UNIVERSITY OF TECHNOLOGY, JAMAICACollege of Business and Management

School of Business Administration

Consumer Buying BehaviorTo whom: Ms.Petula WhiteFrom whom: Leonie Smith-1204981

Ramone Bradshaw-1202321

Anakay Gooden-1202539Jodian Simpson-1206007Losanya Wynter-1104725Date: November 10, 2014

Group ProjectQuestion

a) Students will be expected to develop and present a portfolio related to a specific industry (eg. Automobile), a specific product category (eg. SUVs), a specific brand (BMW), Service organizations (eg. Banks, Hotels), an Event (eg. Jazz & Blues, Sting), or Causes (eg. Family planning) and show how consumer behaviour concepts/principles are portrayed by reviewing and compiling various material.

b) Groups of students will select concepts/principles related to one of the following topics

a. Consumer Personality & Self Image

b. Consumer Attitude

c. Consumer Perception

d. Cultural/Sub-Cultural (family, groups, race, religion, etc),

e. Marketing Ethics & Social Responsibility

c) Students will be expected to

a. provide background to the industry/product

b. briefly explain the concepts or principles observed

c. evaluate how the selected material (advertisement, infomercial, advertorial, video, journal article, news feature, statistics, ratings, reviews, etc) demonstrate the consumer behaviour concepts or principles and the likely impact on the targeted consumers behaviour.

d. develop at least two promotional material by using the topic chosen and other concepts learnt in the course. Students should be prepared to explain the promotional material in terms of the product, target market profile, positioning, etc.Table of Content

Background on Samsung Electronics

4-5

Consumer Attitude

6-7

The relationship between consumer attitude and Samsungs advertisement8-9

Promotional Material Developed for Samsung Electronics

10-12

References

13Appendices

14-16Background of Samsung

Samsung was established in 1938 by Lee Byung-chull as a trading company based in Su-dong. The small company started as a grocery, trading goods produced in and around the city as well as its own noodles.The company then grew and expanded to Seoul in 1947 but left once theKorean Warstarted. After the war, Lee Byung-chull expanded in to textiles and built the largest woollen mill in Korea. The successful diversification became a growth strategy for Samsung, which rapidly expanded in to the insurance, securities, and retail business. Samsung was focused on the redevelopment of Korea after the war with a central focus on industrialization.

Samsung entered the electronics industry in the 1960's with the formation of several electronics focused divisions. The initial electronics divisions included Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications. Samsung built their initial facilities in Suwon, South Korea, where they started producing black and white television sets. Samsung entered the telecommunications hardware industry in 1980 with the purchase of Hanguk Jenja Tongsin, initially building telephone switchboards. Samsung expanded in to telephone and fax systems which eventually shifted to mobile phone manufacturing. The mobile phone business was grouped together with Samsung Electronics which began to invest heavily in research and development throughout the 1980's. During this time Samsung Electronics expanded in to Portugal, New York, Tokyo, England and Austin, Texas.

After the passing of Lee Byung-chull in 1987, the Samsung group was separated into four business groups leaving the Samsung Group with electronics, engineering, construction, and most high-tech products. Retail, food, chemicals, logistics, entertainment, paper, and telecom were spun out among the Shinsegae Group, CJ Group, and Hansol Group. Samsung grew as an international corporation throughout the 1990's. The construction division of Samsung secured several high profile construction projects, including one of thePetronas Towers in Malaysia. Samsungs engineering division also includes Samsung Techwin, an aerospace manufacturer that manufacturers aircraft engines and gas turbines as well as supplying parts used in jet engines on Boeing and Airbus aircraft. In 1993, Samsungreorganized to focus on three industries, electronics, engineering, and chemicals. The reorganization included selling off ten subsidiaries and downsizing. With renewed focus in electronics, Samsung invested in LCD technology, becoming the largest manufacturer of LCD panels in the world by 2005.

Samsung's focus in the future is centered on five core businesses including mobile, electronics and biopharmaceuticals. As part of it bio-pharma investment, Samsung formed ajoint venture with Biogen, investing $255 million to provide technical development and biopharmaceutical manufacturing capacity in South Korea. Samsung has budgeted nearly $2 billion in additional investment to pursue their bio-pharma growth strategy and leverage theadvantages of their joint venture. Samsung has also continued to expand in the mobile phone market, becoming the largest manufacturer of mobile phones in 2012. To remain a dominate manufacturer, Samsung has earmarked $3-4 billion to upgrade their Austin Texas semiconductor manufacturing facility.Consumer AttitudeAn individual with a positive attitude towards a product/service offering is more likely to make a purchase; this makes the study of consumer attitudes highly important for a marketer. An attitude may be defined as a feeling of favourableness or unfavourableness that an individual has towards an object (be it a person, thing or situation). Consumer attitude can be better explained by understanding the nature and characteristics of attitude. Attitudes are composed of three components, via, a knowledge or cognitive component, a feeling and affect component and a behavioural and conative component. In terms of consumer learning, the attitude would express a consumers feeling of like or dislike about a product or service offering and the marketing mix. The knowledge component is reflected in the learned knowledge that a consumer obtains from his interaction with others as well as his own experiences. The feeling component is reflected in his evaluation, and the resultant feeling of favourableness and unfavourableness. The behavioural component is reflected in the predisposition to act (purchase) based on the evaluation.Apart from helping a consumer make evaluations about a product/service offering ending up in purchase decisions (to buy/not to buy), attitudes play other functions as well. They perform four basic functions; viz., utilitarian function, ego defensive function, value expressive function, and knowledge function. The four functions are not mutually exclusive. In the Utilitarian function, Consumers form positive attitudes towards product/service offerings because they provide a utility, in other words, they provide a rewarding experience through the benefits that they provide. Ego defensive function states that consumers form attitudes as they help defend their ego, self-image and self-concept. If a consumer is high on ethnocentrism, and patronizes Indian products, he would have a positive attitude towards Indian brands. The Value expressive function states that positive attitudes are formed when a product or service expresses a persons values and lifestyle, personality and self-image, and self-concept. This is because attitudes provide people with a basis for expressing their values. Lastly Knowledge function looks at how attitudes are formed when consumers want to reaffirm their knowledge base, to finally help them simplify purchase decision making. If a consumer thinks positive about a brand, it helps reaffirm his opinion, and makes decision making simpler and faster.Evaluate how the selected material demonstrate the consumer behaviour concepts or principles and the likely impact on the targeted consumers behaviourAt Samsung Electronics, all of their advertising activities are designed to provide the public with accurate information on who they are and what they make through fair and high-quality advertisements, thus helping customers with their buying decisions. With worldwide media and potential customers, they recognize that creating a good image through mass media is as important as innovative products.Samsung Electronics advertisement is centred on the empowerment of corporate brand identity and product.They foster innovative ideas that advance technology, produce new products and improve the everyday lives of their customers.Samsung Electronics use of videos, ratings, reviews, news feature and advertisements has allowed consumers to have a high level of favourableness with their products. Samsung commercial of the Galaxy S4 demonstrates how their consumers favour their products and why. The commercial highlighted four (4) key words and centred the commercial on it, the words were; Convenience, Fun, Relationships and Care. The ad used these four words because it represents Samsung and what they offer and how it will benefit the consumer. Under the category of convenience it says Daily life is more convenient, making your life easier and hassle free with this they demonstrated what makes the phone convenient. The other section which was fun said that life becomes more fun, making lifes everyday moment fun and memorable within this segment it showed how your life can become more fun with the phone such as playing games with friends I real time. Relationships grow closer, relationships is true connections, bringing people closer together is what is focused on in the third (3rd) segment, it depicts that the user can video call and show their surroundings and the final one (1) said wellbeing is cared for, taking care of your health and quality of life the Galaxy S4 allows users to view more comfortably because the optimisation they use is good enough for the human eyes.This commercial impacts a consumers attitude because it is linked to the tri components of an attitude. Samsung has ensured that their commercials or advertisements make the consumers knowledgeable and entice them into purchasing their products, not just with mobile devices but their home appliances as well. Based on each commercial the behaviour of a prospect or an existing customer would have changed or become relatable.The attitude towards ad model states that a consumer forms various feelings and judgement based on the exposure to the advertisement, the exposure then forms an attitude which works with beliefs about the brand to help form an attitude toward the brand. Any medium that Samsung chooses to advertise their products should allow a positive or favourable attitude to be formed after watching or seeing the commercial.Promotional Material Developed for Samsung Electronics

Electronic devices today have moved beyond their fundamental roles and have advanced to become an extension of the personality of the user. Customers are witnessing an era when users buy electronic devices to express themselves, their attitude, feelings and interests. Samsung is a major brand in the electronics industry, this being said, the ads that have been created will not seek to change consumer attitudes, but to alter and reinforce the existing positive attitudes about Samsung electronics. The promotional material chosen are displayed in the form of print media advertising and digital advertising. According to an article in Forbes Magazine (2012) Print ads are excellent for solidifying brand identity, and placing ads in publications such as specialty magazines can effectively reach niche audiences that may be more difficult to target via digital advertising. In addition, interactive ads of any source provide a more memorable experience for the ads viewers than simpler printed advertisements.

Product Offerings

Samsung electronics product listing includes electronics such as mobile phones, LCD TVs, LED TVs, smartphones, digital TV, PDAs, DVD players, DTV, portable media players, HDTV, video games, home-theatre systems, personal computers, tablets, Digital Cameras & Camcorder, Video/Audio equipment and others. Samsung differentiates their products based on innovation, and features, thus, employing the selling concept. Taking this into consideration, both the magazine and commercial are organized in such a way as to showcase the products offered.Target Market Profile

Samsung Electronics targets the upper middle class professionals. They usually have busy schedules and need to communicate with their colleagues and families. The secondary targets are high school as well as undergraduate and graduate students who need devices which are multifunctional and portable. The secondary target also includes medium sized corporations whose aim is to assist their managers is to assist managers and subordinates to have access to crucial data on the go. The magazine advertisement will be used to reach the primary target market, and the commercial will be used to reach the remaining markets.

Segmentation

Samsung targets the customer market by dividing it into different segments and offering each segment different products based on their common characteristics. The advertisements seek to appeal to all markets, and include the four schemes of segmentation variables, i.e. geographic, demographic, psychographic, and behavioural.

Positioning

Positioning Statement for Samsung: For every person who wants to get the maximum value for the price that they pay, The Samsung electronics is an electronics firm that provides electronic goods that satisfy all your explicit and implicit needs more than your expectations. Unlike other electronic firms, our products are innovative, and at the same time provide maximum value. On the whole, its affordable luxury. All Samsung products focus a lot on product benefits and features. The most important feature is the integration and use of technology in delivering the necessary value. Innovation is also a key criterion for Samsung electronics. In addition, all Samsung products focus on value for money and one of their positioning is that of getting more than what you pay for.

Reference

Assael, H. (1992), Consumer Behaviour & Marketing Action, 4th. Ed., PWS Kent, Boston, MA.

Loudon, D.L. and Bitta A.J. Della. (2002), Consumer Behaviour, Fourth Edition, Tata McGraw-Hill, New Delhi.

Kotler P., and Keller K.L. (2009), Marketing Management, Thirteenth edition, Pearson.

Peter, P.J. and Olson, J.C. (2005), Consumer Behaviour and Marketing Strategy, Seventh Edition, McGraw-Hill Higher Education.

Schiffman, L.G. and Kanuk, L.L. (2004), Consumer Behaviour, Eight Editions, Prentice Hall, India.

Sahney, S., Consumer Behaviour, module 6, Vinod Gupta School of Management Indian Institute of Technology

Video link- http://www.youtube.com/watch?v=2LHv1FPd1EcAppendices

Magazine Articles

One Word

Envy

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