Factors impacting consumer choice - influences marketing Flashcards
which factors influence customer choice?
psychological, sociocultural, economic, governmental
psychological effect
MAPSL
It relates to the way people think and develop attitudes to certain products. - MAPSL - motives, attitudes, personality, self image, learning
what are ur 6 case studies for psychological
- Mcdonalds
- Apple
- Noble edge effect : Qantas, Audi
- Celebrity Endorsement: Snopp Dog
- Country of origin : Gucci - made in italy
- Anchoring strat : Durex Condom Company
mcdonalds case study 4 psychological
- Displays their signature premium menu items on display as close as possible to the entrance without a price, exploiting a concept called “decision anchoring”, where customers are influenced with the first image they’ve seen when entering the restaurant
No pricing information. Just beautiful imagery that gives us the psychologically smooth, care-free experience of choosing without considering the ‘loss’ impact of our choices.
Apple case study for psychological
the principle of scarcity by having the Apple stores stock only a limited number of the new product on the day of the product launch. This is done in order to create long queues and, consequently, free publicity.
Durex Condom Company case for psychological
- Durex condom company used the anchoring strategy in 2018 to compare the price of a $2.50 condom to a $217 baby product, emphasising which is cheaper without even writing it out
- The Durex company reported a 10% rise in full-year revenue to £12.6 billion in 2018, while operating profit rose 11% to £3 billion
Noble Edge Effect For psychological case study
- When companies act socially and ethically, reflecting society’s standards
- Qantas released a plane with aboriginal designs to acknowledge them whilst they have also released planes with symbolic pride gestures such as when the QANTAS logo was designed in rainbow colours
- However, there’s a caveat: you have to be authentic and transparent in whatever noble deed you choose to associate your brand with.
- In 2017, Audi made the mistake of promoting feminist values as a marketing campaign without checking their imbalanced gender ratio at the exec. level. This resulted in mass backlash and resistance from their customers.
celebrity endorsement case study 4 psychological
- Menulog adds starring Snoop Dog
- According to AFR.com, Menulog’s Australia managing director, Morten Belling, said it boosted brand awareness and helped the platform lift orders by 104 per cent in 2020 and increase its share of the $20 billion takeaway food market.
economic factor
influence on business’s ability to spend when faced w fluctuations in economy ; booms and busts/recessions
economic case study : online world expanding cases
- netflix
- disney
- asos
negative upon..
- Hertz
- Qantas
netflix/disney case study for economic
Netflix:
* Got 16 million new sign-ups thanks to lockdown
* Netflix annual gross profit for 2021 was $12.365B, a 27.22% increase from 2020.
Disney +
- Disney+, which launched in the UK and most major western European markets last month, has signed up 50 million subscribers just five months after launch.
- It took its rival Netflix, which has more than 160 million subscribers, seven years to reach the same milestone after moving from DVD rental by post to streaming in 2007.
online stores gathered competition
asos case study ; economic influence
- The guardian reported that ASOS tripled profits in 2021 due to the pandemic - reported a 275% leap in half-year profits as it benefits from coronavirus restrictions that have hammered high street rivals.
- In 2024, the brand has fallen out of style. 2024 March’s results show an 18% drop in sales year, indicating how effectively well they took of covid’s situation
negative impact case studies of economy
- 78% of small to medium-sized enterprises report a decline in revenue due to the pandemic, the highest level reported since the research commenced.
- Hertz struggled after the drop in travel due to the pandemic last year. The company’s used car sales also witnessed a significant drop. This forced the car rental company to file for bankruptcy. Hertz had about $20 billion in debt last year. The company is working on selling most of its fleet to pay its creditors.
- the pandemic had cost Qantas more than $16 billion in lost revenue
sociocultural factor
forces exerted by other people and groups that affect customer behaviour
-social class, culture, family, peers, etc
what are the 3 case studies used for sociocultural
-kfc
-mcdonalds
-LEGO
KFC case study for sociocultural
KFC
* Advertisement for KFC depicts an uncomfortable white cricket fan giving rowdy West Indians fried chicken has been slammed as racist in the US
* KFC Australia has said the ad had been “misinterpreted by a segment of people in the US”
* Failed to understand cultural sensitivities
mcdonalds case study 4 sociocultural
carefully standardised food with accordance to tradition and culture of country
, in middle east Arab countries, McDonald’s consumer can get McArabia (grilled halal chicken with Arabic spices and bread)
to this they avoided beef as cow is sacred in Hinduism i.e. majority religion in India
mcdonalds case study 4 sociocultural part 2
- target almost everyone from kids, student, adults and business people.
children = happy meals with Disney toys
teenagers and student = some of the meals are really affordable and cheap for them.
adults and business people = they tend to prefer things that is done fast and less time consuming and this is exactly what McDonalds did, they serve fast food and also there are Drive through
LEGO case study 4 sociocultural
- Lego has abandoned its once gender-neutral marketing strategy of the 1980s for a gendered approach
- pink packaging suggests it is a “girl’s toy”, while blue packaging is indicative of a “boy’s toy.”
- A 2020 report by the Fawcett Society showed how “lazy stereotyping” and the segregation of toys by gender was fuelling a mental health crisis among young people. those marketed to girls are offensively stereotypical and lack the same level of complexity.
- However, due to today’s societal changes, some audiences may disapprove of binary specified genders in toys
According to The guardian, Lego announced in 2021 it will work to remove gender stereotypes from its toys after a global survey the company commissioned found attitudes to play and future careers remain unequal and restrictive.
Researchers found that Seventy-one per cent of boys surveyed feared they would be made fun of if they played with what they described as “girls’ toys” – a fear shared by their parents
governmental influence
set the economic climate which will directly or indirectly influence business activity and
consumer spending.
Can influence consumer spending through:
- monetary policies (interest rates)
- fiscal policies (government spending and taxes)
- legislation (e.g. age restrictions on alcohol, illegal to advertise cigarettes restricts people from purchasing them)
what are the governmental factors case studies
The Australian Communication and Media Authority ensures businesses abide by regulation required when advertising on television. Such regulation include:
⮚ Gambling ads cant promote irresponsible behaviour or excessive betting (SportsBet)
Alcohol Ads:
you can show alcohol ads on commercial TV and SBS TV between:
⮚ 12 pm and 3 pm on school days
