Correlation between Market Share and Product Quality - Assignment Example

 QUIZ. 1. a). Market share in an organization is heavily detrmined by the price of commodity in many cases. Competitors price affects the amount of commodity an organization could sell in a market. In naddition to that there has been a negative relationship between the market share and price of the commodity. Different formats of the wine products have different market shares and pricess (Paley, 2005). It is indicated that the format with highest market share is selling most of its products at lower price than average price. Different formats average price is 6.2773. at the price 2.99 the format 75 has the highest market share in the market with quantity bought being 407 and at price equal to $1.99 the same format sold 403 products. The formats with low market share its products were highly priced. Format 75 has also a higher market share at prices higher than market share. As it can be evidenced that format 75 has a higher market share as indicated in the table 1 below. The table cleary shows that Mr. Skinners arguments is not true. Though the format 75 market share is very high at prices lower than market share. The product seems to be of very high quality as it is prefared at different pricess in the market. Different brand formats might have been advertised fully at different regions hence capturing high market share in the market (Alaxandris & Rodoula, 2012). Relationship between prices and format of the product affects market share in the market as price is seen as the major determinat of demad in the market. b). Different regions have different market share depending on the customers preference and pricing strategy in the regions. It is anticipated that Some products are priced higher in different regions depending on the chain of distribution. Different regions on the other hand have different resources which could affect the product price. Resource avaolability affects the market supply and demand of a certain brand in the market (Alaxandris & Rodoula, 2012). Excessive supply of brands reduces the brand prices; therefore different regions ends up having different brand share at different prices. Product competition among different brands makes different regions to price brands differently hence it is very easy for each and every brand to attract different prices at different regions (Alaxandris & Rodoula, 2012). It is without doubt that products which are not entitled to price control cost higher in regions which and far away from the manufacturing plant as the increased transport cost is transferred to the consumer. This could be the reason behind having different pricess in different regions. Wine brands are priced differenntly in different regions hence impacting the market share of the wine products in such regions (Alaxandris & Rodoula, 2012). Regions whereby wine is priced low have higher market share compared to regions where the wine is sold at higher price. Different bregions have different market share though the market share is higher at the prices lower than the average price in the market. At a price of 0.99 in MCLaveren Vale region the quantity purchased was 498 hence has the highest share compared to all other regions. The quantity bought depends on the price as pricess are inversely related to quantity purchased not unless the product is a luxury. This is because shoppers move from one region to another as a way of looking for cheaper products. c). Different products have different quality which is a major component of product in marketing mix. Product quality is essential especuially when selling the product to purchase in the market. Different consumers purchase different commodities as a way of comparing and trying to identify whether the product will better suit their needs or not. Brand switching is very common especially where different cunsumers don’t get the intented satisfaction from a commodity. Customers therefore find it necessary purchasing different commodities at different prices as a way of identifying the product which would satisfy their needs to the fullest. This makes it necessary for the company’s to offer different product varieties to ensure that they have captured a higher market share. Different grape varieties produce wine of different quality hence consumers have to prefer different varieties at different pricess as a way of identifying the product quality. Different grape varieties have different market shares. This is because different customers have different preferences as far as product quality is concerned and each variety possibly have different quality (Kotler & Armstrong, 2010). Some customers associate low priced commodities with poor quality hence it is very easy to find a company whose products are priced very low and the marketb share is also low (Sengupta, 2005). The grape varieties have therefore exhibited a behaviour where by there are some highly priced commodities which have high market share than low priced commodities. Most grape varieties have higher market share at pricess less than the avearge price of $6.2773. Tauriga nacional has the highest market share in the market at $0.99 commodity price. Touriga nacional is also among the products with higher market share at pricess haigher than the average price (Proctor, 2000). To add on that pinot Noir also has higher market share at pricess higher than average price hence we can argue against Mr. Skinners proposition and conclude that his argument is untrue as not all varieties have lower market share at pricess higher than average and not all varieties have higher market share at pricess lower than average price. Product like Tauriga nacional has the highets market share at pricess lower than the average price of $6.2273 and is also among the varieties with higher market share at pricess higher than the average price of $6.2773. Therefore it can be concluded that Mr. Skinners proposition as far as the format, region, grape variety with reference to market share on the fact that market share is higher in formats, region, grape variety with low price is wrong as market share in different formats is also shown to be high at prices higher than market share (paley, 2005). Therefore not all low priced product with regard to format, variety and region the product is sold have high market share at pricess lower than average prices. The retail market in australia is mostly affected by price in different regions, formats and wine variety (Myongsee & Billy, 2012). Loss heart product has been performing well in the market and the product has been doing well though it is experiencing competition from the other brands. It is therefore necessary for Mr. Skinners as an analysts to identify avenues in which the company could improve its market share and capture the share of the shoppers who have no brand loyalty (Myongsee & Billy, 2012). Identification of the customers preferences and identification of their brand switching behaviour is an advantage to the company as they will find the product promotion method necessary for increasing the market share; and as a result the company will improve its market share. Q2). Different consumers purchase different brands depending on customers’ preference, product quality, price and quantity. To some customers quantity is the determinant of the product they have to consume. To other prefer quality to quantity (Yujie & Chunling, 2012). This brings about changes in brand preference which results to brand switching as customers are ever looking for the commodity which will satisfy fully the needs and some needs are wants and one can stay without. Customers are never satisfied hence they keep on switching from one brand to another. Products are therefore promoted, advertised, and changed in quality to ensure that the customers are attracted at company’s products (Myongsee & Billy, 2012). Therefore consumer brand switching is guaranteed hence manufacturers should ensure that they understand the needs for the customers to avoid brand switching. Shoppers have been purchasing different brands, customer could have bought all the nine brands within and at different times with an aim of capturing and identifying the best product quality to identify their brands. Different brands have different market share. Brand loyalty is not exhibited in the graph as different customers have been purchasing different brands . this shows that consumers are not just loya to one product. Excessive brand switching can be anticipated as a result of increased competition among the brands (Myongsee & Billy, 2012). Though Lost heart has higherst customers who are loyal some customers have been moving from such a product to another brands which indicates that there is need for revisitation of the 4ps to enhance market brand stability. Environmental changes and other uncontrolable factors impact products pricess hance brand switching is very high at low level country’s economy (Kotler & Armstrong, 2010). When the country economy distabilises, brands pricess increases hence customers switch to the cheaper brands. Brand loyalty has been seen as a degree at which people will be willing to purchase a company’s brand repeatedly. Some shoppers continue being loyal to certain brand regardless of change in prices, quality and quantity (Sengupta, 2005). Brand equity is a way of improving brand loyalty as awareness, product quality as well as association provides a clear reason for purchasing and enjoying the product satisfaction (Proctor, 2000). Product quality and association does not determine the product loyalty as some people prefer low quality products as opposed to high quality products hence other issues like personal issues can affect brand loyalty. Brand loyalty could also induce strong awareness, improved product quality and awareness as a way of introducing the brand to new customers (Proctor, 2000). Therefore different brands end up having either low or high market share. Brand switching can also be as a result of extensive product promotion. Extensive product promotion enhances the product awareness inceasing the number of customers which are willing to purchase a certain brand (Krishna, 1994). On the other hand Some customers switch from one brand to another with an aim of doing product comparison where by a customer analyses product quality and need sartisfaction as a way of identifying the product to be loyal to (Proctor, 2000). Distartification is the major cause of customer brand switch as some customers will move from one brand toanother as a process of identifying the best brand which could suit their needs (Krishna, 1994).. The different brand of wines analysis has indicated that there is polygamous loyalty among the shoppers. The most preferred brand is lost heart as most shoppers prefer it to other brand though the shoppers are not loyal to the brand. Shoppers who purchase the brand also purchase other brands. It is also clear that the different brands have different shoppers with Las Noches having the leased shoppers (Krishna, 1994). Hence the results show that there is change of face brands among different customers and within different brands. The results reveal different techniques which are depicted in the market. It shows that there is extensive promotion among the competitors which has enhanced and has improved the market share in the market by enhancing brand switching (Krishna, 1994). May shoppers have not yet identified their loyal brands hence it is the best time for marketers to promote their products by improving quality to enhance market share. This implies that much is needed to be done by the product manufacturers to ensure that they capture the market share for the polygamous buyers (Paley, 2005). Wine producers should always put in consideration the 4ps of the market to ensure brand loyalty. Pricing strategy should be considered fully to ensure that the products are not overpriced in relative to other brands. Shoppers tend to run away from overpriced commodities. The results also imply that there is lack of brand loyalty as customers are not buying similar product from same manufacturer repeatedly (Krishna, 1994). There is excessive brand switching by the same customer as there is no identified customer who has been loyal to only one brand. Brand loyalty is high affected by the customers past purchase and the experience the customer has after using the product (Krishna, 1992). But things like awareness, brand quality perception and association can be on products which customers are not loyal to. This is clearly depicted by the results as different brands have different shoppers though there are those which are loyal to such brands. On top of that the results provided clear information on the steps which the marketers should take to enhance brand loyalty (Krishna, 1992). The results show that the method of promotion which is currently in the market for several brands are not working properly at the market share is questionable. Different products do well in the market as the brand loyalty has been established long time ago and it is not easy to convince and individual through promotion to buy a certain product as shoppers prefer trying different products as a way of identifying the best brand loyalty (Paley, 2005). This is because it has evidenced excessive brand switching hence it is necessary for them to capture and increase brand loyalty. Lastly the results implies that the brands seems to be of poor quality as brand switching is anticipated to be as results of commodities inability to satisfy fully consumer needs. As most consumers are rational most of them prefer switching from brand to another as a way of identifying the best brand which they could use to satisfy their needs extensively (Krishna, 1992). Therefore we can also conclude that lost heart winery is very competitive in the market. Hence much should be done to maintain or improve the market share in the market. Q3. Conjoint analysis creates an understanding of different product consumers and their buying behavior. It tries to identify how different commodities with different prices and from different regions are being preferred by the customers. Better understanding of the consumers’ behavior enhances clear indication and understanding of the company’s products niche as well as market segmentation with reference to a certain computer (Krishna, 1992). Analysis of the preference concepts is necessary in identifying the best promotion method, the advertising mode which could be effective in capturing the customers’ market share in the market. Regression Analysis           Regression Statistics     Multiple R 0.2148   R Square 0.0461   Adjusted R Square 0.0441   Standard Error 0.7488   Observations 1400   ANOVA             df SS MS F Significance F Regression 3 37.8444 12.6148 22.5011 0.0000 Residual 1396 782.6406 0.5606     Total 1399 820.4850         Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95% Upper 95% Intercept 1.6831 0.1005 16.7469 0.0000 1.4859 1.8802 1.4859 1.8802 alternatives -0.0504 0.0232 -2.1711 0.0301 -0.0959 -0.0049 -0.0959 -0.0049 0 -0.0430 0.0278 -1.5452 0.1225 -0.0976 0.0116 -0.0976 0.0116 0 0.1453 0.0189 7.6753 0.0000 0.1081 0.1824 0.1081 0.1824 Therefore portworths is therefore: Y=b0+b1 (A)+b2(B)+b3(C)+e Y=1.6831-0.0504A-0.0430B+0.1453C. Therefore the choice one makes is affected by the different choices available. Y is therefore the choice one makes in relation to other choices. Bo is the intercept variable term while b1 to b3 are the utilities port paths for alternatives while e is the model error term. The constant term is 1.6831and R2 which is the respondents line of fitness is 0.046. Depending on the customer’s choice the coefficient of determination is supposed to be between 0 to 1. Coefficient of regression standard errors shows how one can easily predict customers’ choice when dealing with different commodities or when handling different competitive products. The most preferable choice is choice the third choice as different customers have different preferences therefore the cost of production will be lower at products which are mostly preferred as this reduces the market share. The results also indicate that there is inverse relationship between the choice one makes and the different choices one have in hand to choose from. There is also a positive relationship between the choice made and the choice one makes though the level of correlation is very low. With the anova test of P value Read More