MRKT20052 Assessment 1: Consumer Authenticity and Sustainable Products

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MRKT20052
ASSESSMENT 1

Table of Contents
ARTICLE 1................................................................................................................................2
ARTICLE 2................................................................................................................................4
REFERENCES...........................................................................................................................6
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ARTICLE 1
The Kind of Authenticity Customers Will Pay More For
Summary of key issues
The article highlights the true meaning of authenticity through different scenarios. It is
determined through the findings that the values and cost possess a substantial influence on the
consumer. The customers determine the authenticity of products based on its cost along with
the core values of the organization regarding that product. The managers of the organizations
have been focusing on reputation due to high appeal in the market instead of their core values
which lead to impact their business on a long scale. The managers must understand the
concept of authenticity for the business effectively for gaining enhancement (O’Connor et al.,
2019).
Explanations of issues’ importance
In this global era, every business has been focusing on gaining substantial share in the market
such that they have been selling their products through a wide range of marketing concepts
like advertising, branding, promotion, etc. Still, the businesses have been facing the
challenges of authenticity among the customers. The meaning of authenticity among the
customers and organizations is different which lead a certain challenge for the organizations.
The authenticity for the customer refers to the core values and quality offered by the
organization such that they are willing to offer a higher price for that. In contrast to this, the
organizations consider authenticity through their reputation in the market which is not a good
projection.
The managers have been considering that their reputation is in the market due to their
authenticity such that they increase the price of products which act as backfiring because then
the customers start avoiding availing services from such organization. The issue of
ineffective understanding among the manager regarding consumer expectation is determined
through the findings. The manager must focus on their core values as it would help in
offering higher satisfaction to the customers and also encourage them to revisit.
Reflective analysis
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The marketing environment has been evolving substantially such that it becomes vital for the
organizations to enhance their business tactics effectively for gaining advancement in the
business. It is evident that the role of authenticity has been potent for the customers in
determining the significance of the organization (Jang et al., 2012)
. Also, the organization understands the importance of authenticity but the meaning of
authenticity for both customers and organizations differ which could impact the business of
organizations. It is determined through the analysis of the study that managers of an
organization termed authenticity based on their reputation such that the increase in their
reputation also increases their cost which impacts their business (Morin 2010).
I believe that managers of organizations should act smartly and understand the market trend.
The current trend in the market state that the customers consider revisiting or repurchasing
the products from the organization only when they offer the high quality such that they are
willing to offer high prices for that (Lu et al., 2015). The organizations consider this an
opportunity which increases prices that lead a conflict between customers and organizations.
The increase in the cost for a certain quality product could only be bear by the customers
when it is highly authentic but the surge in price due to reputation impact the customers and
they avoid to revisit or repurchase from the organization.
It is vital for the organizations that they understand the meaning of authenticity effectively
such that they need to focus on their core values which are quality and price (Liao & Yang
2012). The managers should effectively carve the business tactics in such a manner that they
could offer the required quality by the customers at a certain price which would assist their
business to a huge level. Also, it would build an authentic image of the organization among
the customers and strengthen their reputation.
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ARTICLE 2
Research: Actually, Consumers Do Buy Sustainable Products
Summary of key issues
The perspectives of the consumers have been evolving significantly which possess a
substantial influence on the operational functioning of the organizations. The current trend in
the market is regarding sustainable products and the customers have been encouraged with
the concept of sustainability such that they focus on purchasing sustainable products. The
majority of the organizations have understood the importance of enhancement in their
existing business tactics such that they transformed themselves into sustainable businesses.
Moreover, some organizations are against the concept of sustainability and tend to follow
traditional practices. The brand manager also believes in this concept which backfires on the
growth of organizations (Whelan & Kronthal-Sacco, 2019).
Explanations of issues’ importance
The thinking of the brand managers regarding the concept of sustainability has been limited
which is demonstrated in the business tactics of the organizations. The brand managers have
been considering sustainable products as a poor business measure which encourage the
organizations to work with the existing business measure without any enhancement whereas
the customers are willing to purchase the sustainable products due to several benefits. The
customers understand that sustainable products are viable and they play a significant
influence on them in terms of factors like health, price, etc.
The enhancement in existing business tactics results in certain increment in the costing of
operations which impact the organizations to a huge extent and affect the development of
sustainable products. The brand manager considers that the sustainability is not a trending
factor in the business and the organizations should focus on the traditional business measures
for attaining growth and development in the business (Arseculeratne & Yazdanifard, 2014).
The inadequate measure from the organization toward sustainability would result in an
adverse effect on them which could be observed on their sales and revenue. Thus, it is
important for the organizations that they understand the importance of sustainability in the
business and made suitable enhancements (Bocken et al., 2016).
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5

Reflective analysis
The marketing environment perceived substantial changes and enhancements which directly
influence the organizations such that they need to work on enhancing their existing business
measures for attaining desired growth. The current trend in the market is regarding
sustainability which highly attracts the customers but repels the organization due to their
ignorance toward it (Laughland & Bansal, 2011). The organizations have been working with
the existing business practices due to the inputs of brand managers and inadequate
understanding regarding trends which discourage them to work with the concept of
sustainability. The brand managers consider the option of sustainability as unviable and also
suggest the organizations that they need to work with the existing business measures. This
strategy limits the growth of the organization such that significant loss is incurred by them as
the customers have been purchasing products from small companies who are offering
sustainable products.
The brand managers and organizations should understand the importance of sustainable
products in the business for attaining growth and development. The operation cost for the
sustainable products is quite huge in comparison to the traditional products but the demand
for sustainable products has been huge in the market. It is important for the brand managers
that they understand the implications of sustainable products in the business as it would
further assist the organization to work with a better understanding (Crane et al., 2019). Also,
it would help gain benefits in the market at a huge level. It is evident that the organization
who don't tend to change their practices with the trend then they suffer to a huge level so
enhancement is the key to success.
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REFERENCES
Arseculeratne, D., & Yazdanifard, R. (2014). How green marketing can create a sustainable
competitive advantage for a business. International business research, 7(1), 130.
Bocken, N. M., De Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), 308-320.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Jang, S. S., Ha, J., & Park, K. (2012). Effects of ethnic authenticity: Investigating Korean
restaurant customers in the US. International Journal of Hospitality Management, 31(3), 990-
1003.
Laughland, P., & Bansal, T. (2011). The top ten reasons why businesses aren’t more
sustainable. Ivey Business Journal, 75(1), 1-14.
Liao, J., & Yang, J. (2012, October). The influence of electronic word-of-mouth authenticity
on customers' behavior. In 2012 Second International Conference on Business Computing
and Global Informatization (pp. 427-430). IEEE.
Lu, A. C. C., Gursoy, D., & Lu, C. Y. (2015). Authenticity perceptions, brand equity and
brand choice intention: The case of ethnic restaurants. International Journal of Hospitality
Management, 50, 36-45.
Morin, J. (2010). Creating authenticity in an increasingly distrustful world. The Journal for
Quality and Participation, 33(1), 22.
O’Connor, K., Lehman, D.W. & Carroll, G.R. (2019). The Kind of Authenticity Customers
Will Pay More For. (Online) Available at: https://hbr.org/2019/06/the-kind-of-authenticity-
customers-will-pay-more-for (Accessed on 15th August 2019).
Whelan, T. & Kronthal-Sacco, R., (2019). Research: Actually, Consumers Do Buy
Sustainable Products. (Online) Available at: https://hbr.org/2019/06/research-actually-
consumers-do-buy-sustainable-products (Accessed on 15th August 2019).
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