How Marking Mix Elements Influences Consumer Buying Behaviour Through Psychological and Sociological Factors
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Essay Preview: How Marking Mix Elements Influences Consumer Buying Behaviour Through Psychological and Sociological Factors
- Introduction
This report explains and identifies how marking mix elements influences consumer buying behaviour
through psychological and sociological factors Leslie Kanuk (2012) decision making process that affects consumer behaviour from the chosen brand Adidas that is focused on clothing.
[pic 1]
Fig 1.1 The Logo of Adidas
Source: http://www.adidas-group.com/en/
1.2 Current Brand Value and Maintenance
Founded in August 18th 1949 by Adolf Dassler, with the mission “to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle,” (Adidas 2014). Adidas has a brand vakue of 155.8 billion (Interbrand 2014) more so, profitability has been constantly growing and projected to reach at least 160 billion by 2017
Table 1.1
2012 | 2013 | 2014 | 2015 | 2017 |
$139B | $142B | $155.8B | $157B | $160B |
Source: Adidas 2014
Adidas makes emotional appeals through increased utilization of social media associating the brand with connecting with friends and harmonious group activities which according to Drive Reduction Theory, critically removes feelings of ostracism.
1.2 Segmentation Analysis
Table 1.2 represents the segmentation analysis for Adidas
Target Group | Segmentation |
Age and Sex |
|
Income |
|
Segment |
|
Industry Market Share |
|
Source: Student Research 2014
1.3 Competitor Identification
The major competitors for Adidas include Nike and Puma in the sports brand industry as well as Vans and Converse in the indirect industry (Adidas 2014)
1.4 Introduction To The Decision Making Process
The decision making process is utilized for the purposes of identifying marketing strategies to adapt marketing mix elements for profitability (Blackwell, Miniard and Engel, 2005)
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[pic 3]
Figure 2 shows the consumer decision making process adapted from Schiffman and Kanuk (2012). The psychological driver such as personality, motivation and attitudes will be major components affecting problem recognition as the role of income and budget may influence the fishbane model of competitor purchase due to price risk of Adidas. Also, the attitude towards the pre-purchase to different brands determines brand purchase through extensive utilization of promotional activity since Adidas positions itself in the market as being a product associated with youth and healthy lifestyle, reflected in its target segment (see Table 1.1). As a consequence, post consumption evaluation of Adidas will be positioned upon the satisfaction of expectation.
Adidas employs the low involvement hierarchy as a consequence of positive attitudinal, operant reinforcement such as coupons and loyalty programmes. The satisfaction after purchasing influences pre purchases evaluation of alternatives as customers for brand loyalty and positive attitudes (Soloman et al 2006). Because of an increase in sales, customers are satisfied. Adidas uses and emotional decision making process due to their low involvement appeal for functional benefit of sportswear use.
Memory and learning from information search is influenced from promotions with stimulates need recognition from attention, heightening brand recognition and recall stimulating brand preference to lower actual state of cohesion. Sociological Drivers will affect the decision making process by information search and pre purchase evaluation of competition in relation to consumer personality and self-concept since the trendy youth segment has increased (Soloman et al 2006) as a a outh cultural segment upon which heuristics of availability influenced purchase. Reference groups such as friends and peer groups will influence information search as well as purchase.
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1.4.1 Heuristics
This can be defined as simple rules of thumb to speed up the decision making process (Schiffman and Kanuk, 2012)
Table 2: Heuristics Utilized by Adidas
Heuristic | Details |
Availability Heuristic | Memory based information search; Adidas does extensively advertise and utilizes social media |
Representativeness Heuristic | Likelihood of being happy and getting together with friends by playing sports and exercising outdoors |
Anchoring and Adjustment Heuristic | Analyse all industry competitors like Nike or even Puma to get cheaper footwear and sporting clothing, then adjust in terms of budget, brand preference or may be brand loyal to Adidas. |
Simulation Heuristic | Go to Adidas sports store outlet and there will be good service plus build bonus points to a another item half price later on so realistically if an individual went to Nike there is no rewards and substandard service so choose Adidas |
Framing Effects | Both external information searches like social media sites Facebook and Linked in support positive views of Adidas, so choose Adidas over competing brands because you will feel a sense of comfort and satisfaction |
Source: Student Research, 2014. Adapted from Soloman et al., 2006.
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