MKT essay in class test week 5

1. Describe the “involvement continuum” that influences the level of involvement that
impacts a buyer’s decision-making behaviour. (100%)
Customer decisions can involve varying levels of involvement which are habitual decision
making, limited decision making and extended decision making. They have an impact on the
buyers’ decision-making behaviour involving 5 stages which are need/want recognition,
information search, evaluation of options, puchase and post-purchase evaluation.

First one is Habitual decision making which involves little involvement with the purchase.
Typically, the consumer minimises sear and shopping efforts for purchased that are rountine
and habitual. With the 1st step need/want recognisation, customers often easily recognise
what they need in real life, for example water and electricity is one of the habitual decisions
that they make. So customers will spend less time on searching information about the items
which are familiar to them. In the next step buyer coul have less evaluation of options
because they will show little considerations. The next step shows that customer will
purchase these goods frequenly and the last step has less effort for customer in post-
purchase evaluation.

Second one is Limited Decision Making which involves seeking limited information to
evaluate options for infrequent purchase with in familiar product categories such as clothing
books music expensive applicances and restaurants. In the 1st step customers have to
recognize their need/want so that goods often are clothes or shoes. Therefore in the next
step buyers will spend more time seeking information about their goods because they lack
of experience in purchasing such items in real life. Also they spen more time on evaluation
of options and they would purchase infrequently, that take more effort and time of
customers.

Third one is Extended decision making involves a high level of involvement wwith the
purchase decision in a protracted, deliberate and detailed way.Such decision making is
typical for high-involvement products, which are usually those that are high-priced and
infrequently purchase. In the 1st step it could be luxury items and infrequently buying goods
such as cars, holidays,new information-technology. And it take a lot of time from custiomerd
in order to search about the products they want. So buyers have to spend more time in
evaluation of options than other 2 above. And they often purchase such item once or twice
in lifetime. Therefore, buyers spen most of effort and time in the last step post purchase
evaluation.

2. Describe how group factors may influence consumer behaviour. Use the example of
purchasing a pram to demonstrate the influence of this factor on consumer
behaviour. (100%)
Group factors have 2 different factors which are Cultural and Social factors affect the
customers’ behaviour.
First one is Cultural factors which are those influences on behaviours that operate at
the level of the whole society or of major groups within society. With the social class
in Cutural Factors, ppl having high income can afford better quality pram with high
price so they can experience almost advantages of the pram for their kids. With
subculture, it can be seen , different ppl coming from different subcultures that
could lead to the different views of them with design or brands of pram. They have
to select carefully to decide which one is the most suitable for them and best for
their children.
Second one is Social factor which means studying consumer behaviour at the social
level is concerned with developing an understanding of the behaviour of the
individual within the wider group. With Reference group which include membership
reference group, aspirational reference groups. For instance, if mom joint mom club
as membership group they can know better about the product, also sometimes they
can get little discount on the product. Besides, if consumer can see celebs who use
the products on ad or social media, they could want to buy an item like that. With
Family, ppl could be influenced by family members. So they will decide which one
could be better to buy. With Roles and Status, u can be recommended for a specific
pram during the buying process. In addition if u re the 1st one to have a child u can
give suggestions to the others to buy the procducts.
To include, the factors above have direct an impact on the customers’ behaviour in deciding
to buy products in the market.
 3.Using at least three (3) different segmentation variables, develop and justify two (2)
segment profiles for one (1) of the following products: (100%)
a. Ethical Conscious Footwear brands (i.e. Etiko)
b. Luxury baby prams (i.e. Babyzen YoYo Stroller)

c.Sunscreen for Wet Skin (i.e. Neutrogena Wet Skin Sunscreen)

There are 3 different segmentation from market:demographic, psychographic, behavioral.
First one is demographic which consists of dividing the market into groups based on
variables such as age and life-cycle stage, gender, family size, income, occupation, education
and nationality. For instance, with neurtrogena wet skin sunscreen, in demographic
segmentation, the focus on age from5-12 because this product is for kids.The price of this
good is affordable for everyone with low income cuz it costs only $11.99.
Second one is Psychological segmentation which means buyers are divided into different
groups based on their psychological/personality traits, lifestyle, social class or values.
Neutrogena target to the clear market so they focus on ppl with wet skin for example kids
who play in pool so when using this goods in order to protect their skin from sunlight.

Third one is behavioral segmentations which divides buyers into groups based on their knowledge
of the product, their attitude towards it, the way they use it and their responses to it.

4.Use examples of your choice to demonstrate the use of each of the four (4) market
targeting strategies that a firm can employ. (100%)
There are 4 market targeting stratregies which are undifferentiated, differentiated,
concentrated, micromarketing.

1st one is undifferentiated marketing which means a company might decide to ignore market
segment differences and go after the whole market with one market offer. For example, tap
water is product that ppl need in daily life so companies don’t need to make any differences
from others so they can provide it to consumers with the similar offer.

2nd one is differentiated marketing which means A market coverage strategy where
accompany decides to target several market segments and designs separate offers for each.
For instance, Honda produce many different types of cars to target different customers in
the market. They produce Jazz to focus on economic option and limited budget. Besides
they produce Odyssey to target family which often have 4-5 ppl so family will select this
option. Civic Typer/nsx which produced to focus on sport performance so it will target to
who are interested in sport.

3rd one is Concentrated marketing which means A market coverage strategy where a
company goes after a large share of one (or a few) submarkets. For example lamboghini

The last one is micromarketing which means Tailoring products and marketing programs to
the needs and wants of specific individuals. In this, it could be offered unique design for
different customers and matched every customers’ demand. In some companie customer
can customize their own products by themselves