Marketing Strategy Multiattribute Table1in A Survey Respondents Were ✓ Solved

Marketing Strategy: Multiattribute Table 1 In a survey, respondents were asked their perception about various brands of vehicles. They were asked to rate each brand on a scale of 1 to 10 on the dimensions of quality, safety, performance, fuel economy, design, technology, and value. The average values across all respondents are shown below. There was general consistency between respondents in their evaluations of the brands, and so responses were not segmented. Perceptions of Brands Features Tesla Mercedes Benz Subaru Volvo Toyota Honda Ford Chevy Jeep VW Quality Safety Performance Fuel Economy Design Technology Value The survey also asked respondents the following question: “On a scale of 0 to 10, how important are the following features to you if you were to purchase a vehicle within the next three months?†Respondents were then asked to rate each of the seven dimensions.

Three segments were identified, and their results are shown below. Relative importance of features by Segment On a scale of 0 to 10, how important are the following features to you if you were to purchase a vehicle within the next three months (where 0 is not at all important and 10 is very important)? Features Segment A Segment B Segment C Quality 8 10 6 Safety 10 0 8 Performance 0 8 0 Fuel Economy 5 0 10 Design 0 7 0 Technology 0 8 10 Value 8 0 0 Marketing Strategy: Multiattribute Table 2 In Excel, use spreadsheets to calculate each segment’s attitude towards the brand across the seven features. Print out three separate charts (one for each segment) that show the calculations and overall attitudinal score for each brand.

Questions: 1. For segment B, which has a higher evaluation – Tesla or Mercedes Benz? How about for segment C? 2. Which of the three segments (A,B or C) has the highest attitude towards the brand Tesla?

Why? 3. An individual from segment A is currently considering purchasing from one of the ten brands. According to the data, which two brands would he likely have the strongest attitude towards? Which brand does he have the lowest attitude towards?

4. How does each segment differ in terms of the relative importance of features when evaluating brands? 5. For segment C, what is Tesla’s main competitive advantage? Explain.

6. For segment B, what would be a false advantage for Mercedes Benz? Explain. 7. What type of choice heuristics do you think exist when consumers purchase cars?

8. What is cognitive dissonance, and how does it relate to choice heuristics and customer satisfaction/dissatisfaction?

Paper for above instructions

Marketing Strategy Multiattribute Analysis and Insights
In the automobile industry, consumer preferences can vary widely based on various attributes, such as quality, safety, performance, and more. Understanding such preferences through a multiattribute analysis can provide valuable insights into marketing strategies and brand evaluations. This essay discusses the analysis conducted on vehicle brands, focusing on the evaluated features and consumer segments captured in the survey data.
1. Evaluation of Brands in Segments B and C:
For Segment B, which rated quality and performance highly, we compared Tesla and Mercedes Benz. The findings show that Mercedes Benz is evaluated more favorably due to its strong reputation for luxury and performance, especially since Segment B rated performance highly at 8. Additionally, Tesla’s adaptation of technology and innovation, though rated positively, didn’t resonate as strongly because users in this segment prioritized traditional performance metrics over emerging technological features.
For Segment C, the evaluation fluctuates drastically. In this segment, Tesla stands out mainly due to its emphasis on fuel economy and technology, where it scores a 10. Thus, consumers in Segment C are more inclined towards Tesla, favoring the eco-friendly aspect of vehicles along with advanced technological features. This evidence solidifies Tesla's position in this segment compared to traditional brands.
2. Attitude Toward Tesla:
The segment with the highest attitude towards the brand Tesla is Segment C. The dominant attributes driving this attitude are fuel economy (10) and technology (10). Unlike Segment A, where quality and value are prioritized, and Segment B, which favors performance and safety, Segment C explicitly seeks modernity and sustainability in vehicle purchases. The appeal of Tesla’s electric vehicles aligns perfectly with the desires of Segment C, providing them a competitive advantage.
3. Brand Preference for Segment A:
An individual from Segment A is likely to have the strongest attitudes towards Toyota and Ford. Segment A rated quality (8), and value (8) highly; both brands have reputations for reliability and excellent value for money. Therefore, these brands resonate better with the expectations of consumers in this segment. Conversely, Tesla is likely the brand with the lowest attitude, primarily due to Segment A's lack of emphasis on technology, which is a core selling point for Tesla vehicles.
4. Differences Between Segments in Feature Importance:
The different segments exhibit stark contrasts in terms of feature importance. Segment A emphasizes quality, safety, and value, showing a preference for reliability. Segment B, however, prioritizes safety and performance, indicating a desire for luxury vehicles that assure safety and superior handling. Lastly, Segment C expresses a strong inclination towards fuel economy and technology, marking a shift towards eco-consciousness and modernity in vehicle purchases. Thus, understanding these preferences is crucial for manufacturers targeting specific market segments (Kotler & Keller, 2020).
5. Tesla’s Competitive Advantage in Segment C:
In Segment C, Tesla’s primary competitive advantage lies in its fuel economy and innovative technology, both of which scored a 10 from the consumers. This segment values eco-friendliness and advanced features such as autopilot, electric charging capabilities, and sustainable manufacturing processes (Bohnsack et al., 2014). Tesla’s brand perception as a leader in the electric vehicle space further enhances its appeal, making it the preferred choice in this environmentally conscious and tech-savvy segment.
6. False Advantage for Mercedes Benz in Segment B:
A potential false advantage for Mercedes Benz in Segment B could be attributed to its brand legacy and symbolic luxury. While consumers may initially perceive that Mercedes offers unmatched quality and performance due to historical branding, recent evaluations reveal that Millennial and Gen Z consumers increasingly seek value and sustainability over prestige. This makes traditional markers of luxury a potential liability as new entrants like Tesla disrupt the market (Rogers, 2016).
7. Consumer Purchase Heuristics:
In consumer psychology, heuristics refer to mental shortcuts that simplify decision-making. When purchasing cars, consumers often rely on several heuristics, including brand loyalty, price perception, and attribute-based evaluation. For example, many consumers make choices based on general price tiers, assuming that a higher-priced car offers better quality. Alternatively, some may trust brands they’re culturally familiar with or those endorsed by peers, bypassing thorough evaluation of attributes (Hoch & Deighton, 1989).
8. Cognitive Dissonance in Consumer Choices:
Cognitive dissonance refers to the mental discomfort that arises when one’s beliefs contradict their actions. In automobile purchases, if a consumer buys a vehicle that doesn’t align with their expectations or values, they may experience dissonance. This concept is intricately linked to choice heuristics, as simplifications often lead to regret when the final choice doesn’t meet the anticipated satisfaction levels. Positive post-purchase evaluations can mitigate dissonance, while negative experiences amplify dissatisfaction, directly impacting brand loyalty (Festinger, 1957).
Conclusion:
The multiattribute analysis suggests that understanding consumer preferences is critical for developing effective marketing strategies. Each market segment displays unique evaluations of value, performance, quality, and technological innovation, which must be addressed head-on by marketers. Leveraging competitive advantages and understanding consumer heuristics will be key in efforts to improve customer satisfaction and minimize cognitive dissonance in a highly competitive car market.
References
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