Tui Mkt301 Module 1 Case

TUI University MKT 301 Winter 2012 Module 1, Case Assignment High Involvement: Infinity FX35; Low Involvement:  Starbucks Coffee Explain why the first product you chose was a High Involvement purchase and why the second was a Low Involvement purchase. Describe in detail the process you went through in buying each product. Bear in mind that the purpose of the assignment is to demonstrate the depth of your understanding of the teaching materials. Identify and discuss the differences between the ways you went through the purchase decision processes for the two products.Explain how you might use your understanding of the Model of Consumer Buying Behavior for the two products. High Involvement vs Low Involvement Purchases The purchase of anything is based on the consumer background, lifestyle, and comfort in which is a routine action or something that requires attention. This is generally tied to currency and risk. High Involvement: My recent high involvement purchase was an Infinity FX 35. This purchase was a $57000 automobile that required effort and thought to purchase.This vehicle also represents an impact to my debt to income ratio and required a nominal loan that would influence my monthly cash flow over a period of time. High involvement purchase here is linked to high cost, my expression of status and ego. This was also an emotional purchase as I chose to purchase a product that fit my culture, my personal expectations of status and the immediate purchasing power that this represents. I know that a new car would represent a 40% loss of equity within a three year period but this represents a decision that was based on an acceptable level of risk.Recognizing the need for a new car that fit my wants, doing research and test driving multiple vehicles in this class, buying and evaluating post purchase are all solid steps in the purchase decision process (PDP). Actual branding of a luxury sport crossover played the most significant role in classifying this as a h igh involvement product. Low Involvement: Starbucks Coffee is what I would consider a low involvement product or service. There is not much thought put into this type of purchase and skips many of the PDP stages.This product or service is more about segmentation, habits, and brand loyalty. A low involvement purchase has little to no risk or monetary impact based on the individuals involvement. Starbucks Coffee represents a routine action that provides me with a fragmented conversation, a sense of satisfaction, and need to appease routine habits that is driven by the daily urge for caffeine and social interaction. A cup of coffee requires no evaluation process. The individual purchase decision process was night and day for these two products.The Infinity FX35 was influenced by more than one aspect of my decision making process. I followed more of the Do – Learn – Feel process with this purchase as it ended up representing a form of self-satisfaction to me versus and inf ormed decision. I followed fragmented parts of the PDP. I knew that I needed a vehicle within the next year as I was giving my current car to my daughter. Based on a series of events I moved my purchase timeline to the current week. I knew I needed a car in a condensed timeframe and had the resources to buy anything that I would come across.While driving down a street I pulled into the infinity dealer, was captivated by the vehicle sitting in the center of the show room floor and told the sales person to ring it up. There was no information search or evaluation of alternatives as this was a vehicle that grasped at the superficial aspects of environmental influences and individual differences within me. I knew that Infinity was an upper-scaled Nissan vehicle and that I wanted to buy a vehicle that represented a separate class of society as well a sense of accomplishment for myself.The regular purchase of a Starbucks coffee on a daily basis is habit that is perpetuated with a potentia l need to feel accepted by myself for some reason. I routinely drive by the corner store and pass up an inexpensive cup of coffee daily as the big green Starbucks sign draws a reaction of wants out of me. I go in every morning to a small and friendly environment that has warm pastries, friendly employees, and regular customers that are typically all from the same class of society. I do not even attempt to order anything outside of a WhiteChocolate Moca and a walnut muffin while managing to maintain a happy filler conversation with the cheerful staff and routine customers. I do not ever maintain a receipt nor do I care about the impact of such a small routine purchase. In contrast to the vehicle purchase the lack of risk mitigates decision steps. The idea to market an Infinity FX35 is based more on customer driven segmentation. This vehicle is in the same class as the BMW X5, Porsche Cheyanne, and Audi Q7. It is generally out of financial reach and comfort of consumer risk from gener al population.The targeted approach to dealership placement is in large suburban areas that are user related and focus on the buyer’s characteristics. This class of vehicle additionally targets a very diverse size of the potential market by branding and pricing in-between the middle class and upper class. The available or targeted market is based on life style and snob appeal. Most people that are in this target group are fairly well educated and are in a higher income bracket or place more value on self-worth.The motivation for this purchase is based on a high level of thought that focuses on the informative aspects of the product while actually skipping many sub elements in the information search aspect of the PDP. The buying behavior for an Infinity FX35 tends to key in on the influences that lead to a purchase. Environmental influences are culture, social class, and personal while individual differences focus on attitude, personality, and life style. For these reasons, th e PDP has the potential to skip information search and evaluation of alternatives steps based on the buyers fit into the mixed marketing environment and strategy.Infinity its self is marketed as the highest class, lowest priced of Japanese luxury vehicles. This gives them the ability to reach a more diverse segment of the middle class population based on a lower price and class branding. Infinity’s competitive advantage is based on value to the customer over its class of competitors. Starbucks coffee is based more on customer driven segmentation on a much broader scale. This produce is no different from many other similar products but is focused on social and habit forming elements.It is not generally out of financial reach and comfort of consumer risk while maintaining status quo as a high end coffee franchise. The targeted approach to Starbucks franchise placement is in a broad spectrum of suburban and rural areas based on a global footprint. The areas that are user related and focus on the buyer’s habits and culture. This brand of coffee additionally targets a very diverse size and global aspect of the potential market by branding and pricing with upper echelon of lower class and the middle class.There is an age value placed on the target audience from 19-36+ and has a socio-economic, demographic and attitudinal impacts on the consumer break down. Even though Starbucks is at the higher end of price for coffee, the available or targeted market is based on value, life style, and snob appeal. Consumers in this target group are seem to have satisfaction out of feeling as if Starbucks branding and association with a fictions lifestyle could appease individual value on self-worth and group acceptance.The motivation for this purchase is based on a low level of thought that focuses on the affective, habit forming, and self-satisfaction aspects of the product while actually skipping most all aspect of the PDP. Marketing stimulus plays a key role in sub dividing these customers in a similar way and have similar needs. The buying behavior for Starbucks branded coffee tends to rely on word of mouth and influences that lead to a purchase. This is not about problem recognition, information search, and skips evaluation of alternatives.This is a direct purchase of a consumer good based on â€Å"FEEL† regardless of satisfaction or dissatisfaction. Environmental influences are culture, social class, and personal â€Å"loyalty branding† while individual differences focus on attitude, personality, and life style. For these reasons, the PDP is affected by the product, price, promotion, and place (4Ps). The target market skips different steps based on the category of consumer and how the consumer fits into the mixed marketing environment or strategy.Starbucks survives thru diversity among segment of the middle class population based on a lower price and branding. Starbucks competitive advantage is based on branding and social acc eptance to the customer over its class of competitors. In conclusion, these two products have widely different levels of involvement by the consumer, but the target markets are very similar in nature. These products are associated with a enhanced image of a brand that influences the customer. The PDP and 4Ps may vary, but the target market will always be willing to spend more spend more to maintain self-worth.