EOC-Chapter 1 Discussion Questions

Chapter 1 Discussion Questions

1. What is branding? Branding has been defined as “ The cumulative image of a product or service that consumers quickly associate with a particular product.” Branding is “A competitive strategy and identifiable.” As a consumer we do this every day with out even realizing that we are. When be see the red iconic Coca Cola symbol we immediately associate it with soda. This brand recognition between products is what defines our buying habits. As consumers we will buy something we are familiar with(even if it just the name, not the actual uses of the product) than trying a new product on the store shelves.

2. How are companies able to sell T-shirts, jeans, sunglasses at high prices? The reason why companies can charge so much for a basic product is because of brand name. Consumers prefer buying a higher priced item over a genric or moderately lower cost item because of the name. Consumers feel a scene of security in purchasing something they know. They are paying for quality within a higher priced item. A great example of a item that may not be considered to most people as a luxury item is underwear for men. Men can care a less how their under ware is made as long as it “feels good.” Dolce & Gabbana used that to their advantage when producing their men’s underwear line. D&G used lower grade cotton in the construction of their garment, but charged the high end mark-up because of the brand name. Companies can continue doing this to consumers because; they see there is a need and want for brand names.

3. Race, ethnicity, religion, and sexual orientation plays a huge roll in our buying habits. These groups play into the Maslow hierarcy of needs, when we are buying. Each step is a pivotal roll in when, why and how we buy. Basic needs, safety, Belonging, esteem, and self- actualization are the steps of Maslow’s higher hericy of needs. There are also buying type personalities, emotional, logical, and environmental. I would categorize myself as a mixture of logical and emotional. Most if my purchasing disiccions, are logical ones. I base my purchase dissicion on if I need the item. Than I can be an emotional shopper, I do go shopping when I am upset and need a cheering up. Even though I concider myself as two buying personalities the logical buying personality is dominate.