Downsizing Hummer

Only available on StudyMode
  • Download(s) : 478
  • Published : February 17, 2013
Open Document
Text Preview

Maslow’s needs make us realize that each of us is motivated by needs in our daily life. We strive to meet our basic needs which deal with the most obvious needs for survival. Therefore, when the lower order needs of physical and emotional well-being are satisfied than only will one be concerned with higher order needs of influence and personal development. Since, without meeting lower order needs, we are no longer concerned about the maintenance of our higher order needs. Similarly, in the case of GM: Downsizing the Hummer, it is very obvious that esteem and self actualization are the only needs that will motivate a purchase of a Hummer H2.

Esteem needs can be categorized as external or internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment etc. External esteem needs are those such as reputation and recognition. For a person to own H2, they have to feels the sense of “belonging”, and then the desire to attain a degree of importance emerges to hold the strong feeling of meeting its esteem needs which will motivate that individual to purchase H2. The fact that GM target buyers with an average age of 42 and annual household incomes above US $125,000 for its sale of H2 are a conclusion that one has to surpass its basic needs in order to meet its high order needs. Therefore, we can say that esteem need is one of the motivator to increase sale of H2 because individual in this category are highly ambitious in maintaining its status and would feel the importance to purchase H2.

Self actualization needs are needs that do not involve balance because once he/she is engaged to it, they continue to be felt. They involve the continuous desire to fulfill potentials and become the most complete, the fullest, “you”, which in terms called self-actualization. GM’s target market would be those individual who falls under this category of Maslow’s needs because according to its research, studies showed that only 10 percent of owners would ever spend so much on off-the-road vehicles. The fact that, only a small percentage of the population reaches the level of self-actualization needs is also the reality that it is a good motivator for GM to reach its projected sale of H2. To conclude, the fact that GM believed that the H2, would appeal to rugged individualists and wealthy baby boomers etc, we can say that the firm is talking about individual that has the quest of reaching one’s full potential as a person and is able to continue to grow as a person to be able to purchase H2. 1.One of the common dilemmas faced by developers of car industry is to find out ways of finding potential early adopters of its services during its market research. Since, we are fully aware that the product characteristics of any new product affect its rate of adoption. Therefore, for the purpose of this discussion we will consider Hummer as an innovation and evaluate how the five products characteristics can influence the innovation’s rate of adoption. The first product characteristic deal with relative advantage where by the innovation appears superior to its existing products. For example, Hummer is designed to take people off the beaten path and could plow through water to a depth of 76 cm and climb almost vertical, rocky surfaces etc. The comparative product characteristic presented by Hummer can be perceived as an advantage toward the innovators group who are willing to try out new product with some risks. To conclude, we can say that Hummer product is unique in comparison to existing product available and due its promising features it is able to attract the innovators group. The second product characteristics deal with compatibility where by the innovation fits the values and experiences of potential consumers. As GM believed that it could introduce the H2 in the luxury SUV market and compete successfully with brands such as the Lincoln etc should be perceived as a competitive advantage for the...
tracking img