Jan 2020 (Done) - Practice PDF

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Question 1a)Core benefit Basic Product Expected Product Augmented Product Potential Product Service/benefit customer is really buyingCore benefit turned into a basic productSet of attributes & conditions buyers expect when they purchase the productProducts that exceed customer expectations.P...

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Question 1

a) Core benefit Service/benefit customer is really buying

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Check current day or time

Basic Product Core benefit turned into a basic product

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Digital payment Check health status Accessible calls

Expected Product Set of attributes & conditions buyers expect when they purchase the product 

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Efficient maneuvere of multiple digital functions Lightweight yet visually appealing design Scratchresistant/waterproof

Augmented Product Products that exceed customer expectations.

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International Emergency Calling Inbuilt apps for navigation, etc. Does not black out unless switched of All-day battery life

Potential Product Possible augmentation & transformation a product may undergo in the future 

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Intuitive – shake wrist to wake display Sleep monitoring mode

b) The Apple Series 5 Smartwatch has 3 product diferentiation features: Durability, Style and Features. In terms of durability, the Smartwatch OS 6 will have an all-day battery life, such that when the user engages in a 5Km walk and 500m swim, the watch is still functioning at optimal capacity and battery life. In terms of style, there are diferent watch cases, namely titanium and ceramic, which are both scratch-resistant and sleek in design, but has diferent finishes, either natural brushed or diamond coating. (bands diferent textures and colours, can mix and match) In terms of features, there are various supplementary or additional features that a smartwatch does not usually have. Other than monitoring health conditions or keeping track of the current day and time, the smartwatch is able to help users navigate their geographic locations, pay digitally, call efectively or contact international emergency agencies.

c) Firstly, roles and status, which indicates the activities that a person is expected to perform, and each role often transpires into a status. For example: A senior vice president has a higher status than a vice manager, which in turn has a higher status than a regular office clerk. As such, people tend to choose products that reflect and communicate their roles, and their actual or desired status, to other individuals in the society. In this case, purchasing and wearing the new watch OS 6 can reflect the status of a customer (more pro-tech). Secondly, personality and self-concept, which refers to a set of distinguishing human psychological traits that often lead to consistent buying behaviour. Smart watches in diferent designs can reflect their own individual personalities, of which attracts buyers who are spiritually aligned with them. For example, a person who prefers hiking would prefer to use the watch in handy for calling for emergency if they’re injured or for navigation when they’re lost. On the other hand, people who are health conscious would find the smartwatch handy when they want to monitor their health conditions 24/7. (fitness and health trainers)

Lastly, age & stage in life cycle. Our personal preferences are often in alignment with our age. Psychological life cycles matter as people undergo life experiences and transition. For example, millennials and youths would use the smart-watch to aid with their studies and work, whereas elders who are more prone to health deterioration and underlying ailments would use the smart-watch to aid in the monitoring of health or emergency contact of healthcare professionals and loved ones when urgently required.

d) Apple could have executed perceived value (Price is based on customer’s perceived value) and target return pricing strategies (Determine the price according to targeted ROI).

a) Spatial convenience, product variety and lot size are the 3 service outputs that Watsons can ofer to customers. Spatial convenience refers to the degree of channel centralization or decentralization. Consumers would hope to reach these locations, especially a brand like Watsons, efficiently and easily within walking or travel distance from their home, school, or workplace. There are also more product varieties and choices to choose and purchase for consumption, especially in locations with a high degree of spatial convenience, which in turn reduces the consumers’ time and efort spent in their purchase journey. Product variety refers to the number of variety of products in the store. Consumers prefer to shop in a location where they can easily access and purchase any good or service they want as and when they like. This means that the store must have a wide variety of choices for the consumers’ selection. Lot size refers to the quantity of products to be purchased in a single transaction. Consumers would want to have multiple products at afordable prices to enjoy a wide variety of benefits, economies of scale. This especially occurs when consumers are stocking up supplies for the week or the month.

b) Watsons may experience a vertical channel conflict between its brick and mortar stores and ecommerce sites. This happens when there is conflict between diferent levels within the same channel. One way to resolve this channel conflict is to co-engage in the establishment and execution of superordinate goals, which means that channel members can agree on fundamental or superordinate goals they are jointly seeking. This sets clear boundaries and better alignment of work ethics, values and guidelines, while in the pursuit of common goals, thereby reducing the risks of engaging into a task, opportunity or project that discredits or endangers the welfare of one party or another.

c) As for the sociocultural trend, we usually prefer Watsons to be extremely near to us, especially under the void deck or in a nearby shopping mall so that we can easily buy lifestyle products, cosmetics, medicine, etc. before returning home for use. Therefore, it is important for Watson to ensure that they have sufficient stock of a wide variety of choices for consumers, and that they are within a walking distance (high population density). They are also more inclined to buy natural, organic products; not use microplastics for personal care products.

As for the technological trend, consumers are now invested into in-built AR machines in stores, especially for makeup products, whereby the machine can simulate the product usage onto the consumer’s skin so that the consumer would visualize how the product works on him or her. This provides more convenience and less time or money spent in purchase decisions, thereby increasing customer satisfaction rates. If Watsons were to take note of this and implement this in both their ecommerce and physical store, than they can heighten consumer satisfaction rates. In addition, this helps them to gain better insights on consumers’ preferences and top-selling products, so that they know how much and what to buy to keep in stock to meet the consumers’ demand. Eg. Online commerce.

d) Developing Membership Benefits: Watsons can create attractive memberships that encourage discounts for certain groups of people or for certain products, especially during sales periods such as the Great Singapore Sale. This heightens consumer expenditures and satisfaction rates, because consumers would be more inclined to buy from a brand that provides a wide array of goods and services at afordable costs, especially lower and more competitive than competitor. Interacting with Consumers: Watsons can also create a stronger customer service hotline, online surveys or 24/7 online chatbots to cater to customer complaints and enquiries efficiently and efectively. When customers are heard or recognized, and they are aware that the brand is truly concerned with their experience/welfare or taking into account what has been expressed, they will want to stay for the brand, and to purchase in goods and services provided by the brand. Watsons can also provide customizable experiences and services in their physical stores or via social media. This includes their merchandize or bundles, which can include the name of the customer. On social media, they can also host challenges, polls or limited time events to engage with consumers or tag them in an innovative way.

Ai) 

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Informational appeals: focus on a product or a service attributes or benefits. Logic & reason rule for the consumers. Problem solving ads, product demonstration ads, product comparison ads, testimonial Transformational appeals: focus on non-product related benefit or image; depicting the user image or usage experience; stimulate emotions (both negative and positive emotions).

For Lancome’s Love Your Age campaign, informational appeal would be more favourable as consumers would want to know how the beauty product can provide them an array of health and beauty benefits that directly and efficiently resolve their concerns, some of which cannot be easily discovered or replicated by products from competitors.

Aii) Ms Yip would have been a credible source for she is a Paralympic sportswoman, who equally has the right and privilege as any other woman to preserve youthful and healthy appearance, and even more so when most of her time is occupied by intensive sports and less on self-care. Engaging in such activities without consistent skincare is damaging for the skin, which can slowly deteriorate in health and appearance due to lack of proper moisture or excessive amounts of sebum/oil on the epidermis. As such, her endorsement would have posed as an inspirational imprint to all female consumers, especially when she’s the first person to be featured in a skincare advertising campaign in Singapore. Likeability, expertise, trustworthiness Other than that, she has a naturally positive disposition or attitude. No matter who one is, one is equally entitled to enjoy the fruits of life.

b) Sales & promotion: Short-term oriented, designed to stimulate strong and quick responses from buyers Lancome can provide exclusive discounts for Lancome members, or consumers who buy a certain amount of Lancome products (especially the new Lancome Love Your Age Advanced Genifique Serum), virtually on ecommerce platforms or within brick and mortar stores. This encourages consumer spending with higher perceived value, especially for limited timed transactions. Events: Lancome can host events lasting for a week or a month for consumers to partake in Lancome-related quizzes, lucky draws and product demonstrations (skincare regime demo) in areas with high human footprint or online (shopping malls and districts, website). This would heighten engagement with consumers, pique their interest in the product or the brand, and be more enticed to purchase the product, especially after physically trying it out themselves.

c) Demographic and Psychographic based consumers would be prone to purchase this product. In terms of demographic, those who are aged 30 and above, especially females, will start being concerned and cautious with their skincare regimes to keep a healthy and youthful appearance. This

is especially so when they can sometimes be overly occupied with family life, work, studies and other activities, which can distract or lead them to be complacent in their skincare regimes, thereby resulting in unfavourable skin appearance. In terms of psychographic, there are people who idolize health, beauty and youthful appearances, to the extent that their lifestyles can be high-maintenance, even if they were to be busy with work, studies or their personal life. They would want to look as youthful, healthy or beautiful as possible, especially in the presence of their family and friends, therefore willing to spend the money, time and efort to aford skincare products, or allocate time to enjoy beauty appointments. The target market would be working females, aged 25 and above....