Case Studies: Consumer Decision Making Process in Marketing Strategies

This document presents five case studies analyzing consumer decision-making processes in marketing. The first case examines Star Cruises' investment in cruising activities and the importance of understanding customer needs and information search. The second case studies Tesco's Fresh and Easy stores and the significance of market research and marketing mix. The third case explores Fresh Game Ltd.'s failure in the Asian market due to a lack of consumer need understanding. The fourth case analyzes Amazing Amy, a children's toy, and the need to consider parents as the primary decision-makers and how to reposition the product. The fifth case discusses the Vietnamese Villa's reputation crisis and the impact of negative incidents. Each case highlights the importance of understanding consumer behavior, effective marketing strategies, and the consequences of failing to meet customer needs.

Case Studies
Marketing: Consumer Decision Making Process

Case Study 1: Star Cruises
Star Cruise is making huge investment towards catering the customers who prefer to enjoy
site seeing and enjoying the longer luxurious vacations. SC along with other provider seems
to be enthusiastic enough to cater to the entertainment needs of the customers. The major
point in this aspect is the consideration that whether there are enough customers in the market
who are willing to invest their time and money in moving ahead with such decisions. As
stated in the case that the customers from the Asian countries are willing to invest in the
cruising activities as they see it as an exciting and value for money vacation. The initial
aspect in the decision making process of the customers is the need recognition and as evident
from the case that the decision of the company to invest in the business is based on the
understanding that the need of the customers is to take longer vacations (Danaher and
Arweiler, 1996). Another important aspect in the customer decision process is the
information search and the combination of various fleets and companies together to provide
the vacation opportunities is likely to bring more customers. The reason is that the customers
would prefer to visit the various known companies to know about the cruising opportunities
provided by them. In this case, the combination of various fleets and associated companies
together is likely to bring the customers together. The online search of the customers is likely
to grow and it is most likely that they will depend on the online investigation for various
cruising opportunities prior to making any decisions. At this point, it is suggestible that the
company increases its online presence as the major source of information at present for the
travellers around the world is internet, whether it is for searching for travel information, for
hotel services, or other recreational activities. Therefore, instead for hunting for offline
customers, the suggestible way would be to gain the benefit of online accessibility.
Moreover, as the different fleet developers and operators are coming together with high
number of cruise lines, thus there is less chance that the customers will get to see more

alternatives on the online portals, provided company makes an extensive effort for its online
presence (Huang and Hsu, 2009). The decision making towards the cruising would be
planned purchase and customers are likely to spend more time in information search.
Therefore, information search phase and alternative selection is the major driver in this case.
The company needs to be strong on the marketing mix factors such price, promotion, process,
people, and physical evidence. The reason behind consideration of the last three ‘mix’ is that
it is the service sector and decision will depend on the way company individuals interact with
the customers and the first impression they create. As per the post-purchase evaluation is
concerned, the company will be able to get the instant feedback when the people will be
cruising with the company staffs around the world and the estimation can be made right from
there that whether the word of mouth will be positive or negative which is also an important
aspect in this line of business.

Case Study 2: TESCO
The decision of the company to open Fresh and Easy instead of opening stores under its own
name can referred to be as an appreciable move. The reason is that it was not sure whether
the inconvenient looking convenience stores will work in the US market. Here it would be
commendable to consider the first decision making process of the customer is the need
recognition (Schmitt, 1999). As per the case, it not evident that whether the company did any
kind of research in the market regarding the need of the customers for such store formats as
the customers were already accustomed with the convenience stores with gas stations.
However, one element is positive here is that the customers in the American market are
gradually orienting towards healthy and organic foods which is the likely reason that gave
Fresh and Easy some attention. As per the information search is concerned, the customers are
less likely to ask their friends and colleagues about the shopping experience at such stores
and only the positive word of mouth for these stores is likely to save the day (Chevalier and
Mayzlin, 2006). There already exist companies that have enough reputation to attract the
customers towards them. Therefore, it would be challenging to state whether the customers
will orient towards new found stores that claim to be environmental friendly and sell packed
products which is contradictory. Moreover, the company did not involve itself into
community benefits agreement which was another negative point in the customers’ eye. All
these actions, as it seems, were the reason of limited to no extensive market research prior to
making decisions. The company should not make the same mistake prior to entry into the
Vietnamese market.
The purchase decisions from the customers’ point of view in this case is ‘partially purchase’
as some thoughts were required to decide on purchasing from a new store who is promising
to provide fresh organic food. The reason the company reached success beyond its
expectation is the presence of effective marketing mix that is product, price, place, and

promotion. The company provided organic food in a clean and attractive small shop style
which was an attraction point for the customers. Moreover, the price was expected to be high
but that was not the case. Thirdly, the locations of the stores were at the convenient distance
from the customers which made it reachable in comparison to the large format stores. Apart
from that, the promotional effort of the company to represent Fresh and Easy as the green
food outlet worked out. The post-purchase evaluation also played a major role.

Case Study 3: Fresh Game Ltd.
The company, Fresh Game Ltd, tried to enter into the Asian market with its new fresh rabbit
food products and failed miserably. The attribution to this disastrous result goes to the
inability of the company to understand or assess the need of its target consumers. The
company was successful in the UK market with this product and were mostly purchased by
rural areas and middle class families which gave it an impression that it will work well in
Asian countries where the presence of rural areas and middle class families is huge in
number. However, the company failed to understand the correct customer class in the UK
market (Kracklauer et al, 2004). As stated in the case, the individuals belonging to Afro-
Caribbean, Indian, Pakistan, and Chinese origin were rarely orienting towards this product.
This states that there was no considerable need among these communities of this food rabbit.
The company missed this aspect and went to the Asian countries which were filled with these
communities. Therefore, there was no other option than failure. At this stage, it would be
advisable to state that that the need recognition from the target customers’ point of view is an
important aspect in deciding whom to cater with a particular product or product category.
Moreover, the company’s reliance on their own expertise was more than understanding what
the new target customers want.
There will be no point in considering the other aspect of the customers’ decision making
process as the company failed to even understand the fundamental (first required) aspect
which is need recognition. The product of the company was appreciable and was
comparatively better than other non-vegetarian foods such as red meat. The market in which
the company was active was the UK market where the customers were afraid of orienting
more towards foods that are being labelled harmful such as British beef, bird fly, and red
meat. Therefore, it was an obvious understanding that they were looking for an alternative to
these foods which they saw in the rabbit food. Moreover, the company made good effort in

promotion of this product. It tried to consider the impact of the packaging on the children
who keep rabbit as pets (Ampuero and Vila, 20006). The packaging also consisted of
information related to nutritional value about the rabbit food. The variety of product format,
such as minced rabbit, rabbit cutlet, or rabbit sausages catered to the various choices among
the customers preferring rabbit foods. Here one thing is commendable that the company
understood why the customers of UK will prefer rabbit over other food and what are the
packaging standards and promotional strategies that are likely to attract them towards making
the purchase. However, in the case of Asian market, the same effort was not made to gather
and understand the similar information regarding the customers and more reliance was on the
experience company gathered in the past decade. The lack of information about the
customers’ need led to the failure.
As inferred from the case, despite the failure in the Asian market in understanding the need
and failing, it is being believed that the experience of the company will still play out better
which is in direct contradiction of most of the researches done by reputed researchers
regarding understanding what customers want.

Case Study 4: Amazing Amy
The featured children toy development by the company can be considered a good product as
per the company as its goal was to make an interactive product that can sell more. However,
the reputation of the product started to dwindle after some protests from concerned parents.
One of the reasons behind this protest can be the inability of the company to understand the
actual consumer in case the toy. It is a known fact that in most of the toy purchases the final
decision makers are the parents who pay the bills for the product (Martens et al, 2004).
Therefore, in this case the product was required to be passed through the consideration of the
parents which seems evident from the protests. The company directly focused on the end
customer who was the children but failed to consider the facilitator. The company could have
involved in surveys and deep marketing research prior to taking this decision. However, as
the damage has already been done, the next step should be to manage the damage by
repositioning the product. Amazing Amy can be positioned as the product that engages the
child and keep time for their parents to do their daily chores. Instead of positioning Amazing
Amy as a learning tool, it could have been positioned as an engagement tool.
At present, the company can engage in asking for feedback gathering from the protestors and
tensed parents regarding the features that need redevelopment and any other suggestion they
might have. The next step should be to bring the product in the market with limited
modification, new packaging and a repositioning tactic (Rivkin and Trout, 2010).
However, it is not sure that this tactic will work, therefore with the use of online business, the
company should expand its wing to other target customers such as the social workers who
involve themselves in training teenage girls about realities of motherhood or providing
experiences regarding challenges of handling kids for under aged girls. Instead of a product
of play, it can be converted into a product of training for new market segment.

If both the strategies worked out well, then the company might have two target customers
with two different positioning. The impulse purchase of toy for the first target customers can
be brought as an element of planned purchase decision for the other target customers.
Moreover, the company can gain huge profitability in engaging with the social workers where
the likely purchase of the Amazing Amy can be in bulk. The discount offers is likely to
increase the sale in such market segment where the cash crunch is the reality of the day.

Case Study 5: The Vietnamese Villa
The Vietnamese Villa is in the situation of reputation crisis. The restaurant’s reputation has
been hit after the case of an employee contracting the hepatitis. Despite all the precautionary
measures that saved others from contracting the disease, the company failed in the eyes of its
loyal customers and, Hanee and Hanna are wondering whether the customers will come back
with the same enthusiasm and crowd.
Considering this situation, it can be stated that the company was moving ahead well on all the
parameters of consumers’ decision making process. However, the recent situation that has
damaged the company’s reputation requires that the company re-engage its promotional
activities. It is true that the product, price, and other associated service factors were good but
the reputation has dropped down. The re-promotional techniques to revamp the reputation are
likely to play the appreciable role here (Hutton et al, 2001). The need at present is to change
the perception that has been created in the mind of the customers due to the incident. The
perception can only be changed by involving some promotional methods such as getting the
brand represented by medical institutes who already have good reputation in the masses.
The certification from the various health institutes regarding the safe eating environment of
the hotel is likely to impact the people’s perception. The video adverts that showcase the
cleanliness of the restaurant and the steps that are taken by the company on daily basis to
ensure the safety should be shown in the media. The use of social media can be the strongest
tool as at present rise in the online reputation directly impacts the offline sale of the
company’s products of services.
Moreover, the post purchase evaluation of whatever customers are left with the company
should be taken and showcased on the online media with their online videos and feedback.
Such effort is likely to help the company gain the same reputation it has lost (Caywood,

1997). Apart from that, the company can bring in local reputed personalities within the hotel
for dining who the society looks as an expert. There are various other methods that can be
considered by the company in building the reputation of the company such as the word of
mouth (most effective) apart from the ones mentioned above.

References
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