BU1008- MARKETING FUNDAMENTALS
Porsche: Guarding the old
While bringing in the new
Q 1: From the case identify and briefly explain three specific factors that may influence a consumer to purchase a Porsche (hint: select specific influences from the social and psychological group)
Factors influencing the consumer behavior are the situational, group and individual. (Elliott, Rundle-Thiele & Waller, 2010, pg.104). Kotler and Armstrong (2012, pg.186) state customers of Porsche are strongly influenced by the group and individual factors. Aspirational reference group, motivation and beliefs and attitudes are the influencing factors under the group and individual factor. The reference group is a social factor where the individual or group looks for guidance for appropriate beliefs attitudes and values. Aspirational reference group are “groups of which the individual would like to be considered a member” where the individual likes to adapt the values, attitudes and behavior of the Aspirational group (Elliott et al, 2010, pg110). Customers of Porsche are a small group of financially successful and high achievers in their field of work. They see themselves apart from the real world, which inspires people to different levels (Kotler et al 2012, pg 186). Porsche decided to extend outside the box, they brought in a new model that was less expensive to expand its sales volume and spread out their range of customers and it became the top selling model of Porsche and also increased the sales by a decent margin. Though success was seen by Porsche, loyalists never accepted these models as real Porsche and felt their exclusivity was glided away. Due to tough competition and struggling economy, the company recognized the errors and targeted the high end market to avoid bankruptcy. (Kotler et al, 2012 pg.186). The consumers of Porsche prefer to be different and stay exclusive. This refers to Aspirational reference group. Motivation is used to describe the individual’s internal drive to act and move from an actual, current state to the desired state. It often made up of the individual motives and particular drive which is an important psychological factor (Elliott et al, 2010, pg118). The most widely recognized theory of motivation is “Maslow’s hierarchy of needs”, it suggests that people satisfy the lower level of needs and then move up the hierarchy of needs (physiological, safety, love of belongingness, esteem and self actualization). Physiological is the most basic need among all, the fundamentals of survival. When the individual feels safe and secure, love of belongingness would be achieved too. Self esteem is the next in the hierarchy and where the individual are recognized and respected by others. Self actualization is at the top, one individual choose to improve and achieve. Porsche is a very high end product and expensive, its customers are financially successfully, achievers in their field of work. They are unique people who face challenges caused by the dangerous characteristics over Porsche. (Kotler et al, 2012, pg.186). Kotler et al (2012, pg.186) understood their customers see themselves apart of the real world and purchase “Porsches to portray their self image”. “The main attention was focused upon the image projected by various products; consumers prefer brands which are congruent with self-image with every purchase” (Douglas et al., 1967 cited in Laird 1974, pp.44).
Beliefs and attitudes is another factor that influences a consumer to buy a Porsche, mental map provides the context in which decisions are made. Positive, neutral or negative context has significant implication for marketing campaigns and initiatives to introduce new products or communication concepts. (Elliott et al, 2010, pg 120). Elliott et al (2010, pp.121) describes positive attitude clearly relates to reputation of brand image and brand equity and brand loyalty, negative attitudes can destroy the brand image, brand equity and brand...
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