Income and Social Class

                                                                     

 

WalMart is a global fortune 500 organization. It was founded in 1962, by Sam Walton in his hometown of Bentonville Arkansas. Arkansas is still where the headquarters of Walmart resides, right next to Sam Walton’s first store “Waltons.” Walmart became incorporated in October of 1969, and was publicly traded for the first time in 1972, at The New York Stock Exchange.[1] Walmart has over 8,500 stores in 15 different countries, own and runs Sam’s Club retail warehouses, and is the largest grocery retailer in the United States, generating over 50% of their annual Billion-dollar revenue.

When deciding where to go grocery shopping/everyday shopping, I always choose Walmart. One of the determining factors of choosing Walmart, are their everyday low prices and their variety of products. I enjoy being able to buy all the items I need at one time, so Walmart’s one stop shopping really makes them a lead competitor in my mind. When shopping at Walmart, I am not interested in status symbol[2] products, unlike when shopping at the mall or more expensive/well known retail clothing outlets. Buying as many of the products that I need at such discounted prices, really enhances my discretionary income,[3] and gives me the ability to save extra money to put towards any bills due that month. I would classify my Social Class[4] as a Middle Class American[5] who’s spending habits fall between a tightwad[6] and a spendthrift[7]. I feel this combination of Social class and spending habits, really explains why I enjoy shopping at Walmart for a large number of my purchases. Walmart offers a wide variety of products/brands to appeal to varying Social classes, which is a leading factor of their success. For those consumers classified as Lower Americans,[8] they can find affordable products through Walmart’s mass acceptance of food stamps and store brands (relatively cheaper). Contrastingly, Walmart can also appeal to those upper middle class Americans, by offering “deals.” In current economic conditions, no matter what your wealth may be, consumers want deals or discounted prices.

            To conclude, Walmart is a prime example of a globally successful firm that has the ability to appeal to varying social classes and spending habits. I would rate my satisfaction with Walmart (on a scale of 1 to 7 where 1 is extremely dissatisfied and 7 is extremely satisfied) a 7, and the likelihood of me returning to, or recommending this firm is also a 7. Overall, understanding varying social classes is pertinent for firms to do. This consumer information is necessary for competing firms, so they are better able to meet the needs and wants of their target customers. When these various social classes are established, the firm is then able to efficiently segment these groups and target them with class specific products. This implementation of STP, is what gives Walmart their never ending strategic competitive advantage(9).

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[1] http://en.wikipedia.org/wiki/Walmart

[2] Products that give a consumer some since of status.

[3] The money available to a household over and above what it requires to have a comfortable standard of living.

[4] A way to describe the overall rank of people in a specific society.

[5] Those American’s who make average pay and are white collar workers.

[6]  Hate to part with their money and actually experience emotional pain when they make purchases.

[7] Enjoy nothing more than spending.

[8] Working, not on welfare, living standard is just above poverty.

9. A Long lasting competitive advantage.

Groups

                      

                                           The Girl with the Dragon Tattoo

            The Girl with the Dragon Tattoo is a film based off a series of Swedish novels written by Stieg Larsson. The Novel is about Mikael Blomkvist, a publisher of a Swedish political magazine Millennium. When Blomkvist loses a case against  billionaire Hans-Erik Wennerstrom, involving allegations made against Wennerstrom, Blomkvist is hired by the CEO of Vanger Corp, Henrik Vanger. Vanger hires Blomkvist to conduct an in-depth search of his family background to see what happened to his niece, after her disappearance over forty years ago. During Blomkvist’s search for information he meets Lisbeth Salander, (the girl with the dragon tattoo) a very unique woman that works for a surveillance agency. With the combination of their expertise, the case is eventually solved. A serial killer is unveiled, and the missing girl (now woman) is found. After reading this book, I was very excited to hear that it had been adapted into a film, and bought a ticket as soon as they were released.

            When deciding where to purchase my movie ticket, I decided to consult my immediate reference group[1] for informational[2] cues. My reference group (consisting mainly of my friends) collectively agreed to purchase our tickets, and watch the film at Spotlight Cinemas in Old Town, Maine. Social power[3] was a heavy determinant in the decision making process[4]. Most of my friends wanted to view the film at a more affordable/closely located theater, as opposed to The Bangor Mall Cinemas. Due to a high degree of reference power[5], we all abided by the decision a couple of friends made, (Theater selection based on price/location) and went to see the movie.

            Within the first twenty minutes of the film, I started to notice that the movie began to malfunction. At first, the movie had a delayed start and then the sound quality began to falter. Eventually the entire picture quality was sporadic, and constantly cut out of various scenes. After withstanding this for some time, the film ultimately cut out and we decided to leave. Obviously disgruntled, we searched for some sort of reimbursement[6], and were told we would have to wait for the manager. I understood the importance of authorization from a legitimate power[7], but I felt it was unprofessional that she was unable to meet with us at the time. After a few days, I tried calling the theater to speak with the manager, and was successful in reaching her. She then explained to me she was unaware of the incidence, and was unable to offer any sort of refund, because we did not contact her the day of the event. Clearly frustrated, I tried to explain the situation to her, but was unsuccessful in persuading her to accept my viewpoint.

            To conclude, after such a negative experience with this company, it became natural for me to inform my friends/family. Through negative word of mouth[8], I feel I was successful in deterring those people (and hopefully more) from attending this theater. My overall satisfaction (on a scale of 1 to 7 where 1 is extremely dissatisfied and 7 is extremely satisfied) is a 1. My likelihood of going back or recommending this firm is also a 1. It is crucial for businesses (especially small businesses) to emphasize the importance of excellent customer service. If firms are unable to perform this, it becomes probable that they will lose current as well as potential customers.

 

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[1] An actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior

[2] The information influence means that others provide information on consumer choices.

[3] Capacity to alter the actions of others.

[4] The steps that lead a consumer to their ultimate decision.

[5] Reference power exists when the one person admires the qualities of another and tries to copy the referent’s behavior.

[6] A way of repayment.

[7] Legitimate power is granted through true authority in a situation

[8] Is product information transmitted by individuals to individuals

Buying and Post Purchase dissatisfaction

                                  

     After a long day of working I began to realize that a biological need[1] had become aroused[2], hunger. When deciding where to get something to eat, a determining factor was time. These temporal influences[3] ultimately pushed me towards a to go order from Chili's Bar and Grill. I quickly found the company’s number on my phone, called, placed my order, and within ten minutes I had my lunch and was headed back to my house. As I got home and sat at my kitchen table ready to finally eat my lunch, I noticed the order was wrong, in fact it was missing half of the food. I was really surprised by this because I had ordered various to go orders from this location and they have always been exceptional. So based on my expectancy disconfirmation model[4] I was really disappointed. After a twenty minute drive from the restaurant to my home, I really did not want to drive all the way back, so I decided to act on my dissatisfaction[5] through a voice response[6] to the restaurant.

            During my voice response to the restaurant I remained calm and simply explained the situation, asking if there was a way to credit my card for the amount of food missing. They referred my call to their store manager, Steve who was very nice and understanding. I re described the situation to him, and he gave me a few options. The first option was that I could come back to Chiles and pick up the food they forgot to add to my order, or  he could send me coupons in the mail. I was happy with his helpfulness and compliance, and I decided that the coupons sounded great to me. Steve asked my name and address and I received the coupons in my mailbox, within a week. By the time I received them I had actually forgotten all about the mishap, but was pleasantly surprised as to what I found inside. Steve had written me a letter apologizing for the mistake and enclosed fifteen dollars worth of coupons (with no expiration or usage policies), which was actually more than what I paid originally. In their response to my complaint, they far exceeded my expectations, and increased their store image[7] in my perspective.

            To conclude, my overall satisfaction (on a scale of 1 to 7 where 1 is extremely dissatisfied and 7 is extremely satisfied) is a 7. The likelihood of me going back to this firm on the same scale as stated above is a 7, and the likelihood of me recommending this firm is a 7. Chili's far exceeded my expectations with their response to my dissatisfaction with my order. This exemplifies a company with great customer service that truly values their patrons.

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[1] A need that is fundamental, like food, water, or shelter.

[2]  This is when a consumer first recognizes a need.

[3]  These are time factors that affect purchasing decisions.

[4]  We form beliefs about product performance based on prior experience with the product or communications about the product that imply a certain level of quality.

[5]  When quality satisfactions are not met, consumers act on their dissatisfaction through Voice, Private, and Third-Party responses.

[6]  This is when a consumer appeals to a retailer directly.

[7] The personality of the store.

Desision Making

     While on vacation for Spring break, I planned a trip to Florida to visit my sister, and her new home. During the actual vacation we decided to dedicate a day to shopping. Forty minutes north of her home is a town called Ellenton. Ellenton contains a number of high-end designer premium outlets. While shopping through these outlets (containing 50+ stores) we decided to stop at the Juicy Couture store. While browsing through the boutique, I found my one weakness, a new purse. While a purse is not an actual need[1] I was able to use my rationalization perspective[2] to justify the purchase, as an opportunity need[3]. Since the purse was relatively pricey (even on sale) I used an extensive problem-solving[4] tactic for my buying decision behavior[5].

         The first step in my decision making process was problem recognition[6]. I noticed a difference between my actual and ideal states, and tried to figure out which was more important. I decided that I really loved the purse and that every-time I wore it I would remember my sister and our fun vacation. Therefore, through my opportunity recognition, my ideal state moved forward. My second and third step worked with one another. My second step was a thorough Information Search[7]. I conducted my information search online by looking at different websites on my Iphone, to see if I could find the exact purse for a lower price, the search deemed unsuccessful. I then conducted an external search to evaluate alternatives (step 3) and went to other stores around the complex. My third attempt’s purpose was to find a comparable product for a more affordable price, but again no results. My last and final step was the ultimate product choice; I ended up purchasing the purse with a matching wallet, and was able to save three hundred dollars by putting my decision-making skills to work.

         Concluding, my overall satisfaction with the product (on a scale from 1 to 7 where 1 is extremely dissatisfied and 7 is extremely is satisfied) is a 7. On the same scale as stated above, my likelihood of going back to this firm is a 7, and my likelihood of recommending this product is a 7.

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[1] A biological Ex- need, food, water, shelter

[2]  A type of logic associated with a consumer that they use to justify purchase decisions

[3]  Certain circumstance occur to help meet a specific need

[4]  This type of problem solving takes more thought/decision processing. Usually used for expensive purchases or brands that you make not know too much about.

[5]  This is the behavior (routine response, limited problem solving, or extensive problem solving) that we use to make a final decision.

[6] When consumers see differences between current and ideal state.

[7] The process by which we survey the environment for appropriate data to make a reasonable decision

Attitudes

    

                                 The Liquid Plumber

                                      

 

     Liquid Plumber Double Impact Snake and Gel system is an affordable and suitable alternative to hiring a plumber. At a price of around twelve dollars, compared to varying labor prices of an actual plumber ($50.00+), Liquid Plumber seems like the better choice. Liquid Plumber is essentially used to unclog drains through the use of a 23” deep-reaching tool to dislodge the clog and a powerful gel to flush the rest away. The product in itself seems easy enough to use, and one that I would prefer to use over hiring a professional. Although, after watching their newest commercial, my attitude[1] toward the attitude object[2] has drastically changed. When watching the commercial, I felt a major

Disconnect between the product and the Value-expressive function[3] of my attitude.

            I felt that the commercial was heavily sexual, and inappropriate to be broadcasting on standard television channels during daytime TV. As of now, the commercial has been banned and can only be seen online, which is a much more appropriate setting for it’s explicit innuendos and content. It seems that Liquid Plumber was trying to create a viral advertising campaign (which they did, with over 1M views) but I feel it has tainted their brand/product image. During the ad I was not focused on the product or its uses but rather on the content of what I was viewing. The commercial gave no factual information about their product or product line, and essentially made a mockery out of the product they were trying to advertise. Overall my affect[4], behavior[5], and cognition[6] were tainted after watching the advertisement.

            Overall the message had a negative affect[7] on my attitude toward the product and the brand, through lack of factual/functional information, inappropriate content, and humorous appeals[8]. On a scale of 1 to 7 (where 1 is extremely dissatisfied and 7 is Extremely satisfied) my satisfaction with the product is a 2. On the same scale as stated above I would rate my likelihood of going back to this firm a 5, and my likelihood of recommending this product is a 1. It is crucial for a brand to evoke trust and morality in their consumers, while still staying true to the brand. Liquid plumber failed at this attempt, they went for cheap laughs and have ultimately damaged the integrity of their brand.  

           

           

           

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[1] A lasting, general evaluation of people, objects, advertisements, or issues.

[2] Anything toward which one has an attitude

[3] Expresses consumer’s values or self-concept

[4]  The way a consumer feels about an attitude object.

[5] Person’s intentions to do something with regard to an attitude object.

[6] Beliefs a consumer has about an attitude object.

[7] Undesirable feelings towards a product/brand due to their positioning

[8] A marketer’s use of humor to appeal to customers within their advertisements.

           

 

Conditioning

                                       
      Abercrombie and Fitch is a popular retail store, founded in 1892 in New York City. The store’s original owners, David T. Abercrombie and Ezra H. Fitch, created Abercrombie and Fitch to be a sporting store. It was known for it’s excursion goods, expensive shotguns, fishing rods, and tents.[1] The store eventually went bankrupt, and was bought by another sporting goods store in Texas. After transferring ownership, the Texas based retailer decided to sell the Abercrombie and Fitch brand to The Limited (a clothing store), which is why Abercrombie and Fitch now primarily sells clothes. The company encompasses a family brand[2], which includes stores such as Abercrombie Kids, Gilly Hicks, and Hollister Co. Each of its stores has its own identity and target customer market[3]. I feel that Abercrombie’s success is in part, due to their ability to condition their customers. I believe that Abercrombie is able to effectively condition both classically[4] and instrumentally[5]. Through learning[6], extinction[7], observational learning[8], stimulus generalization[9], semantics[10], and identity marketing[11], the Abercrombie brand creates a strong customer demand and retention for their product lines.

            Classical conditioning is a crucial part to Abercrombie and Fitch’s marketing plan. The conjunction of Atmosphere and Brand are the two main focuses of their classical conditioning efforts. The atmosphere is very unique; it is unlike any other retail store, giving them a competitive advantage. When you walk into the store, the lights are dimmed and placed strategically; there is constant ventilation of perfume, loud upbeat music, and an attractive staff. The unconditioned stimuli they use are the atmospheric dynamics, which include, loud music, dim lighting, and scents. These unconditioned stimuli evoke and unconditioned response of feelings/concepts of, happiness, fun, energy, hip, cool, nightlife, and trendy. These feelings are then inadvertently associated with the Abercrombie brand. The conditioned stimulus being Abercrombie and Fitch, and the conditioned response is associating all of these feelings and thoughts with the Brand. Customers are convinced to think that this is a place they want to shop, not because of what the clothes look like, or the prices, but because of what the brand stands for. The meaning in customer’s minds is created quite cleverly from the Abercrombie brand. They position their product to be cool, hip, and popular. This in turn, makes customers shop there, to embody these emotions, feelings, and perceptions.

            In combination with their classical conditioning, Abercrombie also uses forms of instrumental conditioning, on their customers. Through learning, the customer understands what to do, in order to produce a positive outcome. For example, Abercrombie uses extinction to force customers to buy their merchandise. Some customers may only buy clothes when they go on sale, or when they receive coupons. For Abercrombie to avoid these types of sales, they take away the positive event (sales, coupons) to force consumers to purchase products at full retail price, instead of waiting for a sale.

            Fused together with Abercrombie’s classical and instrumental conditioning, is observational learning. The Abercrombie brand uses observational learning to teach customers what to wear and buy. They do this through hiring attractive staff, who are forced to wear the latest designs to work. This is done, because Abercrombie has never had televised commercials, they use their staff to advertise for their company. Their employees act as models for correct behavior, customers observe this behavior and then model[12] it.

            To conclude, The Abercrombie brand effectively markets their products to customers, through forms or learning and conditioning. This creates a strong brand awareness, and customer base. They also use forms of stimulus generalization to further their conditioning through their other three brands. Abercrombie uses their stimuli (atmosphere, brand name) to evoke the same conditioned responses in their other brands. They also use semantics to derive meaning from their symbols, most commonly their “moose.” When customers see this symbol it evokes the same emotions that Abercrombie's conditioned response creates. This is just another form of conditioning that Abercrombie has used effectively. My overall satisfaction with the brand on a scale from 1 to 7 (where 1 is extremely dissatisfied and 7 is extremely satisfied) is a 5. I enjoy going into the store, but I feel that their products are not comparable with their prices. I feel that the brand could offer more sales, or incentives to repeat customers, in order to increase satisfaction. The likelihood of me going back to this company is a 7, and the likelihood of me recommending this company is a 6. Overall, I feel that Abercrombie is a great brand that stays on trend, and creates a fun, interactive environment for its customers.

           

           

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[1] http://en.wikipedia.org/wiki/Abercrombie_%26_Fitch

[2] Main brand under which several other products or brands are introduced to take advantage of the main brand credibility.

[3] These are the set of customers that a brand wants to reach.

[4] A stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own

[5](Operant conditioning): the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes.

[6] A relatively permanent change in behavior caused by experience.

[7] Removal of positive events, which weakens responses preceding the event. People learn that a certain response no longer produces a positive outcome.

[8] We watch others, and then model their behavior.

[9] Tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses

[10] Symbolic associations

[11] Consumers alter some aspects of their selves to advertise for a branded product

[12] Imitating others behaviors.

The Self

     Toddlers and tiaras is a TLC based television show, chronicling the pre post and current trials of a child beauty pageant contestant. The show began in early 2009, and is still widely popular three years later, with an estimated 1.3M viewers each week[1]. The show has gained heavy controversy on the way the children have been depicted. For example, many of the girls (ranging from age 2-12) are dressed in elaborate/provocative clothing; they wear heavy makeup, receive spray tans, and even wear porcelain veneers.

            I believe that partaking in these pageants at such a young age, as well being nationally broadcasted, affects these young girls self-concept[2], and self-esteem[3]. It also has gotten to the point that their real[4] and ideal[5] selves have collided. They should be acting like children but their parents are treating them like adults, which I fear may cause developmental confusion as these girls age. TLC’s pageant moms are also affecting their, and other children’s ideals of beauty[6]; lines of acceptability (regarding beauty) are being skewed. These parents are conditioning their children to believe that success is gained only if you’re beautiful, and that beauty is cosmetic. Also the symbolic interactionism[7] that these parents are playing in their children’s lives, seem to be teetering on a dangerous line. These current relationships will act as guidelines of who these girls will form into as adults, and it does not look promising. This constant exploitation should be taken seriously, children are very impressionable, and parents must be very careful when instilling values.

Here is a clip from one of the episodes:

This video clip is very similar to most of the Toddlers and Tiara’s episodes. I was disgusted by how Alana's mother treated her daughter. As you can see, some of these mothers are teaching their daughters that is is appropriate to strut around stage (very similar to an exotic dancer) and show her body to the judges. The thought process that Alana even goes through, seems so corrupted. This is in part, due to her parents and participating in these pageants. I don't solely blame the parents, but also the judges. They are encouraging this behavior to be ideal, so children observe and model this behavior, in  hopes of ranking high in the competition.  

  Another Disturbing clip:

     In conclusion, I feel that the way these children are being subjectified will be detrimental to their self-concept, self-esteem, future growth into adulthood, and their ideals of beauty. TLC’s toddlers and tiaras should be taken off the air, or at minimum edited so they are not promoting episodes like above. These parents need to take a step back, and understand how their actions are going to affect the future growth and development of the children. Parents should be filling their children with wholesome, crucial values, not those vales based on materialism. Overall, I would rate my satisfaction with the show (on a scale of 1 to 7 where 1 is extremely dissatisfied and 7 is extremely satisfied) a 1. On the same scale as stated above, my likelihood of recommending or watching this show again is a 1.

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[1] http://www.foxnews.com/entertainment/2010/06/03/tlcs-toddlers-tiaras-returns-critics-say-parents-exploitive/

[2] The beliefs a person holds about his/her own attributes, and how he/she evaluates these qualities

[3]  The positivity of a person’s self-concept

[4] Our more realistic appraisal of the qualities we have

[5] Our conception of how we would like to be

[6] Our views of beauty, and what is beautiful and what is not.

[7] Relationships with others play a large part in forming the self