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CONSUMER BEHAVIOR PAPER | The Application of Consumer’s Knowledge and Involvement Concept in “Adu Segar Larutan Penyegar” Case Study from Brand Cap Kaki Tiga Perspective | September 2012 |
MMBM Batch 25 Team #2
Dickson Mulia 0152121007
Genoveva Iswati 0152121016
Arfianti Puspitarini 0152121035
Maulana 01521210xx
EXECUTIVE SUMMARY
Larutan Penyegar Cap Kaki Tiga, currently being manufactured by PT Kinocare, is facing a fierce competition against Larutan Penyegar Cap Badak since Wen Ken Drugs decision in February 2011 to withdraw the license from PT Sinde Budi Sentosa and granted it to PT Kinocare.
In the market, the new Larutan Penyegar Cap Kaki Tiga is perceived as a replica product of its predecessor and they are struggling
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Kino’s product quality has met international standard qualification, proved by the increasing demands from the markets all over the world.
II. BASIC CONCEPT AND THEORY
The scope of analysis of “Adu Segar Larutan Penyegar Cap Badak vs. Kaki Tiga” case is focused on Consumer’s Product Knowledge and Involvement concept.
Consumers have different levels of product knowledge, which they can use to interpret new information and make purchase choices. Levels of knowledge are formed when people acquire separate meaning concepts (accretion process) and combine them into larger, more abstract categories of knowledge (tuning). The levels of product knowledge are classified based on below spectrum: More Abstract | | | Less Abstract | Product Class | Product Form | Brand | Model/Features | “Larutan Penyegar” | Ready-To- Drink | Cap Kaki Tiga | Original(Bottled , 200ml & 500ml)Fruity taste(Canned, 330ml, available in 7 variants) |
Because consumers are likely to make separate purchase decisions at each level of knowledge, marketers need to understand how consumers organize their product knowledge in terms of these different levels. Thus, based on this concept, the basic questions that might arise are “What are the levels of product knowledge for “Larutan Penyegar”? and “Which are the dominant factors that
Consumption is a process of acquiring, using and disposing of goods and services. Emotions play a very large role in consumer behavior. This behavior and emotions are affected and created by the society and the culture in which the consumer lives. For example, an American may approach the purchase of a costly car with relatively less pressure than a person in a developing country where a car could be a high unaffordable luxury. The customer will comprehend brands, offers and the meaning of the product based on the understanding that he or she has of similar brands and their experience by analogy or by hearsay from peers and form an opinion. For example a new soft drink from Pepsi may not be very informative in its advertisement but that it is from the stable of PepsiCo makes the users of Pepsi brands take it in without much research. Such an opinion is not based mostly on the complete set of facts. Where there are many alternatives or the information is scarce the customer has to make a lot of effort or 'high effort' to reach a decision and such a situation could be a turnoff. On the other hand the customer may not be inclined to devolve deep into facts in case where the brand value is established and may make a decision on little or even sometimes no information. (Hoyer;
A consumer is any person that is involved in the process of consumption. They are identified according to the market type to which they belong, namely final and industrial consumers (Solomon, et al., 2013). Understanding the consumer behaviors will aid in appreciating the various market segments and developing strategies for effecting market penetration in these segments. It will also help in identifying market gaps and shape their needs and objectives so as to solve the day-to-day consumer’s concerns in purchase.
Understanding consumer behaviour is essential to succeed in business. As Solomon et al. (2013) stresses, businesses exist to satisfy consumer’s needs. By identifying and understanding the factors that influences their customers, firms have the opportunity to develop a more efficient strategy, marketing message and advertising campaigns that is more in line with the needs and ways of thinking of their target consumers (Perreau, 2015).
Economist, business analyst, and statisticians all are using consumer decision-making as a strategy. They use the information to ponder, “how different amounts of prior knowledge
A person will affect purchased product by personal experience, direct marketing and mass media. Moreover people make 5 stages for purchasing decision making choices about which product and service they chosen. Through stages problem recognition, information search, alternative evaluation, purchase decision and post purchase behavior to buy their needs and wants.
Based on understanding about customer behaviour, the companies tend to depend on their created marketing mix to promote new products, which consists originally four key elements (4Ps) namely product, price, promotion and place. Today, marketing mix is developed and includes other Ps like physical evidence, processes, and people as critical elements (CIM 2009).
Consumers buying decision making play an important role for the success of every company or organisation. Without the investigation into consumers and their buying behaviour companies and organisation and marketer cannot achieved their aims and objective of their goals in the sale of their product. The purpose of this investigation is to explore the relationship between the consumers buying decision making process and the beverage brand products. (Coca Cola and Pepsi Cola) The data for the research has been collected from the UK one of the biggest town in England know as Huddersfield. The result from the research has determining that in the UK, majority of the consumers prefer Coca cola beverage brand than Pepsi and the research result has indicated that consumers buying decision can significant influence the beverage brand product in the UK market the research continue to say that if coca cola has put more focus on consumers buying decision in the UK know what they expected from them and producer according to their customers demand and try to satisfy their need and wants this can lead coca cola toward the success and increase their profit in the UK market
There are many factors which can influent consumers make decision whether they purchase the product or not, such as physical environment, perception, personality, lifestyle and culture. Customers will change their mind to not buy a product because of style, color, price or their own idea changed, such as consumers will notice the image of the brand instead of the function of the brand.(Ferrell, 2005).For example, when P&G has just entered in China, its original position of brand “Rejoice” all-in-one shampoo is bring people convenience and flexibility of their hair. Later, P & G in market development found that consumers most need is to establish self-confidence, then from 2000 “Rejoice” reposition its brand to “self-confidence” instead of “convenience and flexibility” for the demand of consumers. (Hartline,2005) Consumers are the focus of the marketplace because whatever merchant do is all attempt to attract their needs and desires. Merchants are not only the people who sell products to consumers, but also should see the investment with a long-term sight. Consumer needs is changeable, maybe sometimes it will affect a firm’s original plan, but firms should always remember that consumers are god. Then a firm probably has a great prospect.
Consumers are creatures of habit: they buy the same products time and time again, and such is their familiarity with big brands, and the colors and logos that represent them, that they can register a brand they like with barely any conscious thought process. The packaging of consumer products is therefore a crucial vehicle for delivering the brand and the product into our shopping baskets.
The last couple of decades have witnessed rapid technological advancements, which have consequently caused dramatic changes in the way we live, work, and play (Peterson, Balasubramanian, & Bronnenberg, 1997). Likewise, it is little doubt that the lives of consumers and their purchase behavior have also undergone change. The advent of the Internet has been increasingly considered as a unique and interactive medium for conducting research on brand information (Porter, 2001; Steckel et al., 2005). For example, imagine that Joe's cell phone recently stopped working and now, Joe is in the market to buy a new phone. Joe is not quite sure which cell phone brand is the most popular and which brand is most likely to deliver what he is looking for
This study helps to know about the brand awareness and its impact on consumer buying behaviour which is limited only for Bangalore Plant. This study helps to analyze the brand awareness in the consumers mind. This study also helps to identify the factors that influence on consumer buying behaviour of Apollo paints products.
From the marketer’s viewpoint, it is essential to attract attention of consumers, and consumers can respond the way marketers intend to. For example, if a marketer chooses red colour to package products, the consumer likes all commodities with red packaging by chance; then, perception arises as this packaging draws the consumer attention.
This study helps to know about the brand awareness and its impact on consumer buying behaviour which is limited only for Bangalore Plant. This study helps to analyze the brand awareness in the consumers mind. This study also helps to identify the factors that influence on consumer buying behaviour of Apollo paints products.
Understanding consumer buying behavior entails marketing, relationships, and consumer behavior. Consumer behavior comprises all the consumer decisions and activities connected with the choosing, buying, using and disposing of goods and services. Marketers must pay very close attention to consumer behavior that occurs before the purchase and after the particular product has been used. Studying consumer habits is one of the steps in marketing search and analysis. In addition to other basic principles of consumer buying habits, marketers also need to study the decision and actions of real people. Until recent history the study of consumer behavior was focused on generalized consumer decisions. With
Because this is a world of technology, consumers are now shifting their focus from the traditional way of living to the advanced way of living. Consumers are now using technology to where ever they want. They are using online sources for searching information. The advancement of new technologies allows them to use more new-way to search information and through the technological communication, channels allow them to provide their information as well. With the help of technology, consumers have become able to think strategically before making any decision. Before making any decision of purchasing, consumer fully investigates their favorite product, which they are intended to buy. Not only this they also label their products and if they do