HJohnson GB534 Unit 4 Assignment

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Oakland University *

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GB530

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Business

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May 12, 2024

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docx

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5

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1 Unit 4 Assignment: External Influences Heavenly Johnson School of Business, Purdue University Global GB534 Consumer Behavior Dr. Nazly Nardi 04/30/2024
2 Unit 4 Assignment: External Influences “Tide Goes After Green with New Pods” Case Study Both external influences and opinion leadership have an impact on consumer purchasing decisions. Customers also look for information from people whose perspectives they respect. The supplied product's innovation type and innovation analysis need to be evaluated to determine the impact. In this case study, consumers often use excessive detergent, leading to negative environmental effects (e.g., equipment failure, water contamination). P&G (Procter and Gamble) aims to address this issue and boost sales in the declining laundry category with the release of Tide Pods. Innovation Type Tide Pods would fall in the category of dynamically continuous innovation. “Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual” (Mothersbaugh, Hawkins, & Kleiser, 2020). Consumers need to adapt to the new form (using pods instead of liquid) but do not face a complete behavioral overhaul. The shift from traditional liquid detergents to Tide Pods represents a moderate change, making it dynamically continuous. Innovation Analysis and Diffusion Enhancement Strategies Diffusion Determinant Diffusion Inhibitor Diffusion Enhancement Strategies 1. Nature of group Conservative Market targets innovators with washing machines and market Tide Pods easy usability 2. Type of decision Single Target household wives, and people who buy
3 the product. Create a theme that showcases the ease of usage. 3. Marketing effort Global Use the brand name to target everyday users 4. Felt Need Weak Extensive advertising showing importance and benefits of Tide Pods (environmental) 5. Compatibility Compatible Product fits within consumer’s normative values 6. Relative advantage Low Saves consumer time, money, and eco-friendly 7. Complexity Low Purchase product within any retail store, have product demonstrations and free samples (high marketing efforts) 8. Observability High Utilize demonstrative marketing & advertising in retail stores (Walmart, Target, Kroger, etc) 9. Trialability Difficult Free samples during demonstration events, offer discounts and special prices to early adapters 10. Perceived risk Low Offers consumers an alternative product that guarantees of environmentally friendly Opinion Leadership Assessment Opinion leadership has a significant influence on consumer purchasing behavior. This product is being used frequently by people to carry out continuous chores in their daily lives. Individuals who are connected to the consumer on a personal level, such as family or friends, tend to be the opinion leaders in this. Therefore, how someone is trained to do laundry will affect how they instruct others. However, social media can also significantly impact consumer behavior as well. Three examples 1. Since parents are typically the ones who teach their kids how to clean, they are significant external influencers. Because they are typically their initial source of
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