UNIVERSITY OF TECHNOLOGY, JAMAICACollege of Business and
Management
School of Business Administration
Consumer Buying BehaviorTo whom: Ms.Petula WhiteFrom whom:
Leonie Smith-1204981
Ramone Bradshaw-1202321
Anakay Gooden-1202539Jodian Simpson-1206007Losanya
Wynter-1104725Date: November 10, 2014
Group ProjectQuestion
a) Students will be expected to develop and present a portfolio
related to a specific industry (eg. Automobile), a specific product
category (eg. SUVs), a specific brand (BMW), Service organizations
(eg. Banks, Hotels), an Event (eg. Jazz & Blues, Sting), or
Causes (eg. Family planning) and show how consumer behaviour
concepts/principles are portrayed by reviewing and compiling
various material.
b) Groups of students will select concepts/principles related to
one of the following topics
a. Consumer Personality & Self Image
b. Consumer Attitude
c. Consumer Perception
d. Cultural/Sub-Cultural (family, groups, race, religion,
etc),
e. Marketing Ethics & Social Responsibility
c) Students will be expected to
a. provide background to the industry/product
b. briefly explain the concepts or principles observed
c. evaluate how the selected material (advertisement,
infomercial, advertorial, video, journal article, news feature,
statistics, ratings, reviews, etc) demonstrate the consumer
behaviour concepts or principles and the likely impact on the
targeted consumers behaviour.
d. develop at least two promotional material by using the topic
chosen and other concepts learnt in the course. Students should be
prepared to explain the promotional material in terms of the
product, target market profile, positioning, etc.Table of
Content
Background on Samsung Electronics
4-5
Consumer Attitude
6-7
The relationship between consumer attitude and Samsungs
advertisement8-9
Promotional Material Developed for Samsung Electronics
10-12
References
13Appendices
14-16Background of Samsung
Samsung was established in 1938 by Lee Byung-chull as a trading
company based in Su-dong. The small company started as a grocery,
trading goods produced in and around the city as well as its own
noodles.The company then grew and expanded to Seoul in 1947 but
left once theKorean Warstarted. After the war, Lee Byung-chull
expanded in to textiles and built the largest woollen mill in
Korea. The successful diversification became a growth strategy for
Samsung, which rapidly expanded in to the insurance, securities,
and retail business. Samsung was focused on the redevelopment of
Korea after the war with a central focus on industrialization.
Samsung entered the electronics industry in the 1960's with the
formation of several electronics focused divisions. The initial
electronics divisions included Samsung Electronics Devices, Samsung
Electro-Mechanics, Samsung Corning, and Samsung Semiconductor &
Telecommunications. Samsung built their initial facilities in
Suwon, South Korea, where they started producing black and white
television sets. Samsung entered the telecommunications hardware
industry in 1980 with the purchase of Hanguk Jenja Tongsin,
initially building telephone switchboards. Samsung expanded in to
telephone and fax systems which eventually shifted to mobile phone
manufacturing. The mobile phone business was grouped together with
Samsung Electronics which began to invest heavily in research and
development throughout the 1980's. During this time Samsung
Electronics expanded in to Portugal, New York, Tokyo, England and
Austin, Texas.
After the passing of Lee Byung-chull in 1987, the Samsung group
was separated into four business groups leaving the Samsung Group
with electronics, engineering, construction, and most high-tech
products. Retail, food, chemicals, logistics, entertainment, paper,
and telecom were spun out among the Shinsegae Group, CJ Group, and
Hansol Group. Samsung grew as an international corporation
throughout the 1990's. The construction division of Samsung secured
several high profile construction projects, including one of
thePetronas Towers in Malaysia. Samsungs engineering division also
includes Samsung Techwin, an aerospace manufacturer that
manufacturers aircraft engines and gas turbines as well as
supplying parts used in jet engines on Boeing and Airbus aircraft.
In 1993, Samsungreorganized to focus on three industries,
electronics, engineering, and chemicals. The reorganization
included selling off ten subsidiaries and downsizing. With renewed
focus in electronics, Samsung invested in LCD technology, becoming
the largest manufacturer of LCD panels in the world by 2005.
Samsung's focus in the future is centered on five core
businesses including mobile, electronics and biopharmaceuticals. As
part of it bio-pharma investment, Samsung formed ajoint venture
with Biogen, investing $255 million to provide technical
development and biopharmaceutical manufacturing capacity in South
Korea. Samsung has budgeted nearly $2 billion in additional
investment to pursue their bio-pharma growth strategy and leverage
theadvantages of their joint venture. Samsung has also continued to
expand in the mobile phone market, becoming the largest
manufacturer of mobile phones in 2012. To remain a dominate
manufacturer, Samsung has earmarked $3-4 billion to upgrade their
Austin Texas semiconductor manufacturing facility.Consumer
AttitudeAn individual with a positive attitude towards a
product/service offering is more likely to make a purchase; this
makes the study of consumer attitudes highly important for a
marketer. An attitude may be defined as a feeling of favourableness
or unfavourableness that an individual has towards an object (be it
a person, thing or situation). Consumer attitude can be better
explained by understanding the nature and characteristics of
attitude. Attitudes are composed of three components, via, a
knowledge or cognitive component, a feeling and affect component
and a behavioural and conative component. In terms of consumer
learning, the attitude would express a consumers feeling of like or
dislike about a product or service offering and the marketing mix.
The knowledge component is reflected in the learned knowledge that
a consumer obtains from his interaction with others as well as his
own experiences. The feeling component is reflected in his
evaluation, and the resultant feeling of favourableness and
unfavourableness. The behavioural component is reflected in the
predisposition to act (purchase) based on the evaluation.Apart from
helping a consumer make evaluations about a product/service
offering ending up in purchase decisions (to buy/not to buy),
attitudes play other functions as well. They perform four basic
functions; viz., utilitarian function, ego defensive function,
value expressive function, and knowledge function. The four
functions are not mutually exclusive. In the Utilitarian function,
Consumers form positive attitudes towards product/service offerings
because they provide a utility, in other words, they provide a
rewarding experience through the benefits that they provide. Ego
defensive function states that consumers form attitudes as they
help defend their ego, self-image and self-concept. If a consumer
is high on ethnocentrism, and patronizes Indian products, he would
have a positive attitude towards Indian brands. The Value
expressive function states that positive attitudes are formed when
a product or service expresses a persons values and lifestyle,
personality and self-image, and self-concept. This is because
attitudes provide people with a basis for expressing their values.
Lastly Knowledge function looks at how attitudes are formed when
consumers want to reaffirm their knowledge base, to finally help
them simplify purchase decision making. If a consumer thinks
positive about a brand, it helps reaffirm his opinion, and makes
decision making simpler and faster.Evaluate how the selected
material demonstrate the consumer behaviour concepts or principles
and the likely impact on the targeted consumers behaviourAt Samsung
Electronics, all of their advertising activities are designed to
provide the public with accurate information on who they are and
what they make through fair and high-quality advertisements, thus
helping customers with their buying decisions. With worldwide media
and potential customers, they recognize that creating a good image
through mass media is as important as innovative products.Samsung
Electronics advertisement is centred on the empowerment of
corporate brand identity and product.They foster innovative ideas
that advance technology, produce new products and improve the
everyday lives of their customers.Samsung Electronics use of
videos, ratings, reviews, news feature and advertisements has
allowed consumers to have a high level of favourableness with their
products. Samsung commercial of the Galaxy S4 demonstrates how
their consumers favour their products and why. The commercial
highlighted four (4) key words and centred the commercial on it,
the words were; Convenience, Fun, Relationships and Care. The ad
used these four words because it represents Samsung and what they
offer and how it will benefit the consumer. Under the category of
convenience it says Daily life is more convenient, making your life
easier and hassle free with this they demonstrated what makes the
phone convenient. The other section which was fun said that life
becomes more fun, making lifes everyday moment fun and memorable
within this segment it showed how your life can become more fun
with the phone such as playing games with friends I real time.
Relationships grow closer, relationships is true connections,
bringing people closer together is what is focused on in the third
(3rd) segment, it depicts that the user can video call and show
their surroundings and the final one (1) said wellbeing is cared
for, taking care of your health and quality of life the Galaxy S4
allows users to view more comfortably because the optimisation they
use is good enough for the human eyes.This commercial impacts a
consumers attitude because it is linked to the tri components of an
attitude. Samsung has ensured that their commercials or
advertisements make the consumers knowledgeable and entice them
into purchasing their products, not just with mobile devices but
their home appliances as well. Based on each commercial the
behaviour of a prospect or an existing customer would have changed
or become relatable.The attitude towards ad model states that a
consumer forms various feelings and judgement based on the exposure
to the advertisement, the exposure then forms an attitude which
works with beliefs about the brand to help form an attitude toward
the brand. Any medium that Samsung chooses to advertise their
products should allow a positive or favourable attitude to be
formed after watching or seeing the commercial.Promotional Material
Developed for Samsung Electronics
Electronic devices today have moved beyond their fundamental
roles and have advanced to become an extension of the personality
of the user. Customers are witnessing an era when users buy
electronic devices to express themselves, their attitude, feelings
and interests. Samsung is a major brand in the electronics
industry, this being said, the ads that have been created will not
seek to change consumer attitudes, but to alter and reinforce the
existing positive attitudes about Samsung electronics. The
promotional material chosen are displayed in the form of print
media advertising and digital advertising. According to an article
in Forbes Magazine (2012) Print ads are excellent for solidifying
brand identity, and placing ads in publications such as specialty
magazines can effectively reach niche audiences that may be more
difficult to target via digital advertising. In addition,
interactive ads of any source provide a more memorable experience
for the ads viewers than simpler printed advertisements.
Product Offerings
Samsung electronics product listing includes electronics such as
mobile phones, LCD TVs, LED TVs, smartphones, digital TV, PDAs, DVD
players, DTV, portable media players, HDTV, video games,
home-theatre systems, personal computers, tablets, Digital Cameras
& Camcorder, Video/Audio equipment and others. Samsung
differentiates their products based on innovation, and features,
thus, employing the selling concept. Taking this into
consideration, both the magazine and commercial are organized in
such a way as to showcase the products offered.Target Market
Profile
Samsung Electronics targets the upper middle class
professionals. They usually have busy schedules and need to
communicate with their colleagues and families. The secondary
targets are high school as well as undergraduate and graduate
students who need devices which are multifunctional and portable.
The secondary target also includes medium sized corporations whose
aim is to assist their managers is to assist managers and
subordinates to have access to crucial data on the go. The magazine
advertisement will be used to reach the primary target market, and
the commercial will be used to reach the remaining markets.
Segmentation
Samsung targets the customer market by dividing it into
different segments and offering each segment different products
based on their common characteristics. The advertisements seek to
appeal to all markets, and include the four schemes of segmentation
variables, i.e. geographic, demographic, psychographic, and
behavioural.
Positioning
Positioning Statement for Samsung: For every person who wants to
get the maximum value for the price that they pay, The Samsung
electronics is an electronics firm that provides electronic goods
that satisfy all your explicit and implicit needs more than your
expectations. Unlike other electronic firms, our products are
innovative, and at the same time provide maximum value. On the
whole, its affordable luxury. All Samsung products focus a lot on
product benefits and features. The most important feature is the
integration and use of technology in delivering the necessary
value. Innovation is also a key criterion for Samsung electronics.
In addition, all Samsung products focus on value for money and one
of their positioning is that of getting more than what you pay
for.
Reference
Assael, H. (1992), Consumer Behaviour & Marketing Action,
4th. Ed., PWS Kent, Boston, MA.
Loudon, D.L. and Bitta A.J. Della. (2002), Consumer Behaviour,
Fourth Edition, Tata McGraw-Hill, New Delhi.
Kotler P., and Keller K.L. (2009), Marketing Management,
Thirteenth edition, Pearson.
Peter, P.J. and Olson, J.C. (2005), Consumer Behaviour and
Marketing Strategy, Seventh Edition, McGraw-Hill Higher
Education.
Schiffman, L.G. and Kanuk, L.L. (2004), Consumer Behaviour,
Eight Editions, Prentice Hall, India.
Sahney, S., Consumer Behaviour, module 6, Vinod Gupta School of
Management Indian Institute of Technology
Video link-
http://www.youtube.com/watch?v=2LHv1FPd1EcAppendices
Magazine Articles
One Word
Envy
14