Farzad Rashidi and Jess Sauerwein
The article sums up a few controversial issues that car companies deal with while attempting to market their products to the young generation.
It’s a dilemma for the car companies to strip down the amenities to reduce the price, as this strategy might backfire and the company would start losing customers due to poor quality.
The underlying reason for this happening is that most of the younger generation are at the beginning of their careers, therefore they can’t afford to purchase a new car, even though their prices are reasonable.
Companies, like Toyota, try to design vehicles for the younger generation and re-brand a portion of their cars with another name to appeal to the so-called Generation Y; however, contrary to their expectations, most of the owners turn out to be the older generation.
Why would a car designed for Gen Y appeal to more mature consumers?
Are the sources of value from a car like the Element or the Scion identical for the two groups of consumers – 20-somethings and forty-somethings? How might they differ? Would each group consider the car “cool” and in the same way?
If a group other than the originally intended adopts a product/brand, will this then discourage the originally intended group to move away from the product/brand? Would the brand develop a stereotype that may then limit its appeal to some groups?
Does the Element and Scion story mean age is not a good segmentation basis? Discuss.
Introduction to Consumer Behavior
- Physical activity vs. mental activity:
- Gen Y evaluated product in mind but didn’t physically buy it
- Consumer as problem solver
- Consumer as economic creature
- Four values (USER)
- Social value: fitting in with peers and projecting a cool image
- Ego: nurture self-concepts and idea of who we are
- Means-ends chain and laddering:
Large space in car
Comfortable and convenient for trips
Enjoy self more
- Color, Size, Interestingness (square shape)
- ELM (elaboration likelihood model): low-involvement processing so use peripheral route to persuasion cues:
- Attractiveness and positive stimulus
- Traits specific to consumer:
- Brand Personality:
- Ideal social self
- Extended self: impact of products on person’s self-concept
- Society’s personality:
- Stupid humor in crab ad is widely accepted among younger generations (shared experience)
- Butter/tongs comment is understood in American society
- Modern and innovative is a status symbol
If you’re going to use age segmentation, make sure it fits with the product and target audiences’ capabilities
Key Take Aways
Realizing that if your product flops in a younger market, try targeting the older market so it’s not a complete loss
Market appealing attributes rather than targeting a generation so you can reach more consumers