it for mgrs

7/30/2019 it for mgrs

1/35

An Analysis of Consumer Behavior and Marketing Strategies

Submitted To-

Md. Farhan Faruqui

Senior lecturer& course instructor

Dept. of Business Administration

Submitted by-

Name.Md Asibul Islam

Shafket Ahmed ChowdhuryAhsan HabibJubair RahmanQuazi shamsul Islam

ID2009-2-10-319

2009-2-10-205

2009-1-13-011

2009-2-10-155

2009-2-10-154

: 7 2011Date of submission th December

Page 1 of 35


2/35

Contents

An Analysis of Consumer Behavior and MarketingStrategies................................................................ 1Dell laptop: An Analysis of Consumer Behavior and MarketingStrategies ............................................ 3Executive summary

................................................................................................................................. 41. Introduction ..................................................................................................................................

... 51.1 Origins.......................................................................................................................................... 51.2 Objectives..................................................................................................................................... 51.3 Scope............................................................................................................................................. 51.4Limitation......................................................................................................................................51.5 Methodology................................................................................................................................. 6

2. Background of Dell-

laptop .................................................................................................................. 72.1CompanyProfile............................................................................................................................. 7

2.2. CompanyMission: .................................................................................................................. 82.3.1.Products: ............................................................................................................................... 8

3. Analysis of Consumer Behavior: ........................................................................................................ 9

3.1. Profile of the Target Market: ....................................................................................................... 9

3.1.1. Demographic Factors: ...........................................................................................................93.1.2. Social Factors: .....................................................................................................................143.1.3. OtherFindings: .................................................................................................................... 153.1.4. Self-Concept: ....................................................................................................................... 193.1.5. PsychologicalFactors: ......................................................................................................... 20

3.2. Memory...................................................................................................................................... 22

Short-TermMemory: .................................................................................................................... 22Long-TermMemory ...................................................................................................................... 22

3.3Attitude: ......................................................................................................................................

263.3.1 Attitudecomponent: ........................................................................................................... 264.0Recommendation:.......................................................................................................................345.0Conclusion: ..................................................................................................................................356.0BIBLIOGRAPHY ............................................................................................................................35Books:.......................................................................................................................................

..... 35Website: ........................................................................................................................................ 35

Page 2 of 35


3/35

Dell laptop: An Analysis of ConsumerBehavior and Marketing Strategies

Page 3 of 35


4/35

Executive summary

A successful marketer must understand consumer s psychology and behavior to successfully

grip the target market. To fully understand consumer need, demand, marketers need to

accomplish marketer research. In this report, we have analyzed consumer s psychology,

opinion, perception, and behavior towards Dell-laptop. Dell, Inc. is an American

multinational information technology corporation based in 1 Dell Way, Round Rock, Texas,

United States that develops, sells and supports computers and related products and services.

Bearing the name of its founder, Michael Dell, the company is one of the largest

technological corporations in the world, employing more than 103,300 people worldwide.

Dell is listed at number 41 in the Fortune 500 list. We have focused on brand equity, image,

external and internal factors etc.

Page 4 of 35


5/35

1. Introduction

1.1 OriginsEast West University is a foundation that upholds eastern cultures and values, and

evocatively fusions eastern and western thought and innovation. To do this it offersundergraduate degree on different major subjects like Marketing, Finance, HRM, Economics

etc. Consumer behavior (MKT 410) is one of the courses of Marketing major. Precisely it

teaches us how individuals feel, think and act in the market place.

While doing the course we have learned the factors of persuading a buyer s decisions,

learning, attitude, memory, self-concept and so many other vital things. To implement all of

those or in other way to practically experience those issues Mr. Farhan Faruqui, course

teacher of Consumer Behavior has given us this term paper on Dell Laptop.

1.2 ObjectivesBy doing the report, we will be able to know the target market s profile of Dell Laptop, their

buying purposes and preference. We will also be able to know the current market situation of

the laptop products. We will be exploring the facts how individuals get influenced towards

laptops, what they feel about different laptops and what are the comparisons.

This report will also let us know the possible commendations for Dell Laptop.

1.3 ScopeThe report is prepared concentrating on Dell Laptop. The area of the survey was only in

Dhaka city. So, all the estimations have been made based on the city area. It is a

comprehensive report based on structured questionnaire survey, data calculation, people s

opinion, our perception and knowledge, and books of Consumer Behavior.

1.4 Limitation

While preparing the report we had to face some problems.

1. For the sake of official secrecy, the concerned officials did not provide enough

information.

2. Time shortage was one of the major problems.

3. Then lacking of information among customer were another major problems. In many

case we found some people who do not have any idea about Dell Laptop. Many

people did not cooperate because they were not interested.

Page 5 of 35


6/35

4. As because the questionnaire was in English many people could not understand the

questions and thus could not answer well.

1.5 Methodology

Nature of the study: Exploratory

Source of information: Both primary and secondary.

Primary Source: Primary source were random entities. The following factors were

considered to collect information:

Sampling method: Convenient Sampling

Information Collection instrument: Structured questionnaire for the respondents.

Sample Size: 60 individuals.

Secondary Sources: Secondary information was collected from the internet.

Analysis of information: Statistical technique through MS Excel was used to analyze the

collected data. Sum, Countif, Average, weighted average were used here.

Presentation of Information: Collected and calculated information are presented in graphical

forms.

Page 6 of 35


7/35

2. Background of Dell-laptop

Dell, Inc. is an American multinational information technology corporation based in 1 Dell

Way, Round Rock, Texas, United States that develops, sells and supports computers and

related products and services. Bearing the name of its founder, Michael Dell, the company is

one of the largest technological corporations in the world, employing more than 103,300

people worldwide. Dell is listed at number 41 in the Fortune 500 list.

Dell has grown by both increasing its customer base and through acquisitions since its

inception; notable mergers and acquisitions including Alienware (2006) and Perot Systems

(2009). As of 2009, the company sold personal computers, servers, data storage devices,

network switches, software, and computer peripherals. Dell also sells HDTVs, cameras,

printers, MP3 players and other electronics built by other manufacturers. The company is

well known for its innovations in supply chain management and electronic commerce.

Fortune Magazine listed Dell as the sixth largest company in Texas by total revenue. It is the

second largest non-oil company in Texas behind AT&T and the largest company in the

Austin, Texas area.[

2.1Company Profile

Basic Information

Company Name: Dell Laptop

Business Type: Information Technology Corporation.

Business Line: Different type of Laptops.

Product/Service: Dell Inspiron, XPS, Adamo and Studio.

Company Website: www.dell.com

Page 7 of 35


8/35

2.2. Company Mission:Mission is to be the most successful computer company in the world at delivering the bestcustomerexperience in markets we serve.

2.3.1. Products:

2.3.1.1 Dell Inspiron:

Dell Inspiron 14R Dell Inspiron 1525 laptop

Dell Inspiron 14R i14RN Dell Inspiron 15R-N5050

Dell XPS M1330 The XPS M1210

Page 8 of 35


9/35

Dell Adamo Adamo endgame

Dell Studio Dell Studio

3. Analysis of Consumer Behavior:

3.1. Profile of the Target Market:

In this part of the report, we have discussed the demographic, psychographic and

socioeconomic factors about the target market of Laptop. From this part it is easy to find outall potential consumers age, sex, income, education, source of information, influential factors,

personality. This information have been found out by conducting an extensive survey based

on 60 samples and analyzed by several statistical tools.

3.1.1. Demographic Factors:

Demography is the study of human population in terms of size, density, location, age, gender,

race, occupation and other statistics. The demographic environment is of major interest tomarketers because it involves people and people who make up market and it also give them a

clear description of them.

From the survey we found the result of demographic factors which are described below:

Page 9 of 35


10/35

Gender:

Usually marketers target their products towards a specific portion of the market based on

several analyses. Here we tried to find out the sensitivity and the variation between the male

and female respondents. For that we have divided our total sample in two groups- male and

female.

We conducted our survey based on 60 people s opinion. Among these people, 60% weremale and 40% were female.

Overall Gender

Male Female

DELL Consumer(Gender)

Male Female

32%40%

60% 68%

Figure: Gender of overall laptop market& Dell laptop

From the survey result we found that among these 60% of male, 68% are the customers of

DELL Laptop and among the 40% of female, 32% are the users of DELL Laptop.

According to our findings it is very clear that the majority customers of DELL Laptop are

male.

Probable Strategy:

They should focus more on female customers, because most of the consumers ofDELL Laptop are male.

DELL Laptop should associate its product more with female consumers by usingrenowned female personalities in its marketing activities.

DELL Laptop should advertise its product more to their target market. They canmake Television Commercials or Radio advertisements and play it in between the

programs which are made for young people specially females. They should introduce more vibrant colors. Example- Orange, green and purple. They can use Iconic Rote. For example, they can us e key-board by proposing female

ergonomic key-board.

Page 10 of 35


11/35

They can also use Vicarious Learning by showing in the ads corporate women areusing DELL Laptop, for targeting corporate women.

Age:

Age is one of the most important factors to identify the consumers behavior towards DELLLaptop. Age carries with it culturally defined behavioral and attitudinal norms. It affects our

self-concepts and lifestyles. To find out the responsiveness about the DELL Laptop, we

asked questions to different age group of our sample to find out the variation of consumerbehavior in different age.

We have surveyed people of different age groups. Among our surveyed people, 55% of

people are within the 16-25 age groups. It is clear that 16-25 age group people are majority in

number.

Overall People Age

Under 16

36-45

10%

16-25

46-55

3% 2% 7%

26-35

Above 55

DELL Laptop ConsumersAge

Under 16

36-45

16%

16-25

46-55

4% 0% 4%

26-35

Above 55

23%55%

28% 48%

Figure: Age of overall laptop market & Dell laptop

From our survey we also found that 48% of people who are the consumers of DELL

Laptop are within the age group of 16-25. The age group of both 26-35 and 36-45 age

groups should also be considerable in number as the pie chart shows 28% and 16% of these

groups people use DELL Laptop. From this survey we can say that most of the consumers

of DELL Laptop are young teenagers, university students and young professionals.

Probable Strategy

They should focus on consumers who are under 16 years old. They can associate DELL Laptop with child celebrities like Justin Bieber, Henna

Montana.

Page 11 of 35


12/35

They can introduce special featured Laptop by using cartoon characters image on thecase of Laptop.

They can arrange quiz competition on information of DELL Laptop in schools forcreating depth and awareness of DELL Laptop with a view to persuading to buy

DELL Laptop. They can offer discounts to whoever can show valid student ID Card.

They can offer preloaded games in the Laptop. They can also provide free school bag with DELL Laptop. They can arrange special fairs in schools. They can make special school packages with schools who like to offer DELL

Laptops to their students for educational purposes. They should also extensively focus on their big market that is 16-25 age group

because a large portion of this market hasn t captured. They can offer a special type of Laptop for different type of target customer in the age

group of 16-25 like gaming laptop for who like to play game, studio laptop with highmultimedia feature for who like to listen music.

High configuration laptop for who are studying engineering section like CSC, EEE,ETE.

Education:

Education has a strong influence on one s tastes and preferences. It also influences how onethinks, makes decisions, and relates to others. However, education seldom provides a

complete explanation for consumption patterns. Those with a limited education are generally

at disadvantage not only in earning money but in spending it wisely.

According to our survey results, most of our surveyed people (49%) are Masters/MBA.

Overall PeopleEducation

Masters/MBAHSC/A-Level

Diploma

3%8%

2% 3%

49%

UnderGraduateSSC/O-Level

Others

DELL Laptop ConsumersEducation

Masters/MBAUnderGraduateHSC/A-LevelSSC/O-Level

0%

32%

8% 0% 4%

35%56%

Figure: Education of overall laptop market& Dell laptop

Page 12 of 35


13/35

From the pie chart above, we can see that 56% of DELL Laptop customers level ofeducation is Masters/MBA and 32% customer s level of education is UnderGraduate. So wecan say that educated people mostly prefer DELL Laptops.

Probable Strategy:

As most of the customers are educated so DELL Laptops should use greenmaterials to manufacture its products.

They should safely dispose off laptop batteries so that is causes least harm to theenvironment for the well aware and environmentally concerned consumers of DELL

Laptops. Advertisement should be more informative and should focus on the features and the

configurations of DELL Laptops

They should offer licensed version anti-virus and essential office tools software They should practice social marketing which is the most preferable criteria for

educated people.

Occupation:

Most of the occupation predetermines the individual s income level. One s occupation provides status and income. In addition, the type of work one does and the types of

individual s one works with over time also directly influence one s values, lifestyle, and all aspects of the consumption process. In our questionnaire we have asked question to identify

which professions respondents are appropriate target customer of DELL Laptops.

Among our surveyed people, the largest portions (54%) of participants are students.

Overall People3% (Occupation)

Govt. Employee

Businessman

Others

10%

28%

54%

Private Employee

Student

DELL Laptop Consumer(Occupation)

Govt. Employee

Businessman

Others

4%

16%

40%

32%

8%

Private Employee

Student

5%

Page 13 of 35


14/35

Figure: occupation of overall laptop market& Dell laptop

From our survey result we found that 40% of people who usesDELL Laptops are students,

32% are private employees, and 16% are Government employees in occupation. So, thecompany should focus on students more as they are biggest market and has biggest portion

that has been not covered.

Strategy:

As most of the customers are students, DELL Laptops should increase the numberof laptop models with different design and casing and should offer student discount.

Have to focus on offering special packages for schools, colleges and universities.

Colorful advertisement and association with young generation celebrities will help toattract the students and increase the sales.

They can sponsor events in schools, colleges and universities like talent competitionand game tournaments to attract the attention of the students who are the largest

segment. For private employees and business people they can emphasize more on the quality

and high features and configured DELL Laptops as they can afford high price

laptops also.

3.1.2. Social Factors:

Social factors denote the social status of the target market by considering social class and

other factors.

Social Class:

Income is highly influential in determining social class. To identify the respondent ssocial class we asked them about their individual income to find their actual position

in the society. The survey represents that most of the participants are in the family

income range of 40,001-50,000 or 30,001-40,000.

Page 14 of 35


15/35

Overall Population(Income)

10,000 or less

20,001-30,000

40,001-50,000

18%

10,001-20,000

30,001-40,000

50,001-above

17%

DELL LaptopConsumer(Income)

10,000 or less

20,001-30,000

40,001-50,000

20%

20%

0% 4%

10,001-20,000

30,001-40,000

50,001-above

16%

0% 7%

35% 23%

40%

Figure: Income of overall laptop market& Dell laptop

From our survey we found out that 40% of people who purchase and useDELL

Laptops, their family income are in between TK.30,001-40,000 and 20% users of

DELL Laptops their family income are in betweenTK.40,001-50,000. So we cansee that the consumers of DELL Laptops are middle class and upper middle class.

Probable Strategy:

Primarily they should focus more on middle class and upper middle class people asthey prefer DELL Laptops.

They can use price skimming pricing strategy to capture all layer of middle class. They can go to the cost leadership strategyby reducing augmented features as the

country s economic factors are little bit vulnerable. Can offer installment method to grab lower middle class customer. Secondarily, upper class of the society is the big portion of the laptop market.

Marketer can also attract upper class of the society by proposing high quality and

numbers of feature by charging extra price. They can charge high price compare to competitors by proposing same features to

provide message towards the upper class customers that purchasing DELL is part of

status.

3.1.3. Other Findings:

We have found some other information like source of information, influential factors,and ranks based on consumer perceptions which are described below:

Page 15 of 35


16/35

Most influencing factor at the time of purchase Laptop

From our survey we found out that most of our participants are influenced by friends

(32%) at the time of purchasing Laptops.

Influence Factors

Self Family Friends Celebrity

1%

11%

15%

13%

4%

32%

24%

Sales People Advertisement Others

Figure: Influencing factors of laptop market

The pie chart above has shown that 32% of our participants are influenced by their

friends to purchase the laptop products and 24% people are influenced by themself

and 15% by marketing activities.

Probable Strategy:

DELL should maintain the level of quality to satisfy their existing customers as theyare the reference people for them to the new potential consumers.

DELL can launch special package in the Friends Day. For example, if two friends buytwo laptops they will be provided PENDRIVE and SPECIAL SOFTWARE. They can arrange case competition whereby the participant will be provided special

gifts if they suggest their friends. For creating loyal customers DELL Laptops should focus on after sales service as

they can work as reference people if they become satisfied. As most customers are spontaneously involved in purchasing DELL Laptops,

marketer can use classical conditioning by using the image of expertise personality

like Mostofa Jobbar associating DELL Laptops in advertisement. They can also use Iconic Rote by proposing that, We offer high processing ram.

Page 16 of 35


17/35

Dell can provide special training program to sales personals for selling DELLLaptops.

The highest seller of the month will get a trip.

Source of knowing about DELL Laptop

From our survey result, we came to know that 33% of people heard about DELL

Laptops from their Friends/ Relatives and Associate, 20% of the people got

information from Websites and 17% from Magazines.

Source of InformationTV commercials

Billboards

Friends/Relatives/Associates

Others

1%

9%

33%

20%

11%

17%

9%

Magazines

Websites

In-store advertising

Figure: Source of laptop market

Probable Strategy:

DELL should maintain the level of quality to satisfy their existing customers as they

are the source of information for new potential consumers which will work as theword of mouth.

DELL can offer special discount for siblings. They should target different social networking sites and blog for their online

advertisement to grab online customer. DELL can develop their own website which will be improved, informative and easily

understandable. They should regularly update their website. DELL should target life style and technology related magazine for their

advertisement.

They can buy full page magazine to isolate their print ad.

Page 17 of 35


18/35

Their ad should contain more color as color is more important than size. TV commercials can transmit very clear information to people due to its movement

and exposure. Baskin-Robbins has to apply its classical conditioning ads more on

different TV channels.

Rank based on Consumers Perception

Rank your favorite Laptop

Column5

Column4

Column3

Column2

Column1

0

Acer

Toshiba

Fujitsu

HP/Compaq

Dell

Brand

Column12

2

7

17

28

0

10

Column21

4

17

22

12

0

Column310

13

11

6

7

0

20

Column415

17

5

3

1

0

30

Column520

12

8

0

0

0

Figure: Rank of favorite laptop

This chart has been developed based on consumers perception about DELL Laptop. Indeveloping this chart we have used a 5 Space Ranking Tool. According to this chart, DELL

has the highest probability of being ranked no.1 which is strongly supported by the

consumers who favored it as their second choice.

Probable Strategy:

As HP/Compaq is close to be Rank-1 according to consumers perception, DELLshould do SWOT analysis of HP/Compaq.

DELL should increase the life time of battery and after sales service in whichHP/Compaq is stronger than DELL.

DELL should arrange seminar where they will ask for advice about customization ofDELL by providing gift to the respondent.

Page 18 of 35


19/35

3.1.4. Self-Concept:

Personality

Personality is the totality of the individual s thought having reference to him as an object.

This analysis shows that the personal characteristics of those people who have taken part in

this survey.

Personality

3.53

2.52

1.51

0.50

Dominatin Youthful-Formal-g-AdultInformal

Submissive

Series1 3.4166666672.5666666672.72.4333333332.783333333

Rugged-Delicate

Excitable-Calm

Figure:personality of respondent.

From the table we can see that people who stand on average. They tend to be more delicate,

excitable, dominating, youthful and formal. First, DELL has to give persuasive

advertisement by highlighting all the features.

This graph has been developed based on consumers perception about themselves. We used

a 5 space ranking tool o measure those perception. In this graph, the more close the rankings

are towards rank 5 the more the surveyors are tend to be Delicate, Calm, Submissive, Adult,

and Informal. On the other hand, the more close the ranks toward rank 1 states that the

people are tend to be more Rugged, Excitable, Dominating, Youthful, and Formal. The

ranks show the extremism of individual attributes.

Page 19 of 35


20/35

Probable Strategy:

As most of the customers of laptops are Delicate, DELL can introduce

persuasive ad in the Magazine as well as Newspaper which is considered

important media source for delicate people.

In the same time, delicate people are looking for source reliability of

advertisement. DELL can use reliable and expertise celebrity endorsement

for their advertisement like Saied Akbar.

Excitable people love colorful ads, excitable offering, exciting events like

sports. So DELL can introduce colorful ad, exciting offering like buy one

laptop get one Speaker free. DELL can also sponsor the T20 game.

As youth people love to follow opinion leader, DELL can use the image of

opinion leader like Dr. Muhammad Zafar Iqbal.

As youth people fond of stylish and fashionable case, DELL can offer stylish

and fashionable case by conducting research and development.

As youth people are interested in buying gaming and studio laptop, so DELL

can offer those.

DELL can also arrange laptop fare by targeting youth people.

Dell can arrange seminar on IT revolution which can promote DELL.

As formal people are quality concerned rather than price, DELL can offer

quality features like durability, high configuration, and friendly licensed

operating system.

3.1.5. Psychological Factors:

Conditioning:

Conditioning refers to learning based on association of a stimulus (information) and response(behavior or feeling). There are two basic forms of conditioned learning-classical and

operant.

Page 20 of 35


21/35

Classical Conditioning:

The process of using an established relationship between a stimulus and response to bringabout learning of the same response to a different stimulus is called classical conditioning.

UCS(Image of Dr.Muhammad Zafar Iqbal)

UCR (Positiveresponse/Emotion)

CS (DELL)CR (Conditioned

Response)

UCS= Unconditional StimulusUCR= Unconditional Response

CS= Conditional stimulusCR= Conditioned ResponseFigure: Classical Conditioning of DELL Laptop

Operant Conditioning:

A response that is given reinforcement is more likely to be repeated when the same situation

arises in the future. Reinforcement plays a much larger role in operant conditioning than it

does in classical conditioning. Since no automatic stimulus-response relationship is involved,the subject must first be induced to engage in the desired behavior. Then this behavior must

be reinforced. Operant conditioning often involves the actual usage of the product.

DELL Laptop

(special discount)Desired Response

(Consumption)

Reinforcement

(augmented

features)

Increases Probability of

Response to Stimulus

Figure: Operant Conditioning of DELL Laptop

Through operant condition DELL Laptop can grab more customers. For example, they can

introduce special discount program in special occasions. After purchasing DELL Laptop at

Page 21 of 35


22/35

special discount consumer start liking for its augmented features. Then consumer tend to buyDELL Laptop at full price whenever they demand for laptop.

3.2. Memory

Memory is the total accumulation of prior learning experiences. It consists of two inter

related components:

Short-Term Memory

Long-Term Memory

Short-Term Memory:

Short term memory is that portion of total memory that is currently activated or in use. It is

often referred to as working memory. It is an active, dynamic process not a static structure.

Maintenance Rehearsal:

This is the application of short term memory. Maintenance Rehearsal is the continualrepetition of a piece of information in order to hold it in current memory for use in problem

solving or transferable to long term memory.

Strategy

DELL can launch TV commercial specially before IT related program and they can hire

space in front of IDB building, Manik Mia Avenue, Mohakhali Flyover, in front of Ruposi

Bangla to create repeated rehearsal in their memory which will help to increase the likings ofDELL Laptop.

Long-Term Memory

Long-Term Memory is viewed as an unlimited, permanent storage. Long-Term Memorycarries numerous types of information such as concepts, decision, rules, process, affective

states and so forth. In case of long term memory product stays for a long term and consumer

can recall after a certain period of time.

Semantic Memory:

Semantic Memory is the basic knowledge or feelings about a concept. It represents the

person s understanding of an object or event at its simplest level.

After hearing DELL Laptop, the attributes come in the mind of the people are High

Status, Durability, High Price, High Memory. These attributes work as semantic memoryto the people s mind. (According to our survey we found 29% people said High Status,21% said Durability, 15% said High Price, and 13% said High Memory come in their

mind after hearing the name DELL Laptop).

Semantic Memory/ Schema:

It is what a consumer thinks and feels when the brand name is mentioned. It is the source ofpersonal experiences and opinions through which customers can differentiate DELL

Page 22 of 35


23/35

Laptop differently. DELL Laptop contains several characteristics, usage situations,episodes and affective reactions.

While surveying the customers, we found several memory events about DELL Laptopwhich are given below:

DELLLaptop

HighStatus Durability High Price High

Memory

Expensive QualityParts

HighQuality High StorageCapacity

Posh

GoodPerformance

Aristocrat

Customer

Corporate Use

Figure: Schema for DELL Laptop.

Positioning of DELL Laptop:

Brand image is nothing but the schematic memory of the human beings. It is the combinationof attributes, benefits, usage situations, users and manufacturer/marketer characteristics that

people applies while interpreting DELL Laptop. It is often used interchangeably with brand

image. Product positioning has a major impact of long term success of brand. It is the placethat marketers want to have in the mind of target customer. To capture a good share in a

market one can offer consumers greater value, either through lower prices or by providing

more benefits that justify higher prices.

We tried to find out the position of DELL Laptop in the market by asking a question-

Page 23 of 35


24/35

What comes in your mind when you hear the word DELL Laptop? Like High Status,Durability, High Price, High Memory, Portability, Availability, High Battery Life,

Convenient to use.

Position of DELL Laptop on PeoplesMind

High Status

Availability

High Price

Durability

High Battery Life

High Memory

0%0%

9% 15% 29%

Portability

Convenient to use

Others

9%

10%

7%21%

Figure: positioning of the DELL Laptop on the peoples mind

According to our survey, we found that, majority of people (29%) said High Status comes intheir mind, 21% of total people said Durability, 15% of people said High Price, 10% of

people said Availability, 9% of people said High Battery Life and 9% Convenient to use.

DELL Laptop has to focus on its High Status and Durability of the laptop because

according to people s opinion their positioning depends mostly on Status and Durability ofthe laptop. Their High Price of laptops also plays a vital role here as 15% people gave their

opinion towards it.

Perceptual Mapping:

Perceptual mapping offers marketing managers a useful technique for measuring and

developing a product position. It takes consumer s perceptions of how similar various brandsor products are to each other and relates this perceptions to product attributes.

Through perceptual mapping we tried to show DELL Laptops position compared with

other brands in the market:

Page 24 of 35


25/35

Perceptual MappingAttributesPriceQuality

Column1Column2Column3Column4Column5 DELLHP/CompaqFujitsuTOSHIBAACER3.898305085 3.491525424 2.915254237 2.372881356 2.4237288144.254237288 3.644067797 2.593220339 2.440677966 2.406779661

HighQuality

DELL

HP/Compaq

ACER

TOSHIBA

Fujitsu

LowPrice HighPrice

LowQuality

Figure: Perceptual Mapping of Laptops

Based on our survey, we have completed our measurement and found some difference

between DELL Laptop and other brands. The measurement is shown in perpetual mapping.

From the above perpetual mapping, we can see that DELL Laptop has the best quality and

is more expensive than other brands. After DELL Laptop, HP/Compaq takes place in the

second best position from both the Price & Quality. Then Fujitsu, ACER and

TOSHIBA are in the third, fourth and fifth position respectively.

Page 25 of 35


26/35

So, now we can say that HP/Compaq and Fujitsu are the main competitors of DELL

Laptop. DELL Laptop falls in the portion of Good Quality and High Price. DELL

Laptop is not that much available around Dhaka. Only two authorized dealers are serving in

the whole country. so it is very inconvenient for people to visit dealer s stores. So people are

quite unhappy for it. Moreover, people face difficulty at getting after sales service whenever

they needed.

Probable Strategy:

DELL Laptop should emphasize on word of mouth by using Iconic-Rote that weoffer the best laptop.

So DELL should increase price by proposing augmented features.

DELL should increase the use of quality materials for increasing Durability.

DELL should increase the number of dealers.

3.3 Attitude:

An attitude is an enduring organization of motivational, emotional, perceptual, and cognitive

process with respect to some aspect of our environment.

3.3.1 Attitude component:

Measurement of cognitive component:

The component consists of the belief that the people have towards different laptops. To

measure the cognitive component towards DELL Laptop we asked consumer to place

belief about the best attributes of DELL Laptop and their Ideal Laptop in a semanticscale. To fully evaluate it, we also asked them to place their beliefs about HP/Compaq, as

they are very popular and have a position in the market from the very beginning. We

constructed the cognitive component measure like the following way:

High Status

High Durability

High Price

High Configuration

High Picture Quality

Portability

____ ____ ____ ____ ____

____ ____ ____ ____ ____

____ ____ ____ ____ ____

____ ____ ____ ____ ____

____ ____ ____ ____ ____

____ ____ ____ ____ ____

Low Status

Low Durability

Low Price

Low Configuration

Low Picture Quality

LessPortability

Page 26 of 35


27/35

BetterAfterSales Service ____ ____ ____ ____ ____ Low After Sales Service

The belief of customers towards ideal laptop:

Column1Attributes

StatusDurabilityPrice

ConfigurationPicture QualityPortability

After SalesService

Column2Weight

(%)0.30.10.20.10.10.10.1

Figure: Measuring weight

Based on our survey, people s opinion and our perception, for the Ideal Laptop, we gave30% weight to Status and 20% weight to Price. We gave equal weight for Durability,

Configuration, Picture Quality, Portability, and After Sales Service that is 10%. We gave

30% weight for Status because whenever people think of DELL Laptop they think about

status and because of status of their laptops they are referred by people s friends, family andassociates. We gave 20 % to price because one of the criteria of maintaining quality and

status is to maintain its price as no one would think a laptop as High Status if it is not High

Priced. We gave 10 % weight to other attributes as those come after Status and Price as theyare the pre-determinants for the list of probable buying options.

DELL LAPTOP ( Cognitive Component - Measuring Beliefs about Specific Attribute)Column Column Column

Column1Column5Column6 Column7Column8234

DurabilitConfiguratiPicturePortabilit After SalesAttributesStatusPrice

yonQualityyServiceTotal255237232243243229229

3.816666 3.8166666Average4.253.953.8674.054.05

7674.616666 4.8666666

I4.7174.76674.7174.733334.7767

A-I-0.467-0.817-0.85-0.6833-0.65-0.8-1.05|A-I|0.4670.81670.850.683330.650.81.05

5.317

Weight0.30.10.20.10.10.10.1Weighted

0.140.08170.170.068330.0650.080.105Average

Page 27 of 35


28/35

0.71

Figure: DELL Laptops Measurement of Cognitive Component.

As we know that the closer an attitude index calculated in this manner is to zero, the better isthe result. The total weighted average of DELL Laptop is 0.71. The weighted average of

DELL Laptops Status and After Sales Service are very high 0.14 and 0.105 respectivelywhich represents bad situation.

From measuring the cognitive components, we found that the difference between the Ideal

Laptop and DELL Laptop Status is 0.467, Durability difference is 0.8167, Price differenceis 0.85, Configuration difference 0.6833, Picture Quality is 0.65, Portability is 0.8, and After

Sales Service difference is 1.05. If we compare it to the Ideal Laptop, we find all are in bad

situation but the Price and After Sales Service are in worst situation.

HP/Compaq ( Cognitive Component - Measuring Beliefs about Specific Attribute)

ColumnColumnColumn1 Column2 Column3Column5Column7Column8

46AttributeConfiguratioPictureAfter Sales

StatusDurabilityPricePortabilitysnQualityService

Total237239210232243237244Average3.953.983333.53.8666674.053.954.066667

I4.7174.766674.71674.7333334.74.61674.866667A-I-0.77-0.7833-1.2167-0.86667-0.65-0.667-0.8|A-I|0.7670.783331.21670.8666670.650.66670.8

5.75Weight0.30.10.20.10.10.10.1

Weighted0.230.078330.24330.0866670.0650.06670.08

Average 0.85

Figure: HP/Compaqs Measurement of Cognitive Component.

If we compare DELL Laptops with HP/Compaq, we can see that the total weighted

average of HP/Compaq is higher than DELL Laptops that is 0.85. We can say that the

situation of HP/Compaq is much worse than DELL Laptops in the market.

Changing Cognitive Component:

A common and effective approach to changing attitudes is to focus on the cognitivecomponent. DELL Laptops can change the consumer s belief towards their product bychanging beliefs, shifts Importance and add beliefs.

Change Belief:

From the surveyed result, we can see that DELL Laptop has less efficiency in After Sales

Service. They have to change this belief. By establishing more service centers, DELL can

change consumer s belief about their After Sales Service and can especially mention theirefficiency on After Sales Service in their advertisement. Through giving repetitive

Page 28 of 35


29/35

advertisement on After Sales Service, people will start to change their belief towards DELLLaptop and will start to believe that they have efficiency on After Sales Service.

Shift Importance:

According to surveyed result, people think that although DELL Laptop has High Status but

it has less efficiency in After Sales Service. So if DELL Laptop focuses more on HighStatus by proposing that Owning DELL Laptop is a part of status. Through this concept

DELL Laptop may be able to grab more consumers by shifting their importance in Status.

Add Beliefs:

According to our surveyed result we found that, 13% people believe that DELL Laptop has

High Memory. So DELL can promote that if one wants to do corporate work they need high

memory which DELL has. By this way DELL can add a new belief.

1. Measure of affective component:

It is emotion and feeling of the customer to a particular service. They showed their

likings about DELL Laptop in the survey that is given below:

Measurement of affective component

StronglyStronglyAgre Neutra Disagre DisagreAgreeelee 2127651

201717

24245

8138

5135

325

StatementsI like the configuration of Dell Laptops.I am satisfied with the durability of "Dell"Laptops

Dell Laptops are affordableI like DELL Laptops

Table: Measurement of affective component

From the above table we can see that 27 people out of 60 people surveyed Agree

with the statement I like the configuration of Dell Laptops, 24 people also Agreewith the statement I am satisfied with the durability of Dell Laptops; 24 people

said they are Agree with the statement Dell Laptops are affordable; 17% peopleStrongly Agree with the statement I like DELL Laptops.The most noticeable thing is 13 of our surveyed people disagree with the statementDell Laptops are affordable; 13 people is a big number. So DELL Laptop has tofocus on their affordability.

Probable Strategy:

According to surveyed result, people think that although DELL Laptop has High

Status but it has less efficiency in After Sales Service. So if DELL Laptop focuses

Page 29 of 35


30/35

more on High Status by proposing that Owning DELL Laptop is a part of status.Through this concept DELL Laptop may be able to grab more consumers by

shifting their importance in Status.

Changing Affective Components:

It is increasingly common for a firm to attempt to influence consumers liking of its

brand without directly influencing either belief or behavior. If the firm is successful,

increased liking will lead to a tendency to purchase the brand should a need arise.Marketers use three basic approaches to directly increase affect: classical

conditioning, affect toward the ad itself and mere exposure.

Classical conditioning:

One way to directly influencing the affective component is through classical

conditioning. To change the affection of the customers we need to use classical

conditioning. DELL Laptop can use celebrity on their advertisement. When people

will see their favorite celebrity is using DELL Laptop, they will be convinced bythe advertisement. As they like the celebrity, they will like the advertisement and

through this way they may change their concept.

Affect toward advertisement:

Liking the advertisement can increase the tendency to like the product. DELL

Laptop can give their advertisement on billboard by using more bright color that caneasily attract more attention of consumers.

2. Measurement of behavior component:

A series of decision to purchase or not to purchase a product or to recommend it orother brands to friends reflect the behavioral component.

The behavioral component tries to predict the actual behavior of consumers that in

this case whether they are using DELL Laptop or not. This was measured by askingtwo questions:

1. Last time I used _________________ Laptop.

The result of the survey below:

Page 30 of 35


31/35

Laptop Used Last Time

DELL HP/Compaq Fujitsu TOSHIBA ACER

8%13%

7%

42%

30%

Figure: Laptop used last Time

Here, we can see that 42% of consumers last time consumed DELL Laptop, 30% ofconsumers last time used HP/Compaq and another 13% last time used TOSHIBA, 8% of

consumers last time used ACER, and 7% of consumers last time used Fujitsu.

2. Usually, I recommend ______________ Laptop.

Page 31 of 35


32/35

Laptop Suggested By People

DELL HP/Compaq Fujitsu TOSHIBA ACER

12%

10%

8%48%

22%

Figure: Laptop will be recommended by people

From our survey findings we can see that 48% people usually suggest DELL Laptop, 22%

people suggest HP/Compaq, 12% suggest ACER, 10% suggest TOSHIBA, and 8%

people usually suggest Fujitsu.

We can say that HP/Compaq is the main competitor of DELL Laptop.

3. What is the likelihood that you will buy Dell Laptops the next time when you purchase

Laptops?

Definitely will buy.

Probably will buy

May or may not buy

Probably will not buyDefinitely will not buy

Page 32 of 35


33/35

The result of the survey is given below:

What is the likelihood that you willbuy "Dell" Laptops the next timewhen you purchase Laptops?

12%12%

23%

29%24%

Definitely will buy Probably will buy

Definitely will not buy

May or may not buy

Probably will not buy

Figure: Likelihood of buying DELL Laptop.

According to our survey result, 29% customers opinion was May or may not buy, 24%Probably will buy, 23% people said they Definitely will buy the DELL and equally 12%

people said they Probably will not buy and Definitely will not buy.

Changing behavioral components:

Behavioral component cannot change directly. With the change of cognitive and affective

component, behavioral component may change.

Changing behavioral prior to changing affect or cognition is based primarily on operant

conditioning.

Operant conditioning:

It is the main source to change the behavior of the customers. The behavior component canbe changed based on operant conditioning. If DELL Laptop gives discount to the people

and after discount people may like it due to its augmented features. Finally people will

purchase the product with full price. Through this way DELL Laptop can change the

behavioral component.

Component Consistency:

A change in one attitude components tends to produce related change in other components.Marketing managers are ultimately concern with the influencing behavior. Nevertheless it is

often difficult to influence directly.

Consumer will often listen to sales personnel, attend advertisement, or examine package.

Marketers can therefore, indirectly influence behavior by providing information, music orother stimuli that influence a belief or feelings.

Page 33 of 35


34/35

Affective component(Yes, DELL is Durable)

Cognitive Component(DELL Laptop is

Durable)

Behavioral Component(Purchasing DELL

Laptop)

Figure: Component Consistency

4.0 Recommendation:

Dell, Inc. is an American multinational information technology corporation based in 1 Dell

Way, Round Rock, Texas, United States that develops, sells and supports computers and

related products and services. A lot of people of Dhaka City like the Dell-laptop for it high

status, durability, high price and high memory. But Dell-laptop has some limitations which

should be fixed to attract more consumers, to increase market share, and to build loyal

customers. Dell-laptop has to do the following marketing strategies.

Advertising:

Dell laptop should increase advertisement. Dell should introduce informative adds in

the technology related magazine and daily newspaper. Dell should also focus on

Billboard advertisement. Sometimes Dell can launch TV commercial.

Improvement of Features: According to customer s opinion, it should improve itsfeatures. Otherwise it will not survive in the competitive market and lose the young

customer segment.

Should be affordable: DELL Laptop price should be more affordable. Manypeople cannot purchase their laptop because of high price.

Page 34 of 35


35/35

Increase in product line: They should introduce laptops in its store. They have toexpand their product line, have to bring new products.

Convenience:

Baskin-Robbins is not available to the customers. It has only two authorized delear inDhaka which is located at IDB Vhabon. It has to contract with more delear in Dhakacity for the convenience of customers. As its target market is Upper middle class and

Middle class people, it can launch delearship in Gulshan, Uttara, Baridharaetc to catch

the target market.

5.0 Conclusion:

Dell, Inc. is an American multinational information technology corporation. Though

it has lots of limitations, it is liked by many customers due to high status and

durability.

6.0 BIBLIOGRAPHY

Books:

Consumer Behavior, Del I Hawkins, Rojer J. Best, Kenneth A. Coney,

Ninth Edition.

Principles of Marketing, Philip Kotler, Gray Armstrong, Eleventh Edition.

Marketing Management, Philip Kotler, Millennium Edition.

Website:

1. www.dell.com

2. http://www.naaptol.com

3. www.aponalo.com

4. www.wikipedia.org

it for mgrs

Documents

Transcript of it for mgrs