Type of the Product:
Capital One Wal-Mart Rewards Master card is the product being marketed in the advertisement. The product has distinct features allowing customers to purchase products online with cash back features.
Target Market:
Target market of the product marketed in the advertisement includes males and female customers of high purchasing buyers. But young shoppers are also part of the target market because they may compel their parents to purchase a product as is the case in the advertisement. Characters in the advertisement highlight the target market that consists of customers of thirty years of age or older.
Source: https://i5.walmartimages.com/dfwrs/76316474-a8a2/k2-_79bd697a-8838-4a5c-ae39-9f2782df11f7.v1.png
Needs and Wants of Consumers in Given Marketing Communication:
Companies and their marketing communication affect consumers because they use measures leading them to make decisions. The role of companies in the decision-making process of consumers strengthens through their ability to influence their consumer behavior. It is the case with the chosen marketing communication of Wal-Mart. The application of Hawkins Stern’s impulse buying theory on the advertisement shows that the company supports customers’ needs and wants for instant buying and discounted price. However, in the online marketing platform, the company has shown that customers exhibit impulsiveness in their buying behavior because of the advertisement. The advertisement lets buyers’ consumers less time on decision making and this convenience may lead them instantly buying.
Marketing Communication Example:
Wal-Mart is marketing its online platform, and in marketing communication, the company has taken steps to attract frequent shoppers. In the ad, the company offers Capital One Walmart Rewards Master card, which gives 5 percent cash back to shoppers. They have to make a purchase on Walmart.com and through mobile wallets, Wal-Mart Paying their first year of store purchases. It would be 2 percent cash back after one year, and there is cash back on dining and travel as well. The ad highlights this cash back offer through Master card from the company.
Source: https://d2z1w4aiblvrwu.cloudfront.net/ad/o9Qz/capital-one-walmart-rewards-card-holiday-gift-hints-large-5.jpg
Application of relevant Consumer Behavior Theory:
In marketing communication, Wal-Mart is emphasizing impulse buying, and there is a marketing theory, which deals with impulse buying. Hawkins Stern’s impulse buying theory has helped to understand modern shopping and consumer buying behavior. According to the theory, consumer-buying behavior is not always planned, but they also feel the influence of the company or business. As a result, they make purchases because of external factors. In the marketing communication, the company has been triggering the impulse buying behavior of the shoppers (Agarwal & Chetty, 2019).
According to the theory, impulse buying behavior gets influence from the need and motivation of shoppers, promotion strategies from a company or business, price and distribution, service quality, displays, or product features. The model presented by Hawkins also categorizes the impulse buying behavior that helps to understand consumer behavior. These categories are pure impulse buying, reminder impulse buying, suggested impulse buying, and planned impulse buying (Chan et al., 2017).
Promotion and price cause Impulse Buying Behavior:
The marketing communication from Wal-Mart notes that it chooses promotion strategies as a factor for impulse buying behavior. Price is also a factor because the company offers 5 percent cash back to frequent shoppers. As a result, the theory explains the consumer behavior of the company’s shoppers, where they are motivated and attracted to purchase in response to promotion and price reductions. Cash back is eventually a price reduction, and it motivates customers to make impulse purchases (Close, 2012).
Reminder Impulse Buying:
The marketing communication shows that when a person chooses a product to purchase, a notification appears on the screen, saying that the shopper has received 5 percent cash back. The ad reminds consumers that they can save an amount using the wallet and master card of the company. They may decide to purchase the product despite the fact they may not need the product. If the company records higher sales through master cards and wallets or online platforms of the company, then it is the result of the company’s advertisements. Customers have inclined towards reminder impulse buying because of the advertisement (Shareef et al., 2016).
Planned Impulse Buying:
The category of the model or consumer behavior theory is also applicable to marketing communication. The advertisement does not directly force or lead a shopper to make a purchase, but it directs the shopper’s attention on the cash back. Therefore, it is aligned with the planned impulse buying of the shopper who has the decision to make a purchase (Eagle et al., 2014). However, he fulfills or practices on the decision because of the cash back incentive. Therefore, the theory examines and analyzes consumer buying behavior resulting from the ad by Wal-Mart.
Summary of Findings and Response:
The marketing communication and application of consumer behavior theory on the ad finds that the company has been motivating and attracting consumers to use online platforms. The use of promotion and reduction in price attracts the attention of customers, and they buy the products impulsively. As a result, the theory helps consumers understand how consumers show their behavior regarding a product. It has been noted that online business and platforms lead to impulsive buying behavior. It has not been possible in the traditional business where marketers had to make extra effort to get another product purchased by customers. The theory has helped to understand the impulsive buying behavior of consumers.
References
Agarwal, A. & Chetty, P., 2019. Use of Hawkins Stern’s impulse buying theory (1962) in online shopping. [Online] Available at: https://www.projectguru.in/publications/hawkins-sterns-impulse-buying-theory-online-shopping/ [Accessed 11 November 2019].
Chan, T.K., Cheung, C.M. & Lee, Z.W., 2017. The state of online impulse-buying research: A literature analysis. Information & Management, 54(2), pp.204-17.
Close, A., 2012. Online Consumer Behavior: Theory and Research in Social Media, Advertising, and E-tail. 2nd ed. Routledge.
Consumer Attitudes – Module 4.1 – Week 7
Consumer Perception – Module 3.2 – Week 4
Eagle, L., Dahl, S., Czarnecka, B. & Lloyd, J., 2014. Marketing Communications. 2nd ed. Routledge.
Shareef, M.A., Dwivedi, Y.K. & Kumar, V., 2016. Mobile Marketing Channel: Online Consumer Behavior. 2nd ed. Springer.
