Consumer Behavior Essay Example

Consumer Behavior Paper The manner in which a product is packaged influences customer choice to a large extent. Products which are glamorized and which are likely to catch the eye of the customer are likely to record higher sales than other products of the same nature which have dull packages. This is because most customers, especially first time buyers judge the product from its packaging and more often than not tend to think that beautiful packaging depicts a good product. A superior mind share is established whenever a customer looks at two competing products in a store. The final choice that the consumer makes could be largely influenced by the appeal, information on the package and branding. Packaging should therefore be considered as a very essential marketing strategy. Packaging increases sales and attracts new customers. Packaging design is now being used as a marketing tool and companies are turning to making more attractive packaging and reducing the advertisement costs. A package that is well designed and attractive will prompt new customers to try the companys product since as noted earlier; customers take the appearance of the package to be identical to the quality of the contents inside. We will write a custom essay sample on Consumer Behavior specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Consumer Behavior specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Consumer Behavior specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Existing customers are retained because the packaging prevents them from going for a competitive product that looks more appealing. Packaging acts as an advertisement tool and a selling agent. It provides the company with the opportunity to advertise their product by writing about the benefits of the particular product on the packaging. The details of the product and the reason as to why it will satisfy the customers needs act as a silent marketer for the companys product. The customer can then make his or her decision easily. The package must however be as attractive as possible so that it may prompt the customers to pick it up and take a look at the products features. The customers curiosity can be aroused by the shape, the color, texture among others. These features will further serve to identify the product from among competing products. Packaging helps to distinguish a companys product from others in the same category. In other words, packaging serves the purpose of identifying the product. It is this package that makes the customer go straight to where the product is on the shelf and not pick any other product. This is the reason why companies should make unique packages that are not likely to be confused with other products and which can easily avoid counterfeits. Packaging protects the product and ensures that it is not affected by environmental hazards such as moisture, dust and smell. Customers would like to get clean products and therefore when the packaging is right, more customers will buy. Leaking or rusty containers and packages will not encourage repeat buying and customers may opt to buy a competitors products. Analysis of packaging i) Alton Brown Spice (Australia) Alton Brown is a spice brand that is likely to sell. This is because it takes into consideration the blind and the visually impaired by providing a braille translation of the writings on the package. This means that it will also appeal to this group of customers who are in most cases ignored. However, the package is a bit dull which may not attract persons with visual capability and hence they may go for other types of spice. ii) Silver Hills Bread (Canada) The Silver Hills bread displays bright and conspicuous colors that are likely to attract the customer from a far. The cartoon designs may particularly appeal to children who to a large extent influence the purchasing decisions that their parents make. The packages and the names are also unique such that customers can easily identify the brand. This package would increase sales for the Silver Hills bread. iii) Seventh Generation Automatic dish washing detergent (Australia) The Seventh Generation Automatic dish washing detergent is made with no fragrances and chlorine so that it is does not pollute air at home. The green leaf is supposedly used to depict that the detergent is safe for the environment. Normally though, one could mistake the green leaf to mean that the soap is made from herbal products or even mistake it for a herbicide from far. The detergent is likely to get low sales because the package is not very eye catching. Question 2 Chal from Bangladesh Chal is essentially a word used to refer to rice. Rice is produced in significant amounts in Bangladesh and it accounts for a large amount of income obtained by Bangladesh. Rice takes a central role in Bangladesh accounting for 18 percent of the Gross Domestic Product of the country and takes up 75 percent of the agricultural crops. Rice fields occupy 10 hectares of land and the main workers in the rice farms are villagers with considerably low incomes. Rice can be said to be affected by stereotypes both positively and negatively. For example, the population of Bangladesh is said to be very high. As a matter of fact, it is the 7th largest in the world with 147. 4 million citizens. This population promotes rice farming as it provides market and laborers. The 10 million hectares of rice paddles require extensive amounts of workers to maintain the rice until it is ready for use. Bangladesh is rich in culture and communities live in village oriented settings. This promotes co-operation such that more rice can be produced. The Bangladesh population relies on rice for their daily carbohydrate intake. This provides domestic market for the rice. Bangladesh is dominated by Muslims with Hindus following suite. One way in which this stereotype enhances the country is that Muslims often make use of rice dishes which provides market for the rice in Bangladesh. However, this leads to the next stereotype which maintains that Bangladesh is associated with terrorism, Muslim Jihad and the al-Qaeda. Political violence is also said to be high with cases of suicide bombings and murder being witnessed often. Some of the al-Qaeda are said to have fled to Bangladesh when the Taliban reign in Afghanistan fell. This discriminates against the country as some countries who highly oppose terrorism may not want to import rice from Bangladesh. It also gives a negative image to the country all which serves to spoil future market fro their product. Strategies to reduce negative effects For Bangladesh to reduce the negative effects caused by stereotypes, it must seek to establish that the image painted by these stereotypes may not be true. If by any chance they happen to be true, the idea would be to try and reduce their effect on the rice trade. Islamist parties are increasingly taking control of Bangladesh. These are the groups that are associated with terrorism and are said to be responsible for the constant attacks on politicians and bombings based on political violence. More banks and non-native Islamic charities are also getting into Bangladesh. These banks and charities are associated with Islamic movements and this has fuelled the Bangladesh stereotype that the country is a terrorist nation. Reducing or banning these banks and charities could help to reduce the discrimination being felt against Bangladesh. With a more positive image, trade is likely to improve Strategies to conserve positive effects One important thing that Bangladesh should embrace is the preservation of their culture and their co-operation. This would play a big role in ensuring that the country continues to gain from rice farming thus increase income. Preservation of culture and religion will ensure that the people of Bangladesh continue taking rice as their staple food and more so the Muslims. Care should however be taken to avoid backwardness that may result from completely ignoring other countries culture that may affect them. The population does not have to be increased even though it provides labor. This is because with increase in population, more poverty would be witnessed which would not be healthy for the country. Instead, Bangladesh should come up with more advanced technology to ease the work in the rice fields. Cars from Germany Cars manufactured in Germany are said to be of high quality given the technical skills possessed by the Germans. German cars stand out among other brands and they are made to perfection to give the owners the feeling of luxury. Their most famous brands include BMW, Audi, Porsche, Mercedes and Volkswagen. Even though their cars are expensive, people are committed to buy for prestige and the excellent quality. Germans are considered to be very serious and industrious. They are punctual and highly organized. Their business deals are rarely cancelled due to poor mistakes and failure to meet the required standards. They are also good technicians, a trait that is said to make certain Germans arrogant. These are stereotypes which work to the advantage of the Germans. They can easily access more customers because the cars produced are expected to be of high quality and they are bound to be punctual in delivering the cars once they are finished. Some say they are too academic, they have no sense of humor and are likely to give more business talk than social talk. However, they are helpful and are very dependable. To a certain extent, this could be good for business. Many businessmen are more likely to engage themselves in serious deals rather than keep cracking jokes and wasting time. This way, their car business can do quite well. Their days are always packed but when they do get a break they engage in a lot of eating junk food, meat and beer drinking which is why they are usually overweight. The Germans make use of other people to do the dirty work for them while they take the lighter duties of polishing the cars and finalizing the sale deals. These are negative stereotypes that can work against the German car business since stereotypical people are likely to discriminate against them for other cars from other companies. Since the majority of autoworkers they employ are low income earners, questions are raised as to why they do not pay them enough yet they get so much. Strategies to reduce negative effects Most of the negative stereotypes against Germans seem to be inclined towards their physical attributes. People tend to associate people who eat and drink much with poor performance. This is more so if they are overweight. However, this problem can be overcome by proving that one is as effective as the others. It does not mean that they are lazy and therefore they should work hard in order to show that their physical attributes do not affect their work. The Germans working in the car industry can also try to be more sensitive to their employees and pay them better wages. This way they can be satisfied with their work and promote the achievement of better results. Strategies to retain positive effects So as to retain the positive effects and continue promoting their cars, Germans should continue aiming for higher education and acquire more technical skills and knowledge to improve the quality of their work. Their aim should be to produce even better cars that will appeal to the customers. Their industrious nature should not be changed and there is need for their punctuality to be maintained. Germans have the advantage of being friendly and helpful, a trait that they can use to promote business since customers are more pleased when they are treated with care. In doing this, they should try to adopt a less serious look so as to effectively communicate with customers and close deals much easily. Word Count: 1929 Bibliography Anderman, Phillip, Economy of Asia: Pakistan and Bangladesh. China: Lulu Publishing, 2006. Avery, Michael, Efficient Marketing Tools. New York: John Wiley and sons. Reuters. Facts on Bangladesh Politics,† Reuters, August 5, 2006 Rehadzo, Mills, Stereotypying: A focus on several communities. London: Cengage Learning, 2000. Smith, Folley, Auto Industry in Germany. The Daily Mirror, February 19, 2003. Stewart Bill, Pira International. Packaging as an effective marketing tool. New York: CRC Press, 1996 Thomas, Michael. Gower Handbook of Marketing. Gower Publishing, Ltd. , 1995 Consumer Behavior Essay Example Consumer Behavior Essay Reginald Jones D03342926 Consumer Behavior Week 7- Course Project â€Å"Nivea Active 3† Market Analysis As one of the leading international skin care companies we are close to consumers, offering them compelling, innovative products. With more than 125 years of experience in skin care and one of the worlds most modern research centers, Beiersdorf stands for innovative and high-quality cosmetic products. Our brands are trusted universally from NIVEA, one of the worlds largest skin care brands (1). The company has introduced a men’s product called NIVEA FOR MEN Active 3. The strategy of the company is to promote a product that is easily accessible and gives the consumer added value by providing added solutions to everyday life. NIVEA FOR MEN Active 3 is a refreshing shower, a moisturizing shampoo and a foaming shaving gel all combined in one product with a refreshing citrus scent. The revitalizing gel with advanced MICRO TEC-Technology develops into a generous foam that offers mild cleansing for body and hair, allows for a comfortable yet thorough shave and leaves the skin clean and smooth. Thanks to our Micro-Tec technology, this advanced formula combines high-tech polymers and essential nutrients. The caring nutrients are provided by avocado and sunflower oil extracts. These lipids help restore moisture to the skin making it feel smooth. At the same time, the high-tech polymers create a generous lather, which allows the razor blade to glide gently – giving you a comfortable yet thorough shave. (1). NIVEA for MEN formally announced the new Active 3 June 29 2009, an innovative three-in-one shower agent combining body wash, shampoo and shaving gel in one bottle (2). We will write a custom essay sample on Consumer Behavior specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Consumer Behavior specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Consumer Behavior specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The introduction of this product can be seen as an induction from a growing trend in men’s use of liquid soap as well as overall personal care. The liquid body soap market grew to $733 million in 2008 from $480 million in 2003, an increase of 53 percent, according to Mintel, which projects revenue will top $1 billion in 2013. Men’s formulas are growing more rapidly than women’s and unisex products, from a 17 percent share of overall category revenue in 2005 to 28 percent in late 2009 (3). Male consumers are paying more attention to their looks. The trend is being driven by male role models which including sportsmen and film personalities. As the gender boundaries are blurring, global firms are increasingly focusing on finding new ways of making profits from the emerging characteristics of men consumer segment. The world market for mens grooming products is projected to exceed $33. 2 billion by the year 2015, According to New Report by Global Industry Analysts, Inc. 4) An executive of Nivea’s parent company wisely identifies 2 of its primary competitors in his statement in regards to the Nivea Active 3. â€Å"The target we have is slightly older than Axe or Old Spice,† said Mr. Maurer, of Beiersdorf. â€Å"We’re talking to a more confident guy that knows who he is and what he stands for, and who is past the trying-to-get-the-girl stage (3). † Axe is the most popular men’s brand, with a 7 percent share of the total body wash market, ac cording to Information Resources, a market research firm. Old Spice, which introduced body wash in 2003 and is a close second to Axe among men’s brands, with 6 percent of the total market, also emphasizes manliness: it is the official body wash of the N. F. L. and Nascar. As far as the overall market the evoked set of brands in the men’s grooming industry include Procter Gamble which sits high atop with brands as varied as Head Shoulders, Gillette and Old Spice, the Cincinnati-based producer accounts for 43% of all industry sales (5). Also, Dove has made a conscious attempt to move from the awareness set to the evoked set with its amid the high-profile entry of Dove Men+Care (6). Finally, Axe is definitely included in this consideration set within an industry that has seen significant growth in the past few years. The market for men’s grooming products grew to $4. 83 billion in 2009, from $2. 38 billion in 1997, according to Euromonitor International, a market research firm. Axe is widely credited for driving much of that growth, all but creating the male ody spray category and continuing to enter categories that mainstream men’s brands have historically avoided, most recently hair care, with Axe introducing shampoo in 2008 (7). Nivea Active 3 Competition Head Shoulders Selection of 2-in-1 Shampoo/Conditioners GilletteBody Wash/ Shaving Foam or Gel AxeShampoo/ Shower Gel DoveSelection of 2-in-1 Body/Face Wash Old SpiceBodywash Various BrandsBar Soap (Substitue) Nivea Active 3 can be found in retail outlets, supermarkets and online sites. The product can be purchased at your local Walgreens or CVS as well superstores such as Target and Walmart. Also, Nivea Active 3 is sold at supermarkets and grocery store such as Dominicks, and Jewel’s. The product can be purchased online on the websites of the previously named retails outlets stores and many more. Nivea Active 3 can be purchased such as Amazon and Ebay, There are numerous outlets and as long as there is significant interest n purchasing the products its presence will remain sound. Brand Positioning According to the Gillette Company, 94 million men age 15 and older remove hair. Of that 94 million 72% (68 million) use a blade or razor (8). This is the market for the Active 3. Nivea begins to focus on its target through its current advertisements. One of the reoccurring patterns in Nivea’s current advertisements of Active 3 is that all the actors appear to be around the age of 30. This is an appropriate demographic because the strongest value of Active 3 is that it is convenient and time saving. Also, since the capability to shave with Active 3 is one of the main components of the product, this will appeal to males 30 and older as shaving has become a part of their routine of grooming themselves. The Generational Cohorts, which are targeted are; the latter Generation X and the early members of Generation Y. Also, the actors demonstrate the removal of chest hairs. Since the activity of the actor using Active 3 occurs during the routine of taking a shower, the extension of that routine into chest hair removal would be more prevalent to male 25 and older. The development of chest hair begins normally during late puberty, usually between the ages of 15 and 18. It can also start later, between the age of 20 and 30, many men in their twenties have not yet reached their full chest hair development. The growth continues subsequently. In older adult years androgens cause thickening of the hair (9). Get more done in the shower! This is a tagline that can be found on advertisements of Active 3. This shows its target to the market of males that would appreciate the convenience and time saving value of the product. This would be most relevant to professional males who welcome solutions to make their day more productive. The tagline â€Å"Get more done in the shower! † and age of the models illustrate Nivea’s target market as business professional males 25 years and older. The versatility of NIVEA FOR MEN Active 3 is based on a unique formula to fulfill three purposes at the same time: to gently cleanse the skin, to mildly and effectively shampoo the hair and to create the ideal foam texture for a smooth shave for both facial and body hair. Even though the product is so convenient to use, it doesn’t compromise on quality (1). Nivea has positioned itself convenience in the mind of men who grooming routine consist of showing, shampooing and shaving. It enables men to do 3 grooming activities at the same time using one quality product, Active 3. All of the advertisements for Active 3 communicate its position which should make memory and learning about the product become much easier (book). Customer Analysis The personal grooming activities of showering, shaving and shampooing ones hair address the need to have a clean, good smelling body with clean hair and a cleanly shaved face and body. In most societies, a clean body and clean hair are apart of the culture. Also, in many societies a nicely shaven face and even body is looked upon a clean cut and acceptable. This places the customer need being address through Nivea’s advertisement as â€Å"Belongingness† in Maslow’s Hierarchy of Needs. Active 3 addresses this need and also recognizes the problem of saving time in doing these grooming activities and provides the solution of doing them all simultaneously. The cultures that will consume Active 3 are those whom focus on individualism, hard work and male personal grooming as a norm. Members of individualist cultures tend to strive for independence and have self-concepts defined in terms of their own aspirations and achievements (10). † In individualistic cultures, culturally congruent individualistic appeals will generate more favorable attitudes towards the ad, brand attitudes and higher purchase intentions when used for products that satisfy personal consumption purposes rather than a social purpose (11). Acitve 3 is most definitely for personal consumption. It focuses on personal grooming and individual appearance. How can I save time in my day to make my day more productive? This is the question asked by a culture that values hard work. Active 3 promotes its consumption as a means of convenience and time saving to help construct a more productive grooming routine so that one can get more done in their day, In the Active 3 advertisements, the models have a result of having a freshly shaven face and body with their body and hair appearing to be looking and smelling good. This appeals to a culture where the model represents personal grooming as norm for males within the culture. Since the advent of metrosexuality, companies have realized that they have a new market to capitalize on men who spend their money on grooming and appearance supplies. Walk through the aisles of any US drugstore, and you’ll notice an abundance of male-targeted personal grooming products, such as anti-aging eye-creams, shower gels and formula facial cleansers, slowly monopolizing the shelves. With so many brands clamoring for their slice of the pie, metrosexuals have out and out become their own market segment. And as sales figures roll in, there is clear evidence that the metrosexual market is indeed quite viable (12). Nivea’s Acitve 3 serves the metrosexual segment by providing a â€Å"new† more efficient way to groom with the quality this segment has grown to expect. One of the most relevant characteristics of the meterosexual subculture is maintaining a well-groomed appearance. The Active 3 influences its purchase by providing this subculture the means to maintain a their appearance daily with ease and convenience. Customer Personality In regards to the five-focus model of personality, the personality of the typical user of Nivea Active 3 is one who is â€Å"Open to Experience†. Their openness includes a general appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of experience. The user of Active 3 is open to experience is intellectually curious, appreciative of art, and sensitive to beauty (13). Men’s attitude towards using a shower gel versus shower soap has changed. But a man using shower gel is still a relatively new acceptable action of the male segment. Coupled with the fact that Nivea has produced a product that has a 3-in-1 function, Active 3 is can be defined as â€Å"new†. The personality of the consumers that purchases this product is curious and open to an unusual idea. The purchaser appreciates the imagination of the product and is adventurous in pursuing the new experience of the product in hopes to find a novel grooming solution. The most prominent consumers of the Nivea Active 3 are young, upscale, and keep up with the latest technology and in tune with new products and services. They live in fashionable neighborhoods and where fashionable clothes. They are highly educated professionals who work hard and play hard. These consumers are within arms length of trendy boutiques, various restaurants, and the popular bars. They enjoy dating, meeting new people and are seen in many social environments. Shopping is an activity that is enjoyable. They shop at brick and mortar as well an online. Traveling and athletics are apart of their many hobbies. They also keep abreast of what is going in the world by reading newspaper, magazine and following events on online websites (Hawkins, 446). The life style of the user segments may have varying life style. These life styles may vary by the age group of the user segments. The life style that is reoccurring throughout all user segments is traveling, participating in athletics and staying abreast with world events through reading newspaper, magazines and the use of the internet. The variation would be found in the social environment. The older the age of the user segment, the less we will see them at social scenes such as bars and dating arenas. Nevertheless, all user segments have some balance of hard work and social networking. This life style influences their interest to consume Nivea Active 3 for its convenience and time saving value. All consumers of the Active 3 have general lifestyle patterns of conducting the activities of showering, shaving and shampooing their hair with in close proximities of time. Purchase Decision Process Nivea is commonly included in the men’s evoked set for men’s body wash but it is not in the evoked set for men’s shampoo, or men’s shaving cream. Nivea is in the evoked set for product that can do all three functions since there are very few products that have the same attribute in one solution. For male consumers that are making a decision about their purchase of body wash there is a limited evaluation criterion. In most cases, men used brand recognition as an initial search process. This is why the most successful men body washes are usually brand extensions to other products men use i. e. Gillette razors/cream or Old Spice cologne. To Nivea’s advantage, brand recognition is not the most important criterion men’s decision. Elimination –by-Aspect is the decision rule for men purchase decision. If it doesn’t smell good, the product is eliminated from consideration. Once the consumer proceeds to the next step in the decision, Active 3 being able two additional functions would shift to a disjunctive decision rule. Active 3 will be selected over other body washes as it surpasses them on the criteria of fulfilling the shaving and shampooing function since they do have these as options. Since Nivea is not in the evoked set for shampoos or shaving creams the consumer must see the added benefits of two additional functions as a deciding factor. A brand such as Gillette (shaving cream) or Head and Shoulders (shampoo) will have the advantage in their respective functions if the consumer’s basis of evaluation criteria is nominal in their decision-making. But if Nivea can effectively influence consumers to adopt a compensatory decision rule, their product will be purchased, as it will rate highest on the summary of the consumer’s judgment of relevant evaluative criteria if the additional functions do in fact become relevant in the mind of the consumer. Finally, if the consumer decision is based on a product that can satisfy all 3 functions, shaving, shampooing and showering, that consumer will purchase Nivea Active 3 based on the disjunctive decision rule. This will be due to the fact there are little to no other products that provide a solution for all 3 functions in one product. The consumers initial purchase process will be limited and the result will be some post-purchase dissonance. The level of dissonance will be low because the product is inexpensive. The consumer has used other products as resolutions to each of the functions provided by the Nivea Active 3. Their information search on the product prior to purchase will include recommendations from family, friends or peers and Internet searches for review and feedback on the item. There can be more immediate purchase evaluation because the individual can consume the product right away and decide if they are satisfied or dissatisfied. If the consumer is dissatisfied it is likely they will retain the item and store it as a means of â€Å"back up† or use the remainder of the product and not repurchase the item. Because it is a personal item, the result will be some negative word of mouth communication. If the consumer is satisfied there will likely be repurchases with no post purchase dissonance. The repurchase decision will become nominal. Marketing Assessment Product features Nivea can capitalize on the convenience of Active 3 by producing a Travel size bottle. The travel size bottle can be marketed, to be consumed on business and leisure travels. It can be marketed, to be taken to the fitness gym or any other physical activity. This will truly be a â€Å"back up† for men whom want to maintain a fresh, groomed body throughout the course of a day. â€Å"You Never Know When You May Need It†. Nivea should create an economy sized bottle to be marketed to fitness clubs and sporting facilities. The Active 3 can be placed in dispenser in showers in these facilities. This would be perfect for those consumers as they can use this for any or all of the 3 functions after their activities. Advertisements Nivea needs more print, TV and Internet advertisement. The product is still relatively new and many consumers do not even know it exists. Before other brands began producing their own 3-in-1 formulas, Nivea should focus on it brand awareness. There should be create a campaign that conveys the same message over a number of advertising avenues so that it can strengthen it brand positioning. Commercial Content Idea Tagline: â€Å"You Can Do it All! † Models: A diverse group of men of all different races and ethnicities. Problem: There should be several un-groomed or slightly groomed men conducting different activities such as (1) waking up preparing for work (2) completing a work out at the gym (3) getting prepared for a date and/or a night on the town (4) on a business trip Solution: Nivea Active 3 is their solution in each events and the result is a clean, well groomed individual prepared to take on the world â€Å"You Can Do It All† Reference Hawkins,D. I. , Mothersbaugh, D. L. (2010). 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PDF 12) http:// www. brandchannel. com/features_effect. asp? pf_id=315 13) http://en. wikipedia. org/wiki/Big_Five_personality_traits#Openness_to_experience