Consumer Behaviour

Topics: Maslow's hierarchy of needs, Advertising, Decision making Pages: 32 (10240 words) Published: April 17, 2013



Chapter Objectives
• To understand the consumer decision-making process and how it varies for different types of purchases. • To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. • To understand the similarities and differences of target market and target audience. • To understand the various options for making a target audience decision for marketing communication.

Marketers Seeking 50-Plus Consumers
Nintendo is famous for its video games. DaimlerChrysler features a wide selection of car brands. Tabi is known for its classic women’s clothing. While seemingly unrelated, these brands have recently shared a similar strategy. As these established companies expanded beyond their current customer base, each brand attempted new marketing communication programs containing a more emotional message aimed at the 50-plus demographic. The 50-plus crowd not only is a sizable market, but also is a very lucrative one; they control 55 percent of all discretionary spending in Canada due to their relatively high net worth. And while the brands all looked toward the fifty-plus market, additional segmentation based on an understanding of consumer behaviour revealed subtle differences in their approach. For Nintendo, the saturated youth market proved to be a no-growth avenue. With industry sales hitting the billion-dollar level, penetration levelling off at 30 percent of Canadian homes, and research indicating that 75 percent of teens perceived lower interest in gaming, Nintendo looked to new users. However, convincing 50-plus consumers of the value of buying a device to play “brain-training” games like Sudoku on a hand-held device appeared to be a significant communication challenge because these consumers use iPods, cell phones, and PDAs. DaimlerChrysler marketed its new vehicles— the Chrysler 300, Dodge Magnum, and Dodge Charger—to the older crowd as well, but diverged the communication plans according to different consumer behaviour considerations. For example, its Dodge ads conveyed the benefits of value and distinctive styling, while Chrysler expressed a luxurious styling. Moreover, despite both brands targeting the 50-plus market, alternate media appeared promising as Chrysler consumers leaned toward talk radio, theatre, and dramas, while Dodge consumers yearned for classic rock, movies, and sitcoms. Tabi took the targeting in its own direction by breaking the older age demographic into several different “personality cohorts” reflecting many lifestyles. As this influenced product selection in the store, Tabi used this approach in its advertising and other promotional tools. Tabi sought to find new fashion models, and ran a contest in conjunction with Canadian Living with the intention of selecting three women who represented Tabi customers. Sources: Lisa D’Innocenzo, “Boom Goes Your Brand,” Strategy Magazine, May 2006, p. 33; Michelle Halpern, “Mind Games,” Marketing Magazine, April 10, 2006; and Sylvain Desofosses, “Shifting Values,” Marketing, September 11, 2006.

1. Why do marketers tend to overlook older consumers? 2. Explain some reasons why older consumers are good markets.

Part 1 Understand Integrated Marketing Communications

The companies described in the opening vignette reveal that the development of effective marketing communication programs begins with understanding why consumers behave as they do. This understanding helps marketers to know how to encourage new consumers to buy a product (e.g., Nintendo), what to emphasize in communications to specific audiences (e.g., DaimlerChrysler), and which types of IMC tools might be used (e.g., Tabi). These types of communication problems or opportunities, and others, can be addressed with a thorough understanding of consumer behaviour. It is beyond the scope of this text to examine consumer...
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