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Porsche Case Study

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Case Study
Porsche: Guarding the Old
While Bringing in the New 1. Analyze the buyer decision process of a traditional Porsche customer. A typical Porsche customer does not go through the traditional buyer decision steps. “The five steps include; need recognition, information search, and evaluation of alternatives, purchase decision, and postpurchase behavior” (Kotler & Armstrong, 2014). These customers skip most of the 5 stages and jump right into the purchase decision. Although these individuals might make a purchase off of brand recognition usually the decision is made based on their wants and their mind is made up well before the purchase occurs. “Porsche appeals to a very narrow segment of financially successful people” (Kotler & Armstrong, 2014) and these people purchase their cars for the pure enjoyment of the vehicle and the exclusivity the car provides. As a current owner of three Porsches, and currently searching for number four, I can tell you that personally I purchase these vehicles for two reasons; for the pure excitement I get when driving these cars and they also define my arrival at a successful benchmark in my life and the exclusivity that comes with ownership. Nothing can replicate the feeling of driving one, and no other combination of sound, feel, sight and soul can connect with a true “Porschephile” (Urban Dictionary, 2005), like owning a Porsche. “A Porsche is more than just a vehicle. It is an expression of freedom and a unique attitude to life. It is the realization of a unique dream (Porsche, 2014).

2. Contrast the traditional Porsche customer decision process to the decision process of a Cayenne or Panamera customer.

A traditional Porsche customer is more about the way the car sounds, performs, and feels. These people are purest and strive for the exclusivity and driving experience and always expect the engine to be in the rear and only have 2 doors. Porsche decided that there was a market for these new cars and there is a new “category of Porsche buyers that moved into life stages that have those facing inescapable needs – the need to haul more people and stuff” (Kotler & Armstrong, 2014). A Cayenne or Panamera customer looks for both, a family car and speed. The buyers are still well off financially and this allowed Porsche to maintain its exclusivity with their brand. These customers are more versed in their decision as they are almost going through the entire buyers’ process. The customers have a need that they need a larger vehicle because of their lifestyle. They research the information on the specifications of the two vehicles in the SUV or sedan line with the traditional Porsche markings. There is still not an evaluation of alternatives, as Porsche customers only want one thing – a Porsche. When it came to the postpurchase behavior of a Cayenne or Panamera many were surprised that the performance of the vehicles and they felt it was more like driving a traditional Porsche than an SUV or heavy sedan.

3. Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970’s and 1980’s?

“Culture is the most basic of a person’s wants and behavior” (Kotler & Armstrong, 2014). These cultural factors explain why Porsche sold so many lower priced cars in the 70’s and 80’s. Porsche represented an elite social class that purchased these vehicles for their exclusivity. It was this need for consumers to be a part of this culture and social elite that made the sales of these lower-priced modes so successful. These consumers were able to buy into the elite for a lower price and sales boomed. These lower priced models were produced to expand the target market. Once these consumers got a taste of the social and elite status there was also the potential that these individuals would be repeat customers.

4. Explain how both positive and negative attitude toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand?

Social factors create the positive attitude towards a brand like Porsche. “Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables” (Kotler & Armstrong, 2014). Consumers that purchase a Porsche get the feeling of exclusivity and success and this sets them apart from other lower social classes as well as defining them in some of the elite classes. These same social factors can give a negative image to Porsche from the lower class. The jealousy of seeing someone flaunting the exclusivity of owning a car like Porsche can definitely create a negative image to those who might not ever have the opportunity to own one. Also, producing lower end cars that are cheap and underperforming can create a negative attitude towards Porsche from its elite customer base. Porsche can and has changed their attitude towards the brand by returning to their roots and only producing vehicles that driving deliver the driving experience that the consumers are looking for. Porsche can continue to produce the high-end cars they are currently producing and possibly change the minds of some consumers by adding a family oriented feeling to the Cayenne and Panamera yet keep the image of their high performance and the behalf of upper social level customer, who enjoy the experience of driving rather than transportation. As one executive at Porsche said, “We are not looking for volume, we’re searching for exclusivity” (Kotler & Armstrong, 2014).

5. What role does the Porsche brand play in the self-concept of its buyers?

Porsche works hard to understand their customers and keep their image. The Porsche brand plays a very important role, which is the upper level image of every customer of Porsche self-concept. Owning the product of the brand presents an image of success, which have the social statues and style of taste (Kotler & Armstrong, 2014).
According to the Luxury Institute, the reasons for the success of the Porsche brand are its "uniqueness" and its "exclusivity". In addition, the survey found that the brand is most frequently driven by people who are "admired and respected by others" (Porsche, AG. 2006). The self-concept of Porsche owners is of a financially successful entrepreneur. These individuals set very high goals for themselves and view themselves as “not part of the regular world, but as exceptions to it” (Kotler & Armstrong, 2014). One former chief executive of Porsche summed it up when he said: “If you really want to understand our customers, you have to understand the phrase, “If I were going to be a car, I’d be a Porsche” (Kotler & Armstrong, 2014).

References
Kotler, P. & Armstrong, G. (2014). Principles of Marketing (15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
WickedCarrera, (2005). Porschephile. Urban Dictionary. Retrieved from: http://www.urbandictionary.com/define.php?term=Porschephile
Porsche, (2014). Retrieved from: http://www.porsche.com/usa/aboutporsche/principleporsche/
Porsche, AG. (2006, May 5). Porsche Enjoys Unsurpassed Prestige in US. Retrieved from: www.porsche.com/usa/aboutporsche/pressreleases/pag/?pool=international-de&id=2006-05-05

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