BU432 Midterm

Topics: Reinforcement, Smartphone, IPhone Pages: 10 (1709 words) Published: January 28, 2015

BU432 Midterm
iPhone 6 Bent Out of Shape

(Marie) Jenna Ducut
110433440
Shirley Lichti

1. Consumers and Companies as the Driving Behaviour
I think both consumers and companies play a role in driving innovation for new products to be released first in the industry. Since technology advancements have been rapidly growing and changing each year, consumers are becoming increasingly exposed to more variety and high customization options. This in turn, shapes our perceptions, attitudes, and behaviours. On the other hand, a company’s goals and overall organizational culture can also influence their behaviours towards driving innovation. Consumers Perspective

From a consumer’s perspective, we are always looking for ways to present ourselves favourably to the public – whether we do it consciously or unconsciously. Some consumers want to be perceived as the “Geeky Gadget”, always on the rise to own the top notch smartphones (need for uniqueness, P. 161). This is also a good example of how this consumer engages in impression management, P. 122, to positively maintain his or her public image.

The way a person seeks to pursue their ideal self may play an important role in driving this change. For example, a person who idolizes Steve Job’s innovative and creative character may want to become innovative by associating him/herself with Apple products (ideal self, P. 122).

A different example in how an individual’s perception about owning the latest or newest phone is through their extended self. For example, an interesting study conducted by Google indicated how “people are using mobile to change all aspects of their life” (Michael Oliveira, 2013). Furthermore, most smartphone users cherish their phones so much that it becomes their identity (extended self, P. 128). Company’s Perspective

In contrast, from a company’s perspective, an organization’s culture can shape their approach based on their core values and beliefs. For instance, a company that emphasizes the values of innovation, learning, and creativity can influence their employees’ behaviours to become innovative and creative in making new products (values, P. 174). 2. Temporary Situation on Consumer Behaviour

People’s decisions to live frugally depend on a variety of factors including their motivation, lifestyle, and timing. Motivation Conflict
One reason people may be cutting back on spending is due to motivational conflict. For example, I purchased a Samsung Galaxy S5 because I believe it satisfied all my needs. On the other hand, however, I had to suffer the consequences of paying an expensive fee (approach-avoidance conflict, P. 99). Since I have invested in something expensive that I believe will last me a long time, I am not willing to spend money or time looking for another smartphone. Hierarchy of Needs

People can also be cutting back depending on where they currently stand on the levels of their needs. Consumers who have satisfied their lower-level needs and want to fulfill their upper needs may be willing to consume more to get there. On the other hand, if consumers feel that their lower level needs haven’t been met, they will remain in that level until they no longer feel dissatisfied. For example, a student who is struggling to pay rent may not be likely to spend money for a smartphone to feel connected with her peers. Once she has earned enough money from her part-time job to pay off all her rent and has fulfilled her need of safety, she may move on to satisfy her need for belongingness. Lifestyle

Another reason why consumers are not willing to spend is because of their lifestyle. A person’s social class should be understood as it plays a huge role in influencing what type and quantity consumers buy (Boundless, n.d.). Consumers in the upper class have a higher level of disposable income, and therefore, are willing to spend more on luxury good items than those with less disposable income. 3. Multi-attribute Model: Smartphone...

Bibliography: Boundless. (n.d.). Social Influences on Consumer Purchasing. Retrieved from Social Classes: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/social-influences-on-consumer-purchasing-42/social-classes-215-4849/
Business Wire (2014, July). Research and markets: Americas smartphone market to 2015: Mobile
Handset sales by technology and by generation. Retrieved from Business Wire http://search.proquest.com/docview/1547895680?accountid=15090
Michael Oliveira, T. C. (2013, July). Google study: Smartphone ownership way up, Canadians addicted to their phones. Retrieved from CTV News: http://www.ctvnews.ca/sci-tech/google-study-smartphone-ownership-way-up-canadians-addicted-to-their-phones-1.1388185
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