Analyzing Consumer Behavior and Marketing Strategies for Rolex

This report provides a comprehensive analysis of Rolex's marketing strategies and the consumer behavior that drives its success. It explores how consumer perception, brand value, and marketing efforts contribute to the brand's prestige. The report delves into the factors influencing consumer motivation, attitude, and anticipated returns from purchasing Rolex watches. It examines the role of social stratification in Rolex's target market and the decision-making process of consumers. Furthermore, the report analyzes the effectiveness of Rolex's advertising campaigns and how they leverage AIDA (Attention-Interest-Desire-Action). It also discusses Rolex's current target market, potential for expansion, and strategies for product diversification. The analysis is supported by references to academic literature and industry sources.

Running head: MARKETING CONSUMER BEHAVIOR
Marketing: Consumer Behavior
Name of the Student:
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1MARKETING CONSUMER BEHAVIOR
Part C
a) Perception about a product determines how much the customer is associating the value
with the product. Perception is very critical in marketing. A brand value is determined by
consumer’s perception. Rolex is one of the biggest brands in the market of watches. The design,
quality, price, marketing strategies, and most importantly, the class of it have contributed in
developing the consumer’s perception about Rolex. Over the years, Rolex has been successful in
maintaining its position as the best watch in the market, because it could establish the perception
of the consumers (Atwal and Bryson 2017).
b) Rolex Swiss watches are the prestigious and high precision time pieces (Rolex.com
2017). It offers the brand with the message that every ‘Rolex tells a story’. The brand presents
the material value to the customers with a personal meaning. It could be an heirloom or a gift for
success, Rolex claims to be part of an emotional journey of the customer. This way, the
consumers also make this product as a part of the exceptional moments in their lives. They have
believed in the message by the company and accepted the elegant and classic watch as the best in
the market.
c) Consumers’ motivation, attitude, anticipated returns from consumption of the Rolex
watches indicates the consumer behavior. The consumers are motivated to purchase Rolex due to
its high value in terms of elegance, class and emotions, as well as for the brand value. Having a
Rolex is a prized asset for the consumers. The attitude of the consumers comes from his lifestyle.
It is a psychological factor, which influences the buying decision of the consumers. The
anticipated returns is the appreciation from peers and the happiness and satisfaction from owning
such a high value product (Beal, Romaniuk and Patrick 2016)

2MARKETING CONSUMER BEHAVIOR
d) Social stratification refers to the presence or existence in clearly distinct social groups,
formed by socio economic factors. Income is the key factor for this division, followed by
lifestyle and social status. Being a high value product, Rolex is the choice of those consumers
belonging to the higher social class, characterized by very high income and very high status. The
broader campaigning analysis shows that, the buying choice of Rolex is mostly subjective to
social stratification rather than group influence. People belonging to the higher class can afford
to buy Rolex, which influences others in that group to buy that watch (Furnham, King and
Kolzeev 2015).
e) The decision-making process starts from identification of the need and ends with product
selection. There are 5 steps of decision making process. The high value consumers feel the need
to have a very high value watch to their collection. Then, they search for the suitable one, which
suits their tastes and personality. In this step, they gather information from multiple sources.
Thirdly, they evaluate the alternatives. In case of Rolex, the consumers do not get much
alternatives in terms of social status. Thus, after evaluating the options, the people who are
convinced with the value of Rolex, go for buying this watch.
f) Advertising plays a major role in AIDA (Attention-Interest-Desire-Action). The main
function of advertising is to grab the attention of the consumers. Hence, a lot of creativity and
intelligence go into making an advertisement for a product. When it catches the attention of the
consumer, it must create interest for the product by instigating the curiosity of the consumers. If
the advertisement can present the features of the product in an attracting way, the consumer
would be driven by his desire to own the product and they take the corresponding action of
buying it. Thus, the advertisements work psychologically (Hellman 2017).

3MARKETING CONSUMER BEHAVIOR
g) Rolex’s advertisements have always highlighted the features of the watches and the value
that the watch adds to the social status of the consumer. Famous celebrities and achievers in
almost all valued professions endorse this brand. It shows in a positive way that having a Rolex
watch can inspire awe from the peers. Thus, it promises to add more value to the owner’s social
status (Beal, Romaniuk and Patrick 2016).
h) Rolex is considered to be the most reputed consumer product as per the industry. They
approach the most successful individuals in various professions to promote their product. It is
presented as a crown for every achievement. Thus, it has become a choice of the most successful
and reputed people of the world. The primary goal of the brand was customer satisfaction. After
105 years of service, the goal of the brand has become the enhancement of the social status along
with customer satisfaction with quality.
i) Success in any field determines the social status along with income level. Success or
achievement is the only factor that is highlighted in the Rolex campaign. The company does not
make a division of the society based on any demographic or cultural factors. These should not be
used as a influencing factor, because that might bring an inferiority complex among the lower
income class (Jain and Kamath 2016).
Part D
a) The current target market of Rolex is the very wealthy customers, who prefer high quality
and exclusivity. The owners are mainly male. It should focus on increasing the customer base
among the female. They should also shift their focus on middle income classes, who cannot
afford the watches for its very high price.

4MARKETING CONSUMER BEHAVIOR
b) Since Rolex is the highly valued and most reputed consumer product, it should now
diverse its product ranges to something more affordable (Jain and Kamath 2016).

5MARKETING CONSUMER BEHAVIOR
References
Atwal, G. and Bryson, D., 2017. Faking Luxury. In Luxury Brands in China and India (pp. 101-
124). Palgrave Macmillan, London.
Beal, V., Romaniuk, J. and Patrick, S., 2016. Reaching luxury brand buyers and driving desire:
are advertising and word-of-mouth partners or substitutes?.
Furnham, A., King, J. and Kolzeev, V., 2015. Smiley Faces: The Evaluation of Watches as a
Function of the Time Displayed. Psychology, 6(14), p.1850.
Hellman, D., 2017. Liberty, Equality, Bribery, and Self-Government: Reframing the Campaign
Finance Debate.
Jain, S. and Kamath, S.S., 2016, December. Saliency Prediction for Visual Regions of Interest
with Applications in Advertising. In International Workshop on Face and Facial Expression
Recognition from Real World Videos (pp. 48-60). Springer, Cham.
Rolex.com, 2017. Discover more on Rolex.com. [online] Rolex. Available at:
https://www.rolex.com/ [Accessed 10 Sep. 2017].