Question One: Approaches to Consumer Learning
Learning is a continuously evolving process through which individuals gain consumption and purchase knowledge, which in turn influences consumer behavior. Information may be acquired intentionally or incidentally. Learning may only occur if consumers are motivated, cues that serve to guide consumer expectations, learners’ responses to cues and reinforcement of desirable responses. According to the behavioral learning theories (classical conditioning, instrumental conditioning and modeling/observational theories), assert that observable responses to external stimuli result in learning. These theories are reliant on the response and conditioning stimuli, by which relationships are generated across different situations in order to draw and reinforce a desired response in the consumer. Behaviorist theories are least concerned with the actual learning process, which is simply concerned as simply responses to stimuli. These theories are heavily practiced in marketing that is founded on repetitive exposure of the client to advertising material in order to increase the strength of the conditioned stimulus and the unconditioned stimulus. The ability to choose a differentiated stimulus from other stimuli and stimulus generalization is also leveraged by marketers to push their products (Leckie, 2014, Lesson 5).
On the other hand, cognitive learning approaches are founded on the fact that consumers are rational decision makers that actively/selectively participate in the learning process. Effectively, cognitive learning is focused around the manner, in which information is stored and retrieved from memory. Accordingly, consumers’ receptiveness to information is shaped by brands, differentiation, attitudes, social class, lifestyles, past experiences, personality, and reference groups among other factors. The cognitive learning theory has up to eight related factors that influence the effectiveness with which learning may occur. They include the environment, behavioral capability, self-control, expectancies, expectations, situation, observational learning as well as reinforcements. These factors offer opportunity windows and social support that is necessary for the development of environmental perception and healthful forms. Marketers may exploit them to not only target consumers, but also understand their behavior.
Fetch TV Learning Model
Fetch TV would be best-placed using behavioral learning theories to induce consumers to buy into the new product. Its approach should focus on affective and conative tricomponent models to gain interest and action to induce clients to purchase or evaluate the product. If they are satisfied, they will stay. Fetch TV’s competitive advantage over traditional and cable television, as well as other online pay TV rivals lies in faster high-speed video streaming technology as well as the fact that it offers a wide selection of live channels. Other advantages that can aid diffusion include trialability and observability.
On the other hand, it is relatively unknown and incompatibility with the existent internet technologies, not least because many internet users in Australia cannot use Fetch TV’s services fully even if they sign up with an ISP (Turner, 2013; Leckie, 2014, Lecture 9). However, the rapidly changing technology and the novel nature IPTV is such that most consumers are unaware of the product. Since consumers are already best served by the available television technology and options, they are unlikely to reasonably want another service based on a completely different platform. Even if they wanted to, Fetch TV does not have the resources to mount marketing campaigns that would achieve this. The most effective way is to rely on impulse and irrationality to hook and keep prospective clients. The solution is to offer them free trials, advertising and other direct stimuli, which will in turn create and reinforce affective experiences that would lead to the purchase decision. This is not least because with IPTV, customers use their own infrastructure (broadband service) and thus do not require additional hardware from Fetch TV, which will make free trials costly.
Question 2
Targeting families means that the company not only has to target individual decision-makers within the family, but also the collective decision-making by families. Given the comparatively low expenditure on pay TV, the purchase decision is a low-involvement decision, which is however, characterized by a high degree of family decision-conflict because every member of the family expects their choice services and in the manner (platforms) that they need. The challenge in this regard is the ability to appeal to the various members of the families. This requires an understanding of their respective socialization (morals, goals, manners, general values and trends), knowledge and sources of information.
It also requires an understanding of the nature and family sizes. Parents and adults members of the families are buyers, but all members of the family will use the product, and all may play the role of influencers. Further, the decision is subject to other reference groups within the social situation of the family, including friends, neighbors, social class, subculture and culture. While parents (adult family members) make the ultimate purchase decisions with regard to TV, Fetch TV is keen to grow its future market, which is why it is just as best addressing itself to the minors in the family too. Further, families interact and influence each other in reaching purchase decisions, even though they all perform different roles from initiation through to purchase and after-sale evaluation. It is not unlikely for the entire family to participate in making a purchase decision (brand, time of purchase, which service to buy and if the service should be purchased). Effectively, Fetch TV’s marketing processes need to build onto these conditions.
Recommendations
Firstly, Fetch TV needs to render its product family-friendly, by including a huge variety of content that would appeal to various segments of the family. Personal factors (age, lifecycle stage, occupation, income, self-concept and personality) influence decision-making, attitudes, tastes, etc. This will ensure that the service not only appeals to the buyer, influence and users of the service, but also, once they buy into the service they will have positive reinforcements. Further, its marketing efforts should be targeted at different members of the family according to their roles.
References
Kotler, P., Bowen, J., & Makens, J. (2006). Marketing for Hospitality and Tourism. Upper Saddle River: Pearson Prentice Hall.
Leckie, C. (2014). MKT20001/20020/20025: Consumer Behaviour. Swinburne University of Technology.
Perner, L. (2011, Aug 17). Consumer Behavior: The Psychology of Marketing. Retrieved Oct 12, 2014, from http://www.consumerpsychologist.com/
Peter, P., & Olson, J. (2005). Consumer Behavior and Marketing Strategy, Seventh Ed. New York: McGraw-Hill Higher Education.
Turner, A. (2013, Aug 15). FetchTV threatens Foxtel's dominance. Retrieved Oct 12, 2014, from http://www.smh.com.au/digital-life/digital-life-news/fetchtv-threatens-foxtels-dominance-20130814-2rv20.html
