer’s basic motivation function
An effective strategy for changing consumer attitudes towards a product or brand is to make particular needs prominent. In utilitarian function, when a product has been useful and helped us in the past, our attitude towards it tends to be favourable. For example, anti-dandruff shampoo proves that it can remove dandruff from the hair. In the ego-defensive function, most people want to protect their self images from inner feelings of doubt. They want to replace their uncertainty with a sense of security and personal confidence.
2. Associating the product with the special group, event or cause
It is possible to alter attitudes towards products, services and brands by pointing out their relationships to particular social groups, events or causes. Companies regularly include mention in their advertising of the civic and public acts that they sponsor to let the public know about the good that they are trying to do. For example, Proton company mention in its advertisement that some percentages of their sales are being donated to old folks houses.
3. Resolving two conflicting attitude
Attitude-change strategies can sometimes resolve actual or potential conflict between two attitudes. If consumers can be made to see that their negative attitude towards a product, a specific brand or its attributes is really not in conflict with another attitude, they may be induced to change their evaluation of the brand. For example, because of the preferences of individuals not to eat egg which have cholesterol will lead to the companies to produce Omega egg which they said it not containing cholesterol.
4. Altering components of the multi-attribute model
By changing the relative evaluation of attributes it can bring about attitude change. The overall market for many product categories is often set out so that different consumer segments are offered different brands with different features of benefits. For example, KFC company has divided the flavour of chicken into Regular Chicken and Hot and Spicy Chicken when they want to market the product in Malaysia.
5. Changing consumer belief about competitors’ brands
This is another approach to attitude-change strategy. However, comparative advertising can boomerang by giving visibility to competing brands and claims. The company try to promote that its products are much better than the competitors’ products. For example, Bata promotes its shoes and mention to its customers that the quality of its shoes is much better than other brands of shoes.
QUESTION 6
a) Various methods of measuring social class and which method is the most accurate.
There is no general agreement on how to measure social class. Researchers have used a wide range of measurement techniques that they believe give a fair approximation of social class. The three (3) methods of measuring social class are:
1. Subjective measures
In the subjective approach to measuring social class, individuals are asked to estimate their own social-class positions. Typical of this approach is a question that asks people which of this approach is a question that asks people which social class they are in, whether upper class, middle class or lower class. The resulting classification of social class membership is based on the participants’ self-perceptions or self images. Social class is treated as a personal phenomenon, one that reflects an individual’s sense of belonging or identification with others and this often referred to as class consciousness. For example, Malaysian surveyor had asked citizens to place themselves in one of three social class categories which are upper, middle and lower class.
2. Reputational measures
The reputational approach for measuring social class requires selected community informants to make initial judgements concerning the social class membership of others within the community. The final task of assigning community members to social-class positions, however, belongs to the trained researcher. Sociologists have used the reputational approach to obtain a better understanding of the specific class structures of communities under study. For example, marketers of McDonald make a measurement of their consumers based on the consumers’ social class membership.
3. Objective measures
In contrast to the subjective and reputational methods, which require people to envisage their own class standing or that of other community members, objective measures consist of selected demographic or socio-economic variables concerning the individuals under study. When selecting objective measures of social class, most researchers favour one or more of the following variables such as occupation, amount of income and education. These socio-economic indicators are especially important by means of locating concentrations of consumers with specific social-class membership. For example, marketers of KFC are using questionnaires to ask their consumers about occupation and education before they can target their consumers.
b) You are the owner or two furniture stores, one catering to affluent group and the other to non-affluent group. How do social class differences influence each store in terms of the followings:
Affluent households constitute an especially attractive target segment because members have incomes that provide them with a disproportionately larger share of all discretionary income.
Non-affluent households with low income and may actually be more brand loyal than wealthier consumers. They can afford to makes mistakes by switching to unfamiliar brands.
i. Product line and styles
Affluent - Households buy clothing that free from such supporting association. For example, individuals go to an exclusive boutique to find the clothes that suit them well.
Non-affluent -Households with low income have strong preferences of T-shirts, caps and other clothing that offer an external point of identification such as the name of admired person or group. For example, individuals who buy T-shirt with the name of their admired groups such as name of football teams.
ii. Advertising media selection
Affluent -Advertisements are placed in a well known sites or papers. For example, marketers are doing advertisement exclusively in an expensive magazine such as Anjung Seri or Laman.
Non-affluent -Advertisement had been placed that all public can see them. For example, the marketers of certain company place an advertisement in the middle income magazines such as Miggu Wanita.
iii. Payment policies
Affluent -Households are using ease way during purchasing transaction. They use this credit card with different instalment. When coming to a specific period of time they payment the amount used automatically in a time.
Non-affluent -Household need to pay certain amount of money when paying back the credit card. They limit their uses of credit card and always uses cash during purchasing.
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APRIL 2011
QUESTION 1
a) Identify three (3) disciplines and explain briefly how each discipline contributes to the understanding of consumer behaviour.
1. Psychology
This psychology is a study of the individual. Individuals are being asked to say something to other people. This will lead them to understand another person easily. Besides, this is a motivation of consumers when dealing among themselves of between the marketers. For example, marketers of Nestle Company are dealing with its new consumers in order to promote its products.
2. Sociology
Sociology is the study of groups where the consumers belong such as their families. Different families have different kind of attitudes. Marketers are being asked to learn about their consumers based on their consumers’ families. The marketers will take notice whether the consumers come from high-income families or not. For example, the marketers of Bata Company will know about its consumers by looking at the consumers’ families.
3. Social psychology
Social psychology is the study of how an individual operates in a group. The individuals will also be looked at their cooperation among their group members. This social psychology will lead the marketers to read the behaviour of their consumers whether the consumers have a positive or negative attitude toward the products. For example, marketers of Honda Company are viewing individuals as a group when they want to understand the real problem of the individuals.
b) Discuss five (5) reasons why the study of consumer behaviour is developed.
1. Customers have more power than ever before
They can use “intelligent offerings, bypass distribution outlets and middlemen, and shop for goods around the globe and around the clock from the convenience of their homes.
2. Consumers have access to more information than ever before
They can easily find reviews for products they are considering buying that have been posted by previous buyers, click a button to compare the features of different product models at the sites of online retailers, and subscribe to “virtual communities” of persons who share the same interests they do
3. Marketers can offer more services and products than ever before
The digitization of information enables sellers to customize the products and services they are selling and still sell them at reasonable prices. It also allows marketers to customize the promotional messages directed at many customers. For example, Amazon.com send personalized e-mails to previous book purchasers announcing newly published books. These suggestions are based on a determination of the interests of the targeted consumers derived from their past purchases.
4. The exchange between marketers and customers is increasingly interactive and instantaneous
Traditional advertising is a one-way street where the marketer pays a large sum of money to reach a large number of potential buyers via a mass medium, and then access whether or not the message was effective via future sales or market studies. On the other hand, digital communication enables two-way interactive exchange in which consumers can instantly react to the marketer’s message by clicking on links within a given website or even by leaving the site. Thus, marketers can quickly gauge the effectiveness of their promotional messages rather than rely on delayed feedback through sales information that is collected after the fact.
5. Marketers can gather information about consumers more quickly and easily
Marketers can track consumers’ online behaviour and also gather information by requiring visitors to a website to register and provide some information about them before they get access to the site’s features. Thus, marketers can construct and update their consumer databases efficiently and inexpensively.
QUESTION 2
Describe Maslow’s hierarchy of needs and its marketing applications in the areas of segmentation, promotional and positioning of products.
According to this hierarchy of need theory, as developed by Abraham Maslow, states that everyone has needs that require to be fulfilled. These needs can be divided into five ascending levels in which each level must be satisfied before going on to the next.
Physiological needs are necessary for survival and include food, water, shelter and sleep. Business addresses these needs by providing both comfortable working environments and salaries sufficient to buy food and shelter. Example for physiological needs is most basic need that is necessary for survival such as food, water, shelter and et cetera.
Security needs include the needs for stability and protection from the unknown. Many employers thus offer pension plans and job security. Example of security needs is job security, freedom from coercion, and clearly defined regulation.
Social needs include the needs for friendship and companionship. Making friends at work can help to satisfy social needs as can the feeling that you ‘belong’ in a company.
Esteem needs include the need for status and recognition as well as the need for self-respect. Respected job titles and large offices are among the things that business can provide to address these needs.
Self-actualization needs are the need for self-fulfilment. They include the needs to grow and develop one’s capabilities and to achieve new and meaningful goals. Challenging job assignments can help satisfy these needs.
Marketing applications in the areas of segmentation, promotional and positioning of products:
Maslow’s hierarchy of needs has received wide acceptance in many social disciplines because it appears to reflect the assumed or inferred motivations. The need hierarchy also appears to be very closely bound to contemporary culture. Despite these limitations, the hierarchy offers a highly useful framework for marketers trying to develop appropriate advertising appeals for their products. It is adaptable in two ways. First, it enables marketers to focus their advertising appeals on a need level that is likely to be shared by a large segment of the target audience. Secondly, it facilitates product positioning or repositioning.
1. Segmentation
Maslow’s need hierarchy is readily adaptable to market segmentation and the development of advertising appeals because there are consumers good designed to satisfy each of the need levels and because most needs are shared by large segments of consumers. For example, individuals buy health foods, medicines and low-fat and diet products to satisfy physiological needs.
2. Promotional
The need hierarchy is often used as the basis for market segmentation with specific advertising appeals directly to one or more need-segment levels. For example, an advertisement for a very expensive sports car may use self-actualisation appeal such as ‘you deserve the very best’.
3. Positioning
Advertisers may use the need hierarchy for positioning products, which means deciding how the product should be perceived by prospective consumers. The key to positioning is to find a niche which is an unsatisfied need that is not occupied by a competing product or brand. For example, many advertisements for soft drinks stress social appeal by showing a group of young people enjoying themselves and the advertised product.
QUESTION 3
a) Basic elements must be present in order for learning to occur.
Consumer learning is a process by which individuals acquire the purchase and consumption knowledge and experience that they can apply to future related behaviour. Learning is intentional and also incidental which acquired by accident or without much effort. The elements involved in learning are:
1. Motivation
Motivation is based on needs and goals. It acts as a spur to learning. For example, men and women who want to become a good badminton player are motivated to learn all they can about badminton and to practice whenever they can. They may seek information concerning the prices, quality and characteristics of badminton racquets if they ‘learn’ that a good racquet is instrumental to play a good game.
2. Cues
It motives serve to stimulate learning, cues are the stimuli that give direction to these motives. Before buying the products, consumers will see the cues of advertisements. For example, an advertisement for a tennis camp may serve as a cue for tennis buffs, who may suddenly ‘recognise’ that attending tennis camp is a concentrated way to improve their game while taking a holiday. The advertisement is the cue or stimulus that suggests a specific way to satisfy a salient motive.
3. Response
How individuals react to a drive or cue and how they behave constitute their response. The car manufacturer that provides consistent cues to a customer may not always succeed in forming a favourable image of a particular model in the consumer’s mind, when the consumer is ready to buy, it is likely that he or she will consider that make or model. For example, consumers who want to buy a car will give a response whether they like the car and want to buy it or not.
4. Reinforcement
Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli. If Nancy, an employee of a big company who wants to purchase a car has more information about it. She also finds that the information given is true. Therefore, learning has taken place through positive reinforcement since the function and design of the car is up to her expectations.
b) Suggest attitude change strategy that would be effective for a cosmetic company in order to help the consumers to overcome their cultural resistance to unfamiliar products.
Altering consumer attitudes is a key strategy consideration for most marketers. Among the attitude-change strategies that are available to them are:
1. Changing the consumer’s basic motivation function
An effective strategy for changing consumer attitudes towards a product or brand is to make particular needs prominent. In utilitarian function, when a product has been useful and helped us in the past, our attitude towards it tends to be favourable. For example, cosmetics proves that it can clean the faces and can prevent acne.
2. Associating the product with the special group, event or cause
It is possible to alter attitudes towards products, services and brands by pointing out their relationships to particular social groups, events or causes. Companies regularly include mention in their advertising of the civic and public acts that they sponsor to let the public know about the good that they are trying to do. For example, a company of cosmetic such as Sendayu Tinggi has mentioned in its advertisement that some percentages of their sales are being donated to old folks houses.
3. Resolving two conflicting attitude
Attitude-change strategies can sometimes resolve the actual or potential conflict between two attitudes. If consumers can be made to see that their negative attitude towards a product, a specific brand or its attributes is really not in conflict with another attitude, they may be induced to change their evaluation of the brand. For example, because of the thick textures of sunblock cream, people tend not to use the sunblock cream. To help the consumers, finally Sendayu Tinggi had produced a light and smooth textures of sunblock cream. This will resolve the conflicted attitude of the consumers.
4. Altering components of the multi-attribute model
By changing the relative evaluation of attributes it can bring about attitude change. The overall market for many product categories is often set out so that different consumer segments are offered different brands with different features of benefits. For example, Sendayu Tinggi produced a different set of cosmetic products such as for Normal skin and for Acne skin. Because of many people in our country facing a problem with acne, Sendayu Tinggi produced a set of facial care for people who are having an acne skin.
5. Changing consumer belief about competitors’ brands
This is another approach to attitude-change strategy. However, comparative advertising can boomerang by giving visibility to competing brands and claims. The company try to promote that its products are much better than the competitors’ products. For example, Sendayu Tinggi promotes its cosmetic products and mention to its customers that the quality of its product is much better than other brands of cosmetic products.
QUESTION 4
Describe types of promotional message for each of the following personality segments and give an example of each:
a) Highly dogmatic consumers
Dogmatism is a personality trait that measures the degree of rigidity (versus openness) that individuals display towards the unfamiliar and towards information that is contrary to their own established beliefs. The consumer who is highly dogmatic approaches the unfamiliar defensively and with considerable discomfort and uncertainty. For example, consumers who always prefer usingtypewriterr in the office even though there are computers is known as highly dogmatic consumers.
b) Inner-directed consumers
Inner-directed consumers tend to rely on their own inner value or standards in evaluating new products and are likely to be consumer innovators. For example, consumers make their own decision when they want to buy new design of car. The consumers defend on their value on the car and ignore all the values from others. Besides, inner-directed consumers seem to prefer advertisements that stress product features and personal benefits.
c) Consumers with a high optimum stimulation level
Consumers with a high optimum stimulation level are linked with greater willingness to take risks, to try new products, to be innovative, to seek purchase-related information, and to accept new retail facilities than consumers with low optimum stimulation level.
d) Consumers with a high need of cognition
Need of cognition measures a person’s craving for or enjoyment of thinking. Consumers with a high need of cognition are more likely to be responsive to the part of an advertisement that is rich in product-related information or description. Besides, consumers with a high need of cognition spend more time processing print advertisements, which result in superior brand and the advertisement claim recall. Still further, the consumers tended to evaluate websites with low visual complexity and high verbal complexity more favourably.
e) Consumers who are visualizes vs verbalizes
It is fairly well established that some people seem to be more open to and prefer the written word as away to search information, while others are more likely to respond to and prefer visual images or messages as sources of information. Visualize is when consumer prefer video information such as people prefer to see Honda’s advertisement. Verbalizes is when consumers prefer written or verbal information and products.
QUESTION 5
a) Explain “sleeper effect” and its implications on the selection of spokesperson and the scheduling of advertising messages.
The persuasive effects of high-credibility sources do not endure over time. Although a high-credibility source is initially more influential than a low-credibility source, research suggests that both positive and negative credibility tend to disappear after six weeks or so. This phenomenon has been termed the sleeper effect.
Consumers simply forget the source of the message faster than they forget the message itself. The theory of differential decay suggests that the memory of a negative cue for example a low-credibility source simply decays faster than the message itself, leaving behind the primary message control.
The implication for marketers who use high-credibility spokesperson is that they must repeat the same series of advertisement or commercials regularly to maintain a high level of persuasiveness.
Somewhat astonishingly, the sleeper effect supports the use of negative attack advertising for example in political campaign. The results of a study applying the sleeper effect to political advertising showed that the effectiveness of the attack advertisement increases considerably over a period of weeks while the audience’s initial negative perception toward political have temporary impact on the advertisement.
However, this logic must not be extended to advertising and marketers must not assume that consumers who become aware of a brand through a loud and intrusive advertising campaign will continue to remember the brand favourably and forget negative experience of watching the advertisements that made them aware of the brand.
b) Any two (2) possible risks and any three (3) possible impact of humour on advertising
Many marketers use humorous appeals in the belief that humour will increase the acceptance and persuasiveness of their advertising communications. Although the use of humour in advertising is significant, there are some risks associated with using this appeal which are:
1. Level of involvement
Humour is more effective for promoting low involvement products in the market. This is because consumers will become interested in the products that have low involvement with them. For example, a food company which is Pringles is using humour for its advertisements.
2. Attitudes
Humour is more effective when the audience has already has positive attitudes towards the brand. Therefore, even the companies are using humour advertising it still place a trust of their consumers on the product because the consumers already believe the quality of the products. For example, Kilometrico’s pen had put an advertisement on television using humour advertisement. The advertisement said that the pen can write for a long distance which is more than several kilometres.
Research findings on the impact of humour advertisement are:
1. Humour attract attention
Most of people love to watch humour advertisements. They are more preferred on humour advertisement than a bored advertisement. For example, the advertisement of snack which is Mr Potato had attracted more audience and the sales of the snack increases.
2. Does not enhance product’s credibility
Even the advertisements that use humour is good and as a grabber attention is still have the bad impact especially in term of credibility. A humour advertisement will reduce the credibility levels of the product. For example, the advertisement of snack which is Mr Potato had decreased the credibility of the products. Audiences may thought that they will difficult to approve the company credibility after seeing the humour advertisement of Mr Potato.
3. More effective in existing product
Humour is more effective in the existing products than with new products. This is because consumers already had knowledge about the products or the consumers already see the products in other channel of communication. For example, the humour advertisements only become effective to existing product such as a snack product of Twisties. Consumers already know about this snack. Thus, if they place a humour advertisement on this product, audiences can accept the products as what they are.
QUESTION 6
a) Three (3) basic elements included in the definition of the diffusion process
The diffusion process is concerned with how innovators spread, that is how they are assimilated within a market. More specifically, diffusion is the process by which the acceptance of an innovation which is a new product is spread by communication such as mass media to members of a social system over a period of time. The three basic elements included in the definition of diffusion process are:
1. The innovation
In the element of innovation, there are several approaches. A firm-oriented approach treats the newest of a product from the perspective of the company producing or marketing it. For example, Bata Company who had not produced a football shoes is now considering producing the football shoes in order to compete with other shoes companies. Besides, a market-oriented approach judges the newness of a product in term on how much exposure consumers have to the new product. A product is considered new if it has been on the market for a relatively short period of time. For instance, Proton Inspira car had been judges as a new product because the car is in the market for a short period of time.
2. The channel of communication
How quickly an innovation spreads through a market depends to a great extent on communication between the marketer and consumers, as well as communication among consumers which is word of mouth communication. In recent years, a variety of new channels of communication have been developed to inform consumers of innovative products and services. For example, a major car manufacturer which is Honda has used internet and CD-ROMs to promote its products. Consumers will not buy the products which they have no exposure with the new products.
3. Time
Time is the backbone of the diffusion process. It pervades the study of diffusion in three distinct but interrelated ways which are the amount of purchase time, the identification of adopter categories and the rate of adoption. For example, consumers who accept a new product such as iPhone 4S, will spend less time during the purchasing time. This is because; they show their interest on the products rather than other products.
b) Five (5) stages in the adoption process
Adoption process is the second major process in the diffusion of innovations. The focus of this process is the stage through which an individual consumer passes while arriving at decision to try or not to try or to continue using or to discontinue using a new product. There are five stages in the adoption process which are:
1. Awareness
During this stage, consumer is first exposed to the product innovation. The consumer aware of the product availability in the market. For example, Charles sees an advertisement for a new design of Apple’s laptop through a television.
2. Interest
During this stage, consumer is interested in the products and searches for additional information. The consumer want to know more about the product. For example, Charles read about the new laptop on the Apple’s website and then go to a nearest computer centre near his apartment and ask the sales person to explain briefly about the laptop and ask the sales person to show the laptop to him.
3. Evaluation
During this stage, consumer decides whether or not to believe that this product or service will satisfy the need. It is a kind of ‘mental trial’. For example, after talking to a friend who had experienced in using the new Apple’s laptop, Charles decides that this new laptop will allow him to easily do his assignment and save the documents inside it. He also feels that this laptop has certain functionality that he really look for.
4. Trial
During this stage, consumer uses the product on the limited basis. For example, since a new Apple’s laptop cannot be ‘tried’ like a small tube of toothpaste, Charles buys the new Apple’s laptop from the nearest computer centre, which offer him a free services and maintenance for two years. Besides, there is also a warranty for the laptop if the laptop suddenly broke down within a given time period.
5. Adoption
During this stage, if the trial is favourable, consumer decides to use the product on the full rather than a limited basis. If it is unfavourable, the consumer decides to reject it. For example, Charles finds that the new Apple’s laptop has more function and easy to use as compare to his previous laptop. Besides, the laptop can last longer when using the battery. He keeps using this new Apple’s laptop.
