Brand Analysis – Consumer Behavior Essay Sample
The promotion of engineering has changed nomadic phones to go more synergistic and convenient. A new term – “Smart Phone” is used to label the nomadic phones of today. A typical smart phone allows the user to custom-make the maps of the phone to their penchants. Nokia. one of the largest nomadic phone companies is now fighting to maintain up in this emerging smartphone market. The cause of their battle was that they did non anticipate the emerging menace of smartphones as a revolution and merely seek to better the specifications of their ain merchandise ( McCray. Gonzalez & A ; Darling 2011 ) . Bloomberg ( Diana. 2009 ) has stated that Nokia’s market portion is worsening of all time since. By the terminal of Nokia’s Financial Year 2011. they reported a loss of $ 1. 5 billion USD ( Jamie. 2012 ) This study will analyse the trade name elements of Nokia every bit good as to research on 3 consumer behaviour constructs that influence the picks of buying nomadic phones. The constructs that will be discussed are the Decision devising procedure. the Self-concept and the Attitude-towards-object theoretical account History of Nokia
Nokia started out as a mush factory in 1865. processing wood and paper on the Bankss of Tammerkoski rapids in the town of Tampere. located at southwesterly Finland. In 1871. Fredrik Idestam alongside with his good friend. Leo Mechelin. transformed the company into a portion company and named the company as Nokia based on the Nokianvirta river. Thereafter. Nokia has expanded their concern to electricity. gum elastic. cableworks. In 1967. Nokia established a group name Nokia Corporation to pave a new hereafter for Nokia as a planetary corporation. The new company involved five industries: gum elastic. overseas telegram. forestry. electronics and power coevals personal computing machines. electricity coevals machinery. robotics. capacitances. military merchandises ( communications and equipments ) . Nokia foresee a turning potency in the telecommunication industry and therefore. in 1990. they decided to sell off their gum elastic. overseas telegram and consumer electronic concern to concentrate on telecommunication merchandises ( Nokia. 2012 ) . Since so. Nokia has established itself as one of the family Mobile trade name that everyone recognized.
Nokia’s Brand Element
Nokia’s Brand Personality
Nokia’s trade name personality is based on high degrees of trustiness and dependability. Their mission statement “Connecting People” is an accent of their trade name personality. Nokia engaged this type of trade name personality to beef up the assurance degree of their clients. clients and investors ( Nokia 2012 ) .
Nokia has been germinating from a wood and paper processing concern to fabrication and presenting telecommunication merchandises today. Over the old ages. they have been altering their logo to guarantee that it can somehow associate an guaranting feeling to people. particularly to consumers who are prosecuting their services or buying their merchandise ( Nokia. 2012 ) . The current Nokia’s logo consists of three characteristics: Using blue as the chief font coloring material. a motto and the image of two people about fall ining custodies with each other. The attack that Nokia used to plan the logo was simple. yet it expresses the bold and alone features of the company and its exceeding merchandises. Colour can do a strong impact on people’s emotion. Nokia chose bluish as the default coloring material to bespeak both their trade name name and motto. Several researches has highlighted that bluish indicates high quality. trustworthy. earnestness. relaxation. repose and trueness. ( Paul & A ; John. 2006 ; Lovelock. Patterson & A ; Wirtz. 2011 ) . These are the type of qualities that they want their consumers to believe when interacting with Nokia ( Nokia. 2012 ) .
Nokia used their mission statement “Connecting People” as their chief mottos and they relate it in their logo which features a perfect portrayal of two people about fall ining custodies with each other. In other words. Nokia is the key to link people ( Nokia. 2012 ) .
Nokia Brand Awareness
Despite the Nokia’s major loss study on 2011. they are still able to keep their trade name awareness degree globally. Nokia has used print advertisement ( newspaper and magazines ) . broadcast advertisement ( Television and Radio ) . out-of-door advertisement ( Billboards and Tradeshows ) . Covet advertisement ( Sponsors for Singer’s Music Video and Movies ) and internet advertisement ( web sites and societal media sites ) to make out to a wide span of audience ( Nokia. 2012 ) . Of all advertisement methods. Internet advertisement is shown to be the most efficient signifier of advertisement. Social media sites were besides a popular beginning of information for consumers because they can see the specification of the merchandise and hear feedbacks from other users and purchasers ( Hoogland. 2012 ) .
Nokia Brand repute
In the yesteryear. as market leaders in the nomadic phone industry. Nokia has ever been able to stress their mission statement through the usage of advertisement. informing people how their engineering could convey convenience and solutions to every consumer’s day-to-day communicating activities. Regardless of which method of advertisement it used. the message that Nokia can “Connect people” has someway etched into the consumer’s head and increases their assurance of the merchandise. Their repute was established as one of the trusted nomadic trade name in the industry ( Syed. 2008 ) However. the outgrowth of the new smartphone has caused them to lose the association of “Connecting People” . Hoogland ( 2012 ) research on Nokia’s latest Lumia Smartphone has highlighted that bulk of consumers are no longer convince of their gross revenues pitch in their advertizement and has lost assurance in Nokia merchandises – non because it fails to present but instead it has become an out-of-date trade name. Consumers are bit by bit turning indifferent to Nokia merchandises.
This is illustrated in Digital Trends’ ( Geoff. 2011 ) study in which Nokia has decrease their figure of cargos – which consequences in a drastic falls in Nokia’s market portion and net income borders ( See Appendix ) . Nevertheless. Nokia believes that the state of affairs can be improved and they go about shifting their merchandise by concentrating on planing the phone that can pull the younger coevals. In recent advertisement attempts. Nokia runs a run called “Amazing Everyday” . It’s an interesting construct where they placed mammoth versions of their smartphones in assorted coach and cab base to let passer-by to take a few proceedingss to seek out the astonishing interfaces of the Nokia Lumia. Their new advertisement method aims to increase the trade name consciousness degree of Nokia and every bit good as to present the message to the populace that Nokia can still vie with their rivals through invention ( Daniel. R. 2012 ) . Consumer Behavior
Solomon ( 2004 ) states that the survey of consumer behaviour covers a batch of land because it involves researching the procedures involved when persons or group select. purchase. usage and dispose of merchandises. services. thoughts or experience to achieve satisfaction of demands and desires. The quickly altering environment has influence the consumers to alter and therefore it is of import to place the procedures that can assist to analyse the current tendency of the ingestion forms in the nomadic phone industry. Hoogland ( 2012 ) research shows that the determination to buy a nomadic phone is frequently non an easy determination to be made by consumers. There are 3 relevant theories that can be used to analyse the consumer’s behaviour towards doing a purchasing determination: The Decision doing theoretical account. the Self-concept and the Attitude-towards-object theoretical account The determination devising theoretical account
Consumers can do different sorts of buying determination every twenty-four hours. These types are classified as Extensive Problem Solving. Limited Problem Solving and Routinized Response Behavior. The importance of the determination relies on the degree of engagement that consumers have to a merchandise. Extended job work outing occurs when consumers have non established a benchmark for measuring a merchandise class or specific trade names in that class or have non narrowed the figure of trade names that is little plenty to be a manageable subset. If consumers are at this degree. they will necessitate a batch of relevant information to put standards to judge specific trade names and place the possible best alternate. The buying determination in this degree requires high client engagement because of the monetary value and the hazard that consumer have to bear if the incorrect pick is made ( Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall. 2010 ) . Limited job work outing falls between the degree of Extended Problem Solving and Routinized Response behaviour. Solomon ( 2004 ) explained that consumers that are in this degree has already hold experience and cognition on the merchandise. therefore have established a set of basic standards that is necessary for measuring the merchandise class and the different trade names in the class.
However. consumers still search for extra information to ticket tune their cognition so that they can know apart between the assorted trade names. This type of job occurs when consumers are looking to upgrade a version of something that they have purchased before ( Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall. 2010 ) . Routinized Response Behavior occurs when consumers have well-established set of standards with which to measure the trade names in their elicited sets. Searching of information is really minimum and the involvement degree from clients is significantly low. This type of response normally happens when consumers are buying day-to-day necessities. or merchandises that are non expensive. Hoogland’s research shows that Mobile call autumn into the limited job work outing class. as consumers normally have two to three trade names to take from and hold some old experience and cognition of the merchandise. In add-on. there are a sensible figure of properties that consumers considers when doing the buying determination. such as screen declaration. design and the operating system ( Hoogland. 2012 ) .
However. for consumers who are exchanging from traditional phones to ache phones. they can be categorized under extended job work outing because of monetary value and usage factors. Some consumers may non hold the cognition to run smart phones or will happen that the maps of smart phones might non be able to profit them. Therefore. these consumers felt a demand to weigh the pros and cons before perpetrating this ascent ( Solomon. 2004 ) . Decision devising as a procedure shows 5 phases ( See Figure 1 ) . When consumers recognized a job. there is a spread between the existent and coveted province. This job is created by the demand acknowledgment or chance acknowledgment. Need acknowledgment causes the consumer’s existent province to travel down while the chance acknowledgment moves the consumer’s ideal province upwards. Therefore. sellers need to make either a primary or secondary demand to trip the province of the consumers. Explicating a scheme to acquire consumers to seek a new merchandise creates a primary demand.
Making a secondary demand can promote consumers to choose a specific trade name. The best manner to make this is to make a scenario that describes a job. and so show a solution to the scenario. Using this scheme can assist to increase Nokia Lumia primary demand by seeking to trip consumers to seek out their new smartphone ( Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall. 2010 ; Solomon 2004 ) . After the job is being recognized. the consumer will continue to seek information and the strength of the hunt depends on the consumer’s prior cognition and the perceived hazard. Perceived hazard graduated tables with the monetary value of the merchandise ; higher monetary value merchandise means a higher sensed hazard. frailty versa. Deciding whether to purchase a Nokia Lumia is perceived as a moderated hazard because the monetary value of Nokia Lumia is about $ 600 SGD. However. the sensed hazard depends on the individual buying device ; $ 600 SGD possibly a little amount to a working grownup but a pupil might see it otherwise. Consumers attempt to cut down the perceived hazard by discoursing and inquiring advice from mention group ( Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall. 2010 ) .
Hence. Nokia should work on beef uping their trade name image and to guarantee that consumers are satisfied with their smartphone. Furthermore. the company should do certain that sufficient information about the smartphones is readily available. particularly on the cyberspace as most consumers in this twenty-four hours and age are utilizing cyberspace as a beginning to seek for information ( Hoogland. 2012 ) . Evaluation of options is the 3rd phase of the determination devising procedure. Consumers do this by classification because every merchandise class is represented by legion trade names ( Solomon. 2004 ) . In the instance of Nokia. they are categorized under nomadic phones and trade names like Apple. Samsung. HTC. Sony Ericsson. LG. Blackberry etc. are some of the options that consumers can take from. It is of import for Nokia to be cognizant of how their smartphone are categorized so that they can make up one’s mind upon a scheme that can appeal consumers – to see them as a strong option ( Hoogland. 2012 ) . The 4th phase of the procedure is known as the result.
When consumers make a determination. several appraising standards are assessed. Appraising standards are characteristics that are used to judge the qualities of viing trade names. Consumers distinguish their picks by measuring each brand’s determiner attributes. Throughout the determination devising procedure. standards refering the differences between merchandises will transport more weight than similarities ( Solomon. 2004 ) . Therefore. Nokia needs to concentrate on elements that differentiate its smartphone from their rival. In add-on. Nokia should forbear from cut downing monetary values to increase gross revenues as monetary value can besides be an index of the quality ( Lovelock. Patterson & A ; Wirtz. 2011 ) . An cheap smartphone may come across as being hapless quality.
The last phase of the determination doing theoretical account is the post-acquisition phase. As consumers use a merchandise. they evaluate its public presentation to mensurate their satisfaction degree. There are three possible results to their rating: Actual public presentation exceeds outlook. is below outlook or lucifers outlook. These results besides influence the degree of post-purchase cognitive disagreement of a consumer. This type of disagreement occurs after doing the buying determination and consumers will look for ways to cut down this disagreement. Advertisement was one of the channels that consumers used to cut down their disagreement. and that is merely if the advertizement is strong plenty to convert that they make the right pick. Solomon ( 2004 ) explained that advertizement can impact consumer’s outlooks. In add-on. factors such as word of oral cavity. trade name intensions. company regulated information and old purchasing experience can impact the consumer’s determination either positively and negatively. . Hence. Nokia should make an advertizement that can guarantee that the consumers’ determination to take Nokia is right. On top of that. Nokia can better client satisfaction if they can transport out activities and promises that can greatly excel their rivals. In making so. they can potentially change over these consumers to be evangelist ( Hoogland. 2012 ) .
Solomon ( 2004 ) explained that an individual’s self-concept refers to the beliefs that the single holds about his or her ain properties. and how he or she evaluates these qualities’ . Consumers believe that some facets of themselves will ever be better than other facets. For case. a athletics athletic feels more positive about his featuring capablenesss than about his expressions. Self-concept is made up of a complex construction ; this is because it includes several different properties. An single can place the properties of him/herself along with dimensions. such as their content. For case. an person may look at the properties of his/her visual aspect more favourably as compared to the properties of his/her rational capablenesss. Therefore. if an person is positive about his/her self-concept. it implies that this person has self-pride.
Consumers will make a comparing on a certain property to the ideal against their existent standing ; this action influences their self-esteem. Selling communications have the ability to act upon the degree of self-esteem that a consumer has. by agencies of societal comparing. Consumers evaluate their standing by comparing themselves to histrions or function theoretical accounts shown in the advertizement. Nokia can utilize this inclination that consumers have as an advantage by demoing satisfied and energetic people utilizing their smartphone. Furthermore. self-esteem advertisement has the ability to act upon consumers’ attitudes towards Nokia’s smartphones by promoting positive feelings about oneself ( Hoogland. 2012 ) .
In the self-concept model. there are 2 classs of self-image: existent and ideal. The existent self-image defines how a individual really identifies him or herself. It is a realistic position that points out the qualities that a individual does or does non hold. The ideal ego refers to how a individual wants to be like. This ideal ego is partially form by facets of the consumer’s civilization. particularly people shown in advertizements as these people serve as function theoretical accounts. Based on this Nokia can either advance their smartphone as a merchandise that is in line with consumer’s existent ego. or by assisting the consumer to make the benchmarks set by the ideal ego ( Such as Social Status ) . The self-concept model can besides be extended in a societal scene.
The term that is used to depict the existent and ideal province is called societal self-image and ideal societal self-image severally. Social self-image describes how consumers think others perceive them while ideal societal self-image describes how consumers would wish others to comprehend them. Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall ( 2010 ) believe that people show different types of existent and ideal self-image and that the difference is dependent on the societal scene that the people are in. Solomon ( 2004 ) states that people have different function individualities during different state of affairss. For case. a pupil can besides be a fellow. an employee and a instrumentalist. The importance of the individuality depends on the person ; nevertheless. in specific state of affairss another individuality might play a important function. Hence. Nokia should publicize their smartphone to accommodate a cardinal individuality that is suited for several functions. Hoogland ( 2012. p. 9 ) suggested that Nokia can achieve this by puting the advertizement in a topographic point where consumers are likely to be witting of the relevant function individuality. for illustration. at their work topographic point or stopping point to the university.
The Attitude-towards-object theoretical account
The model of Multi-Attribute Attitude illustrates consumers’ attitudes with respect to an attitude object as a map of consumer’s perceptual experience and the appraisal of the cardinal properties or beliefs held with respect to the peculiar attitude object. There are many fluctuations in the model of Multi-Attribute Attitude. but there is a relevant theoretical account in this model that can be used to analyze consumer’s attitude towards Nokia – The Attitude-towards-object-model. The attitude-towards-object theoretical account is suited for mensurating attitudes towards a merchandise class or specific trade names. This theoretical account describes that a consumer’s attitude towards a merchandise or a specific trade name of a merchandise can be the map of either the presence or absence and the rating of certain product-specific beliefs and/or properties. By and large. consumers have favorable attitudes towards those trade name that have an equal degree that they evaluate as positive and have unfavorable attitudes towards trade names that does non hold an equal degree of coveted properties. If a merchandise has excessively many negative or unsought properties. the attitude of the consumer will be unfavorable as good ( Schiffman. O’Cass. Paladino. D’alessandro & A ; Bednall. 2010 ) .
In the instance of Nokia. their nomadic phones have different characteristics that are able to distinguish from other rivals nomadic phones. These characteristics are known as Brand attributes and can be categorized by characteristic types ; some of the common one time are Design. Accessibility. Screen declaration. Operating System and Variety of Applications ( Solomon. 2004 ) . Hoogland’s ( 2012 ) recent research on Nokia’s consumer behavior has shown that most consumers have shifted their beliefs and looks unfavorably on Nokia’s trade name properties. The primary ground of this displacement is that they perceived that Nokia can no longer appeal to them with their latest smartphones. Their rivals are offering far better choice smart phones in footings of maps. applications and handiness. On top of that. their rivals have app shops to let full customization of the smartphones ( Apple is offering apps through their ain app shop. while Samsung and HTC are offering apps through the android market ) . To vie successfully. Nokia’s freshly set up OVI shop demands to supply the basic functionality of a standard application shop and to present this service in a manner that it stands out otherwise and better than their rivals.
Since the start of the smart phone epoch. Nokia has been fighting to maintain up in the nomadic phone industry. Despite possessing a strong trade name repute and image and had been consistent in presenting aims – to link people ; their failure to see the menace of the smartphone has caused them to fight so difficult today. The job was that they did non anticipate that the smartphone engineering is able to capture a great importance in the consumers’ day-to-day life nor do they see the possible betterments that it can convey to people. Alternatively. they merely focus on bettering their ain nomadic phone engineering. chiefly through bettering the specifications of the phone. Nokia’s trade name consciousness is still as strong ; nevertheless. their image has been taken a hit. It is non that consumers were dissatisfied with their merchandise. but instead. they have lost the assurance in Nokia. Hence. Nokia should work on beef uping their trade name image and to guarantee that consumers are satisfied with their smartphone. They can get down by making ads that can trip and convert consumers that Nokia’s smartphone is able to either keep their existent self-image or to make their ideal self-image.
In add-on. the advertizement must besides be relevant to the consumers’ societal self-image as good. Self-esteem advertisement can assist to accomplish these ends since it has the ability to act upon consumers’ attitude towards Nokia’s smartphones by promoting positive feeling about oneself. Harmonizing to Hoogland ( 2012 ) . most consumers used the cyberspace as a chief beginning to seek for information. Nokia should do certain that there is sufficient information about the smartphone that is readily available on the cyberspace. Last. Nokia should work on the OVI shop for their smartphones. Nokia’s major rivals such as Apple have gained a important sum of competitory advantage because of the freedom of customization that their app shop can offer to consumers ( McCray. Gonzalez. & A ; Darling. 2011 ) . The primary aim for Nokia’s OVI shop is to present the service that is as expected of their competitor’s shop. so work on distinguishing this service from their rivals. If Nokia takes these steps. it is possible that they might be able to capture back parts of their market portion.
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