Consumer Behavior and the Influence of Culture on Marketing (Research Paper Sample)

Consumer Behavior and the Influence of Culture on Marketing
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Consumer Behavior and the Influence of Culture on Marketing
Consumer Behavior
Consumer behavior is the way in which customers search for, purchase, utilize, and dispose of products and services. Consumers only choose products that satisfy their needs and preferences. Factors such as environment, individual character, and the type of marketing businesses use influence customer choices in goods and services. Thus, producers must pay close attention to consumer needs and preferences to ensure the creation of products that are appealing. Marketers’ understanding of consumer behavior also aids in steering people to the direction of a product.
From the beginning of 2011, sales of the Nissan Micra had started falling in Ireland. Such a decline in sales caused the Nissan company a significant drop in revenue. The company dropped from being among the top five car brands, which caused substantial damage to the brand. The sales in the company’s Micra model tanked due to changes in consumer needs and preferences. According to Nissan (2018), people perceived the model as a “granny car” which was purchased only for functional reasons. The Micra brand had low fuel consumption and prices, and high reliability.
However, the car’s box-like figure was a stark contrast of the changing trends in the automotive industry. At that time, Irish people and consumers around the world preferred SUVs and crossovers due to their classy designs, styling, and inexpensive nature, forcing Nissan Micra shares down from 25% to 17% (Nissan, 2018). Therefore, the company required a marketing strategy that would increase Micra’s sales in Ireland. Such a task was challenging as most car advertisements are often homogeneous and cliché. These marketing models included the high usage of media and formulaic visual trends.
The Nissan company realized that most Irish consumers were unappreciative of formulaic visualization as an advertisement mechanism. Thus, it focused more on outdoor marketing with the support of cinema, radio, press, and other digital means, as compared to the traditional singular usage of social media. Additionally, the company understood that they needed to diversify their sales to younger generations and increase gender equality in Micra owners. A successful marketing of the Micra brand to younger generations required its remodeling. According to Claudiu-Catalin and Andreea (2014), the current generation tends to choose brands that are considered as fitting or appropriate for their self-image. Millennials and younger generations believe that all their purchases such as cars should easily express their personality. Therefore, Nissan Micra had to use its brand to ensure self-expression among these younger populations. Since younger persons often seek adventure and independence, Nissan Micra created “Meet the accomplice”, a more improved version (Nissan, 2018). The new Micra’s design offered users confidence and aimed to reflect one’s distinctive personality. “The new Micra is longer, wider and lower than before giving it a more aggressive, muscular stance” (Nissan, 2018, 18). Thus, the change succeeded in giving Micra a universal appeal and increasing consumer interest.
After changing the model, the Nissan company in Ireland needed to create a marketing campaign that appealed to the Irish audience. The company created a short film which acted as a pre-tease launch in advertisement of the new Micra. The pre-tease was creative as it used Irish people’s previous misconceptions about Micra as a car for the elderly population and told a story of its change to a stylish and technologically savvy vehicle. The use of a 15-year-old taekwondo champion who defied all odds in her profession in the film was the perfect symbolism of Micra’s journey in Ireland. All generations and genders appreciate stories of hope and a resilience that surpasses all hurdles as it inspires them in life. Thus, Micra’s transformation story together with that of the 15-year-old taekwondo expert increased the brand’s marketing. According to Nissan (2018), the short film was played in numerous social media channels and received significant positive feedback in Ireland and globally. The company also used social media outreach channels through selecting some influencers who would advertise the brand further before the launch. Th company’s marketing strategy led to a 106% growth in Micra purchases on the launch year (Nissan, 2018).
An analysis of how Micra redesigned its brand and increased sales shows a significant use of consumer behavior. Consumer behavior in this case was under the significant effect of other brands in the market. Thus, despite coming from a recognized brand, Micra’s sales failed because other companies had taken advantage of market research to come up with trendier and appreciated vehicles. Other brands, such as Nissan’s competitor Hyundai had more consumer advantages due to their use of differentiation and having a wide variety of vehicle models for them to choose from. Therefore, Micra’s shift to a more consumer-centric design helped the Nissan company gain a competitive edge and increase consumer loyalty (Nissan, 2018). Additionally, involving the younger generation in this shift increased Micra’s diversity in Ireland and other countries.
Furthermore, Nissan evaluated the traditional advertising methods, and found them detrimental to their growth. Nissan (2018) states that an average consumer views approximately 370 advertisements per day. These advertisements come from different industries such as finance, automotive, food, and fashion categories. Thus, without unique marketing skills, consumers may easily forget an advertisement due to the clutter in the marketing industry. Micra’s unique use of outdoor experiences and social media separated it from other homogenous automotive owners, which increased the brand’s credibility. Furthermore, the new Nissan Micra motivated people by appealing to their sense of self. According to Nissan (2018), the brand offers an image of an individual’s desired lifestyle by using a customer-centric design and price positioning. Claudiu-Catalin and Andreea (2014) states that a product’s price plays a significant role in a consumer’s spending decisions. Successful companies offer goods that suits the needs of all types of client’s, despite their socio-economic differences. Therefore, Nissan’s choice of changing Micra’s model without making substantial increments to its prices helped consumers from all socio-economic groups achieve their desired lifestyles and self-expression through their cars. Nissan’s ability to take a risk by making quick changes to Micra’s model and using consumer behavior as a guide to marketing helped it double its shares in the small car segment in Ireland.
The Influence of Culture on Marketing
A person’s culture is the norms and customs that arise from one’s social relations. Therefore, it is through culture that people learn their needs, preferences, wants, values, and ways of life. Marketers need to evaluate a target group’s culture to gain understanding on ways to convince them into purchasing specific items. Nissan Micra took advantage of the culture in Ireland to actualize their growth strategy. Since the company realized that the marketing strategies used in European countries were not effective in Ireland, it reduced the use of media platforms such as TV in advertising and moved to diversifying social medial platforms outdoor activities. The company also diversified its target market groups from the elderly to younger populations. Such a diversification was due to statistics showing the rapidly growing youth population in Ireland and globally. According to Bitner and Albisson (2016), young adults, aged between 18 and 24 currently make up more than 25% of the world’s population. Thus, making the Micra’s model suit the preferences of younger populations was a strategy to significantly increase the company’s customer base.
Reference groups are people or groups that influence a person’s behavior, beliefs, attitudes, and opinions. The two major types of reference groups are normative and comparative groups. The former comprises of people such as parents, friends, and siblings who are directly connected to the purchaser while the later is made up of a person’s heroes, role models, and other celebrities. Reference groups influence a customer’s decisions and interpretation of brands and designs (Kim & Qu, 2016). Similarly, opinion leaders play a crucial role in a person’s purchase choices. They influence how one thinks, acts, and buys. Opinion leader’s parallel comparative reference groups as they comprise of people in powerful positions such as political leaders. Nissan Micra took advantage of these marketing groups by using Isabel Lehane, a taekwondo expert in their short film advertisement (Nissan, 2018). Such a move motivated younger generations, developing a culture of resilience in all their goals. Thus, the new Micra intended to change attitudes in younger generations by showing them that their goals are valid.
Additionally, Micra’s growth strategy used the Nissan Generation Next ambassador, Dermot Malone, to further show the need to dream and work towards the achievement of one’s goals. The Nissan Generation Next program was created to young people from diverse groups achieve their dreams ...