Question: 2 Difference in generational cohorts

           The approach towards buying a computer will differ between child and parents because of the generational cohorts. If parents belong from Generation X they may have faced different circumstance and culture throughout their life as compared to their children. My parents belong to the generation X who were not raised in the technologically advanced society. But I belongs to the Generation Y that was famous for technological advancements. Therefore their personalities, interest, and choices can be different from my choices and interest. As a result of this generational cohorts, the decision about buying party wear or a computer will differ between us. While purchasing a computer I may search for the prices, features, quality, innovativeness, models, and designs. But my parents may take the decision in a different way because they have limited knowledge about models and features of the computer. While in case of clothing they may feel okay with a few pairs or party wears but I will prefer to purchase new party wears each time.  

           Firms collect information about customer needs, generational cohort’s variation, interest, and frequency of buying a product through maintaining customer database and sales records. The frequency of sales can help out firms understand what is actually desired or demanded by the customers. Thus in the light of this collected information, they can make their products according to the customer's requirement that benefits them in marketing their products and developing a competitive advantage.     

Question: 3

Use of Customer Demographics

           Customer demographics like market size, ethnicity, age, income, and education help out the organizations in marketing. Ethnicity, culture, age and education cause to bring changes in consumer behavior. People belonging to the same culture usually have the same choices, needs, and interest. Cultural differences matter in changing consumer behavior. A product that is highly appreciated by the Hispanics (because of their culture touch) may not be accepted by the American. Because Hispanics belong from the same generation but Americans are not from them. Because of the difference between culture and social norms etc. they cannot have the same needs and choices towards products. Similarly, highly educated people behave in a different way towards a product as compared to the illiterate people. Because both will evaluate a product according to their education or information level about that product. Considering these demographical differences organizations collect information about customers to select the right customer segment for their products. Through utilizing information about these difference and demographical information they can influence their required market easily. At first, they identify their customer segment and then develop a marketing strategy that meets their customer's requirements.   

Question: 5

           Some common examples of recent technological advancement are iOS, data storage, Mobile Hotspot, Online payment methods, and mobiles phones. Technological innovations are causing to affect consumer’s everyday activities. Social media and digital media are becoming part of everyday life. Computer and mobile facilitate research with the help of internet. Payment methods facilitate online buying activities of the customer. Now in daily routine customers prefer to buy from e-commerce websites rather physical stores because of excessive information available about the product, and easy payment methods.

Question: 6

Successful companies usually keep an eye on international markets also. T-shirt shop in the United States needs to care about the value of the dollar currency in Hong Kong as such information can help out that company remain sustainable when changes occur in the international market. Here changes can be currency rate depreciation, change in social trends, financial crisis, and technological advancement.

Chapter 6

Consumer Behavior

Question: 2

While buy a computer consumer will conduct research to collect information about prices (comparatively with competitor products and substitutes) features, model, uniqueness, company's image in the market and customer satisfaction rate. Somehow, internal factors that influence buying decision are learning, motivation, perception, and attitude. Somehow, external factors are culture, family and reference group.  As marketing manager at Sony such information can be used to promote products in a better way. Information about customer attitude about different kinds of products and prices, motivational factors, and customer’s perception towards products will help out me in developing a marketing campaign. In my marketing campaign, I will show how Sony products meet with what is required by the customers. Thus customers can understand how purchasing Sony products can satisfy their needs and requirements.      

Question: 5

Customer satisfaction is highly important for retailers and street shops. The retailer can make sure customer satisfaction by maintaining records of customer repurchases. If customers are purchasing again and again then it is clear that they are satisfied with products.  

Question: 7

Major social factors that will influence my buying decision towards outfit are culture, family and reference group. My family may influence my buying decision. As my parents (usually the mother) decides color, and negotiate with the final product. While father influence decision through the budget. Culture may also influence buying decision as I will definitely buy the dress that is acceptable or appreciated by the religious values and culture of the society in which I live. While reference group such as other class fellows may also influence as I will wear something similar to others. What my friends and other class fellow are going to wear will help me decide what I should wear.

Question: 9

In such a situation, marketers can influence customer buying decision by providing positive store atmosphere and high-quality sales services. Positive store atmosphere can be color, lighting, and background music. While supportive sales person providing information about required products can make situational factor positive for buying decision.   

Question: 10

In this letter, I would write how the company is not truthful to its customers in the selected market. After presenting the whole situation about how the company is purchasing the foreign product and selling that product with “made in the USA” label, I will explain how such a situation can cause to decrease customer satisfaction. Furthermore, I will also discuss how the company will lose its goodwill and positioning in the market because of this false statement.