Lax Professional Assignment2 Marketing Strategy and Consumer Behavior
Question #1
Nowadays, customers have to make specific considerations before making a purchase. Consumers have a wide variety of products to choose from, with the numerous advancements in technology. Emotions frequently influence most decisions made by human beings. Such purchase decisions are typically based on impulses and recommendations from other customers that have previously tried the product. Additionally, the customer does not conduct product research before making a purchase or evaluate alternative products. Therefore, the decision to make a purchase is purely based on emotional factors.
On the other hand, rational or functional purchases are mostly based on objective criteria. The customer identifies an urgent need that needs to be satisfied, conducts extensive product research, evaluates all possible alternative options, and decides to purchase it. For example, a customer car may break down, creating a need to buy a new one. The customer conducts extensive research on which companies offer the desired type of car. Additionally, the customer evaluates which car brand or model fits their needs and falls in line with their budget. Finally, the customer decides to buy the car, such as a Mercedes-Benz C-Class.
Question #2 and 3
The company produces technology products such as laptops, mobile phones, tablets, among others. These kinds of products fall under rational purchases. However, the company uses emotional marketing strategies to influence potential customers to purchase their products. On the same note, the company aims at building long-lasting relationships, which will help create product loyalty among consumers. Generally, the following are kinds of consumer decisions to consider before making a purchase, which includes nominal, limited, and extended. First, nominal consumer decisions are often made on low-prized products. For example, if a customer uses the same laundry detergent for ten years, the customer will spend less time researching different brands unless they notice a problem with the actual purchase. Otherwise, the customer will end up picking the same bottle. However, nominal decision-making starts with extensive product research; then, the customer makes the decision to use a given brand. Therefore, the purchase becomes nominal as time goes by because of the customer’s loyalty to the product. Secondly, limited decision making is made on mid-cost products. It requires little involvement and market research, such as reviewing online testimonials. Therefore, the customer makes purchase decisions based on logical inferences and the memory of the product. For example, a customer may enter a store with the intention of picking a specific soft drink brand, but they discover that another soft drink brand is on offer. Based on their previous memory that the customer enjoyed the drink once, the customer can decide to make a change for a limited time and buy the alternative soft drink. Finally, extended customer decisions are made on high-cost products that are infrequently purchased. They require extensive market research to help build the buyer’s confidence. Since our company produces technology products, most of our consumers undergo extended decisions before making a purchase. For instance, when a customer wants to buy a laptop from the store, they have to ensure that they are making the right choices from the brand to screen resolution and processing power. This is because significant purchases are associated with higher risks for the consumer. The customer will ask for advice from family and friends who might have used the laptop, research on different specifications, product reviews, and testimonials before making the purchase.
Question #3
For companies to be successful, they need to create customer brand loyalty. Brand loyalty is the ability of a customer to purchase a specific brand. This is because the customer has positive experiences with the brand or the company offers high product quality at an affordable price. Over the years, the company has been successful in creating customer brand loyalty because the products offered are of high quality and at an affordable rate compared to rival products. For example, when the company was started, it produced only laptops. Over three decades ago, customers continued to purchase new laptop models because of brand loyalty. The company emphasizes on reminding the customers of the value of their products and encourage them to continue buying.
On the other hand, the company now produces other technology products such as smartphones. Over the years, the company has experienced repeat purchases from various consumers because of its advertisements that help shape the attitudes and beliefs of customers. As a result, when the company launches a new smartphone majority of the customers make repeat purchases to try out the new features advertised. Need I say, the ability of customers to make repeat purchases is also influenced by brand loyalty.
Decidedly brand loyalty helps companies achieve substantial sales value. Additionally, it makes consumers less sensitive to price changes because they are willing to pay more for a given product than other companies‘ alternative products. Therefore, companies must create customer brand loyalty to remain competitive in their respective markets.