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MARKETING ASSESSMENT 3 CASE STUDIES AND QUESTIONS
There are two (2) case studies in this Assessment. Each case study has a series of questions. You must answer all questions in both case studies. Questions are worth different amount of marks, which total 20 marks per case study.
Your answers should be presented in an Essay format structured by following the order of questions for each case study (e.g. Question 1 would be the Introduction and the last Question would be the Conclusion). Each Essay should be approx. 800-1,000 words in length (i.e.: approx. 2 pages typed text); therefore, for the two (2) case studies, you are required to write between approx. 1,600-2,000 words (3-4 pages of typed text) in total. No references are required.
Please write your answers to these questions in a MS Word document
Please turn over for Case Study 1 and questions, followed by Case Study 2 and questions. There are 7 pages in total.
Disclaimer: Please note that most of the information presented in these case studies is not real and has been created for the purposes of this Assessment.
CASE STUDY 1: ROBBIE’S FIRST CAR PURCHASE (WORTH 20 MARKS)
Robbie has recently obtained his driver’s license and, in anticipation of his 18th birthday in a few weeks’ time, he is currently in the market to purchase his first car. Year 12 has finished and he is awaiting his ATAR results. He knows he did well and is likely to get into Uni. He is really looking forward to going away with his friends – they are planning on going down South on a big camping and fishing trip, so Robbie really wants to have his car by the time the trip comes around and before Uni starts. He is very excited as he’s been saving up since Year 8 for his dream car and he currently has his eyes set on a new Toyota Hilux SR5 (4×4) which he knows is about $57,000 from the new Toyota car dealer down the road from his house. He had also recently seen the car on The AFN Fishing Show, driven by one of its long-time cohosts, Nigel, who is a well-known Australian fishing personality. Nigel has written many magazine articles and authored the “Southeast Queensland Fishing Atlas” too.
Robbie has managed to save up $20,000 by doing odd jobs like mowing the neighbour’s lawn, washing cars and working at Bunnings on the weekends. He had been very motivated to save what he earned as his parents – Chris and Marie – with whom he still lives, had promised to contribute towards his new car by matching the amount he saved up. Robbie’s grandma – Valerie – is excited for him too. She has watched him grow over the years into the fine young man he’s become, she anticipates he did well in his Year 12 exams and she has been thinking of contributing towards his big purchase too. Valerie has been waiting until the ATAR results come out to gift Robbie the money she’s saved up for him. Robbie does not know his grandma is intending to give him some money. Like his parents, his grandma has been very vocal about what sort of car he should purchase and her advice has been that the car should be “the safest and the most fuel efficient car you can get”. His parents have insisted on coming along to look at cars with Robbie so that they too could chat with the car dealers about car options.
Robbie has been checking out a few different sources to compare and contrast different car makes and models too; he has looked at carsales.com.au, carsguide.com.au, gumtree.com.au, and he’s been chatting to his friends, and shared about his ideas on Facebook and Instagram. As a result of his research, he has become aware of two car options that he has not heard of before: Isuzu D-Max and Great Wall Steed. He has taken a few different cars for a test drive and has really liked the Ford Ranger, Holden Colorado, and Mitsubishi Triton. Each has its own pros and cons (Table 1), and the decision has become really difficult for Robbie to make. He is feeling the pressure from his friends too, as most of them have new utes and Robbie is the last one to purchase a car. He feels he needs to get a new ute, just like his friends. His friends are not into brands like Great Wall or Isuzu. Most of them have Toyota, Holden or Mitsubishi. His family has always owned Ford cars, and, one could say, they are Ford-brand loyal. His dad, Chris, is keen for Robbie to follow suit and purchase a new Ford ute.
Table 1: New Cars Comparison
Make & Model
Price
Warranty
Safety Rating
Fuel Efficiency
Engine Type
Toyota Hilux
$57,000
3 years
5 stars
7.6L/100km
2.8 L Turbo
Ford Ranger
$67,000
3 years
4 stars
7.4L/100km
2.0L Turbo
Great Wall Steed
$19,999
2 years
Not available
9.0L/100km
2.0L Turbo
Isuzu D-Max
$43,000
6 years
5 stars
7.9L/100km
3.0L Turbo
Holden Colorado LTZ
$51,000
6 years
5 star
9.0L/100km
2.8L Turbo
Mitsubishi Triton
$20,000
5 years
5 stars
10.9L/100km
2.4L
Robbie has been chatting about his intent to purchase his first car to his next door neighbour, Dan, who, coincidentally, is a salesperson at a used car dealership. Dan has been giving Robbie tips about purchasing a car and has encouraged Robbie to consider purchasing a used car rather than a new one. Dan said that Robbie could get a Toyota Hilux in really good condition with relatively low kilometres and only six years old, for about $20,000. He also said that most of the other cars Robbie has been looking at would be at least 30% less in price if he purchases them from a used car dealer. Dan’s argument was that new cars decline in value rapidly and, given that Robbie and his girlfriend – Ella have been an item for a long time, Robbie might soon want to move out from his parents’ house, and might therefore want to consider using some of the money he had saved up for the car as a deposit for his first home instead. This was music to Robbie’s ears as he is really looking forward to having his own place one day. He knows that times are tough and that after the Australian Bushfires and the Covid-19 crises, Australia is currently in a recession, with low consumer confidence driving people to save, rather than spend their hard earned cash.
The ATAR results come out a day before Robbie’s 18th Birthday and Robbie gets the great news that he got accepted into Edith Cowan University to study Bachelor of Science (Exercise and Sports Science). Everyone in the family is ecstatic for him. His grandma, in particular, is extremely happy that Robbie got into University to study what he is passionate about, and she decides to match his parents and gifts him $20,000! Robbie is extremely grateful, knowing that this money will give him lots of options to start his adulthood. However, Robbie’s course is only offered at the ECU Joondalup campus, which, from where Robbie lives (Kalamunda) is a bit of a drive. Coincidentally, Robbie’s girlfriend, Ella, also got into the course she had hoped for – Marketing – and her course is also offered at ECU Joondalup.
Please refer to the case study above and answer the following questions in your Essay:
Question 1: There are three types of decision making processes that Robbie could follow in this situation. Please identify, define and describe each type. In describing each type of decision making process, please give details and examples based on Robbie’s situation above. (4.5 marks)
Question 2: As Robbie evaluates and considers the various car options available to him, he thinks about the car brands he was aware of prior to looking at any information or consulting with anyone about his purchase, then he thinks about the brands his friends like and do not like, as well as what his family’s preferences are. Please identify and describe the three types of ‘sets’ of brands that Robbie would be subconsciously sorting his options into during his purchase decision making. Give brand examples from Robbie’s case above (3.5 marks)
Question 3: Who are the key influencers in Robbie’s purchase decision making? Identify and describe each one in terms of which reference group they belong to and the type of power they have in Robbie’s decision making. (4 marks)
Question 4: Give three factors that would be important in a consumption situation. Explain how a car dealership could ‘manipulate’ the consumption context to ensure that Robbie makes a purchase. (4 marks)
Question 5: In conclusion, if you were Robbie, what would you do? Explain by referring to the decision making rule you would apply and outlining what evaluation criteria you would consider when deciding which car to purchase. (4 marks)
– Case Study 2 starts on the next page –
CASE STUDY 2: HARLEY DAVIDSON COMMUNITY (WORTH 20 MARKS)
“In 1903, out of a small shed in Milwaukee, Wisconsin, four young men lit a cultural wildfire that would grow and spread across geographies and generations. Their innovation and imagination for what was possible on two wheels sparked a transportation revolution and a motorcycle culture that would make Harley-Davidson one of the most recognized and revered brands in the world.” (harleydavidson.com).
Harley Davidson is an American motorcycle brand. It manufactures and sells a range of distinctive and customizable motorcycles that feature leading-edge styling, innovative design, distinctive sound, and superior quality (harley-davidson.com). They offer customers riding experiences, training and events; motorcycle parts and accessories, and riding apparel and gear. Its ‘Harley Owners Group’ (https://www.harley-davidson.com/au/en/owners/hog.html) is a great example of a successful, brand-driven community for enthusiasts of its product – motorcycles. The only requirement to become a HOG member is that the candidate must own a Harley-Davidson motorbike. The community has been set up offline in the early 1980’s and extended to online in the early 2000’s. Buyers are encouraged to join local chapters, they can attend meetings and events, they share information about discounts, bike issues or best road trip ideas. These activities don’t just help with bike maintenance, they also create support and a real sense of belongingness. In this community, HOG’s members network, participate in discussions and meaningful community activities with others like them. It is not unusual to find HOG members buying each other gifts and add-ons for their bikes. They extend their online networking into an offline community by meeting up and going on trips together in real life.
The HOG has been referred to as an exemplar online brand community.
Please refer to the case study above and answer the following questions in your Essay:
Question 1: Online Brand Communities, such as the HOG, present many advantages for brands and many opportunities for their consumers. By using the HOG as an example, explain what an online brand community is and outline what benefits such a community can present for Harley Davidson and for its consumers. (4 marks)
Question 2: Explain what Social Identity Theory (SIT) is and how it can help us to understand consumers’ motivations for joining and participating in an online community such as the HOG. (5 marks)
Question 3: Subcultures are prevalent in our society and underpin the foundations of many brands. Would the HOG classify as a subculture? If so, what type of subculture would its members belong to? If not, why not? (4 marks)
Question 4: Would you considerHarley Davidson products ‘in’ (i.e. are they trendy?) If so, how do you know they are trendy? If not, how could they become trendy? Explain by referring to the Culture Production Process and outline what role the HOG members would play in this process. (7 marks)
– End of Assessment –
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