MKT 400 Chapter 11: Chapter 11 Notes

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amethystgoat54

28 Feb 2012

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Humans are social animals, we all belong to groups, try to please others and take cures about how to behave by observing the actions of those around us. Our desire to fit in or to identify with desirable individuals or groups is the primary motivation for many of our purchases and activates. Reference group is an actual or imaginary individual or group conceived of as having significant relevance upon an individual s evaluations, aspirations, or behaviour. Reference groups consider how our preferences are shaped by our group memberships, our desire to please or be accepted by others or the actions of famous people whom we ve never even met. The referent may be a cultural figure and have an impact on many people or it may be a person or group whose influence is confined to the consumers immediate environment. Reference groups that affect consumption can include parents, liberal party, raptors, and brands.

Related Questions

Which of the following is a psychological influence on the consumer behavior decision process?
A. Culture
B. Reference groups
C. Lifestyle

aquamarineotter427

The development of regional marketing plans was the result of:

A. cutbacks in advertising budgets.
B. reductions in interstate business barriers.
C. decentralization of corporate decision making.
D. recognition of geographic differences in product preferences.
E. the influence of international marketers.

orangewalrus170

few years, British Sky Broadcasting has transformed the way people in Britain watch and use their television. Before Sky, people could never have imagined ordering a pizza or sending an email from their set. Today it's an accepted thing.

Part of Sky's success has been in its brand - in defining what makes Sky special and in expressing that difference visually, in products and in the actions of people in the company. And that brand has become one of the company's greatest assets. Brands help companies build a relationship with a customer. A good brand not only helps differentiate a company, it also helps the customer feel something as a result. A pair of Nike trainers might make a person feel more fashionable. A Sony minidisc player might make a person feel they are at the cutting edge of miniature technology. A Rolls Royce might make a person feel that they have reached the top.

Some brands even go beyond that and become so well known that they become generic. This means they're used as a general term for that type of product, even if it's a competitor's product. Walkmans, and Hoovers are a good example. People Hoover the carpet, even if they're really using an Electrolux.

A brand helps customer recognition and enables recognition to be spread by word of mouth as well as by advertising. A brand also adds value. It can allow a company to offer its products at a premium, without reducing the customers' perception of value for money. It also allows a company to extend what they offer to the customer - if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company.

That is why Sky has invested so much in its brand. As the first entrant 16 years ago in the field of multichannel television, it had the opportunity to build strong recognition and to even establish itself as the generic brand for multichannel television.

Source: (viewed 10 February 2019)

QUESTIONS

1. In the above article, "if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company". Discuss different ways that companies can use to increase brand loyalty. Justify your answers with relevant examples. (5 marks) (500 words)

2. In the above article "brand has become one of the company's greatest assets". Do you agree? Justify your answers with arguments and examples. (5 marks) (500 words)

redcaribou169

MKT 400 Chapter 11: Chapter 11 Notes

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