Consumer behavior for superior products

Premium products will be the products which include higher-level of quality and higher price set alongside the others products. So that, the high grade products also called luxury. Besides that, the person that who own the premium products can also identify the position or the income degree of the person as a result of higher price of the merchandise. For this task, the prime products that were choose is NIKE shoes. As a student, the pocket money is not a lot of, so the NIKE shoes turn into a superior product for the college student.

Needs are states of felt deprivation. Needs includes basic physical needs for food, clothing, warmth and safeness. (Philip Kotler and Gary Armstrong, 2006: p6). Even that, the shoes also is the essential physical needs for people. Now a day, everyone also requires a pair of shoes to wear, it is because shoes can protect our legs and stay away from injuring. Just lately, everyone needs shoes to wear for his or her daily life. A pair of higher quality and comfortable inside design of the shoes are extremely important for a person in lifestyle. With out a comfortable or higher quality shoes, it could bad for our feet and cause our toes injured. So, shoes are extremely important and need for everyone. NIKE shoes are one kind of shoes that is top quality and comfortable shoes that suitable for everyone to wear. This is because the product quality and the inner design of the shoes are better compared to the others normal brands of shoes.

Wants are the form considered by human needs as formed by culture and specific personality. (Philip Kotler and Gary Armstrong, 2006: p6). For instance, people all need food but want to eat different dishes to fulfill cravings for food. Now a day, shoes doesn't play the role of needs for folks only, shoes also play the role of wants for folks. People want shoes for the sign or icon of fashion for a few season or for the changes of the style of fashion. People will observe the growing season or the development of fashion to want some different shoes although it is not so necessary. It is because people want the several shoes to wear at the different of location or situation. Besides that, a lot of people also want the superior brands of shoes or the limited model shoes that had been created by the shoes company. For example, a lot of people will spend big money to buy the NIKE shoes or spend a lot of time to get the limited release shoes that made by NIKE maker. This is one types of want of individuals, because it is just the hobby of some people that like to accumulate the limited edition of NIKE shoes and it is not so necessary.

After that, this project will discuss about the Decision Making Process, Consumer Behavior, The Anatomy of something, Branding, Premium Rates Strategies, Distribution Programs and Promotional Combination. At the end, the conclusion will be given.

2. 0 Decision Making Process

Decision making process is the cognitive process of selecting a plan of action from among multiple alternatives. Your choice making process produces a selection of action or an opinion that determines your choice maker's behavior and for that reason has a deep influence on activity performance. (Decision- Making, 2010). So, when doing the decision making process, it could involve some influencing factors that can impact your choice making of buyer.

2. 1 Consumer Behavior

Consumer habit is refers to the choice, purchase and ingestion of goods and services for the satisfaction of wishes. (Asifo Shah, 2010). Besides that, the buyer action included three factors which can influence the consumer decision making. The three factors are

Cultural factors

Social factors

Personal factors

2. 1. 1 Cultural Factors

Cultural is the standard cause of the person's wants and tendencies. It is also area of the external affects that impact the consumer. Besides that, culture symbolizes affects that are imposed on the consumer by other individuals. For example, a consumer will choose the NIKE shoes because the culture of shopping for a NIKE shoes is passed down by consumer parents, family or affects by the other person.

2. 1. 2 Friendly Factors

Social factors also cast a significant effect on the consumer's buying patterns. Some of the primary communal factors are family and functions and position. For the communal factor of family, a member of family can effect the other relative buying behavior. For instance, the children of the family want or need it the NIKE shoes, the father or mother will try to buy for the kids to fulfill the satisfy.

2. 1. 3 Personal Factors

Personal factor is the factor that make a difference or effect by the buyer personality. The exemplory case of the personal factors influence the consumers are age, lifestyle, job, economical situation, personality, and etc. The one of the personal factor that can impact the consumers was life-style. For instance, a NIKE consumer do not wear others brand of shoes. It is because it is the life-style of the NIKE consumers.

2. 2 Types of shopping for - Decision Behavior

The types of shopping for - decision tendencies includes four types that are

Complex Buying Behavior

Dissonance - Minimizing Buying Behavior

Habitual Buying Behavior

Variety - Seeking Buying Behavior

The types of shopping for - decision behavior that is choosing for the NIKE footwear was dissonance - reducing buying behavior. It is because the dissonance - minimizing buying tendencies which is the buyer highly associated with the purchase and the merchandise is expensive. Besides that, the merchandise was helped bring infrequently. (Philip Kotler and Gary Armstrong, 2006). For instance, when the consumer buying a set of NIKE shoes, the buyer will highly entail making the decision because the shoes is expensive and home- expressive and the NIKE boot was brought infrequently.

2. 3 Buyer Decision Process

Buyer decision making process is your choice making process undertaken by consumers in regard to a potential market deal before, during, and following the purchase of something or service. (Buyer Decision Process- Explanation, no date)Figure2. 3 is the customer decision making process

Need Recognition

"

Information Search

"

Evaluation of Alternatives

"

Purchase Decision

"

Post Purchase Behavior

Figure 2. 3 Buyer Decision Making Process

2. 3. 1 Need Recognition

Need popularity is the first level of the customer decision process. On this stage, the consumer will recognize the condition or need. (How do customers buy?, no time) For example, whenever a consumer wishes to choose the NIKE shoes, the buyer will think that they have to buy it or not.

2. 3. 2 Information Search

Information search is the second stage of the customer decision process. In this particular stage, the buyer will do some review through internet, magazine, or get the info from friends. For instance, whenever a consumer make sure the need of acknowledgement to choose the NIKE shoes, the buyer will see some information that related to the NIKE shoes. The info could possibly be the design, the quality, and the price of NIKE shoes.

2. 3. 3 Analysis of Alternatives

Evaluation of alternatives is the third stage of the buyer decision process. On this stage, the buyer will gather information to evaluate alternatives brands in the choice set in place. (Identifying and Selecting Market, 2010)For example, after the information search the buyer also will evaluate the alternative the others brand of shoes. The consumer will compare the NIKE shoes quality, price and design with others make of shoes.

2. 3. 4 Purchase Decision

Purchase decision is the fourth stage of the customer decision process. On this stage, the buyer will choose the one brand that the buyer believes has all requirements which is looks for. (Philip Kotler and Gary Armstrong, 2006). For instance, after compare the NIKE shoes with others brand of shoes, the buyer believe that the NIKE shoes can fulfill the need. So that, the consumer can make the purchase decision to choose the NIKE shoes.

2. 3. 5 Post Purchase Behavior

Post purchase behavior is the previous stage of the customer decision process. With this stage, after the customer has bought and use the merchandise, customer will take further action predicated on their satisfaction or dissatisfaction. (Philip Kotler and Gary Armstrong, 2006). For example, after the consumer has wear the NIKE shoes, the buyer believe that the NIKE shoes satisfy the need of the consumer, at the future the buyer will purchase again the NIKE shoes. In the event the NIKE shoes cannot fulfill the necessity of consumer, the buyer may not choose the NIKE shoes at the near future again.

3. 0 Marketing Mix

Marketing combination is identifies the principal elements that must definitely be attended to in order to properly market something. The marketing combination is a very useful, if a lttle bit general, guideline for understanding the basics of what makes a good advertising campaign. (Jed C. Jones Ph. D. , 2007). Besides that, marketing mix also known as the 4Ps of marketing. The 4Ps include

Product

Price

Place

Promotion

Besides 4Ps, marketing mixture also include the others 3Ps which is known as 7Ps. The others 3Ps are people, process and physical data.

3. 1 Product

A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible capabilities that folks or organisations regard as so necessary, worthwhile, or satisfying they are ready to exchange money, patronage or various other device of value to be able to acquire it. (Dr Frances Brassington and Dr Stephen Pettitt, 2007).

3. 1. 1 The Anatomy of the Product

The basic anatomy of a product as a series of three concentric jewelry representing the primary product, real product, and the augmented product. (Philip Kotler and Gary Armstrong, 2006). Figure 3. 1. 1 show the three degrees of the anatomy of product

Augmented Product

Actual Product

Core Product

Figure 3. 1. 1The Levels of Anatomy of Product

The first level of the anatomy of product is core product. Primary product is intangible and it is a physical product. That's because the primary product is the advantage of the product that makes it valuable to the client. (Three Levels of a Product, no time) For instance, a lot of people will choose the NIKE shoes because the shoes are comfortable to wear and can protect our feet from injured.

The second level of the anatomy of product is actual product. Real product is the consumable product, which may be viewed as the key good, service or idea the client is buying. (Product components: Real Product, no time frame) For instance, NIKE manufacturer will observe the pattern of the fashion to improve the NIKE shoes design, quality, style or coloring to attract the customer to purchase.

The third degree of the anatomy of product is augmented product. Augmented product is the non- physical part of the product. It usually involves lots of added value. (Three Levels of something, no particular date). For example, the NIKE producer will increase the features features or services of the NIKE shoes to distinguish the shoes from the others NIKE competitors.

3. 1. 2 Branding

A brand is a name, term, sign, icon, or design, or a combo of the, that identifies the manufacturer or seller of something or service. Consumers view brand as an important part of something, and branding can add value to something. (Philip Kotler and Gary Armstrong, 2006). For instance, the logo design of "tick" of the NIKE shoes end up being the signal of the NIKE shoes. When people see the logo design of "tick", people will find out about the make of NIKE. Besides that, when people heard about "JUST DO IT ", people will know that was the slogan of the NIKE. Alternatively, the brand of NIKE can help the consumers to identify the merchandise and the quality of the NIKE shoes.

3. 2 Price

Price is the amount of money charged for something or service, or the total of the worth that consumers exchange for the benefits of having or using the product or service. (Philip Kotler and Gary Armstrong, 2006)

3. 2. 1 Premium Pricing Strategies

A premium charges strategy involves establishing the price of a product higher than similar products. This strategy is sometimes also known as skim pricing since it is an try to "skim the cream" off the very best of the marketplace. It can be used to maximize revenue in areas where customers are pleased to pay more, where there are no substitutes for the product, where there are obstacles to entering the market or when owner cannot save on costs by producing at a high volume. (Lisa Magloff, no day). NIKE's costs was created to be competitive to the other fashion shoes retailers. The pricing is dependant on the basis of premium segment as target customers. NIKE as a brand commands high rates. (Gwendolyn Cuizon, 2009). For instance, NIKE's company will preparing the price of the NIKE shoes higher than the others make of shoes showing that the NIKE shoes tend to be premium than the others brand. So, the NIKE shoes can be the high quality product on the market because of the higher price compared to the others brand. Besides that, by arranging the higher price of the NIKE shoes, the NIKE's company will earn more benefit from the consumers. Besides earn the earnings, the NIKE's company also gives a good service quality to the consumers.

3. 3 Place

In the marketing combination model the place issue is equal with handling a distribution channel that brings the given product to its potential users, and the primary process is to web page link an existing resource with a preexisting demand. Besides, place are shows up as a phenomenon, created by each company at each place, through its way of incorporating local and faraway resources. ( Hakan Hakansson and Alexandra Waluszewski, 2005)

3. 3. 1 Circulation Channels

Distribution programs is the route by which something or service is relocated from a manufacturer or provider to customers. A distribution channel usually contains a chain of intermediaries, including wholesalers, suppliers, and vendors, that was created to transfer goods from the point of production to the idea of utilization in the most efficient way. (Description of Distribution Stations, 2009)

3. 3. 1. 1 Distribution Channel Levels

On this channel levels of this part, each coating of intermediaries that perform some work in taking the product and its own ownership closer to the final buyer. (Philip Kotler and Gary Armstrong, 2006). The syndication channel levels as shown as figure below

Consumer

Manufacturer-

Manufacturer

Wholesaler

Manufacturer

Consumer

Retailer

Manufacturer

Consumer

Retailer

Jobber

Consumer

Wholesaler

Retailer

Figure 3. 3. 1. 1 Syndication Channel Levels

The distribution route of the NIKE shoes is the first and second channel level. Within the first distribution route level, the NIKE supplier will spread the NIKE shoes to the others branch of NIKE and immediate sell to the customers.

While in the next distribution route level, the NIKE maker will distribute the NIKE shoes to others branch of NIKE. After distribute to the others branch, the NIKE supplier also will spread the NIKE shoes to the merchant and the store will sell the NIKE shoes to the client.

3. 4 Promotion

Promotion keeps the product in the brains of the client and helps stimulate demand for the product. Promotion requires ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and pr are often considered aspects of promotions. (One Description of Campaign, no time frame)

3. 4. 1 Campaign Mix

The promotion combine is a term used to spell it out the set of tools that a business may use to talk effectively the advantages of its product or services to its customer. (Promotion Mixture, 2004). It includes five main elements which is include

Direct Marketing

Advertising

Personal Selling

Sales Promotion

Public Relations

3. 4. 1. 1 Advertising

Advertising is any paid form of non-personal display and promotion of ideas, goods, or service by an identified sponsor. (Philip Kotler and Gary Armstrong, 2006). The types of advertising that can get consumer vision to acquire are television, journal, radio, movie theater and etc. For instance, the NIKE shoes maker will create a few of very interesting or creative advertising to get the eye-sight of the consumer to purchase. Besides that, NIKE' company every year also put in a a lot of money in the advertising to promote NIKE shoes to prevent the sales of the NIKE shoes cut down.

3. 4. 1. 2 Personal Selling

Personal selling is covering face- to- face and individually tailored text messages to making the sales and building the customer relationship. The personal selling may focus on developing of marriage with the potential buyer. For instance, the NIKE promoter will establish the partnership with the customer by explain the NIKE shoes design, the types of the NIKE shoes, and the function of the NIKE shoes. By giving the info of the NIKE shoes to the client in the non-public selling, it's very helpful to get the client purchase due to good service of the promoter.

3. 4. 1. 3 Sales Promotion

Sales promotion requires tactical, brief- term incentives to encourage the purchase or deal of something. (Philip Kotler and Gary Armstrong, 2006) For example, annually the NIKE will involve some sales promotion by discount, providing voucher, fair or others campaign to draw in customer to buy the NIKE shoes.

4. 0 Conclusion

In the final outcome, the NIKE shoes are needs or want of some people. Some people need the NIKE shoes because it is the basic physical needs of individuals. While many people want the NIKE shoes to satisfy their satisfied which is not so necessary. Besides that, when a consumer want to buy the NIKE shoes, the buyer action such as ethnical factors, interpersonal factors and personal factors that can affect the consumer to buy. On the other hand, the types of buying- decision habit and buyer decision process also can influence the buyer to purchase. The marketing combination such as product, price, place and campaign is the main way that to success the sales of the NIKE shoes. The merchandise of NIKE shoes which is high quality, comfortable to wear and also have various kinds of different design and function of shoes. So, it can appeal to consumer to purchase. Besides that, the NIKE shoes is one of the most famous make of shoes on earth and the signal, icon, slogan or design also known by the people of the world because of its brand. The NIKE's pricing is set up higher than others make of shoes to show that NIKE is prime than others brand. Furthermore, the NIKE company will distributes the NIKE shoes to the others branch then sell to the consumer and the NIKE producer also will send out the shoes to retailer then the merchant will sell the shoes to customers. Last, the NIKE will do the advertising to appeal to consumer to get. The NIKE will raise the sales or income through the promotion mixture which is direct marketing, sales campaign, pr, personal advertising and the advertising.

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