Essays on Consumer Values And the Importance of Store Attributes Case Study

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  The paper "Consumer Values And the Importance of Store Attributes" is a perfect example of a Marketing Case Study. Consumers and sellers compete to reach their varying goals. Consumers pursue high-quality products, at the lowest cost possible. Suppliers, on the other hand, strive to minimize production costs, but at the same time meet customer needs in the best way possible. Consumer's purchase decisions are guided by many factors. Some of these include the price of the item, level of income, attitude and perceptions, tastes and preferences, market information, availability of substitutes, social class among others.

Marketers attribute variations in consumers’ behavior to different social values held by consumers in a particular country (Erdem, Oumlil & Tuncalp 1999). Different methods have suggested measuring social behavior in order to assist them to make marketing decisions. The primary goal of a consumer is to attain real value for his/her money. Suppliers employ different methods to persuade consumers to buy. One of these is to make the product as affordable as possible to the consumer by lowering its price. This improves the consumers’ ability to purchase the product and shields off competitors.

In more sophisticated marketing, persuasion is more than lowering the price. Another strategy applied in price bargaining is assessing the buyer’ s perception of quality. Where a customer wants to rock prices at a very low level, a prudent move applied is by suggesting a different model of the item by the company that can fit the deal suggested. The move prompts the buyer to reason in terms of quality by making a belief to grow within the customer that the price quoted for the product is actually relatively higher owing to the higher quality of that particular product.

Consumers who are highly egoistic would be reluctant to take a low-quality product with a higher quality one on offer (Ozer, 2005). This is a wise strategy, especially for luxurious or high priced products. Background South Korean market is frequently undifferentiated from many Western managers but it differs considerably in terms of the cultural and socioeconomic environment. One general attribute of the people of Asia is that they are relatively collectivistic in their social values compared to people in the Western world (Hostede 1984).

It has been noted that there are substantial cross-national differences in socioeconomics and culture and this explains vast differences in consumer behavior among Asian markets. South Korean socioeconomic developments are above Asia’ s average. In fact, South Korea has a higher GNP than, Asia’ s largest economy China. In world statistics, South Korea ranks as the 12th largest GNP (Director 1997). Korean consumers have been exposed to foreign consumer products thanks to liberalization policies for traveling abroad, improved income and standard of living as well as opening domestic markets for imports.

There has also been a rising rate of imports of luxury consumer products which has further enhanced South Koreans experience with foreign products. Korean consumer markets represent a wealthy consumer base. Consumer behavior is significantly socioeconomic conditions of the market such as media access, income, and mobility. Both per capita income and disposable income are good indicators of the number of resources consumers allocate to consumer goods. For example, consumers are likely to be concerned with price and performance attributes in making product evaluations and buying decisions, when they are confronted with limited resources.

However, as more resources become accessible, buyers may desire more emotional image attributes in products or brands.

References

Blackwell, R., et al., 2001, Consumer Behavior. 9th ed. Orlando, Harcourt.

Chosun 2008, ‘Masquerade of cows and helpless consumers’, Chosun Economy Newspaper B1, 18 June 2008.

Crawford, M & Benedetto, AD 2006, New Products Management, Boston, MA: McGraw Hill.

Director, 1997, ‘South Korea: Seoul-searching’, Vol. 50 No. 7, pp. 21-6.

Erdem, O, Oumlil, AB & Tuncalp, S 1999, ‘Consumer values and the importance of store attributes’, International Journal of Retail & Distribution Management, Vol. 27 No. 4, pp. 137-44.

Hofstede, GH 1984, Culture's Consequences. Sage Publications, Beverly Hills,

Kim, RB 2008, ‘Transformation of an emerging economy to a knowledge-based economy: Korean case,’ Global Business Review, Vol. 9, no.1, pp. 149–156.

Ozer, M 2005, ‘Factors Which Influence Decision Marking in New Product Evaluation,’ European Journal of Operational Research, Vol.163, pp. 784-801.

PriceWater House Coopers, PWC, 2006, ‘From Beijing to Budapest: Winning Brands, Winning Formats,’ Research Report.

Roth, MS 1995, ‘The effects of culture and socioeconomics on the performance of global brand image strategies,’ Journal of Marketing Research, Vol. 33, pp. 163-75.

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