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MNM2605 ASSIGNMENT 02 SEMESTER 1 2023
- Institution
- University Of South Africa (Unisa)
THIS ASSIGNMENT CONTAINS ANSWERS FOR MNM2605 ASSIGNMENT 02 SEMESTER 1 2023
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NAME:STUDENT NUMBER:
MODULE CODE: MNM2605
UNIQUE NUMBER: 708748
ASSIGNMENT NUMBER: 02
DUE DATE: 05 MAY 2023
QUESTION 1
(a) Discuss any four (4) individual factors that will influence Julia’s decision as
to whether or not she will purchase a pair of Mahlangu L shoes. Provide a
practical example to illustrate each factor.
Motivation- these motivations can be physiological, psychological or environmentally
driven. More simply put, motivation is the driving force within individuals that pushes
them to action.
Perception- Perception refers to the entire process through which an individual
becomes aware of his or her environment and interprets it in such a way that it will fit
into his or her frame of reference.
Attitude- Customer attitude can be defined as the learned predisposition to behave in a
consistently favourable or unfavourable way towards market-related objects, events or
situations.
Lifestyle- Personality and lifestyle are also individual factors. The former refers to a
customer’s psychological characteristics that both determine and reflect how he or she
responds to his or her environment, while the latter refers to the customer’s way of living
Learning ability- Learning can be used by marketers who want customers to learn
about their particular product. Learning describes the process by which individuals
acquire purchase and consumption knowledge, as well as the experience that they
apply to future-related behaviour
(b) Using relevant practical examples, explain to the management of Mahlangu
L the seven (7) factors that can influence the spread (diffusion) of
innovation of the Mahlangu L brand.
According to Rogers (2003:3) there are factors that affect the diffusion (spread) of
innovation:
1) Fulfillment of perceived need- When the enjoyment obtained from the
innovation is clear in terms of meeting a need, the diffusion rate increases. In
1
, comparison to other game stations, such as the Sony Playstation, the Nintendo
WII includes capabilities such as strong new motion-sensing controllers and
utilises Bluetooth. As a result, customers will see the Nintendo WII as better
capable of meeting their needs, and it will be accepted more quickly.
2) Type of decision- Collective or individual decisions are made. Collective
decisions are made by multiple consumers, such as family members (mothers,
fathers, and children). Collective decisions may result in slower rates of diffusion
since family members may not have the same opinion about purchasing a new
product, such as a Nintendo Wii or a Sony Playstation. Individual decisions are
made only by the buyer, who is not required to consult with other consumers,
such as family members or friends. As a result, the speed of diffusion is faster in
this instance because less decision-making consultation is necessary.
3) Type of group- The rate at which innovation is diffused is determined by the
target market, as certain groups are more accepting than others. The youthful,
affluent, and highly educated market groups are more open to change and new
products, and will thus purchase the Nintendo WII, as opposed to the older
generation, which may be dubious of the new product.
4) Marketing effort- The marketing mix is made up of seven Ps, which are
activities carried out by the organisation to impact the pace of diffusion.
Marketers are expected to communicate product attributes to consumers, such
as features, quality, and benefits, using, for example, the 7 Ps: price, place (e.g.,
CNA), promotion (e.g., TV, magazines), product (e.g., Nintendo WII), people
(e.g., teenagers, young adults, and internal staff), process, and physical evidence
(e.g., layout, displays in store) to communicate the Nintendo WII, for example, to
the target market.
5) Perceived risk- Diffusion will be delayed if the risk of trying out the novel product
or service is considerable. These dangers can be either psychological or
financial. Financial risk comes when a product is pricey and cannot be refunded
to customers. A high-risk product is, for example, the purchase of a premium car
(such as a Mercedes-Benz). Once the consumer drives it out of the showroom,
its value depreciates, and the money paid for it is not refunded; it can only be
resold or traded in at a lower value. The same is true when purchasing a less
expensive car, such as a Toyota Corolla, when consumers face financial risk,
albeit less so than when purchasing a Mercedes-Benz because the purchase
price is lower. As a result, the Toyota's adoption rate will be faster than that of the
Mercedes-Benz.
6) Trial- The easy it is to conduct a low-cost or low-risk trial of the idea, the faster it
will spread. For example, when a new flavour of Jacobs Kronung coffee is
introduced, consumers are given sample sachets to try out the product.
Customers have no chance of losing money when testing out the product
because the trial sachets are free. This accelerates diffusion because consumers
can try the new product and will buy it if they are satisfied..
2
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