Case study-2-saira-and-pascoal

INTERNATIONAL BUSINESS MANAGEMENT | 2ND YEAR
Fundamentals of Marketing and International Marketing
Professor João Pedro Almendra Xavier Teixeira
Company Case
Porsche: Guarding the Old, While Bringing
in the New|2nd Case study
Pascoal Matiue and Saira Khalil
Bragança, 2015

International Business Management | 2nd year
2
Index
1. Analyse the buyer decision process of a traditional Porsche buyer?.............................................3
The need recognition.......................................................................................................................3
Information search..........................................................................................................................3
Alternative evaluation.....................................................................................................................4
Purchase decision............................................................................................................................4
Post-purchase behaviour ................................................................................................................5
2. Contrast the traditional Porsche customer decision process to the decision process for a
Cayenne or a Panamera customer..........................................................................................................5
Cayenne and Panamera Customer’s...................................................................................................5
The traditional Porsche customers......................................................................................................5
3. Which concepts from the chapter explain why Porsche sold so many lower-priced models in the
1970s and 1980s? ...................................................................................................................................5
Factors influencing consumer behaviour............................................................................................6
Cultural............................................................................................................................................6
Social...............................................................................................................................................6
Personal...........................................................................................................................................6
Psychological...................................................................................................................................6
4. Explain how both positive and negative attitudes toward a brand like Porsche develop. How
might Porsche change consumer attitudes toward the brand?.............................................................7
Line extension attitude....................................................................................................................7
Multi Branding attitude ..................................................................................................................7
New brand attitude.........................................................................................................................7
Brand extension attitude.................................................................................................................7
Porsche negative attitudes..............................................................................................................7
Porsche positive attitudes...............................................................................................................7
5. What role does the Porsche brand play in the self-concept of its buyers?....................................8

3
1. Analyse the buyer decision process of a traditional Porsche buyer?
The purchase is only the visible part of a more complex decision process created by
the consumer for each buying decision he makes.
The need recognition
It is the first and most important step in the buying process. If there is no need,
there is no purchase. This recognition happens when there is a lag between the
consumer’s actual situation and the ideal and desired one.
The recognition of a need by a consumer can be caused in different ways. Different
classifications are used:
Classification by type of needs:
 Functional need: the need is related to a feature or specific functions of the product
or happens to be the answer to a functional problem. Like a computer with a more
powerful video card to be able to play the latest video games or a washing machine
that responds to the need to have clean clothes while avoiding having to do it by
hand or go to the laundromat.
 Social need: the need comes from a desire for integration and belongingness in the
social environment or for social recognition. Like buying a new fashionable bag to
look good at school or choose a luxury car to “show” that you are successful in life.
 Need for change: the need has its origin in a desire from the consumer to change.
This may result in the purchase of a new coat or new furniture to change
the decoration of your apartment.
The traditional Porsche buyers are specifically driven by their feelings for them to
prefer these models, and being financially successful people we can also refer to it
as their social need. The car represents how successful they are and is like a self-
image.; it stands for the things owners like to see in themselves and their lives.
Information search
Once the need is identified, it’s time for the consumer to seek information about
possible solutions to the problem. He will search more or less information
depending on the complexity of the choices to be made but also his level of
involvement. (Buying pasta requires little information and involves fewer consumers
than buying a car.)
Then the consumer will seek to make his opinion to guide his choice and his
decision-making process with:
Internal information: this information is already present in the consumer’s memory.
It comes from previous experiences he had with a product or brand and the opinion
he may have of the brand.
External information: This is information on a product or brand received from and
obtained by friends or family, by reviews from other consumers or from the press.
Not to mention, of course, official business sources such as an advertising or a
seller’s speech.
During his decision-making process and his Consumer Buying Decision Process, the
consumer will pay more attention to his internal information and the information

4
from friends, family or other consumers. It will be judged more “objective” than
these from an advertising, a seller’s speech or a commercial brochure of the
product.
Most of the buyers of Porsche have a strong and satisfying feeling of it so we can say
that they might not need to do the information search as all they need is something
that can get them from point A to point B or just a car to be enjoyed, because the
buyers of Porsche are not moved by information but by feelings.
Alternative evaluation
Once the information collected, the consumer will be able to evaluate the different
alternatives that offer to him, evaluate the most suitable to his needs and choose
the one he think it’s best for him.
In order to do so, he will evaluate their attributes on two aspects. The objective
characteristics (such as the features and functionality of the product) but also
subjective (perception and perceived value of the brand by the consumer or its
reputation).
The process will then lead to what is called “evoked set”. “The evoked set” (aka
“consideration set”) is the set of brands or products with a probability of being
purchased by the consumer (because he has a good image of it or the information
collected is positive).
On the other hand, “inept set” is the set of brands or products that have no chance
of being purchased by the shopper (because he has a negative perception or has had
a negative buying experience with the product in the past).
While “inert set” is the set of brands or products for which the consumer has no
specific opinion.
Porsche has positioned itself as a historical and luxury/performance based brand. As
far as the buyers of Porsche are concerned they only want to buy something that
matches their status in the society and Porsche is only one brand that satisfies that
standard, so the consumers skip the step of alternative evaluation and directly
proceed on to purchasing it.
Purchase decision
Now that the consumer has evaluated the different solutions and products available
for respond to his need, he will be able to choose the product or brand that seems
most appropriate to his needs. Then proceed to the actual purchase itself.
His decision will depend on the information and the selection made in the previous
step based on the perceived value, product’s features and capabilities that are
important to him.
According to our point of view, as Porsche meets all the requirements of the elite
class, so they go ahead and buy it without questioning any of the negative aspects it
may have just to satisfy their needs and also because it is the image of exclusivity
that is more important for them. The customers only buy it to be different or just
out of ordinary.

5
Post-purchase behaviour
Once the product is purchased and used, the consumer will evaluate the adequacy
with his original needs (those who caused the buying behaviour). And whether he
has made the right choice in buying this product or not. He will feel either a sense of
satisfaction for the product (and the choice). Or, on the contrary, a disappointment
if the product has fallen far short of expectations.
The post-purchase evaluation may have important consequences for a brand. A
satisfied customer is very likely to become a loyal and regular customer.
Since it is said in the article that Porsche has a very loyal clientele, so it can be said
without doubt that the buyers of Porsche get more than just satisfied after buying
Porsche.
http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/
2. Contrast the traditional Porsche customer decision process to the decision
process for a Cayenne or a Panamera customer.
Cayenne and Panamera Customer’s
These models seem to meet the needs of emerging market customers, where
exclusivity and high prices don’t necessarily have the same implication. These new
category buyers have far different consumer buyer decision from those of
traditional. Nevertheless, they quite feel comfortable with all similarities they can
find between traditional models and Cayenne and Panamera. In addition, the
traditionalists move in life stages that brings new needs, therefore these new
models kept not only the company´s faithful and success but also had a contingency
function, given the market change throughout time.
The traditional Porsche customers
As mentioned earlier, the exclusivity and status are complemented by the high
prices of the product. The traditionalists are not looking for utility vehicle but a life
style so they can satisfy their social needs. If there´s a new model with specific
change and lower price, this would mostly mean underperformance rather than
innovation
3. Which concepts from the chapter explain 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 became
different for these new products.

6
Factors influencing consumer behaviour
Cultural
Culture and societal environment:
Culture is crucial when it comes to understanding the needs and behaviours of an
individual.
Throughout his existence, an individual will be influenced by his family, his friends,
his cultural environment or society that will “teach” him values, preferences as well
as common behaviours to their own culture.
For a brand, it is important to understand and take into account the cultural factors
inherent to each market or to each situation in order to adapt its product and its
marketing strategy. As these will play a role in the perception, habits, behaviour or
expectations of consumers.
Social
The membership groups of an individual are social groups to which he belongs
and which will influence him. The membership groups are usually related to its social
origin, age, place of residence, work, hobbies, leisure, etc.
The influence level may vary depending on individuals and groups. But is, generally,
observed common consumption trends among the members of a same group.
The understanding of the specific features (mind-set, values, lifestyle, etc.) of each
group allows brands to better target their advertising message.
Personal
A consumer does not buy the same products or services at 20 or 70 years. His
lifestyle, values, environment, activities, hobbies and consumer habits evolve
throughout his life.
For a brand or a retailer, it may be interesting to identify, understand, measure and
analyse what are the criteria and personal factors that influence the shopping
behaviour of their customers in order to adapt.
Psychological
A person’s buying choices are further influenced by four major psychological factors:
motivation, perception, learning, and beliefs and attitudes.
Cultural, personal and psychological factors have played roles in Porsche developing
lower priced models in the past. The 914 and 944 models were marketed to attract
different social classes of customers who were once priced out of the brand’s
models. People then bought the new models to fulfil their self-esteem and
confidence with being associated with an upper class car maker. Porsche wanted to
reach out to create many future brand loyalists when it extended its brand outside
the box. This decision resulted in the loss of many loyal customers. The people who
were Porsche enthusiasts and fanatics became highly disappointed with the new
model. Loyal customers didn’t accept the new models as real Porsche cars that were
known for unique engineering developed negative attitude towards the company.

7
As the models of cars in that era were cheaper than the so-called exclusive Porsches,
a different class of people was then able to have a taste of exclusivity. And as a
result Porsche was able to increase its sales.
4. Explain how both positive and negative attitudes toward a brand like
Porsche develop. How might Porsche change consumer attitudes toward
the brand?
A company's brand represents its market identity—who they are, what they do,
what kind of quality they provide, their reputation for trustworthiness, and more.
So any attitude toward the brand will always have impact in consumer buyer
decision.
And in advertising and marketing there are ways in which the company could change
the attitude toward the brand such as:
Line extension attitude
Line extension refers to the expansion of an existing product line.
Multi Branding attitude
The marketing of more than two or more brands, belonging to the same or related
category, by a company is called multi-branding. In this case, the brands are mostly
substitutes of each other.
New brand attitude
Brand extension attitude
Brand extension refers to the expansion of the brand itself into new territories or
markets.
Porsche negative attitudes are;
 Production image: become numerous but not niche
 The price is high, thus, only certain people could buy the car.
The negative attitudes are developed when customers are not satisfied with the
product image, when it caters to the mass instead of remaining a niche product.
Porsche should keep the image of their high performance and the behalf of upper
social level of customer, who enjoy the experience of driving (feeling) rather than
transportation (functional)
Porsche positive attitudes are;
 Separate the lower and upper class social status for uppers class
 Create own exclusivity and maximize the utility and satisfaction
 The customer who can afford will have positive side views
The positive attitudes toward a brand like Porsche are developed by social factors.
Customers buying a Porsche want to show their status and separate themselves

8
from the mass. Porsche keeps them into a balance emphasizing the image of high
performance as it was known exclusively worldwide by the brand.
In order to change customer attitude toward the brand, Porsche decided to use Line
Extension. In the early 70's Porsche introduced two new models, the 914 and the
924 with the purpose of increasing their sales volume since these models were
much more affordable. Although after the introduction of these models the brand
experienced an increase of these so called mass over class cars in sales, the brand
saw a decrease of core customers. These core customers which were appealed to
the ''exclusive, high performance and qualities aspects of a Porsche' were now
turned off. However their brand lost their well build image Porsche managed to
change their negative image into a positive image by the 90's. This was achieved by
going back to their roots, producing exclusive dream cars in which high class people
could identify themselves.
5. What role does the Porsche brand play in the self-concept of its buyers?
If we classify the whole car customers into two groups, which are upper class (high
social status and income) and lower class (lower social status and income), Porsche
addresses the upper class since it produces exclusive cars. If the prices were
affordable to all people, it would destroy the high level social status of the brand
(negative attitude of upper class). Rather than doing this, Porsche appeals to a very
narrow segment of financially successful people as the price is very high due to good
quality. So, Porsche creates a brand of exclusivity and uniqueness without the
argumentation from others. Then, put their buyer in their own class of exclusivity.
They work hard to satisfy and understand their customers and keep their image.
Porsche helps its customers to develop a self-concept of wealth and success.
Porsche is developed to be a rather unusual product, a special car meant for special
people. Porsche customers buy Porsches because they want to be seen and want to
show off with their wealth and success. This brand allows people to live through an
image that is developed by the brand, which is aimed at reflecting one’s success and
wealth.
By creating significant reputation about their product and the name they fulfil their
customer’s needs and self-concept. Porsche sells its products to a certain class of
individuals who want to stand out above everyone else.

Case study-2-saira-and-pascoal

More Related Content

What's hot

Similar to Case study-2-saira-and-pascoal

Recently uploaded

Case study-2-saira-and-pascoal