In This Module You Will Explore How Businesses React To Chan

In This Module You Will Explore How Businesses React To Changing Econ

In this module, you will explore how businesses react to changing economic times and the influence this has on product and service positioning in the marketplace. You will also learn about the different approaches an organization may take such as a retrenchment approach, an investment approach, or an ambidextrous approach to provide a foundation for opportunity and risk in recessionary times. Consumer spending habits have undergone dramatic and enduring change with the slowed economy in the United States. Using the module readings, Argosy University online library resources, and the Internet, respond to the following: What are the factors that are key for establishing product differentiation in the new post-recession consumer environment especially as it relates to economic indicators? What is a luxury good and should marketers of luxury goods abandon their efforts to establish premium pricing? How do changes in societal attitudes toward companies and products affect the way marketers of consumer goods think about the customer value chain? Provide examples of companies that have changed their approach to marketing in response to a shift in consumers’ value in changing economic times. Write your initial response in approximately 300 words. Apply APA standards to citation of sources.

Paper For Above instruction

The post-recession consumer environment has significantly shifted the landscape of product differentiation, requiring companies to reconsider their strategies in response to altered economic indicators. Key factors that influence product differentiation include price sensitivity, perceived value, brand reputation, and the ability to evoke emotional appeal. Economic indicators such as unemployment rates, consumer confidence, and disposable income levels play a pivotal role in shaping these strategies. For instance, during economic downturns, consumers tend to prioritize affordability and essentiality, prompting firms to introduce value-based and budget-friendly products to maintain competitiveness (Kotler & Keller, 2016). Furthermore, technological innovation and social media engagement have become critical in distinguishing products in a crowded marketplace, as consumers seek brands that resonate with their values and lifestyle changes emerging from economic austerity.

Luxury goods, traditionally characterized by exclusivity, high quality, and premium pricing, face a nuanced dilemma in this environment. Although some marketers argue for maintaining premium prices to uphold brand prestige, others suggest a strategic reconsideration towards more accessible pricing or tiered offerings. Societal attitudes toward wealth and consumption have shifted, with increased scrutiny on the social responsibility of companies and a desire for authenticity. This context necessitates luxury brands to adapt by emphasizing sustainability and moral integrity to sustain consumer trust (Kapferer & Bastien, 2012). Marketers of luxury products should evaluate whether their clientele still perceives premium pricing as a symbol of status or if it alienates cost-conscious consumers.

The customer value chain has also evolved, influenced by societal attitudes emphasizing ethical consumption, transparency, and societal impact. Companies like Patagonia have reoriented their marketing strategies to highlight environmental conservation, appealing to consumers' shifting values in economic downturns (Niinimäki & Hassi, 2017). Similarly, during the pandemic, brands like Nike transitioned parts of their marketing approach to focus on community support and resilience, reinforcing their social responsibility efforts. These adaptations demonstrate that aligning marketing strategies with current societal attitudes and economic realities enhances customer loyalty and brand relevance in challenging times.

References

• Kapferer, J.-N., & Bastien, V. (2012). The luxury strategy: Break the rules of marketing to build luxury brands. Kogan Page Publishers.
• Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
• Niinimäki, K., & Hassi, L. (2017). Emerging design strategies in sustainable consumption. Journal of Cleaner Production, 169, 1402-1413.
• Additional credible sources to be incorporated as needed for depth and support.