Impact of Demarketing on Consumer Behavior Chapter 1: Introduction 1.1 Overview Demarketing is a negative marketing approach used by manufactures to bring down demand of certain products. These strategies however don’t intend to destroy demand. It is one of the techniques used to influence customer attitude and behavior over specific products and services. This study shows how demarketing as a tool plays a role in limiting demand in respect to its supply of a particular product, and may even discourage the customer towards another particular product considering the situation permanently or temporary. In this study we investigate how demarketing techniques play with the loyalty of the customer towards specific brand and force the customer to give a second thought towards the product they use, and whether they stick towards their brand or make a second choice. Customer satisfaction being …show more content…
This may lead to change in customer preferences or may influence the customer to change their choice. Since the demarketing tool is used for attaining a positive aim, customers getting influenced is surely a gain, but those customers which do not get influenced are the main challenge that need to be convinced. 1.7 Research Gap Demarketing being a new concept not much investigated globally, especially in Pakistan, is gaining attention of the strategy makers and marketers in the environmental world. As the organizations are running towards going green and saving the Earth, more and more stress is being put on saving the scarce resources as well as limiting the use of harmful elements. However, Pakistan being a still developing country, not much focus is being given to this phenomenon and therefore not much data and information related to demarketing in Pakistan is available in researches and articles. 1.8 Chapter
...derstanding the multifaceted concepts behind the market can prove to be a beneficial endeavor. The ability to identify and apply economic ideas can thoroughly broaden the scope of consumer awareness. After all, economics is all around us!
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
More importantly, the decision to purchase is done subconsciously. This means that the majority of the time, your consumer is not even aware of their decision to buy or not to buy your product. In fact,
Thus, cannibalization strategy occurs when a newly developed product encroaches on the current market for the existing product, as opposed to expanding a company 's market base. The company could have intended that the new product would appeal to a new market segment and increase market share. However, the new product ends up appealing to the firm 's current market, which results in reduced market share and sales volume of the existing product. At the bottom line, the DYB strategy is far more effective than the cannibalization strategy with respect to the competitiveness, growth and market leadership of a company. It is because the DYB strategy is developed, designed and implemented to boost the business 's competitive advantage. The cannibalization strategy ultimately forces the life of an existing product to end prematurely, as sales shift to a new product, as opposed to tapping into new market segments as intended. One of the examples where cannibalization strategy occurred is when Apple developed the more quality-rich iPods and iPhones that depleted the sales of its lower-end iPhones and iPods, such as shuffle, nano and classic series. These were unintended plans, which also reduced the company 's sales performance. For example, consider the GYB strategy as far better than the cannibalization strategy, as is the case of
· The buying industry hinders the supplying industry in their development (e.g. reluctance to accept new releases of products),
Scarcity can describe any item or service which cannot be obtained equally by every individual. The benefit of scarcity in persuasion is it shows the value of making a decision based on not only what stands to be gained, but also what may be lost. McLean describes reminding a customer that a product or service may be limited in availability as a method of employing scarcity, demonstrating to the customer that they may lose their chance if they aren’t convinced before someone else comes along (2010).
This paper presents a dynamic model on the consumer behaviour on the real world marketing issue. It will further discuss the marketing and industrial experiences encountered daily in everyday business life, in addition is the Consumer behavioural issues and consumer analysis or recommendations.
Mark Benioff of Salesforce.com once said, "The world is being re-shaped by the convergence of social, mobile, cloud, big data, community and other powerful forces. The combination of these technologies unlocks an incredible opportunity to connect everything together in a new way and is dramatically transforming the way we live and work."
From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company
Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Value is an integral part of marketing (Newman, 2015). If consumers are provided with goods and ideas of greater value by a business compared to its competitors, that have shown the businesses in depth market research taken in order to fulfill its consumer’s particular needs then it can create longer affiliations with the consumers due to the level of satisfaction and quality provided. Based on the concept of “Demand Chain Management” (Madhani, 2015).
However, the abuse of this trend is causing some fatigue and distrust among consumers, especially when certain product categories are falling far short of what the consumer is expecting.
To solve the problem of declining sales, three basic questions must first be answered. Yarborough defined these as “knowing where you are, where you are going and how you are going to get there” (Yarborough, 1994, p. 13). The appropriate process to solve a problem must define the current state of the issue, find the core cause(s) of the problem and chart a viable course for correction. Additionally, proper instructions and action steps of how the solution will achieved must be part of the process.