1. What are the key differences among the 4 types of consumer buying behavior? 2.

2. Analyze the impacts from the macro-environment of Vietnam on the marketing

Present some implications for marketers as regards to each type? activities of a specific company that is operating in Vietnam.

Consumer buying behavior can be categorized into four distinct types based on the degree of Vinamilk, Vietnam’s leading dairy producer, operates in a dynamic macro-environment
buyer involvement and the perceived differences among brands: complex buying behavior, influenced by demographic, economic, natural, technological, political, and cultural forces.
dissonance-reducing buying behavior, habitual buying behavior, and variety-seeking buying Understanding and responding to these factors allows Vinamilk to refine its marketing strategies
behavior. Each type presents unique challenges and opportunities for marketers, requiring and maintain its competitive edge.
tailored strategies to influence consumer decision-making.
1. Demographic Forces

The rise of the middle-income class in recent years has altered consumer behavior. People are
more concerned about product value rather than price. Therefore, Vinamilk consistently
emphasizes quality and proudly promotes its Vinamilk products made with 100% organic
ingredients.

Vietnam’s population grows at a decreasing rate. According to statistics, Vietnam’s population

growth rate was 3,03% in 1960. Then by 2023, the population growth rate was only 0,7% and
this caused the population of Vietnam to change from a young demographic structure to an aging
population. The dairy industry is facing major obstacles because the development of this industry
is proportional to the proportion of adolescents in the population structure and it also has a
negative impact on Vinamilk. To consolidate their position, Vinamilk has continuously increased
brand awareness through marketing strategies, launching new dairy products and thanks to
their efforts, they gained 2% market share in the dairy industry and to 43,7% in 2017.

2. Economic Forces
GDP has risen in Vietnam. Specifically, GDP in 2023 achieved impressive results, with 6,5%
exceeding the target set by the National Assembly. Vietnam’s fast-growing economy has
impacted positively on domestic purchase and Vinamilk in particular. “Brand Footprint” is
always a prestigious ranking because it reflects consumer behavior when built on a “Consumer
Reach Points” (CRP). This is a measure of the household in the study choosing to buy a brand
and how they often buy. To meet the shopping needs of consumers, the company always
improves labor productivity, product quality and brings to the market high-end products such as
baby milk powder or drinking yogurt. The company regularly updates the changes of the
economy.

3. Natural Forces
Vietnam’s climate is humid with a tropical monsoon so it will have an impact on the dairy
industry. If not handled in time, milk will spoil or be degraded. This will adversely affect the
quality of the milk. It also places high demands on milk preservation and the production of
high-quality products. Vinamilk stores milk in cold storage to help remove harmful bacteria and

microbial spores. They are also produced on a closed technology line, sterilizes heat and ensures 3. Describe some modifying strategies at the maturity stage of the PLC. Give examples.
safety. ⇒ CSR Branding

4. Technological Forces

Advancements in technology have revolutionized Vinamilk’s production processes, enabling

efficient operations and higher product quality. Additionally, the rise of e-commerce and digital
marketing in Vietnam provides new avenues for consumer engagement.

⇒ Vinamilk uses precision farming technology to enhance dairy production and ensure quality.
On the marketing front, the company leverages omnichannel platforms to reach younger,
tech-savvy consumers, offering promotions and personalized product recommendations.

5. Political Forces
Vietnam’s political stability is highly valued compared to other countries in the region. Over the
past decade, Vietnam has become the center of FDI attraction with a steady growth over the
years at 10,4% from 2019 to 2024. Therefore, a stable political background positively affects 1. Market Modification
Vinamilk’s business, attracts investors and brings sustainable development to Vinamilk.
Market modification involves identifying new market segments or encouraging existing
⇒ Vinamilk emphasizes its adherence to food safety standards and uses certifications in customers to use the product more frequently. Companies aim to attract non-users, expand
marketing campaigns to build trust. It also benefits from government initiatives that support geographic reach, or target overlooked customer groups.
domestic dairy production, strengthening its position as a national leader.
Examples:
6. Cultural Forces
● Coca-Cola: Coca-Cola targets new markets globally, such as rural areas in developing
Vietnamese culture values family and child nutrition, which aligns with Vinamilk’s product countries, where soda consumption is lower.
offerings. The cultural emphasis on health and wellness has further increased demand for ● Baking Soda by Arm & Hammer: The company repositioned baking soda as a
nutritious and organic dairy products. multipurpose product for cleaning and deodorizing, increasing usage occasions and
attracting new customers.
⇒ Vinamilk positions its products as essential for family health, using culturally resonant themes
in advertisements. Campaigns often feature testimonials from parents and health professionals, 2. Product Modification
reinforcing trust and emotional connections with the brand.
Product modification entails improving product quality, features, or style to make it more
appealing. Innovations can help differentiate the product from competitors and renew customer
interest.

Examples:

● Apple iPhone: Apple introduces new versions of its iPhone with upgraded features, such
as improved cameras and processors, to attract both new buyers and those looking to
upgrade.
● Car Models: Automakers like Toyota refresh their car models annually with aesthetic
updates or new technology, keeping the product relevant and appealing to buyers.
3. Marketing Mix Modification 4. Describe the three levels of a specific product: core value, actual product, and
augmented product. Present suggestions to improve competitiveness for one out of
Adjusting pricing, promotion, distribution, and packaging strategies can stimulate demand and these levels.
maintain relevance in a saturated market.
A product can be broken down into three levels, each representing different aspects of its value
Examples: to the consumer: core value, actual product, and augmented product. These levels help
companies understand how to meet customer needs and differentiate their offerings.
● McDonald’s: The fast-food giant introduces limited-time offers, such as seasonal burgers
or promotional discounts, to drive sales. For example, the McRib sandwich creates The core value refers to the fundamental benefit or problem-solving service that the product
excitement among loyal customers. provides to the customer. It answers the question: Why is the product being purchased? For a
● P&G’s Tide Detergent: Tide expanded its detergent offerings with different packaging smartphone, the core value is communication, connectivity, and access to digital tools.
sizes and formats (pods, liquid, powder) to suit varying customer needs and budgets.
The actual product includes the tangible and physical elements, such as design, features, brand
name, quality, and packaging. It is the version of the product that directly delivers the core value
to the customer. For the iPhone, the actual product includes its sleek design, iOS operating
system, brand reputation, camera quality, and hardware specifications.

The augmented product includes all the additional services and benefits that accompany the
product, often enhancing customer satisfaction. These elements are typically less tangible, such
as warranties, customer service, delivery, or technical support. For the iPhone, the augmented
product includes Apple’s customer support, iCloud storage, free software updates, and the Apple
Care warranty program.

To stand out in a saturated market, enhancing the augmented product level can significantly
improve competitiveness. Companies can offer superior after-sales service, loyalty programs, or
innovative value-added services.

Suggestions for Improvement:

For Apple’s iPhone:

1. Extended Warranty Options: Introduce more flexible and affordable warranty packages
for budget-conscious users.
2. Enhanced Customer Support: Provide 24/7 multilingual technical support via
AI-powered chatbots or dedicated customer service lines.
3. Loyalty Programs: Develop a rewards program for repeat customers, offering discounts
on accessories or exclusive content through Apple services.
4. Bundled Ecosystem Services: Offer free trials for Apple Music, Fitness+, or extended
iCloud storage to entice and retain users within the Apple ecosystem.

5. Compare marketing-skimming pricing and market-penetration pricing. Give Results:

examples. Apple's market-skimming pricing has helped it dominate the premium smartphone market,
generate high profit margins, and maintain brand exclusivity.

2. Market-Penetration Pricing: Netflix in India

Case Study Details:

When Netflix entered the Indian market, it faced intense competition from established players
like Amazon Prime Video and Hotstar (Disney+). To capture market share, Netflix introduced
affordable subscription plans such as the mobile-only plan for INR 199/month, significantly
lower than its standard international pricing.

Key Impacts:

● Rapid Market Entry: The low price attracted price-sensitive Indian consumers who
were previously hesitant to pay for streaming services.
● Increased Subscriber Base: Netflix rapidly gained millions of subscribers, especially
among younger audiences and mobile users.
● Competitive Advantage: The pricing strategy helped Netflix compete against local
streaming giants, who offered cheaper services.

Results:
Netflix successfully increased its presence in a competitive market by tailoring its pricing to
1. Market-Skimming Pricing: Apple iPhone local affordability, establishing itself as a leading player in India’s streaming industry.

Case Study Details:

Apple consistently employs a market-skimming pricing strategy with its flagship iPhone
products. When a new iPhone is launched, it is priced at a premium, targeting early adopters and
brand-loyal customers who are less sensitive to price. Over time, as newer models are
introduced, the prices of older models are reduced to attract more price-sensitive buyers.

Key Impacts:

● Revenue Maximization: Apple captures maximum profit from early adopters who are
willing to pay a premium for the latest technology.
● Brand Perception: The high initial price reinforces Apple’s image as a premium and
innovative brand.
● Lifecycle Management: By reducing prices over time, Apple ensures that older models
continue to generate revenue and appeal to budget-conscious customers.