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MMGP #4-Carter
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MMGP #4-Carter
Question 1
Introduction
The understanding of the behavior of the consumer begins with the stimulus-response model. Environmental and marketing stimuli enter the consciousness of the consumer and set the psychological processes that combine with specific characteristics of the consumer resulting in the purchase decisions and decisions process (De Mooij, 2010). The task of the marketer is to comprehend what occurs in the consciousness of the consumer between the arrival of the external marketing stimuli and the final buying decision. The four main psychological processes which influence the responses of the consumer to purchase the Uber service include memory, learning, perception, and motivation
Motivation
People have different needs every time with some of them being biogenic, that is, they arise from psychological states like discomfort, thirst or hunger. The other requirements are psychogenic meaning that they emerge from the mental conscious like the need of belonging, esteem, and recognition (De Mooij, 2018). The need becomes motive after it is aroused to the adequate intensity level to make one act. A motivated individual is prepared to act dependent on how he or she is influenced by the situation perception. People are motivated to use the Uber services by making it affordable and reliable.
Learning
When people act they learn. Education encourages changes in behavior that arise from familiarity. Most behaviors of the human being are learned even though most of the learning is incidental (De Mooij, 2010). Learning philosophers believe that learning is created via the interplay of reinforcement, responses, stimuli, and drive. The drive is the primary internal stimuli that compel action. Consumers are taught of the Uber services through advertisement, and this will create incentives to make the consumer use the Uber services.
Emotions
The response of the consumer is not just rational and cognitive, however most might be emotional and appeal different types of feelings. The products and brand might make the consumer excited, confident and feeling proud. The use of the Uber services is advertised in such a way that those who do not have aces to personal cars will want to use Uber. The advertisement might create feelings of wonder, disgust or amusement (De Mooij, 2010). Marketers have recognized the emotional appeal power mainly when they are rooted in cool or functional features of the brand. A brand that is an emotion-filled has been proved to trigger the desire of people to tell others the thing concerning a brand through online or word of mouth. Companies provide their communication with a strong appeal to engross consumers in the brand stories.
Memory
The Cognitive psychologists define the short term memory are the limited and temporary information repository while the long term memory as the essential and permanent unlimited repository. All the experience and information we encounter through life is stored in the long term memory (De Mooij, 2018). Uber service is created in such a way that is cheap and easy to access it. When the customers have the first experience with Uber, it is stored in the long term memory, and when they need transportation services later, they will select Uber.
Conclusion
In conclusion, the four main psychological processes which influence the responses of the consumer to purchase the Uber service include memory, learning, perception, and motivation. People are motivated to use the Uber services by making it affordable and reliable. The use of the Uber services is advertised in such a way that those who do not have acess to personal cars will want to use Uber. When the customers have the first experience with Uber, it is stored in the long term memory, and when they need transportation services later, they will select Uber.
References
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
De Mooij, M. (2010). Consumer behavior and culture: Consequences for global marketing and advertising. Sage.
Question 2
Introduction
Some companies have done well in the international market including Uber for years. Global competition is increasing because of the new companies are introducing their products in the worldwide stage. Most firms prefer to remain in the domestic if the domestic market is enormous (Kotler & Keller, 2016). The companies workers will not need to learn new laws languages deal with the volatile currencies face legal and political uncertainties or redeveloping the services to favor the different expectations and needs. To venture into a foreign country, Uber requires tapping the global consumer needs and values. The most likely modes of global market entry of Uber is direct ownership and joint venture
Direct ownership
The main form of the international involvement in business is direct ownership. Uber can pay full or section of interest in the local company to establish its transport delivery facility. If the market is big enough, the direct investments provide advantages that are distinctive (De Mooij, 2018). Firstly, Uber will secure the cost economies via government incentives. Secondly, the Uber will improve its image in the host nation since it creates new jobs. Thirdly, Uber depends on its association with the customers, drivers, and government will promote better adaptation of its services to the country. Fourthly, Uber will retain full control over the investment and can create marketing policies which serve its long-term global goals. Fifthly, the company makes sure that it has access to the market when the host nation maintains that the local services need to have domestic content.
The primary constraint of the direct investment is that Uber exposes the more significant risk investment like expropriation, worsening markets, devalued or blocked currencies (Kotler & Keller, 2016). When the host nation needs high severance payment for the local employers, closing or reducing operations will be expensive.
Joint venture
Factually, overseas investors come together in the joint venture whereby they share control and share to attain more technological and geographical markets and diversifying risks and investments. Uber views the joint venture as a powerful strategic tool. Joint venture might be desirable and necessary for political and economic reasons (Kotler & Keller, 2016). Uber might lack managerial, physical and financial resources to be involved in the experiment alone or the host nation might need joint ownership before entry.
Joint ownership has disadvantages which include that the partners may disagree over policies, marketing or investment. One may want to invest the earnings for growth while the other party will want to proclaim more dividends. The other disadvantage is that joint ownership might prevent the multinational firm from conducting some specific marketing policies on a global basis (De Mooij, 2018). The partnership value could extend beyond the increases access and sales to the distribution. Partners in the excellent relationship share the brand values which assist in the maintenance of consistency of brand across the markets. For instance, Uber’s commitments to service standardization are among the reasons as to why the services are same all over the world.
Conclusion
In conclusion, the most likely modes of global market entry of Uber are direct ownership and joint venture. In the direct ownership, Uber can pay full or section interest in the local company to establish its transport delivery facility. In the joint venture, firms control and share the market to attain more technological and geographical markets and diversifying risks and investments.
References
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Boston, MA: Pearson Education Inc.
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