The papers "How Senses Influence Buying Behavior" is a perfect example of a Marketing Case Study. There is a relationship between a product and others. The product hierarchy starts with the basic needs of the particular needs that are used to satisfy those needs. There are seven levels of product hierarchy (Kotler, 2011). These levels are; need family, product family, product class, product line, product type, brand and item. The need family is the core need and underlies the existence of the product family. The product family involves all product classes that can be used to satisfy a core need effectively.
Product class includes the products in the family which have a functional coherence. The product line is made of a group of products that perform a similar function hence closely related. Product type involves a name that is associated with single or more items in the product line. Lastly, an item is a distinct item within the brand. This report is based on the product hierarchy of five industry products (Kotler et al. , 2004). The industries are; telecommunication, oil and gas, retail, food industry and entertainment.
The product hierarchy in each of the industries is defined. The hierarchy of each industry is arranged and the brand position is analyzed based on the economic notion of substitutability, level of competition and sequence of the customer. The report then looks at the future of the product selected in the UAE market in correlation with consumer behavior, culture and market competition. Oil and gas (ADNOC) The oil and gas industry is the main source of revenue in UAE. UAE has nearly 10% of the world's total oil and gas reserves hence making the industry very vital.
UAE oil and gas industry is the third-largest oil reserve in the Middle East. Abu Dhabi National Oil Corporation (ADNOC) is the main company used in the oil refinery through use of a subsidiary (Rai & Victor, 2012). Due to the economic benefit of the oil and gas industry in the UAE, it is vital to analyze the product hierarchy. Product hierarchy Need family Energy Product family Oil and gas Product class Fuel, electricity, power Product category Petroleum, diesel, bitumen, Plastic, tar Product line Transport and communication, roads, plastic ware Product type ADNOC Product item Energy market The economic notion of substitutability Substitution is very active where there are many alternatives.
ADNOC products are not easily substituted. The energy industry in the UAE depends on the oil and gas refined by ADNOC. ADNOC has been a wholly-owned government firm (Rai & Victor, 2012). There are no other refining firms in the industry making it hard for the substation. Oil and gas is highly needed in the economy for both domestic use and exports and there is virtually no substitute. It will take a long time before renewable energy technology can substitute oil and gas.
With an increase in fuel-based vehicles and industries, it will take a long time to substitute the oil and gas industry. Sequence of customers’ choice Customer decision making is affected by various factors. These include taste, preferences and cost (Solomon, Dahl, White, Zaichkowsky, & Polegato, 2014). In this situation, customers have limited choices when deciding the type of fuel or it’ s by-products to use. The fact that ADNOC operates as a monopoly limits the consumer choices (Rai & Victor, 2012). Also, the price for oil and gas in UAE is lower than in most countries.
The high dependence on the fossil fuels has made it hard for the consumers to switch to alternatives. Thus, the sequence of choice for the customers is affected in a great way.
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