Question

1. How does the Dollar Shave Club advertisement aid in problem recognition?
2. What psychological factors is Dollar Shave Club likely using to persuade consumers to try its subscription service?
3. What level of involvement are consumers likely to have with the types of products Dollar Shave sells? How does Dollar Shave turn this into an opportunity?

Answer 1

Answer-

According to Foundations of Marketing “Problem recognition occurs when a buyer becomes aware of a difference between a desired state and an actual condition.” People may desire a new razor but cannot afford a high end one or they may already have a razor but don’t recognize the need for a new one. Mike, the founder of dollarshaveclub.com addresses that “for a $1 a month they send quality razors right to your door.” He describes the attributes of their razors and says it is just as good quality as the high- end razors but for only a fraction of the price. People may not recognize a need for a product until a company point it out. For example, people may not realize how long they have their razors and the dollar shave advertisement points out the fact it is time for a new one and you can buy it from them for a cost of $1.
The textbook states “Primary psychological influences on consumer behavior are perception, motives, learning, attitudes, personalities and self- concept, and lifestyles.” I believe the dollar shave club uses a few of these factors such as motives and learning. “A motive is an internal energizing force that directs a person’s activities towards satisfying needs or achieving goals.” Dollar Shave uses problem recognition, so the consumer already is aware of their need and/or desire. Now, dollar shave uses motives to get the consumer to buy the subscription and satisfy that desire or need that they now have. They also use learning by describing their razor and describing how they create jobs. Their razors have stainless steel blades and an aloe Vera lubricating strip and a pivoting head. Mike also says the razor is so gentle a toddler could use it. Yes, almost every company has jobs that need to be fulfilled by people, but dollar shave uses a current employee who has recently gotten the job in the advertisement. Mike states “we’re not just selling razors, we are making new jobs.” then proceeds to ask the employee what he was doing last month, and he says, “not working”. Then Mike asks, “what are you doing now” and the employee says” working. Those are the psychological factors dollar shave uses to persuade customers to try their subscription box.
Consumers are most likely to have a high level of involvement with the types of products Dollar Shave sells. This means the products are low involvement and are low cost, very little risk, and not likely to go through the purchasing process. Dollar Shave turns this into an opportunity by drawing people in with their low prices and people won't be doing much research behind the product. They can maybe charge a little more and people won’t necessarily notice because they aren’t going through the purchasing process. People are also looking to spend the lowest amount of money they can on things. So, the dollar shave has very low prices which really catches the eye of people looking for a deal. That is how Dollar Shave turns the consumer's involvement in an opportunity.