Principles of Marketing Porsche Case
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1) Analyze the buyer decision process of a traditional Porsche customer. The five steps in the buyer decision process are
1. Need recognition
2. Information search
3. Evaluation of alternative
4. Purchase decision
5. Post-purchase behavior
The buyer’s decision starts with the recognition of a need for a certain product. The basic need is the need for transportation but Porsche buyers buy the car because they like to enjoy the ride and value exclusivity and social status above practical functions. Information search is not common in Porsche buyers. Their customers usually know they want to buy a Porsche. The only thing that has to be decided on is the model, which requires little to no information searching because Porsche’s product line is not very broad. Evaluation of alternative is also not common in Porsche buyers. Porsche is a brand that people consciously choose for and value the brand for what it offers. It is rare that Porsche buyers will pick another brand once they have decided on a Porsche car. In the fourth stage, customers rank brands and perform purchase intentions. The purchase decision will be to buy the most preferred brand. There are, however, two things that can come in between the purchase intention and the purchase decision of a Porsche. The attitude of others is an important factor.
Porsche is generally known to be exclusive. Knowing that people know that you drive an exclusive car drives people to buy a Porsche car. The second factor is unexpected situational factors. The customer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, Porsche customers know what to expect of the product and the price, so there shouldn’t be any surprises there. The expected income should also not be a problem because the people who buy Porsche are usually well off. The post-purchase process for the Porsche customer will be very satisfying. The customer knows what he expected from a Porsche car and Porsche knows they deliver. There are barely any surprises when it comes to the delivered product. The product is good and both the customer and Porsche know it.
2) Contrast the traditional Porsche customer decision process to the decision
process for a Cayenne or Panamera customer. The differences between the traditional and the newer customers are mostly in the first three steps in the buyer decision process. The first step is still the same for both groups, however although the traditional Porsche customers skips the second step since they already know the information about Porsche cars, Cayenne and Panamera customers make information search while they are preferring those new models since they have slight different features. Then the third step is again skipped because for both customer groups, Porsche is the one and only car with exclusivity and high distinctive. Lastly, forth and last steps are the same for both customer groups.
3) Which concept in the chapter explains why Porsche sold so many lower-priced models in the 1970s and 1980s. Porsche had differentiated its products so the buyer’s decision process also becomes different for these new products. Adoption process explains why Porsche achieved higher sales in the given time period. Adoption process is defined as the mental process through which an individual passes from first hearing about an innovation to final adoption. Firstly the customer becomes aware of the models but they do not have adequate information about these new models. Secondly, they learn what is new in the new models. Thirdly, they make assumption if it is worth trying these products. Fourthly, if they have decided to try in the previous step, they tries in this step. After trying new products, they adopt to these new models and Porsche makes so many sales.
The buyer’s decision process is a bit different for Porsche products due to its differentiated product line. The adoption process clarifies the higher Porsche sales in the given time period. The adoption process can be defined as the mental process an individual goes through from the moment they hear about the product until the final adoption. Firstly, the customer is introduced to the new Porsche models. However, they do not have the right information about the products yet. Afterwards, the customers are informed, or inform themselves about the product. Then they decide on whether or not to try the product. Lastly, if the customer has decided to try the product, they will proceed with that. After trying the product and noticing that they like it, the customer will eventually buy the product.