Eco 7 Case Solution
1. Characterize and assess the behavior of consumers in their purchase of motor oil i.e. assess, among any other considerations, the nature of the purchase, the benefits and risks associated with the purchase of the product, the price sensitivity, where it is bought, etc.
Consumers’ attitude towards a particular product has always been a point of major concern for almost every firm. An organization tends to diversify its operations and increase its current product lines, and as a raesult, it becomes even more essential for the management to continue familiar interaction with the needs, beliefs, attitude and perception of their consumers.
1.1. Brand awareness:
Brand awareness is the consumers’ ability to identify a brand given the differences, it is most effective factor which could expose or destroy the brand. Moreover, it is identified that when a particular word is mentioned, the customers must be able to recall the specific name, and that is known as brand recall.
Furthermore, it is expected that a brand awareness has a significant influence on decision making in which the consumers could recall the brand by referring to any other clue about the brand. Moreover, many world-famous brands use television and newspaper to promote their products and expose potential consumers to them.
It is identified that when the consumer considers purchasing the engine lubricant; one of the major factors affecting the investment is pricing. Moreover, the price is tailored according to the class and standards of reliability. In addition to this, it is expected that the customers always try to purchase the product at a low price with high quality. Furthermore, the consumers usually choose the product based on the reliability.
From the case analysis, it is expected that in motor oil category, discounts seem to be an effective purchase behavior factor. Moreover, the consumers are always looking for deals and could empower their buying decision towards the particular product such as many companies provide free oil filter with motor oil and in some cases, the companies do not charge any costs if they turn from their outlets.
1.3. Place of purchase:
It is expected that most consumers want an easy and accessible place to buy the products. When the service at the store is right, the customers will return to purchase again. Moreover, it is identified that satisfaction makes the overall customers’ attitude towards a service provider and if the client receives a different quality, as compared to what they asked for, then there would be an emotional response to this.
It is determined that once the client is satisfied, it would bring in many benefits and usually satisfied customers are less price sensitive, they buy additional products and are less influenced by the competitors. Moreover, they remain loyal for a longer period and repurchase the products frequently.
1.4. Nature of purchase:
It is expected that the customers’ purchase process begins with the need identification. Mostly customers are of many types such as price conscious, brand conscious, and quality conscious. Every customer has different nature of the purchase. Moreover, the consumers have the intention to buy the most preferred brand because they identify the values that it would bring. Many peoples have the habit to purchase the product through product sampling, coupons, and rebates that might provide an extra incentive to buy.
It is identified that motor oil is the primary function of every machine and oil is the basic need for the engine. Customers usually want to purchase high-quality oil to maintain the motor properly and to increase the life of the machine. Moreover, it is the core requirement of every engine to continue and work properly.
1.5. The benefits and risks associated with the purchase of the product.
It is expected that the risk is to a factor in most investment decisions and it is often used by consumers’ perceptions of the ambiguity and opposing significances of buying a product. Moreover, the risk includes the following components: economic, emotional, presentation, period, community and time-related risk, whereas, the product also has some benefits such as fulfilling particular desire and meeting the necessary quality.
It is determined that the same situation happens in the lubricant business, where customers always try to evaluate the benefits and risk of the product such as the quality of the motor oil and the remarkable brand in the market and what they are offering regarding certain price. Moreover, it is expected that Eco 7 is the new product in the market therefore, it would take some time to create differentiation in the market........................
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