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Peer Responses

It is important that marketing professionals become comfortable receiving and giving constructive criticism. This is an important component in one’s professional growth and development and a core competency for leaders. You will be expected to read the initial posting of at least TWO peers, and then provide constructive criticisms to their peers’ initial postings. You should highlight strengths as well as opportunities for improvement based on the Unit’s concepts and terms:

In your Peer Response, respond to at least students who have identified environmental trends similar to at least one of the environmental categories identified in your post. Note, you will identify the larger strategic implications found in your post and your peer’s post.

1. Point out what you perceived to be the strengths of the initial posting along with supporting rationale.
2. Identify specific opportunities for improvement with regard to the content in the initial posting. Furthermore, you should provide supporting rationale for your stated position, as well as concrete suggestions and guidance intended to strengthen the effectiveness of the content.
3. Identify the larger strategic implications found in common between your post and your peer’s post.

Peer responses should be placed directly into the discussion thread and not attached as a separate document to a posting. For these responses, credible outside sources should be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (7th edition). The list of references should be physically positioned at the end of the postings.

Student 1

Summary of the Consumer Segmentation Decision Process for the EV Industry

Using the Park University Pirate Search, I searched for “electric vehicle consumer segmentation”, where I came across “Applying the Environmental Propensity Framework: A Segmented Approach to Hybrid Electric Vehicle Marketing Strategies” by Jason Oliver and Deborah Rosen.

This article proposes an Environmental Propensity Framework (EPF) and provides data that shows segmentation of consumers who drive automobiles based on their environmental values and environmental self-efficacy. Through this segmentation, the authors propose both policy and marketing techniques they predict will motivate consumers within their identified segments to make hybrid vehicle purchases. The intent of this EPF is to provide clarity on how to classify consumers when green product alternatives are available versus segmentation strategies that traditionally rely on environmental values or behaviors in isolation.

The EPF relies on existing research which has already built the foundation for this framework and take into account that links between environmental values and subsequent behaviors can be impacted by variables outside of the consumer’s control, and thus, beliefs are captured separately from behaviors. The environmental values the authors hypothesized include: “(1) beliefs about the relationship of humanity and nature, (2) beliefs about the importance of the environment to the self, (3) beliefs that the current environmental conditions are a serious problem facing the world, and (4) beliefs that some radical changes in current lifestyle and economic systems may be required to prevent environmental damage”.

Variables the authors identified that can impact a consumers behaviors despite their beliefs include; lack of efficacy/self-efficacy, technological savviness, skepticism toward new products, skepticism towards marketing communications, opinion leadership, willingness to engage in complex problem solving, self-monitoring, and price sensitivity.

A survey was developed using the results of pretests that were performed on undergraduate students at a public university to refine clarity of the questions asked. This updated survey was then given online to driver’s participating in a research panel of 1,083 drivers from across the United States ranging in age from 18 to 79, with an average of 43, and approximately 48% were male and 52% female.

Results of the surveys were analyzed with various models and supported the conclusion that an EPF which uses environmental values and self-efficacy can more insight on how consumer segments respond to greener products. The survey identified 5 levels of consumer segments detailed in Table 1. This breakdown of consumer segment based on environmental values and self-efficacy helps determine how a combination of policy and marketing initiatives may impact each group in much more detail than segmentation solely based on behaviors.

Table 1.

5 Consumer Segments

Segment	Environmental Values	Self-Efficacy
True Greens	High	High
Low Potency Greens	Med-High	Low
Moderate Greens	Med	High
Modest Greens	Med-Low	Med
Non-Greens	Low	Med

Implication for Tesla’s Consumer Segmentation Strategy / Consumer Decision Process

Implications of this study indicate that Tesla is already on the right path for their consumer segmentation strategy. Tesla has broken their segmentation into the following types: Geographic, demographic, behavioral, and psychographic (study of consumers based on activities, interests, and opinions) (Dudovskiy, 2021). They have further broken down the psychographic segment into “Aspirer, Succeeder, Explorer, and Reformer”, which reflects a similar breakdown seen in Table 1 with the 5 Consumer Segments identified by Oliver and Rosen, which take into consideration both consumer behaviors and beliefs, similar to the psychographic segment Tesla has identified (Dudovskiy, 2021).

I think this study supports the consumer segmentation strategy that Tesla currently leverages. What I would recommend is that Tesla keep a pulse on proportions of each segment consumers make up as policy changes and competition begins to ramp up over the next few years. As consumers shift between the segments in response to new product offerings and policy changes, their marketing strategy will need to be agile and flexible to adapt quickly to these changes and target the consumers that provide the most benefit. I would also continue to maintain the direct to consumer sales process through their website.

Reference

Dudovskiy, John. (May 1, 2021). Tesla segmentation, targeting and positioning: overview. Retrieved August 31, 2021 from https://research-methodology.net/tesla-segmentatio…

Oliver, J. D., & Rosen, D. E. (2010). Applying the Environmental Propensity framework: A segmented approach to hybrid electric vehicle marketing strategies. Journal of Marketing Theory and Practice, 18(4), 377–393. https://doi.org/10.2753/mtp1069-6679180405

Student 2

Consumer Segmentation for Electronics Industry

The search terms I used to aid in my research were “consumer segmentation” and “electronics industry. This led me to the article “Motivation for Buying Green Electronics: A Study of Young Customers in Delhi-NCR Region”. The study focused on the motivations that cause young consumers to buy green or environmentally friendly electronics. The study went into an in-depth literature review to place context and provide a rationale for the study. The first concept discussed was to define what the criteria are for a green product. The paper uses the definition:

“A product which is composed of recycled resources and does not pose a threat to the environment…minimizes toxic damage to the environment throughout its entire life cycle. (Fabien et al. 2010).”

The study then goes on to talk about the electronics industry and consumption. The electronics industry is growing quickly due to global increased demand. The industry as a whole had a valuation of $1.75 trillion in 2019. Because of this large demand, electronics are mass-produced and then discarded quickly for the next best product. This creates an incredible amount of electronic waste. This leads to the next concept of “green electronics”. Green electronics are electronics produced with the intention of eliminating or reducing detrimental environmental impacts by manufacturing and disposing of electronics products in an environmentally friendly manner. The last concept defined is the consumer demographics and behavior that motivates green purchasing. The study focuses on consumers between the ages of 18 to 29. This demographic consumes more than any of the previous generations particularly electronics because of the desire for greater access to knowledge. This generation also has been shown to be more environmentally conscious. This younger adult age group is more likely to pick the greener option if presented to them. This behavior can be explained through a few different theories. One being “altruistic motives” where the consumer feels better knowing that their purchases will have a positive impact on the environment as well as others. Another theory is that the consumer feels motivated by the lower energy costs or other economic benefits from buying the green option. Both theories point to society having an influence on green purchasing behaviors. Companies can encourage consumers to pick the green option by emphasizing justifying the price, revealing the features, and focus on creating environmental awareness. Other predictors of consumer buying are environmental laws and regulations as well as consumer knowledge and self-image.

The study itself was a questionnaire-based study where respondents rated statements from 1 to 7 with 7 being strongly agree. The questionnaire was broken into 2 sections: demographic information and motivations for buying green electronics. The goal of the study was to identify factors that motivate consumers to buy the greener option. The target population was young consumers in the Delhi-NC region of India. The study found that there are 4 major factors in consumer decisions: “environmental knowledge”, “environmental disquiet”, “perceived consumer effectiveness”, and “human interventions on environmental degradation pertaining to different environmental issues”. There were quite a few implications identified. I will summarize what I felt to be the most relevant implication. The results of this study can be used by companies to guide the marketing of green products to younger consumers. The researchers recommend that companies develop the trust of customers by offering things like certifications and design campaigns that encourage awareness of green products.

This research aids in how to market to younger and environmentally conscious consumers – those consumers who are likely to consume the most electronics. Within this demographic, this study helped identify 2 segments. The first being altruistic consumers and the other being economically motivated consumers. In order to market to altruistic consumers, it is important to emphasize the positive environmental impacts as well as how reducing electronic waste will be beneficial to future generations. For the economically motivated consumer, it is important to emphasize how green electronics use less energy and therefore will cost less in energy costs. Overall, it is important to emphasize the society looks favorably at those who make the greener purchase.

Reference:

Mathur, S., & Dave, K. (2019). Motivation for Buying Green Electronics: A Study of Young Customers in Delhi-NCR Region. Abhigyan, 37(2).