Consumer Behavior and Marketing Psychology -

Consumer Behavior and Marketing Psychology

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Marketing Question

Assessment Description 

Overview: This assessment is a culmination piece, in which you will be given an opportunity to combine the  information you have accumulated in Assessments 1 and 2. More importantly, you will need to showcase an  understanding of marketing issues related to consumer behaviour such as attitudes, group influences, culture,  social class, consumer learning processes, and personal buying decision-making processes. 

The Task: Based on the scenario below, you are required to write a 2000 word report. In this report you must  demonstrate an understanding and application of various consumer behaviour concepts and theories by  analysing the facts gathered from the video and the survey, and present strategic recommendations. You will be  required to incorporate recent peer reviewed literature in order to justify your proposed recommendations. 

Scenario: Imagine that you have just been employed by the company you analysed in your earlier assessments.  You have recently learnt that the company’s customer loyalty has declined over the last year and that repeat  purchases are at a historic low. You have now been asked to prepare a report outlining the issues you identified  in your previous analyses, issues related to current marketing communications, and to provide at least three 

strategic recommendations to the board of directors, along with reasons for recommending further  improvements, all of which must be based on scholarly sources.

Marketing Solution

Executive summary 

This report focuses on the critical analysis of marketing issues identified based on a past survey and recommendations based on this analysis. The survey was conducted to understand the factors involved in a consumer decision-making process which purchasing a product. The Product for the survey was ‘iPhone’ by Apple Inc.

The key issues that were causing a drop in brand loyalty of ‘iPhone’ were –

  • Reduced brand innovation by Apple
  • Increase in competition causing less perceived value for money of iPhones

The first factor is crucial, and it had created a significant impact in terms of a reduction in brand loyalty. Many customers looked for other options, and this, in turn, leads to a drop in the overall market share and margins of iPhone. To combat these, Apple Inc. is currently following three strategies:

Increasing market share in emerging markets by introducing beginner range iPhones

By introducing a concept of the Lock-in period where Apple first gets consumers to buy their beginner model phones and then slowly get them to try their higher-end phones once they are happy with the quality.

Increase customer satisfaction levels – Regular surveys are conducted to improve the overall customer experience and to reduce grievances. With the help of more number of Apple stores, there is the aim of making customers feel a better quality experience. These Apple stores will also have better technology – that which iPhones have always been known for.

In addition to the above marketing strategies, the below recommendations have been made to improve its brand loyalty:

Targeted campaigns and marketing measures – Most marketing measures by Apple are for its whole array of products. A new Apple store, for instance, isn’t just for iPhones, but it is also for their laptops, notebooks and music devices. The recommendation is to have campaigns that are specific for the customers of iPhone so that incentives and promotions can be more appropriate and can reach out to existing customers better.

Brand innovativeness – Apple has started to slow down on its innovation, and this is making its customers feel less special about the technology that they carry in their hands. Apple has to focus more on Research and development in order to not lose out on its market share.

Customer engagement – Regular communication with customers is essential to ensure all queries and problems are addressed.

With these, iPhones would be able to improve their brand loyalty.

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