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MKTG12301 Consumer and Buyer Behaviour Absolut Vodka Consumer Behaviour Analysis Rafi Chowdhury Niv Barhom Maddison Tanner Elouise Hill Patricio Garrido-Lecca

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MKTG12-­‐301  Consumer  and  Buyer  Behaviour  

Absolut  Vodka  Consumer  Behaviour  Analysis  

Rafi  Chowdhury  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Niv  Barhom  

Maddison  Tanner  

Elouise  Hill  

Patricio  Garrido-Lecca

  Page  2  

 

Table  of  Contents  

Target  Market.................................................................................................................................. 3  

Perceptual  Map............................................................................................................................... 4  Modern  Lifestyle  vs.  For  Everybody....................................................................................................... 4  Real  Russian  vs.  Fancy............................................................................................................................ 4  

Internal  Influences ........................................................................................................................ 5  Perception ............................................................................................................................................. 5  Motivation ............................................................................................................................................. 6  Personality ............................................................................................................................................. 6  Memory ................................................................................................................................................. 7  

External  Influences........................................................................................................................ 8  Situational  Influences ............................................................................................................................ 8  Reference  Groups  and  Peer  Influences ................................................................................................. 9  Social  Class........................................................................................................................................... 10  

The  Decision  Making  Process ..................................................................................................11  Decision  Making  and  Choice ................................................................................................................ 11  Decision-­‐Making  Perspective............................................................................................................... 11  Decision-­‐Making  Approaches .............................................................................................................. 12  Need  Recognition,  internal  search,  and  the  consideration  set............................................................ 12  Evaluation  of  Alternatives.................................................................................................................... 13  Consumer  Choice................................................................................................................................. 14  Post-­‐Choice  Evaluation ........................................................................................................................ 16     ............................................................................................................................................................ 16  

References ......................................................................................................................................18    

 

 

 

 

 

 

  Page  3  

Target  Market  Absolut  Vodka  was  established   in  1879   in   Sweden,   and   is   currently   the  world’s   fourth  best-­‐selling  spirits  brand   (The  Absolut  Company,  2012).   The  brand  markets   itself  on   innovation  and   creativity,  with  an   interactive  website  and  web  blog  featuring  cocktail   recipes,  collaborations  with  artists  and  

industry   professionals   and   coverage   of   festivals   such   as   Coachella.   Absolut’s   product   offering  stretches  far  beyond  the  beverage  alone,  as  the  brand  markets  a   lifestyle  through  the  product  and  aims  to  address   the  needs  of   the  modern  vodka  consumer.  As  Absolut  Vodka   is  a  well-­‐established  

international   brand,   our   analysis   focuses   on   the   Australian   customer   demographic   and   looks   at  consumer  behaviour   in  the  context  of   retailer  purchasing,  such  as   liquor  stores,  rather  than  within  nightclubs.    

Geographic   • Region:  Metropolitan  areas  with  Australia;  Brisbane,  Sydney,  Melbourne,  Perth,  Adelaide,  Canberra  

• Density:  Urban  and  suburban    Demographic   • Age:  18  –  35  years  

• Gender:  Male  &  Female  • Life  Stage:  Young  adult,  single  or  married,  students,  young  

business  men  and  women  • Annual  Income:  Between  $20,000  (low)  to  $60,000  (average)    • Ethnicity:  Applicable  to  all  ethnic  backgrounds  • Occupation:  Students,  entry  level  business  men  and  women,  

casual  or  part  time  workers  Psychographic   • Personality:  Artistic,  creative,  innovative,  sociable,  modern,  

outgoing,  adapt  to  social  trends,  easily  influenced  by  peers  and  reference  groups  

• Motives:  Having  fun,  socialising,  participating  in  situations  that  provide  a  creative  outlet  

• Lifestyles:  Student,  up  and  coming  individuals,  young  business  men  and  women,  busy,  social  drinker,  party-­‐orientated,  hedonistic,  influential,  encompass  the  ‘work  hard,  play  hard’  notion  

Usage   • Absolut  Vodka  targets  medium  to  heavy  users,  with  its  abstract  advertising  campaigns  that  show  no  real  benefits  of  the  product,  but  more  exemplifies  the  lifestyle  associated  with  consuming  it  

• This  type  of  marketing  effort  would  be  ineffective  to  new  users  who  have  not  sampled  the  product,  unless  they  were  intrigued  by  the  lifestyle  or  image  that  is  associated  with  drinking  Absolut.  

Benefits   • Relaxation  • Socialise  with  friends  • Mix  cocktails  • Portray  a  particular  image  • These  all  provide  the  customer  with  hedonic  value  

 

  Page  4  

Perceptual  Map  

 

 The   vodka   market   is   highly   competitive,   with   consumers   often   segmenting   various   products   by  perceived   characteristics.   There   are   four   standout   consumer   perceptions   that   provide   the   most  

value  for  marketers  to  differentiate  Absolut  from  its  competitors.  The  x-­‐and  y-­‐axes  of  this  map  each  represent  key  dimensions  that  consumers  use  to  separate  competing  vodkas.    

Modern  Lifestyle  vs.  For  Everybody    The   y-­‐axis   separates   vodka   characteristics   based   on   how   modern   and   stylish   or   average   and  

mainstream   Absolut   is   perceived   among   competitors.   While   Absolut   maintains   an   affordable,  middle-­‐range   pricing   strategy,   it   also   upholds   a  modern,   trendy   edge   over   its   competitors.   Vodka  products   that   are   priced   higher   are   perceived   as   premium   and   luxurious.   Vodka   brands   that   are  

priced  in  a  medium  price  range,  will  position  themselves  as  stylish  since  they  cannot  be  perceived  as  luxurious  due  to  their  pricing  strategy.  Low-­‐cost  vodkas  serve  as  a  functional  product,  with  little  edge  or  style.  Absolut’s  current  positioning  is  in  a  highly  competitive  quadrant,  due  to  the  current  influx  of  

medium  range  priced  vodkas.  Absolut  is  perceived  to  be  trendy  and  more  upmarket  than  lower  cost  vodkas.   It   is   Absolut’s   various   range   of   flavoured   vodka’s   that   gives   the   brand   a   stylish,   young  personality  that  targets  not   just  any  ordinary  person.  Opportunity   for  Absolut  exists   in  the  top-­‐left  

quadrant,  due  to  the  lack  of  trendy,  masculine  Russian  vodkas  on  the  market.  

Real  Russian  vs.  Fancy  The  x-­‐axis   identifies  product  offerings  based  on  how  masculine  or  feminine  the  vodka  is  viewed  by  consumers.  The   taste  of  Absolut   is  perceived  as   smooth  and   fancy,  which   is  often  associated  with  femininity.   A   competitor   like   Russian   Standard,   has   a   strong,   clear   taste   that   is   acquired   and   not  

usually  mixed  unlike   its   counterparts.  Russian  vodkas  are  perceived  as  masculine,   since   the   strong  taste  on  its  own  is  less  likely  to  be  consumed  by  a  fancy  cocktail  drinker.  Fancy  vodkas  are  commonly  mixed   with   cocktails   and   often   attain   product   placement   and   advertisements   in   nightclubs.   Real  

Y  

X  

Modern  Lifestyle  

For  Everybody  

Fancy  Real  Russian  

  Page  5  

Russian  vodkas  are  targeted  towards  more  ‘serious’  vodka  drinkers  who  enjoy  the  beverage  without  any  additional  mixers.  While  there  is  opportunity  for  Absolut  in  the  bottom-­‐left  quadrant,  the  brand  avidly  promotes  its  country  of  origin  Sweden,  which  would  mean  the  entire  marketing  mix  would  be  

need   to   adjusted   if   the   brand   endeavoured   to   position   itself   as  masculine,   Russian   vodka   that   is  affordable  for  everyone.  

Internal  Influences  

Perception  The   brand   perception   of   Absolut   Vodka   is   what   sets   the   company  apart  from  its  competitors.  Consumers  perceive  the  product  as  a  part  

of   an   exclusive,   creative,   culture.   Through   Absolut’s   artistic  advertising   campaigns,   consumers   may   want   to   feel   a   part   of   an  exclusive   group   of   society   who   is   perceived   to   be   trendy,   hip   and  

creative.   This   feeling   of   belonging   and   culture   creates   a   brand  perception  that  extends  beyond  the  vodka  itself.  

 Exposure   of   the   product   occurs  when   the   consumer   senses   Absolut  by  using  one  of  the  five  human  senses.  Consumers  may  be  exposed  to  Absolut  through  advertising  campaigns  featured  in  magazines  and  online  banners  or  may  taste  the  product  in  a  bar  or  restaurant.  

 The   attention   of   the   consumer   is   given   to   Absolut   vodka   once   they   view   the   advertisement   or  sample   the   product.   Full   attention  may   be   not   be   given   if   an   advertisement   is   overlooked   or   the  

vodka   product   is  mixed   in  with   other   spirits,  which  may   occur   is   the   consumer   is   exposed   to   the  product  through  drinking  a  cocktail.    

The   comprehension   stage   of   the   perceptual   process   is  when   consumers   derive  meaning   from   the  information   received   after   being   exposed   to   Absolut   vodka.   The   experience  may   be   perceived   as  

positive,   which   can   also   be   influenced   by   several   external   factors.   A   perception   about   Absolut   is  created  after  the  exposure,  attention  and  comprehension  phases  are  complete.  Consumers  may  experience  the  following  possible  reactions  when  comprehending  Absolut  product  

range:    Assimilation:   Consumers   recognise   the   Absolut   product   range   as   a   part   of   the   vodka   product  

category.  Accommodation:   Consumers   recognise   Absolut’s   product   range   of   vodka   features   fruity   and  abstract   flavours   that   other   products   within   the   same   category   do   not   have.  

Contrast:  Consumers  make  the  decision  to  confirm  whether  Absolut  Vodka  has  enough  in  common  within  their  prospective  perceptual  needs.    

Once   a   consumer   has   been   exposed   to   Absolut   Vodka,   whether   it   be   in   a   nightclub   or   through  reference   groups,   consumers   may   experience   the   Mere   Exposure   Effect   unintentionally   have   an  underlying  preference  for  the  beverage,  over  its  competitors.  

   

  Page  6  

Motivation  Consumers   purchase  Absolut   Vodka   for   hedonic   reasons.  Absolut   markets   the   product   around   the   experience  associated   with   consuming   the   vodka,   which   on   many  

occasions  is  done  within  a  social  environment.  Consumers  purchase   Absolut   for   personal   satisfaction,   gratification  and  the  experience  associated  with  drinking  the  beverage.  

A   consumer’s   need   recognition   to   purchase   Absolut  products  is  located  reasonably  high  on  Maslow’s  Hierarchy  of  Needs.  The  consumer  must  have  satisfied  physiological,  

safety   and   security   needs,   before   they   would   consider  purchasing   Absolut   products.   A   consumer   may   purchase  Absolut  Vodka  for  belongingness  and   love  needs,   if   they  wish  to   fit   in  with  their   friends   in  a  social  

situation.    

Regulatory   Focus   Theory   can   be   used   to   determine   the  motivation   of   Absolut   Vodka   consumers.  Absolut  Vodka  uses  a  promotion  focus  to  orient  consumers  towards  the  pursuit  of  their  aspirations  and  ideas.  Rather  than  Absolut  promoting  the  vodka  to  prevent  you  from  sobriety,  which  would  be  a  

prevention   focus,   the   consumer   is  motivated   by   the   appeal   of   purchasing   a   trendy   vodka   to   feel  cultured  and  sophisticated;  exemplifying  Absolut’s  strategic  promotion  focus  of  the  product.    

Personality  The  consumer  of  Absolut  Vodka  can  be  described  as  “value-­‐driven  shoppers,  willing  to  pay  more  for  products   they   feel   are   relevant   and   –  what   is   becoming   a   hot  marketing   buzz  word   –   authentic”  (Krashinsky,  2013,  para.11).  

 

A  common  method  to  segment  consumers  by  personality  traits  is  the  VALS  segmentation  approach.  Consumers   of   Absolut   Vodka   are   innovative,   creative   and   open   to   new   ideas.   The   innovativeness  trait  is  highly  relevant  for  Absolut  consumers  as  this  type  of  consumer  can  be  defined  as  “generally  

dynamic,   curious   and   often   young,   educated   and   relatively   affluent”   (Babin   &   Harris,   2014).   The  Absolut   consumer   also   exemplifies   innovation   through  mixing   up   cocktails   from   one   of   the  many  flavoured  editions  that  are  available.  Image  is  very  important  to  this  type  of  consumer  as  outlines  in  

the  VALS  segmentation  approach.  Absolut  consumers  can  also  be  described  as  ‘experiencers’  as  they  are  generally  young,  impulsive,  and  enthusiastic  and  thrive  on  excitement.  

  Page  7  

 The   Absolut   Vodka   consumer   is   also   defined   under   the   ‘openness   to   experience’   trait   within   the  Five-­‐Factor  Model.  Absolut  Vodka  encourages  its  consumers  to  be  creative,  embrace  artists  as  they  

claim  “Absolut  has  turned  partying  into  an  art  form”  (Absolut,  n.d.,  para.1).  Other  Absolut  consumer  traits  can  be   identified  as  extroversion  and  conscientiousness,  due   to   the  nature  of   social  drinking  

situations,  consumers  of  Absolut  are  often  extroverted  and  outgoing.    

 

 

 

 

 

 

Memory  Absolut  Vodka’s  brand  message  lies  around  “creating  unique  experiences  that  push  the  boundaries  of  what  to  expect  from  a  night  out”  (Absolut,  n.d.,  para.1).  It  is  this  central  marketing  technique,  also  known   as   experiential   marketing,   which   consumers   can   relate   with   the   brand   and   associate   the  

product  with  a  positive  memory  and  hedonic  value  associated  with  that  memory.  

 

The   way   Absolut   approaches   the   learning   process   of   their   consumers   is   in   a   less   conventional  manner,  and  focuses  on  experience  based  learning.  This   is  done  through  multiple  channels  such  as  how-­‐to  articles  regarding  cocktails,  integrating  the  process  of  learning  together  with  the  product  and  

other   ingredients;   collaborations   with   influential   personas   hosting   events,   where   the   product   is  introduced   to   new   consumers,   or   is   there   to   further   enhance   brand   perception.    

  Page  8  

A   consumer’s   knowledge   for   a   brand   or   a   product   is   stored   in   the   long-­‐term   memory   as   an  associative   network.   A   schema   is   a   type   of   associative   network   that   works   as   a   cognitive  representation  that  provides  meaning  to  that  entity  (Babin  &  Harris,  2014).    

 Episodic  memory  refers  to  the  memory  for  past  events  and  episodes   in  a  consumer’s   life   (Babin  &  Harris,  2014).  Consumers  of  Absolut  Vodka  may  correlate  the  product  with  a  joyful  experience  such  

as  attending  a  cocktail  party  or  having  a  sophisticated  night  out.  Episodic  memory   is  an   influential  factor  for  consumer’s  vodka  purchase  decisions.  

 The  Schema  and  Associative  Network  for  Absolut  Vodka  

 

 

 

 

 

Episodic  memory  refers  to  the  memory  for  past  events  and  episodes   in  a  consumer’s   life   (Babin  &  Harris,  2014).  Consumers  of  Absolut  Vodka  may  correlate  the  product  with  a  joyful  experience  such  as  attending  a  cocktail  party  or  having  a  sophisticated  night  out.  Episodic  memory   is  an   influential  

factor  for  consumer’s  vodka  purchase  decisions.    

External  Influences  

Situational  Influences  There  are  many  factors  that  may  influence  how  a  consumer  obtains  value  from  a  purchase,  relating  to   time,  place  and  conditions   (Babin  &  Harris,  2014).  Temporal   factors  affecting  Absolut  consumer  behaviour   include  time  pressure  and  the  time  of  year.  Time  pressure  represents  an  urgency  to  act  

based   on   some   real   or   self-­‐imposed   deadline   (Babin   &   Harris,   2014).   When   consumers   enter   an  Absolut  retailer,  time  pressures  may  cause  customers  to  rely  on  simple  choice  heuristics  and  habits  or  choose  the  most  familiar  brand,  as  it  is  difficult  for  them  to  recall  information  about  the  product  

choice   (Babin   &   Harris,   2014).   The   time   of   year   and   seasonality   also   affect   consumer   purchase  behaviour  and  value  perceptions.  Absolut  customers  may  be  more  inclined  to  purchase  the  alcoholic  beverage  for  celebration  purposes  such  as  a  birthday  or  around  the  Christmas,  New  Year,  or  holiday  

period.    

Secondly,  shopping  activities  may  also  affect  purchase  behaviour,  which  take  place  in  specific  places,  over  time  and  under  specific  conditions  (Babin  &  Harris,  2014).  The  environment  that  these  activities  take  place  in  are  generally  uncontrolled  and  impact  a  consumer’s  mood,  such  as  a  crowed  store  may  

ABSOLUT  VODKA  

Alcohol  

Trendy  

Hip  

Artistic  

Authentic  

Social  

Friends  

Nightclubs  

Cocktails  

Hangovers  

Follower  

Parties  

  Page  9  

cause  a  consumer  to  feel  frustrated.  As  Absolut  Vodka  do  not  have  a  stand-­‐alone  store,  they  rely  on  liquor  store  retailers  to  distribute  the  product.  The  shopping  activities  that  Absolut  consumers  may  partake   in   when   purchasing   the   product   are   acquisitional   shopping   and   experiential   shopping.  

Customers  who  may  adopt   acquisitional   shopping   activities   are   those  who  are   loyal   consumers  of  the   brand,   or   who   wish   to   acquire   the   product   for   a   celebration   or   social   occasion.   Shopping  activities   may   also   be   experiential,   designed   to   provide   interest,   excitement,   relaxation,   fun   and  

social   interaction   (Babin  &  Harris,   2014)   to   a   consumer’s   shopping  experience,  which   is   reliant  on  retail   personality.   In   the   consumers   mind,   retail   personality   is   based   on   functional   and   affective  quality,  including  décor  and  customer  service,  which  can  be  managed  to  create  a  hedonic  shopping  

value   for   the   customer   (Babin   &   Harris,   2014).   Due   to   Absolut   being   distributed   through   liquor  retailers,  the  retail  personality  may  be  accompanied  by  in  store  sales  promotions  or  advertisements  designed  to  alter  consumer’s  purchase  decisions.    

Reference  Groups  and  Peer  Influences  A   reference   group   is   a   group   of   individuals   who   have   a   significant   impact   on   a   consumer’s  

evaluations,   aspirations   and   behaviour,   affecting   the  way   consumers   seek   and   receive   value   from  consumption  (Babin  &  Harris,  2014).  Generally,  group  members  share  common  goals,  interests,  set  of   expectations,   and   communicate   with   and   influence   one   another   (Babin   &   Harris,   2014).   The  

influence  of  reference  groups  can  affect  a  consumer’s  buying  behaviour,  attitudes,  brand  preference  and  perception.    

For  Absolut  Vodka,  these  groups  may  be  primary,  an  informal  group  where  members  have  frequent  

and   direct   contact   with   one   another,   such   as   friendship   groups   or   family,   or   secondary,   where  members   have   less   frequent   contact,   such   as   professional   organisations   or   social   clubs   (Babin   &  Harris,   2014).   Primary   reference   groups   generally   have   the  most   influence   on   their  members   and  

social   ties   for   these   groups   are   very   strong   (Babin  &  Harris,   2014),   allowing   a  member’s   views   to  significantly  resonate  with  others  in  the  group.  For  example,  a  typical  consumer’s  primary  friendship  group  may  enjoy  social  drinking,  and  choose  to  consume  Absolut  Vodka  on  these  occasions  as  group  

members  are  fond  of  the  creative  bottle   image  and  unique  flavours.  The  opinions  and  attitudes  of  these  group  members  towards  the  brand  will  have  a  major  impact  on  the  vodka  buying  preference  for  other  members,  as  they  form  group  influence.    

Reference   groups   may   also   be   aspirational,   where   consumers   desire   to   become   a   member   of   a  

certain  group,  which  appeals  to  the  consumer’s  ideal  self  (Babin  &  Harris,  2014).  The  term  ideal  self  relates  to  a  consumers  self-­‐concept  as  they  visualise  themselves  as  being  a  part  of  and  belonging  to  certain   groups   (Babin   &   Harris,   2014).   Absolut   use   celebrity   endorsers   for   some   of   their  

advertisement   campaigns,   associating   the  brand  with   the   celebrity’s   ‘A-­‐List’   status,   popularity   and  prestige.   If   consumers   are   fond   of   the   celebrity   Absolut   is   connected  with,   the   consumer  may   be  influenced  to  emulate  their  behaviour,  such  as  to  purchase  Absolut  Vodka,  believing  that  if  they  do  

so,   it  will   lead   to   a   formal   acceptance   into   an   ‘A-­‐List’,   popular   or   prestige   group   (Babin  &  Harris,  2014).  

Furthermore,   the   influence  of   reference  groups  can  cause  peer  pressure   to   surface.  Peer  pressure  relates  to  the  pressure  an  individual  may  experience  from  group  members  to  behave  in  accordance  

with  group  expectations,  which  can  greatly  influence  behaviour  (Babin  &  Harris,  2014).  This  pressure  can   lead  members  to  be  persuaded  and  conform  to  the  group  expectations,  meaning  they  yield  to  the   attitudes   and   behaviours   of   other  members   (Babin   &   Harris,   2014).   Some   Absolut   customers  

may   have   been   introduced   to   the   brand   as   a   result   of   succumbing   to   peer   pressure,   either   in   a  

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nightclub  or  during  a  social  occasion.  However,   this   is  not  a  negative   factor   if   the  benefits  of   their  consumption  experience  outweighed   the  costs,  as   the  media   tend   to  associate  peer  pressure  with  negative  consequences,  especially  when  it  comes  to  youth  and  alcohol  consumption.  Not  all  youthful  

Absolut   customers   can   be   stereotyped   into   the   ‘binge   drinking’   category,   as   not   all   youthful  reference  groups  will  necessarily  feel  a  strong  desire  to  do  so.  

Reference   groups   have   the   power   to   exert   utilitarian   influence   over   members,   meaning   that  consumers  conform  to  group  expectations  to  receive  a  reward  or  avoid  punishment  (Babin  &  Harris,  

2014).  These  rewards  may  be  acceptance  within  the  group,  providing  members  with  hedonic  value.  Consumers   may   conform   to   drinking   Absolut   to   feel   accepted   within   their   reference   groups   and  avoid  potential  ramifications  for  steering  away  from  social  norms,  such  as  being  unaccepted  or  not  

included  within  the  group.  

Aside   from   being   formed   physically,   reference   groups   may   also   be   formed   in   the   online   realm.  Absolut  have  a  strong  social  media  presence  on  platforms  such  as  Facebook,  Twitter  and  Instagram,  and   incorporate   the   vibrant   and   creative   aspect   of   the   brand   personality   to   encapsulate   their  

demographic.  For  example,   the  Absolut  Australia  Facebook  page  has  5.1  million   followers  who  are  able   to   interact  with   the   brand   through   ‘liking,   commenting   on   and   sharing’   content   posted.   This  online   interaction   allows   consumers   to   feel   connected   with   Absolut,   and   a   part   of   an   online  

community  as  they  have  the  ability  to  interact  with  like-­‐minded  individuals.  Being  a  part  of  Absolut’s  social  media  reference  groups  provides  consumers  with  hedonic  value,  as  they   join  these  pages  to  feel  a  sense  of  inclusion  and  belonging  to  the  brand.    

 

Social  Class  Social  class  and  income  are  microcultures  that  permeate  our  everyday  life,  as  consumers  attempt  to  better  themselves  by  increasing  their  income  and  class  ladders  (Babin  &  Harris,  2014).  By  definition,  

social   class   is   a   group   to   which   a   consumer   belongs   based   on   resources   like   prestige,   income,  occupation  and  education  (Babin  &  Harris,  2014).  This  largely  determines  brand  preferences,  falling  under   sociological   habitus,   which   refers   to   mental   and   cognitive   structures   that   establish   an  

individuals’   perception   of   the   world   based   on   social   stance   (Babin   &   Harris,   2014).   The   average  annual   income   for   an   Absolut   consumer   is   anywhere   from   $20,000   to   $60,000,   targeting   low   to  middle   social   class   customers.   As   demonstrated   in   the   perceptual   map,   Absolut   falls   into   the  

‘modern   &   fancy’   perception   category.   The   brand’s   major   competitors   in   that   category   are   Grey  Goose   ($54.95/700mL)   and   Belvedere   ($59.99/700mL)   (Dan  Murphy’s,   2014),   which   are   generally  

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renowned   as   prestigious   brands.   With   a   price   point   of   $34.00   per   700mL   bottle   (Dan   Murphy’s,  2014),  Absolut  is  not  only  an  affordable  option  for  consumers,  but  also  allows  them  to  feel  hedonic  value   by   purchasing   Absolut,   as   they   believe   their   social   class   is   raised   to   a   higher   status   that   is  

similar  to  consumers  who  purchase  ‘fancy’  brands  like  Grey  Goose  and  Belvedere.    

 

The  Decision  Making  Process  

Decision  Making  and  Choice  Initially,   consumers   have   to   come   to   the   decision   that   they   have   developed   a   certain   need.   For  

Absolut,  the  consumers  have  already  developed  a  need  to  consume  some  sort  of  Vodka.  The  need  recognition  can  be  developed  from  a  variety  of  reasons,  depending  on  the  consumer;  for  example,  a  consumer  is  heading  to  a  social  gathering,  and  has  developed  the  need  to  purchase  a  bottle  of  vodka  

for  everyone  at  the  gathering.    

Decision-­Making  Perspective    Various   consumers   have   different   decision-­‐making   perspectives   when   it   comes   to   choosing   the  brand  of  vodka  they  are  purchasing:  

• Rational  Perspective  -­‐  consumers  are  rational  and  they  carefully  arrive  at  decisions  

An  example  of   this  decision-­‐making  perspective   in   relation   to  Absolut  Vodkas,   is  when   consumers  examine  the  different  attributes  of  the  vodka,  for  example,  how  many  times  was  the  vodka  distilled  

or  what  is  the  percentage  of  alcohol.    

• Experiential  perspective  -­‐  decision  making  is  often  influenced  by  the  feelings  associated  with  consumption  

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An  example  of  this  decision-­‐making  perspective  is  evident  in  Absolut  Vodkas’  case,  when  consumers  have  had  a  positive  experience  with  past  consumption,  which  will  tend  to  encourage  them  to  choose  Absolut  over  its  competitors    

• Behavioural  Influence  Perspective  -­‐  decisions  are  responses  to  environmental  influences  

An  example  of  behavioural  influences  in  the  vodka  decision-­‐making  process  is  how  a  consumer’s  

friends  perceive  the  brand,  whether  it  is  “prestigious”  or  not.    

Decision-­Making  Approaches    Consumers  also  have  varying  decision-­‐making  approaches  that  consider  the  degree  of  involvement,  and   the   degree   of   risk   engaged  when   consuming   a   certain   brand.   For   Absolut   Vodka,   they  would  want   to   create   a   low   involvement   and   low   risk   environment   in   the   decision-­‐making   process   of  

consumers,  as  this  will  result  in  habitual  decision  making  approaches.    

 

(Babin  &  Harris,  2014)  

Methods  that  Absolut  Vodka  would  want  to  consider   in  order   influence  their  consumer’s  decision-­‐making  approach:  

• Brand   Loyalty   -­‐   deeply   held   commitment   to   rebuy   a   product   or   service   regardless   of  situational  influences  that  could  lead  to  switching  behaviour  

• Loyalty  programs  provide  benefits  for  consumers  and  marketers    

For  the  consumer  to  have  a  habitual  decision  making  approach  towards  Absolut  Vodka,  the  brand  must  be  perceived  to  be  of  high  standards,  appealing  to  the  eye  in  terms  of  packaging  and  image,  and  the  price  to  be  fair.  Once  a  consumer  has  experienced  the  positive  traits  the  brand  tries  to  

portray,  the  degree  of  involvement  in  the  decision-­‐making  process  becomes  low,  and  decisions  become  more  automated  by  the  consumer.    

Need  Recognition,  internal  search,  and  the  consideration  set      The  need  recognition  process  begins  when  the  consumer  recognise  that  he  is  not  in  the  desired  state  

and  decides  to  change  his  actual  state  to  obtain  to  the  desired  one  (Babin  &  Harris,  2014).  After  this,  the  consumer  begins  the  search  for  information,  which  is  follows  in  the  decision-­‐making  process.    

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The  search  for  information  performed  by  consumers,  have  different  aspects  to  be  considered,  such  as  price,  alternatives  available,  attributes  and  their  importance,  and  how  well  it  will  satisfy  the  need  of  the  consumer.  

 Because  technology  has  evolved,  the  consumer  will  now  have  an  easier  access  to  information  about  the  product  online  and  on  social  media.  Additionally,  the  consumers  may  write  reviews  about  the  

product  based  on  their  consumption  and  purchase  experiences.  

Decision  Making:  Alternative  evaluation  and  choice  

In  the  evaluation  of  alternatives,  there  are  two  criteria  to  be  considered:  the  evaluative  and  the  determinant.  (Babin  &  Harris,  2014)  The  evaluative  criteria  is  related  when  the  actual  choice  is  made,  whereas  the  determinant  criteria  has  other  factors  to  consider  like  attributes,  features  or  the  

potential  benefits  that  the  consumers  mind  may  take  in  to  consideration  when  analysing  possible  solutions  to  the  problem.    

     Consumers  take  in  to  consideration  the  benefits,  costs,  features  and  values.  There  are  also  two  types  

of  values  in  which  the  consumer  bases  their  decision:  hedonic  and  utilitarian  value.    

In  the  hedonic  criteria,  are  the  emotions,  symbolic  and  subjective  attributes  that  the  consumer  have  with  this  product.  For  example,  when  a  consumer  purchases  a  bottle  of  Absolut  Vodka,  they  know  that  the  brand  and  product  they  choose  has  certain  renowned  attributes,  like  the  quality  and  

prestige  of  the  product  and  its  standard  in  relation  to  competing  vodka  brands.  The  utilitarian  criteria  focus  on  more  functional  aspects  like  economics,  for  example,  price  and  quantity.    

Product  Categories  The  product  categories  are  mental  representations  of  stored  knowledge  about  certain  groups  of  products,  if  the  consumers  are  unaware  of  the  product;  usually  they  referred  to  the  brand.  They  can  

be  separated  in  superordinate  and  subordinate.  For  example,  in  the  case  of  Absolut  vodka,  superordinate  would  be  alcoholic  beverages  and  subordinate  would  be  type  of  vodka.    

The  perceptual  attributes  of  Absolut  would  be  that  the  bottle  is  attractive  to  the  eye,  the  presentation  is  modern  and  elegant,  and  the  underlying  attributes  of  Absolut  Vodka  would  the  shopping  experience,  the  quality  of  the  product  and  the  experience  that  the  consumer  gets  from  it.  

 When  a  brand  is  well  positioned  in  the  market  it  gives  signals  to  consumers.  Which  are  attributes  that  the  consumers  relate  to  the  brand,  in  the  case  of  Absolut  the  main  signals  would  been  the  

brand  name  and  its  association  with  quality  and  class.  

Evaluation  of  Alternatives    In  the  process  of  determining  the  evaluative  criteria,  there  are  some  factors  that  the  consumers  take  into  consideration:  situational  influences,  product  knowledge,  expert  opinions,  social  influences,  online  sources  and  marketing  communications  (Babin  &  Harris,  2014).  

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The  value  that  consumers  believe  they  will  receive  from  a  product  has  a  direct  impact  on  their  evaluation  of  that  product.  The  word  ‘evaluate’  literally  means  to  set  a  value  or  worth  to  an  object.    

Affect-­‐based  evaluation  suggests  that  consumers  evaluate  products  based  on  the  overall  feeling  that  is  evoked  by  the  evaluation,  as  do  mood  states.  Generally,  positive  mood  states  lead  to  positive  

evaluations,  while  negative  mood  states  lead  to  negative  evaluations.  Consumers  of  Absolut  may  associate  the  brand  with  a  feeling  of  modernism  and  may  lead  to  increased  self-­‐esteem  by  purchasing  a  product  that  makes  them  feel  good.  

When  consumers  come  to  evaluate  their  choice,  they  may  use  Attribute-­‐base  evaluations,  which  are  

evaluated  across  a  set  of  attributes  that  are  considered  relevant  to  the  purchase  situation.  These  processes  involve  carefully  integrating  information  about  product  attributes  and  make  careful  comparisons  between  products  (Babin  &  Harris,  2014).  In  the  vodka  purchasing  situation,  consumers  

have  a  bounded  rationality,  as  they  have  limited  time,  choice  and  information,  and  therefore  attribute-­‐base  evaluations  involve  higher  involvement  and  risk  to  the  consumer  for  utilitarian  based  products.    

The  accuracy  of  a  consumer’s  evaluation  depends  heavily  on  the  quality  of  judgements  they  make.  

Judgements  are  mental  assessments  of  the  presence  of  attributes  and  the  benefits  associated  with  those  attributes.  Consumer  judgements  are  affected  by  the  amount  of  knowledge  or  experience  a  consumer  has  with  a  particular  object  (Babin  &  Harris,  2014).  There  are  several  issues  affecting  

consumer  judgements:  

• Quality  perceptions:  when  consumers  judge  which  vodka  they  will  purchase,  they  tend  to  be  affected  by  the  preconceptions  surrounding  the  quality  of  different  types  vodka  brands  (Babin  &  Harris,  2014).  In  order  for  Absolut  to  attract  consumers  to  purchase  their  brand  

over  the  competitors,  they  must  establish  a  high-­‐quality  perception  amongst  consumers  regarding  the  brand.    

• Brand  name  associations:  consumers  tend  to  associate  their  purchasing  decisions  based  on  schemas.  The  effect  of  schemas  on  consumer  judgement  is  critical  in  vodka  consumption,  as  the  a  brand  that  consumers  immediately  associate  vodka  with  will  generally  be  the  

successful  choice.    • Consumer  personality:  purchasing  decisions  are  heavily  influenced  through  the  consumers’  

personality.  It  is  unlikely  that  a  consumer  will  buy  a  low-­‐quality  or  low-­‐perceived  brand  of  

vodka  if  they  associate  themselves  with  elegance,  statue  and  respect.        

Consumer  Choice  Compensatory  Model  Compensatory  rules  allow  consumers  to  select  products  that  may  perform  poorly  on  one  attribute  by  compensating  for  the  poor  performance  by  good  performance  on  another  attribute.  The  attitude  

of  the  consumer  towards  the  object  model  (Fischbein  model),  represents  the  compensatory  approach.  Under  these  we  can  find  attributes  such  as  location,  security,  pet  friendliness,  which  will  be  in  consideration  according  to  the  importance  that  the  consumers  give  to  each  of  these  attributes.  

This  sort  of  model  is  not  very  productive,  as  consumers  do  not  get  the  time  to  make  such  sophisticated  purchasing  decisions.    

 

 

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    ABSOLUT     Smirnoff     Greygoose    Attributes   e   b   (b)(e)   b   (b)(e)   b   (b)(e)  Alcohol  Content  

2   7   14   6   12   8   16  

Number  of  Distilled  

-­‐1   7   -­‐7   6   -­‐6   8   -­‐8  

Price   3   7   21   6   18   8   24  Total       28     24     32    

Non-­‐compensatory  model  

Non-­‐compensatory  rules  are  strict  guidelines  that  are  set  prior  to  the  selection,  and  any  option  that  does  not  meet  the  specifications  is  eliminated  from  consideration.  Attributes  taken  into  consideration  in  this  decision-­‐approach  are,  price,  quality,  alcohol  content,  number  of  times  distilled,  

and  styling.  This  model  can  be  separate  into  four  main  categories:      

Conjunctive  rule:  This  can  be  seen  when  consumers  are  looking  for  a  particular  asset  in  a  vodka,  for  example  alcohol  content,  and  are  not  willing  to  compensate  that  attribute.      

Disjunctive  rule:  A  consumer  can  set  a  minimum  feature  required  for  vodka,  and  if  the  brand  does  satisfy  the  requirements  by  the  consumer,  then  the  disjunctive  rule  suggests  that  the  consumer  will  proceed  to  buy  the  product.    

Lexicographic  rule:  the  consumers  choose  the  product  due  to  whether  it  has  a  high  regard  on  a  

specific  characteristic.    Elimination-­‐by-­‐aspects  rule:  once  the  minimum  cut  off  is  established,  the  consumer  will  then  start  

evaluating  which  products  have  enough  features  to  keep  them  as  an  option,  until  they  reach  their  final  decision    

   

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Post-­Choice  Evaluation    

 

 (Babin  &  Harris,  2014).  

Anticipation  (expectations)  

Post-­‐purchase  evaluations  are  influenced  by  the  anticipation  held  by  the  consumer  prior  to  purchasing  the  product,  and  whether  they  had  high  expectations  regarding  quality  and  satisfaction.    

It  is  important  for  Absolut  Vodka  to  manage  expectations  and  consumer  anticipation  effectively,  as  high  expectations  and  low  experience  may  lead  to  negative  evaluation  and  the  consumer  distancing  

themselves  from  the  brand.    

Experience  (performance  perception)  

Once  the  consumer  has  made  the  decision  to  purchase  Absolut  Vodka,  they  will  go  through  the  stage  of  experiencing  and  consuming  the  product.  This  is  where  they  will  be  able  connect  and  be  involved  with  the  consumption  process,  leading  to  them  making  up  their  own  mind  about  the  experience.    

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If  there  is  a  positive  experience,  consumers  of  Absolut  will  note  that  in  their  internal  memory,  and  next  time  they  are  faced  with  a  decision-­‐making  process  regarding  vodka,  they  will  bring  upon  their  past  experiences  with  different  brands,  and  chose  the  one  that  offered  the  most  rewarding  

experience.    

Evaluation  (disconfirmation/satisfaction)  

Past  the  experience  stage,  consumers  will  be  able  to  evaluate  the  overall  satisfaction  with  the  product.  They  will  base  their  evaluation  on  their  prior  anticipation  to  consumption,  as  well  as  their  personal  experience  with  the  product.  This  will  allow  consumers  to  evaluate  whether  they  were  

satisfied  with  the  product,  and  whether  benefits  outweighed  the  costs  for  them  personally.    

Absolut  Vodka  would  look  to  create  a  positive  Post-­‐Consumption  Reaction,  such  as:  

• Delight  • Surprise  • Exhilaration  

The  Negative  Post-­‐Consumption  Reactions  that  Absolut  Vodka  would  be  looking  to  avoid  are:  

• Disgust  

• Anger    

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References    

Absolut.  (n.d.).  All  great  memories  start  with  great  experiences.  Retrieved  July  29,  2014  from  http://www.absolut.com/au/news/Experience/  

Babin,  B.  J.  &  Harris,  E.G.  (2014).  CB5.  Mason,  Ohio:  Cengage  Learning.  

Dan  Murphy’s  Liquor  Store  (2014)  Whisky  &  Spirits,  Retrieved  July  29,  2014  from  

https://www.danmurphys.com.au/whisky-­‐spirits/vodka  

Krashinsky,  S.  (2013,  September  9).  Absolut  vodka  strives  for  authenticity  in  ads  aimed  at  millennials.  The  Globe  and  Mail.  Retrieved  July  28,  2014  from  http://www.theglobeandmail.com/report-­‐on-­‐business/industry-­‐news/marketing/absolut-­‐vodka-­‐strives-­‐for-­‐authenticity-­‐in-­‐ads-­‐aimed-­‐

at-­‐millennials/article14205567/  

Lamb,  Hair,  McDaniel,  Summers,  &  Gardiner.  (2013).  MKTG2.  Melbourne:  Cengage  Learning  Australia  Pty  Ltd.  

The  Absolut  Company.  (2012).  Most  Companies  Are  Based  on  A  Product,  Ours  Is  Based  On  A  Phenomenon.  Retrieved  July  28,  2014  from  

http://www.theabsolutcompany.com/en/company/