The Concept of Status Consumption with Regard to How a Marketer Might Be Able to Use Status - Coursework Example

Using Status to Market Specific Brand or Product Type Outline Introduction Definition of status consumption according to different researchers Reasons associated with status consumption Marketing status brand Status brand marketing with regard to consumer social need Symbolic meanings attached to status brand and its influence: British citizens vs. Indians Adoption of brand with regard to consumer difference between developed and developing markets: Ineffectiveness and inefficiency of standardized brands Social class and consumption Selective characteristics of consumers with regard to class Social class status and prestige Low class consumers and consumers in third world and desire to influence the perception other people have on them through purchasing status products. Significance of considering and identifying social class in marketing status products Global marketplace Consumption of status goods across the globe Internationally traded goods vs. locally produced goods in status consumption Importance of marketing strategies at the global level that capture global markets Management and Brand controlled features Brand features and prestige Controlling brand feature to satisfy consumer’s social need for status and recognition. Brand uniqueness and raised consumer ego Relevance of a product/brand to status consumption of targeted group Consumption status vs. price Status consumer satisfaction and consumer innovativeness, involvement and brand loyalty Consumer loyalty resulting to increased brand value and hence increased price. Conclusion Marketers can easily succeed by utilizing consumer status as a marketing tool Using Status to Market Specific Brand or Product Type Introduction Status consumption is defines as consumers’ behavior of purchasing goods or services with regard to the status they confer and without necessarily considering their social class or objective income (Heaney et al, 2005). It can also be defined as the motivational process by which consumers purchase goods and services intended to display and enhance his or her prestige or status to self and surrounding others significant to him or her (Heaney et al, 2005). It is done so as to satisfy one’s ego and influence other people to perceive his or her status in reference to the purchased brand (O’Cass & McEwen, 2005). The symbolic meanings attached to a brand determine consumer preference for those brands (Shukla, 2010). Consumers purchase these goods so as to meet their social and material needs. According to Heaney et al (2005), status consumption increases the value of the purchased brand. It is a very prevalent practice across the globe (Heaney et al, 2005). Marketing status brand It is very important that a status brand be marketed with regard to consumer social or identity needs. For instance, British consumers will tend to purchase a product that is associated with popularity gain rather than being noticed by others (Shukla, 2010). As a result, managers may associate the brand with celebrities who have achieved a lot or have been successful in life and are relevant to the brand being marketed. For instance, using miss world to market an evening dress is likely to impact on consumer behavior resulting to more British consumers going for the product (Shukla, 2010). The consumer in this regard sees the product as a means for him or her to be valued and respected as it is the case with miss world. The main idea here is to understand the consumer consumption behavior and the reasons behind their purchase for status brands. The symbolic meaning attached to the product will determine the consumers’ willingness to go for the brand. Managers should therefore seek to understand the symbolic meaning attached to the marketing of a particular brand from the consumers perspective (Yiannis and Lang, 2006). Since individuals in Britain have been exposed to status brands for quite a long time, creativity is required in capturing the market. The aim is to ensure that managers impact the consumers in such a way that they value the product more as compared to other products offered in the market. This would result to the company gaining a competitive advantage in a market where status consumers are targeted (Shukla, 2010). In Indian market, the situation is different. Marketing a brand effectively in this market requires that the brand be associated to an occasion. This is because Indians’ seek status in reference to groups of association and are likely to be influence as a group and not as individuals. The brand should be solely on ostentation. In such markets, companies have marketed their brands by developing brand messages in different occasions such as music scenes (Shukla, 2010). The major challenge that managers have when marketing a particular brand is incorporating a customized and standardized response balanced mix in a strategic action plan to the market reality. One way in which status consumption can be utilized in marketing brands is through adoption of brand with regard to consumer difference between developed and developing markets. Producing an entirely standardized brand is ineffective and inefficient as this does not consider consumer uniqueness. Though there is need to standardize some features, adaption of the brand to the market it is to be sold is of great advantage. For instance, a certain fashion of a dress may be produced but using materials of different qualities. From the appearance, they look similar. The idea is to reduce cost and this can be achieved through ostentation (Mihić, 2010). Other than use of income and social class to determine and reach consumers, managers can do so through identification of customers who are motivated by desire to build their ego (Eastman & Goldsmith, 2001). Social class and consumption Sales interactions, product display, inventory selection and store design determine the customers who make purchases in the store. The selective characteristics possessed by parents are passed on to children (Escalas et al, 2005). This results to boundaries of social classes even in consumer behavior (Holt, 1998). However, with the emergency of the middle class, consumer products are at the disposal of every customer. The value rather than the price of the product attract customers who intend to build their prestige (Mihić, 2010). As the customer purchases a product and gets perceived benefits, there is a likelihood of purchasing the product or service another time. This means that the tendency of consumers consuming goods attached to status influence the relationship between the consumer and the specific brand (O’cass, 2010). Even consumers in the third world and those in lower class are driven by the desire to influence the perception that other people have on them through the purchase of status products and services (Martineau, 1958). For this reason, they purchase conspicuous goods even before meeting their basic needs of food, shelter and clothing to a satisfactory level (Eastman & Goldsmith, 2001). For instance, a gentleman may take a lady for dinner in a five star hotel even if he has to go without a meal the following day so as to build his image. This means that marketers do not only have a chance to sell status attached goods and services to those in upper class or who have cash for luxurious products, but to individuals of middle and low class as well. In each status level, there is a variation in consumption goals, values and self-concept. However, the social class still remains significant over the years in determining consumer goals (Coleman, 1983). For instance, in America, an individual in the middle class prefers to purchase a secondhand but bigger and more valued car rather than buying a brand-new smaller car that would cost a similar amount (Coleman, 1983). This is because they perceive that other people will perceive them in relation to the type and size of the car they are driving. The idea that people in every social class still aim at building their prestige in relation to significant others means that marketers just need to identify product characteristics associated with status in different social groups and include these in their product design, display and promotion strategies. Global marketplace According to Belk (1998), the consumption levels are similar across the globe. This means that even in the third world countries, individuals still consume products that are aimed at building on their ego for purpose of influencing their image in the sight of significant others and self (Eastman & Goldsmith, 2001). In this regard, goods traded internationally are perceived to be of greater importance in building ones’ prestige as compared to goods and services produced locally. The attached prestige is even higher when the product is an internationally recognized product (Goldsmith et al, 2010). This means that, in addition to producing and designing goods in such a way that they build on individuals’ social status, mangers should develop their marketing strategies such that they capture the global market. The ultimate result of this would be increased demand and hence premium for the product on sale. However, even as managers seek to enter the global market, they should realize that perception for prestige differs between consumers. The product for each group of consumers should therefore be modified in relation to targeted group and their desired need in relation to consumption status. Management and Brand controlled features Consumers perceive certain products as more prestigious than other due to brand feature (Schiffman & Kanuk 2004). Building brand image and increasing product sales as a result of status consumption requires that brand feature be controlled or adjusted in such a way that they meet the customer social needs and yield satisfaction. In addition, management control in the distribution of the product is very important. For instance, a product that is common and almost available for any one has less prestige value attached to it. This can be associated to the snob effect whereby consumers purposely dissociate with a certain product due to the fact that it is available to everyone (Escalas et al, 2005). Such consumers focus on maintaining individuality and social class ant therefore go for products that are unique and have attributed qualities that would raise their ego (Morton, 2004). This calls for control in product availability and display. A good example of this is availability of a given outfit will result to a drop in attached value to the outfit. However, if an outfit remains scarce and only available and certain prestige places such as boutiques and large shopping malls will result to a high value being attached to it. Consumers may feel that even the fact that they purchase the product from a prestigious store adds to their prestige. According to Shukla (2010), strong brand cues are utilized by individuals to build their social presence. Offered product must not only have desired features but be relevant for status consumption of targeted group. For instance, selling an evening dress through the use of significant symbols such as famous figures like miss world would not attain much benefit as when the same product is sold in UK. This is because of the different perception in social status in different cultures (Skrudupaitė1 et al, 2006). However, selling brands of wine in clubs or music festivals would. This means that managers must be in a position to identify products relevant to status consumption among different groups. Since the young are a major target in the sale of luxurious or status products (Shukla, 2010), their consumer behavior must be keenly analyzed so as to enhance marketing using status consumption as a marketing tool. Consumption Status vs. Price According to Goldsmith et al (2010), where brand confer the intended status of the owner, the consumer is likely to develop innovativeness, involvement and loyalty to the brand. As this heightens, sensitivity to product prices is lowered and consumers can purchase the brand even though attached price may be high. This is regardless of the consumer’s social class. The consumer is ready to pay more when loyalty to the brand is achieved (Goldsmith et al, 2010). Marketers should seek to utilize such ideas by first winning customer loyalty to the brand. The product demand would increase as well as associated value. This would mean that adjusting the price of the product would not risk loss of market share (Shukla, 2010). As a result, managers should seek to improve their products such that they meet the consumers need for prestige and hence customer loyalty. Conclusion Consumers purchasing products for the purpose of status will go for the product that best meet this goal. As a result, every firm that offers luxuries products for status consumption must concentrate on attachment of the brand to symbolic meaning that supports social status if they are to gain a market advantage over their competitors. Approval of the brand by the customers as a brand that brings about status, respect and distinction increases and the likelihood of retaining and even attracting a large market share is more likely. Companies trading status goods and services would operate better if they expanded to trade their brands globally. This is due to the fact that global brands are preferred by consumers as they meet the domestic as well as foreign markets status symbol. Since motivation to purchase goods and services that build on consumers’ prestige is from within, it is a stronger driving force as compared to other marketing strategies. Presenting brands that satisfy the customers need for prestige would result to high demand for the product and hence premium prices. Where consumers feel satisfied and their prestige improved, they become loyal to that brand. This may also influence the significant others hence resulting to increased demand. References Belk, Rusell W. (1988), Third world consumer culture: marketing and development. Erdogan Kumuc and Fuat Firat, A. eds. Greenwich CT: JAI. 103-127. Coleman, R. P. (December, 1983). The continuing significance of social class to marketing, Journal of consumer research. Eastman, J. K. & Goldsmith R. E. (2001). Status consumption in consumer behavior: scale development and validation, Journal of marketing. Escalas, J. E., and. Bettman, J. R. (2005). 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