Many companies are floundering in the wake of the rise of social media. With social networks such as Facebook and Twitter experiencing exponential growth, marketers are struggling to understand a new paradigm of marketing communications. This paper synthesizes research from consumer choice theory, cognitive psychology, and marketing in pursuit of a more comprehensive understanding of social media best practices. Particular attention is paid to how customers create their identities in the context of consumption, and the role of authenticity in corporate-customer relationships.
The design of a product is the first impression that a company makes on a consumer. A good design can attract consumers to the product, portray the company’s brand, and add value to the product. Therefore, the exterior design of a product is imperative to the perception of the product, and overall success in the market. In the crowded global wine industry, consumers usually judge the wine solely by its label. For a new generation of consumers, the millennial generation, it is imperative to understand their preferences in these labels. Looking at modern and classically designed labels, this study investigates what influences the millennial generation’s preference of label design. Qualitative and quantitative data from a wine tasting finds that the millennial generation’s initial visual perception is driven by their previous experience with wine, while their actual preference is driven by unconscious design likability.
Consumer behavior revolves around individuals' ability to gather and assess all the visual information provided by the product in order to decide whether or not to purchase that product. Traditionally consumers' wine purchasing decisions have been viewed as a function of three variables: brand, region of origin, and price. However in the past decade, societies around the world have become more aware of their impacts on their surrounding environments and as a result a new kind of consumer has emerged. The eco-consumer, when given the choice, will prefer to use/consume a product that was produced with minimal or no effect on the environment. This thesis aims to explain individuals' wine purchasing decisions, and specifically examines whether consumers' wine choices are not just a function of brand, region of origin, and price, but are also influenced by an organic designation.
In the span of just over 20 years, once small companies like Amazon have grown into major retailers that have taken substantial market-share from retail behemoths like Nordstrom and JC Penny. One of the driving factors of this shift is the adoption of online access in the vast majority of American homes. This study aims to understand how the increase in online adoption has changed consumer behavior, and whether or not the increase in internet access has pushed consumers to spend more on luxury purchases. A Random Effects Poisson regression was used to observe the effects of internet access on consumer luxury spending behavior from 2000-2016. The findings were inconsistent with the initial hypothesis, that luxury good expenditures would increase with internet access. Instead, luxury good expenditures decreased as the percentage of Americans with internet increased.
Over recent decades, corporate social responsibility has become a very common strategy that companies are using to differentiate themselves in competitive markets. This paper uses a unique survey of Colorado College faculty and students and investigates whether this is an effective strategy. The results show that corporate social responsibility has a slightly negative effect on consumer’s intentions to purchase goods from a given company. On the other hand, the results show that corporate social responsibility has a positive effect on consumer’s likelihood to recommend products to someone else in the future. Also, previous literature has demonstrated that demographics matter. Therefore, we estimate the difference in difference coefficient for gender, nationality , department associated with at Colorado College, product type, and being a student or a faculty member. Each of these characteristics are found to be significant on whether an individual is affected by corporate social responsibility. These results show that corporate social responsibility initiatives are not always successful. Companies need to be mindful of the types of consumer behavior that are influenced as well as the types of people that are more likely to be influenced by corporate social responsibility initiatives.
This paper uses a novel dataset of trademark activity for U.S. apparel firms to examine the economic relevance of trademarks to firm market value. Trademarks are the legal representations of a firm’s brands and, as brand assets, have the ability to improve firms’ market position and influence consumer purchase behavior. However, our understanding of the role trademarks play in firms’ valuations in financial markets is limited. This study finds that firms’ trademark portfolios are value relevant to market participants, and carries important implications for corporate IP policies and practices.
The phenomenon of impulse purchasing, while extensively researched, has yet to be explored in online retail environments. However, in the modern-day market, where many consumers, particularly young people, do most of their shopping over the Internet, this is where the majority of spontaneous buying seems to occur. Survey research was employed to collect data about online impulse purchasing amongst a sample of 484 consumers from around the world. Subjects were measured for general tendency to make purchases on impulse using 20 cognitive and affective items from the Impulse Buying Tendency Scale (IBTS) (Verplanken & Herabadi, 2001), and then asked if they had exhibited this behavior at large-scale online retail stores, such as Amazon.com. The 244 subjects who admitted to doing so were asked another series of 20 questions regarding the motivation behind their purchasing decisions. Probit regressions were used to determine the effect of demographics on likelihood of making impulse purchases online and to explain this behavior within the context of the IBTS. These act as supplementary evidence to the two main OLS models, which were used to determine the correlation between different site features and consumer tendencies that influence site design respectively, and tendency to buy on impulse amongst online impulse purchasers. The results show that many features and aspects of design of online retail websites are successful in inducing impulse purchasing via the satisfaction of common consumer desire for simplicity and instant gratification in making purchases.
The use of celebrities to market brands is nothing new. In fact, companies have been using celebrities to advertise their brands since the 1600s. Although celebrity endorsements are ever increasing, is it still a viable marketing strategy for companies? This study attempts to examine the impacts a celebrity scandal can have on the change in brand value using regression analysis. This study includes professional athletes, movie stars, and musicians and their various endorsed brands in the sample. The findings of this study show that a celebrity scandal actually does not have an impact on the change in brand value. In fact, scandal was the least significant variable in the regression analysis. What this study did find was that celebrity net worth actually has a large and significant impact on the change in brand value.
Advertising is a crucial form of communication between businesses and consumers and is present in almost everything we, as humans do. Currently, college-aged students, ages 18-24, are becoming a more important consumer group. Advertisers are continually looking for ways to increase the effectiveness of advertisements targeted at this demographic. Television commercials are used as a means of studying advertising effectiveness due to the amount of viewing reported by the chosen demographic. The question presented in this thesis is; which factors have the greatest influence on increasing the effectiveness of television commercials? Consumer recall is used as a means of measuring this effectiveness. After this question is addressed, a discussion will follow determining which type of appeal, emotional or rational, should be used to optimize advertisement effectiveness. Through surveys and logit regression analysis, it can be determined which factors have the greatest influence on consumer recall and which appeal is best used in reaching young adults, ages 18-24.
The modern age of commerce features extensive corporate competition and innovative marketing strategies. It has increasingly become necessary for brands to utilize multisensory marketing and branding strategies that create and maintain strong sensory connections with consumers. This study addresses how multisensory marketing techniques influence the consumer mindset and behavioral responses to sensory stimuli. The investigation includes an in depth summary of the existing theoretical foundations of multisensory marketing and established literature on the subject of sensory branding strategy and design. The exploration answers a fundamental question: do sensory branding techniques and environmental stimuli have a measurable effect upon the consumer? Additionally, the text discusses the problem: how can sensory branding strategies be designed and utilized to effectively and positively influence consumer behavior?
Annie Leonard, the author and host of the online film, "The Story of Stuff," presents a lecture on this expose of the hidden environmental and social costs of current systems of production and consumption. The film has generated more than seven million views in 200 countries and territories since its launch in December 2007. She has spent nearly two decades investigating and organizing on environmental health and justice issues. She is now working on a book version of the film, to be published in March 2010. Part of Notable Lectures & Performances series, Colorado College. Recorded December 3, 2009.