CONSUMER BEHAVIOR

ASSIGNMENT#1 CASE STUDY: MEXORYL

Professor: Miss. Farah Rizik Date: 10/1/2012 NAME: Toseef Ahmad I.D: 09U0538 Section: I

Question 1) What factors will likely have the greatest effect on any possible changes in consumer perception and acceptance of UVA blocking sunscreens? ANS) The factors that will effect and will make possible changes in consumer perception and acceptance of UVA blocking sunscreens can be made by educating the consumers and making them aware of the product that how it is useful for them and how this product provides different advantages because of its special ingredients. This will be only possible when the company will make the customers aware and will provide proper and useful information which will change the consumer perception and then they will be willing to buy those UVA sunscreens. Question 2) (A) Considering the implications of a product like Mexoryl on human health, what obligations does LOreal have to educate the public? (B) To make it available in all its sunscreen products? (C) To license it for use by other manufacturers? (D) What obligations to consumers do companies like Neutrogena and Johnson & Johnson have? (ANS 2.A) The obligations that LOreal will have in order to educate the public is their awareness strategy that how they will make the customers aware of the importance of Mexoryl drug that will be used in their UVA sunscreen and the other obligations includes the business ethics that they will adopt being honest, credible and by providing customers what you promise to them. (ANS 2.B) To make it available, LOreal should include this drug in more of its sunscreen products so that LOreal has more range of its products and this will increase its market share as well as it will improve their brand loyalty because of its effectiveness for the people. But by doing so they are compromising on their competitive advantage they have over other competitors such as Johnson & Johnson. (ANS 2.C) However to license it for use by other manufacturers, it will not be possible because it will decrease the market share of LOreal. However, this is morally correct to allow other manufacturers to use this drug but LOreal will not do so because it will not only affect its brand importance in the market but will also affect its profits because of the decreasing market share. (ANS 2.D) The obligations that Neutrogena and Johnson & Johnson have to consumers are that they are environment friendly and are major competitors in the industry and the obligation they have to consumers are that they try be honest and credible and try to fulfill promise they make to customers. Question 3) What aspects of consumer behavior does LOreal need to understand to improve its chances of success with Mexoryl? How can it go about obtaining that knowledge? (ANS 3) LOreal can improve its chances of success by understanding the customers relationship with the product. As consumers have several relationships with the products like

Self-concept attachment, nostalgic attachment, Interdependence and Love. So LOreal can obtain knowledge by understanding the relation the consumers have with the product. In this case there is Interdependence relationship because the product is part of its daily routine. So LOreal once knowing about the relationship can achieve success by telling them about the benefits of Mexoryl that how this will protect them from UVA rays.