The Impact of the Recession on Consumer Behaviour and on Marketers Essay

The Impact of the Recession on Consumer Behaviour and on Marketers - Essay Example This paper illustrates that once predictable behavior is now being replaced with a new type of consumer that is constantly seeking value in nearly all elements of product variety. This is making the process of marketing and advertising significantly difficult in an environment where competition is high, especially in areas of food consumption and technology consumption. At the same time, marketers are resorting to new promotional campaigns in order to remain competitive and gain consumer attention in the face of this current economic downturn. Statistics indicate that six in 10 consumers have reduced the volume of frequency as it pertains to eating-out in restaurant environments. As a result, especially noticeable in the pizza restaurant industry, marketers have changed their promotional activities to include vouchers with significant pricing discounts. Where once major companies in this industry, such as Pizza Hut, used psychographic segmentation and targeting to gain attention and loyalty, they are finding it more difficult to compete especially when their products carry high price tags over the competition. Companies like Pizza Hut once had well-established consumer segments that were devoted to the brand and were able to use rather low-cost marketing and higher price methodology to ensure positioning in terms of quality. Today, however, the recession has created price wars that continue to erode profitability especially with more consumers eating within the home and avoiding the high costs of restaurant eating. This is also noticeable in the fast food industry with new promotions being added to traditional menus, such as McDonald’s with its dollar menu variety. However, this marketing effort is not to bring the type of profit results marketers had once experienced early in the recession. Today, new freebie offers and Internet-based incentives coupons are becoming the norm for many consumer segments. This shows a shift in consumer behavior toward acti ve searching in the consumer search process to identify coupons before they will frequent even their favorite restaurants. There is clearly a value-driven methodology in consumer groups that change their buying behaviors and choices.

The Impact Of The Big Name Brands On The Consumers Essay

The Impact Of The Big Name Brands On The Consumers - Essay Example Luxury has the power to give to people an idealized image of beauty and satisfaction. Until the mid 20th century few people could afford to have luxurious items and only a privileged class of society had access to luxurious items. However in the past fifty years, the tide has turned and luxury has come down to the majority of the people in the shape of brands, which are targeted at upper middle class. This change to brands (luxury) started its way slowly in the 1980s, where the rise of individualism fueled the power of business and brands sprouted up to be consumed by wealthy consumers. The purpose of the brands was to spread the charm and luxury creating a personality cult, where people would identify themselves with their brands (Koehn,2001). Branding is the foundation for a business, which is meant to label a product. In marketing, the brand is considered as an embodiment of all information related to a product. A brand normally includes a name, logo, images, fonts or services, which typically arise in consumer’s mind, when a name or logo is mentioned. Thus we can say that brand is a combination of attributes, which are communicated through emotional attachment with a product. The value of the brand is in the mind of the consumer, which creates this promise of satisfaction. However brand is not merely creating the emotional attachment, but it moves beyond emotional forms and give two kinds of experiences; direct and indirect messaging. For example, a customer driving a car is gaining direct experience. However it is not possible for marketers to send a direct message for all their products, they opt for indirect experiences, such as Nikkei products are associated with fun, excitement, and sport as portrayed in TV commercials and magazines (Bush & Victoria, 2004). This kind of branding is repeated again and again to make it effective in the consumer's mind. Thus we can say that branding main purpose is to convey product message in multiple ways involving consumers in a compelling way to think and buy the product. The value of the brand lies as a security for the company earnings.