Consumer Behavior Assessment Item 3

ASU

October 19, 2020

Course: MKT 402 - Consumer Behavior

I. Context and Problem.

Kashy is a startup on demand mechanic service that by their own admission is trying to put a spin

on an old concept through changing the current mechanic industry for the better by offering car

service to the busy and career oriented customer at their own convenience and location at very

competitive rates (Kashy 2020). The main problem the startup faces is coming up with a unique

and low cost way to reach an expanded customer network on a monthly marketing budget of

approximately $2000. Taking on a consultant role on behalf of Kashy, I will endeavor to conduct

a balanced literature review on how affordable marketing can be achieved, apply a theory and offer

recommendations on how the problem can be tackled.

II. Literature Review.

This startup falls under the Motor Vehicle Engine and Parts Repair and Maintenance Industry, a

vast market in Australia that is estimated to be worth $12 billion. By observing its past, the industry

has been on a significant growth trajectory for the past five years, and going by the industry reports

and projections, it is bound to maintain this trend. This is because the records show a constant

growth in the number of motor vehicles purchased as well as the increased growth of real

household disposable income. Another factor that is interesting to look at is the age of the overall

vehicle fleet on the road which has remained average over the studied five-year period meaning

that the estimated annualized industry growth is estimated to hold at a steady 0.8% through the

end of 2020 (IBISWorld 2020). This in itself represents an open chance for the startup to spread

its wings and grow to reach new customers if the company employs an effective way or ways to

reach new customers.

An important aspect to consider in marketing is budgeting and as per the case study of the startup,

there is an explicit aspect of their marketing that touches on the fact that the marketing budget is

limited to around $2000 per month. Budgeting and inflation go hand in hand and as posited by

Blasko and Patti (1984), inflation raises the cost of marketing owing to the increased media cost.

This means that the marketing manager has a duty to apply a budget appropriation technique that

has the potential to optimize the sales and profits of the organization using the available resources.

What this means is that there is a continued and pressing need to investigate better and more

advanced or sophisticated methods of budgeting and the actual advertisement to evaluate the

necessary items that are included in the budget and their respective contribution to the overall

success of the campaign. Piercy (1987) suggests that instead of a company relying on the

traditional rule of thumb marketing techniques, things should be shaken up a little and an actual

process conducted in terms of marketing and budgeting for the campaign that is geared towards

increasing the market share to gain more insight from the source of the processual variables and

the task environment (organizational characteristics and budgetary process) on which the

marketing budget is grounded. In this mix the following steps are relevant and necessary:

(a). A need to assess the major difficulties faced by the firm and in this context, the major issue is

a stagnated customer conversion rate as well as assigning the allocation of funds in respect to the

total available funds.

(b). Defining the most acceptable solutions to the problem. In this context, the solution should

border on establishing a marketing technique that is relatable and illustrates the benefits of signing

up and being Kashy customers.

(c). Defining the starting point for the search for an appropriate and befitting strategy. As per the

target market, the strategy or marketing techniques employed need to be versatile in terms of how

digital they are or rely on technology since the premise of the solution offered is tech-based and

the target market is quite tech-savvy.

(d). Defining the information available in terms of the number of projected customers as well as

the cost per, the most reliable channels as well as previous metrics and analytics on how effective

a specific technique or strategy is to make an informed decision.

(e). Providing or availing the marketing team with the appropriate and relevant information as well

as the required finding to proceed with the agreed-upon technique(s).

The fact that the company is unsure of the potential target market that could top off the current

prospects; targeting young women between 20-45 who are normally career or family-oriented due

to their high time demand for and appreciation of the convenience offered by home mechanic

services introduces another aspect of marketing to the mix, risk. This risk is brought by trying new

things, an aspect referred to by many as creativity. To bridge the gap between risk and result,

creativity has been known to be a very effective tool since it pushes the message into the minds of

the target audience (Kover, Goldberg and James 1995). The newness of the strategy suggests

uncertainty of outcomes hence the risk factor. As a marketer moves from a current and existing

market positioning whether by changing the price or marketing communication, the more

significant the outcome that may result. The greater the probability that the significant outcome

will differ from the foreseen outcome, the greater the associated risk. For all this to be effective,

creativity has to be applied and the more unique the idea, the greater the chances of reducing the

size of investment required (El-Murad and West 2003). The relationship between advertising

creativity and advertising risk-taking brings in a delicate issue that is both deceptive and of

considerable importance given the close relationship between the share of heart and share of the

market ( Day 1989). To significantly defeat the perception that the more you spend the greater the

share of heart and consequently share of the market, there is a more cost-effective way to share of

voice and an alternative route to share of the market which lies in striving directly for a greater

share of the market by being outstanding to the extent that the advertisement campaign gains a

greater share of heart without needing a greater share of voice. An illustration of this has been an

excellent demonstration by Gibson (1996) and Jones (1995) who concluded that a television

viewer's attitude towards a brand can be changed by a single exposure. This can be achieved by

capturing the attention and imagination of the target audience through an enhancement of what is

said and how it is said to ensure that the audience sees and senses in a flash what the product or

service is for, whom it is for, and why they should be interested in it (Belch and Belch 1998). Many

startups have failed due to their spending capacity on brand capacity and sales increment with an

exception of this being seen in the word of mouth marketing which is the best option for startups

with limited marketing budgets. The internet has revolutionized the word of mouth marketing with

social media platforms emerging as the go-to platforms for startups and SMEs to reach millions of

customers and prospective clients within seconds. This has become a preferred strategy through

which campaigns and other marketing strategies are launched cementing the importance of

platforms such as Facebook and Twitter as anchors on which startups depend for most of their

marketing needs. The global reach of social media platforms has seen many brands succeed by

being the fastest sources to reach customers (Basri and Siam 2017).

Developing digital referral systems has been an even more useful tactic among startups

that want to streamline resources and enhance their conversion rates without pursuing big

expenses. Efti (2019) states that customer referral is usually associated with a degree of credibility

that is imitable with the help of conventional advertisements because they take advantage of

existing trust networks. Bruner and Kumar (2000) note that the digital media space allows the

quick propagation of user generated endorsements, which have compounding effects when

contented customers broadcast their experiences on various media. Also, Basri and Siam (2017)

highlight the fact that social platforms improve the referral processes because businesses can

combine promotional benefits, shareable links, and testimonial content, which spread faster and

further compared to offline word-of-mouth campaigns. The power of referrals will not only be in

engaging more customers but also in decreasing the cost-per-acquisition in comparison with the

cost-per-paid digital impressions. According to Hwang, MacMillan, and Lee (2003) audiences are

more responsive to messages posted by peers as opposed to institutions thus a strategic intersection

between trust, reach, and frugality. In the case of startups with limited marketing budgets, referrals

can be motivated by creating a scalable cycle of awareness, interest and loyalty by encouraging

referrals through digital channels and remain economically viable.

Customer segmentation and personalization of the message also become more topical as

the competitive environment of service-based startups becomes more intense. According to Belch

and Belch (1998), targeted advertising can work more efficiently when different audience groups

are messaged in such a way that it targets their habits, motivations and their media consumption

patterns. The company that is working in the automotive maintenance industry can use the

demographical, psychographic and behavioral information to narrow the down marketing strategy

and can be able to spend more money efficiently (Blasko and Patti, 1984). As an example, it could

work better on young professional women or busy working motherhood to send a message that

focuses on convenience, reliability, and trust. Brunner and Kumar (2000) suggest that when traffic

is personalized, it increases the attention of the audience as it implies relevance and consideration

of preferences of the users. Moreover, Day (1989) observes that emotional resonance

strengthening campaigns may aid in share of heart that may at times affect brand loyalty before

any expenditure is incurred on any of the goods. Hwang, MacMillan, and Lee (2003) assert that it

is through digital media (especially corporate websites and apps) that firms can enable the delivery

of segmented communications at minimal incremental costs. With personalization and strategies

to take data into consideration when creating a budget, startups can find the balance between reach

and specificity without losing brand clarity or financial understanding.

The share of heart notion is further vital in the event of the contribution of brand perception

in markets that are dominated by sophisticated players. Day (1989) describes that emotional

affinity as opposed to the mere volume of advertising is often what is involved in the distribution

of loyalty and attention by the consumer. Social media platforms offer startups the time to develop

personality and relatability that the conventional media cannot always accommodate due to

economic reasons (Basri and Siam, 2017). Belch and Belch (1998) further stipulate that being

consistent in terms of tone, visual identity, and message delivery helps to enforce brand recognition

over time and this is especially important to companies that want to expand without extensive

promotion spending. Moreover, Bruner and Kumar (2000) discovered that web-based campaigns

have a greater ability to provoke a user response when they are based on narrative aspects that are

related to aspirational values or daily life experiences. Efti (2019) also notes that referrals may

also intensify the emotional appeal by positioning services, such as the verbatim words of positive

customer testimonials. Instead of focusing on mass-market advertising alone, brands have an

opportunity to incorporate emotional persuasion with an interserted communication approach to

consolidate identity, increased memorability, and easily win a loyal following.

The other new area of applicability is the strategic application of business web sites as

branding and transaction platforms. According to Hwang, MacMillan, and Lee (2003), websites

act as dynamic advertising platforms, where companies have the capability of simultaneously

delivering a service information, promotional programs and customer services. This will limit the

use of third party advertising media and ease the process of communicating with potential

customers (Bruner and Kumar, 2000). Belch and Belch (1998) assert that a good digital presence

should incorporate visual consistency, strong messages and actions that direct the users to

conversion. This also makes a budgetary control to add not only functional but also marketing

value to the hosting capabilities like booking systems, service estimators, or even chat support.

According to Day (1989), the emotional tone presented by digital interfaces is part of brand

perceptions, i.e. the web site proves to be both persuasive and retentive. According to Basri and

Siam (2017), incorporation of social media integration into corporate websites not only promotes

synergy between the two platforms, but it also allows smooth flow of information in the users

communities. Such an overlap of branding and interactivity leads to interaction without that high

cost of running several parallel campaigns.

Besides strategies on the web, the interactive character of web advertising has also brought

on new type of audience engagement that strengthens the message recall. Brunner and Kumar

(2000) explain that web commercials and short video ads are capable of impacting the time-tested

hierarchy-of-effects cycle, though not with the use of the expensive frequency of a television spot.

Such digital formats can enable startups to reach different segments of the audience where the tone

and content can be changed in real time (Belch and Belch, 1998). According to Day (1989),

meaningful connection could be cultivated when emotionally resonant visuals or messages are

used to create such a connection thus enhancing the chance of brand assimilation and subsequent

involvement. Also, Basri and Siam (2017) point out that impressions, clicks, and conversions can

be counted immediately by startup marketers, which means that redirecting the resource becomes

less challenging once it is clear that a specific channel is not working. With an effective

incorporation of digital and referral-based channels, as noted by Efti (2019) one well-thought

message can spread through online networks organically. This flexibility minimizes financial risk,

increases the duration of campaigns and puts startups at a strategic position in outmaneuvering

competitors who use only the traditional forms of promotion.

Even though the digital promotion is irreplaceable, startups should also be aware of the

need to match strategies with changes in customer expectations and decision-making mechanisms.

According to Belch and Belch (1998), customers are increasingly demanding credible information,

instantaneous service comparisons, and one on one interactions prior to committing themselves to

buying. According to Blasko and Patti (1984), budget planning should not just be cost efficient but

also give the ability to sell to consumers at critical stages during their process. Bruner and Kumar

(2000) observe that the practice of web-based research and reviews is increasingly growing in

popularity, a fact that implies that customers usually come to brand interactions with prior

prejudices or demands. Day (1989) further contributes to the fact that brand affinity may be either

enhanced or reduced in the speed and significance with which a firm, in response to these

expectations, reacts. With incorporation of user reviews, interactive self-help questions, and open

pricing into online platforms, startups can meet informational expectations and at the same time

strengthen survival cues of loyalty (Hwang, MacMillan, and Lee, 2003). These strategies are useful

in minimizing uncertainty, maximizing rate of conversion and making sure that small budgets

create concrete, quantifiable results.

Long-term growth strategies used in marketing also require the startup to be proactive with

regard to handling risks as it goes on with the creative momentum. El-Murad and West (2003)

state that when dealing with novelty and market insight, it is important to strike a balance to avoid

such misalignment of the brand message and consumer perception. Day (1989) notes that

emotional resonance does not occur in the act of being creative but of relating the creativity to less

ambigous needs, aspirations or values. Basri and Saim (2017) highlight that online tooling offers

quick testing and experimentation of campaigns to enable marketers to reduce resources loss and

improve their messaging. The authors (Belch and Belch, 1998) also explain that the investigations

into the new formats such as the interactive advertisements or influencer relationships can create

a wide reach without having to spend enormous overheads as traditional media. Bruner and Kumar

(2000) recommend that online content should be constantly reformulated to suit the changing

audience preferences in order to be remains relevant. Startups can use creative, risk management,

and iterative feedback loops to increase brand voice and maximize performance with minimal

marketing resources.

Brand communities development is a strategic expansion of Internet marketing, referrals

and direct messaging. As Efti (2019) points out, sharing feedback, making recommendations, or

engaging in promotion activities as a form of value-creation with the client make the brand visible

without necessarily spending. According to Day (1989), the nurturing of share of heart in such

communities is a platform on which a repeat business, loyalty, and organic advocacy will be

developed. Belch and Belch (1998) assert that community based interactions allow startups to

personalize their service and eliminate relational doubt in manners that match or surpass the

effectiveness of campaigns done systematically. Basri and Saim (2017) note that social groups in

applications such as Facebook or LinkedIn can disseminate brand messages beyond the immediate

network of the startup and further have the effect of reducing the acquisition cost. Brunner and

Kumar (2000) further state that when a participant feels he or she is listened to, the chances of

offering constructive ideas to influence future marketing efforts are higher. With open dialogue,

interaction and peer rewards, start ups are able to remain visible, instill trust, and build brand

strength in the long run without becoming budget constrained.

Theory

Attitude Formation Theory is a reasoned focus on how people behave in terms of their attitude and

how that attitude was developed, how it takes shape, and why the person in question has that

attitude. The particular interest psychology and more specifically marketing have on attitude

formation are based on the fact that attitude directs consumer behavior (Kempf 1999; Johar,

Maheswaran, and Peracchio 2006). The theory is a composition of three constituent theories that

describe attitude formation; functionalism, learning, and cognitive dissonance theories all of which

suggest that there is a very distinct possibility that humans do what they feel benefits them

(functionalist theory) or there is a chance that past experiences teach humans how to act and behave

(learning theory) or behavior is molded by an attempt to reconcile the two facts; beneficial

behavior and past experiences (cognitive dissonance theory). The application of this theory in this

context is an attempt to look into the driving factors that are behind consumer behavior and trying

to find recommendations on how the company in question (Kashy) can benefit from the concept

of attitude formation to expand their consumer demographic and reach through advertising. As

illustrated by both Gibson (1996) and Jones (1995), consumer attitudes towards a brand can be

changed through adequate and effective exposure that captures their attention and imagination.

The functionalist theory suggests that attitudes towards a product are formed according to how a

product or service is perceived to meet a specific need and as such, the resulting attitude is solely

based on the benefit the product offers the consumer. In this regard, the marketing should be

focused and geared towards illustrating to the consumer the benefits they will reap from the

services offered by Kashy; convenience, time and cost-saving, efficiency, and trustworthy services

and mechanics. The learning theory implies that consumer past experiences shape the future of

their consumption habits and in this regard, Kashy should focus on changing the mentality of

consumers who may have had a bad experience with the service by emphasizing improvements to

their services. New consumers should as well be wooed through the sharing of positive reviews

from past customers. An online campaign that encourages and prompts customers to share

consumer-generated content would work wonders in this respect since it has been known to be

trusted as word of mouth. Cognitive dissonance theory emphasizes the contribution made by a

reconciliation of these two facts and this is why Kashy should blend the two aspects of their

marketing perfectly to enhance the effectiveness of the campaign.

Scholars focus on the role of attitude towards advertisement by how advertising influences brand

attitudes and purchase intentions (Mackenzie et al. 1986; Bruner II & Kumar 2000; Stevenson et.

al. 2000). There is a very strong relationship between advertisement and attitude towards a brand

both of which are directly tied to the purchase intention. Websites and the internet, in general, have

revolutionized the advertisement industry and a brand can use it to mold consumer attitude

positively by presenting information tailored towards a targeted audience through a unique

combination of multiple message types (Hwang et.al. 2003).

The Persuasion Theory offers to fill a significant gap in the comprehension of how

advertising may alter the attitudes of the consumer by viewing communication processes that cause

change in beliefs. Mackenzie, Lutz, and Belch (1986) argue that persuasion is usually motivated

by the credibility, attractiveness, and relevance of the source of message and these factors directly

influence the way the consumers process brand information. Stevenson, Bruner, and Kumar (2000)

claim that the features of the design of adverts, such as tone, style, and sensory appeal, may

contribute to the increased receptivity of the message by responding to the expectations and

preferences of the viewer. Within online contexts, Hwang, MacMillan, and Lee (2003) observe

that the success rate of persuasive appeals is higher in a situation where the appeal is personalized

and interactive because it creates a mental connection and also evokes feelings in an individual. In

the case of a service such as Kashy, to attract rational and affective reasoning, persuasive

messaging may point to social proof, reliability and user satisfaction. The Persuasion Theory is

also suited to the assumption, that message framing may provide the speed of attitude change

because it focuses either on the merits of adoption or the disadvantages of inaction (Johar,

Maheswaran, and Peracchio, 2006). Combined with knowledge of existing consumer attitude,

persuasive advertising can be used to alter belief systems in a way that supports positive

evaluations and increases the intention to buy the product.

The Elaboration Likelihood Model (ELM) also adds a deeper insight into consumer

formation and change the attitude as it differentiates two main paths of persuasion that are central

and peripheral. According to Mackenzie et al., (1986), when consumers are highly involved,

central processing takes place and the consumer concentrates on the quality of messages, logic,

and evidence. Conversely, Stevenson et al. (2000) observe that, peripheral processing is based on

visual attractiveness, celebrity endorsement or mere heuristics hence such processing is helpful

when audiences are less motivated to process information in detail. Brunner and Kumar (2000)

theorize that digital environments can facilitate simultaneous utilization of both of these routes by

marketers via layered design, targeted messages and interactive experiences. In the case of a firm

such as Kashy, central route persuasion can be in the form of explanations of pricing, quality of

services offered, and customer guarantees whereas peripheral strategies might be in the form of

testimonials or convenience-oriented images. Johar, Maheswaran and Peracchio (2006) suggest

that the attitude change becomes a more lasting effect when the central route involvement is

invoked but peripheral cues remain important in the initial appeal of attention and on stimulating

attention. Marketers can persuade different consumer groups with a different level of motivation

by purposefully designing advertisements to reach the cognitive and aesthetic values of the

audience.

The Theory of Planned Behavior (TPB) is another relevant example of a conceptual

framework that links attitudes to behavioral intentions through the intermediary roles of subjective

norms and perceived control. Johar et al. (2006) state that when individuals believe that a particular

behavior will result in favorable outcomes, attitudes have the greatest influence on decisions, and

social expectations are the ones that most often provide the necessary strength to the intention of

acting. Mackenzie et al. (1986) point out that advertising can not only impact one’s personal

evaluations, but also the perceived norms, by showing the approval of the community,

endorsements of experts, or high satisfaction of customers. In addition, Bruner and Kumar (2000)

say that the control over the behavior is perceived when the brands become the procedure of

engagement simple, transparent, and accessible. As for Kashy, a startup can help people feel more

comfortable with the decision to go through with it, by constantly reminding them how easily they

can book, how trustworthy the mechanic is, as well as how socially acceptable the idea is.

Stevenson et al. (2000) present the argument that the probability of purchase is increased when

consumers are provided with a feeling of confidence towards their ability to take action, and at the

same time, the action is in line with positive attitudes as well as social cues. From the TPB

viewpoint, the message which calls for strategies that align marketing of internal beliefs, external

influences, and logistical feasibility is marked out.

Affective Conditioning Theory further extends its scope by linking the emotional

association of inputs to brand attitude change, even if there is minimal cognitive processing.

Bruner and Kumar (2000) argue that the continuous exposure to a positive picture, sound, or

narration can result in a good association with a service or product. Kempf (1999) tells that the

emotional responses may come first before the logical ones and quite often they determine

preference even before consumers consciously recognize the reasons for their choices. Stevenson

et al. (2000) state that the elements used in a digital advertisement can intensify the affective

conditioning to the point where certain feelings can be triggered by the visuals, the tone, and the

atmosphere. Mackenzie et al. (1986) say that if these emotional cues are always found together

with brand messages, then they can help promotion of the brand and influence the behavior of

people later on. This viewpoint is especially applicable for Kashy type of brands that are able to

link their services with the concepts of ease and tranquility. Johar, Maheswaran, and Peracchio

(2006) are of the opinion that emotional conditioning leads to the formation of implicit attitudes

that are more resistant and have greater impact in situations where consumers are under time

pressure or experience decision fatigue.

Attribution Theory is equally helpful to marketers to understand the consumer reaction of

marketing claims and experiences. Stevenson et al. (2000) say that the individuals in all situations

try to find the cause for the events and assign the responsibility either to the internal characteristics

or the external circumstances. Besides, Bruner and Kumar (2000) say that the giving of positive

results to brand competence will bring along with trust and loyalty of the consumers, however, the

condition of ambiguity can result in skepticism. Meanwhile, Mackenzie et al. (1986) emphasize

that advertisers can use attribution to their advantage by illustrating how the company is an expert

in the field and has been open and reliable. Johar et al. (2006) further support this idea by stating

that consumer testimonials or success stories in service delivery can be presented in a way that

they become sources of credibility and positive attitudes. For instance, Kashy can use the tools of

punctuality, professional certifications, or customer satisfaction to become the reasons that will

inspire confidence and loyalty among the consumers. Moreover, attribution is also linked with

cognitive dissonance, therefore, consumers search for coherence among beliefs, actions, and brand

performance they perceive. Through the use of strategic messaging that manages perceived

causality, companies are likely to attract loyal customers and influence the post-purchase

evaluations.

Social Judgment Theory adds yet another dimension to the understanding of new

information processing along with the existing attitudes or anchor points. Johar et al. (2006)

suggest that individuals determine the truthfulness of a persuasive message within ranges of

acceptance, rejection, or non-commitment based on prior beliefs and involvement. Mackenzie et

al. (1986) note that concepts which agree most with a consumer's current point of view are easily

understood, whereas those considered too far off may be rejected or provoke resistance. Stevenson

et al. (2000) point out that in order for promotional activities to be efficient, companies have to

adjust their advertisement so as to be compatible with the expectations of the audience, thus their

attitudes will be altered progressively rather than by an instant change. Bruner and Kumar (2000)

are of the opinion that online advertisement gives the advantage of segmentation strategies that

help the advertiser to select the communication which is most relevant to the different attitude

anchors thus, the attitude change will be more achievable. In the case of Kashy, advertising that

focuses on ease and trust might be going together with consumer wants for dependability in the

automotive service industry. According to Johar, Maheswaran, and Peracchio (2006), slow

persuasion is the only one which guarantees that changes in attitudes are stable and less likely to

cause psychological reactance.

The Hierarchy of Effects Model defines the steps to be followed in understanding a

consumer's journey from the knowledge stage to emotion and finally action. Situated in the

Attention and Understanding phases, latent consumer knowledge and subconscious perceptions

are the issues raised by Mackenzie et al. (1986). Bruner and Kumar (2000) affirm that in the digital

realm, consumer journeys can be tracked more closely due to the availability of various

touchpoints that can facilitate communication, reassurance, and even co-creation of brand

experiences. Stevenson et al. (2000) pinpoint that brand identity, features arrangement, and

message sequencing could be the main determinants in moving the hierarchy of effects model

facilitated by directing consumer cognitive and emotional engagement. Johar et al. (2006)

recommend that in order for advertising to be effective, it must not only set the consumer on the

right track but also offer the most suitable strategy for a specific stage that would involve the right

balance of facts, attractiveness, and comfort. For instance, Kashy may receive messages that

highlight the usefulness and simplicity of the product as well as communications that assure him

that the steps are easy and that his community endorses the product. Furthermore, Mackenzie,

Lutz, and Belch (1986) emphasize that the employing of user feedback to create pre-testing

conditions can pave the way for optimizing not only messages but also the scheduling of the

campaigns so conversion results are maximized. The combination of attitude formation theories

with the hierarchy model paves the way for a systematic and theory-based campaign-designing

process.

III. Recommendations.

Recommendation 1: Public Relations (Creating a Referral Rewards System).

Public relations strategies are vital steps in increasing the reach of a brand in the market as it helps

the organization and its publics to mutually adapt to each other since its immediate goal is to

establish a mutual understanding between a brand and its target market. This enhances its position

in the market and industry through the creation of a positive perception or predisposition with an

added advantage being its simplicity in terms of assessing its success which is measured through

the expressed public opinion or any other form of evidence of public support. This fact lines up

well with the companies’ goal to shake up the industry and increase their reach in the market and

as posited by Piercy (1987), the strategy(ies) applied should be versatile in their presentation to

the consumers to enhance their effectiveness. The strategy is also low-key in terms of cash or

resource intensity and therefore positively aligned with Kashy’s ambition to ensure that the

employed tactics do not cost more than $2000 per month. A referral rewards system fits into this

profile perfectly because it puts the customer to work for the brand by offering them a rewards

program that is activated immediately they refer a new customer to the business. The reward

benefits recommended are two ways in the sense that both the customer who recommended a new

client enjoys a service discount on their next service and the new customer gets to enjoy the first

service at a discounted rate. Efti (2019) posits that referrals are the most valuable marketing tactics

in terms of having the highest return on investment. This can be attributed to the fact that a referral

system requires very minimal financial investment and they result in bringing very warm and

valuable leads. In this context, the obligation Kashy is placing on its back for the strategy to work

is writing off some charges on services offered meaning that the actual cost is the labor and

possibly supplies that go into the service extended to the customers. This resonates with both the

functionalist theory of attitude formation because both the new customer and the one who referred

them opt for the service due to the apparent benefits associated with the program and by extension

service. The learning theory also applies in this context since the old client refers to new clients

due to the past experiences they have had with Kashy.

Recommendation 2: Public Relations (Implementing a Subscription Program).

To further enhance the relationship between the brand and the consumers, the brand should

implement a subscription plan. The recommended subscription plan is one that would allow

customers to spread their bills over a specified period in an effort to ensure that no customer

irrespective of their economic capability at the time of joining the platform is denied services

because of a lack of sufficient funds. The benefits associated with this plan are quite substantial

starting with customer retention since there is a very distinct possibility that the customers with

outstanding bills will turn to the business for their future and upcoming needs. Other benefits range

from the fact that having a flexible and attractive subscription plan increases the chances of

attracting more customers, provides the business with a predictable and steady revenue stream or

cash flow, increasing the return on customer acquisition costs, and makes it easy for the business

to offer proof of concept. The feasibility of this recommendation aligns well with the low cost of

the idea implementation and the fact that the idea is so fresh in terms of attitude formation which

has been proven time and again to be directly tied to consumer behavior. Once again, the

functionalist theory of attitude formation applies quite well in this context due to the possibilities

it offers both the business and the consumer more so the customer since there is a visible and

tangible benefit the package offers the customers, uninterrupted service delivery without the aspect

of costs hanging over their heads. This aligns with the ideas borrowed from Day (1989) on the

close relationship between the share of heart and share of the market while simultaneously

defeating the perception that the more you spend the greater the share of heart and consequently

share of the market. This applies since the recommendation is a low investment idea that is also

unique especially in the motor vehicle repair and maintenance industry.

Recommendation 3: Promotional Strategy (Forging a Strategic Partnership with Leading

Automotive Repair Parts and Accessories Manufacturers).

Promotional strategies are unique tactics that businesses apply to remind the customers and by

extension, the market about the services and/or products they offer, persuade them to partake, and

inform the public of the benefits their unique services and/or products offer. In this context, a

strategic partnership with the leading and trusted automotive repair parts and accessories

manufacturers means that in addition to the fact that the parts and accessories are widely used by

customers in their general maintenance issues hence the borrowed trust in deliverables, Kashy

stands to gain even more. As much as strategic partnerships are meant to offer mutual benefits to

both parties, looking at it from the perspective of Kashy, the business stands to gain access to new

customers who are loyal to the brands, an opportunity to reach new markets through free

advertisements, added value to previous customers through solidified loyalty, increasing brand

awareness due to the enhanced exposure of the brand information and logo, and increased brand

trust exemplified by the fact that the brand is seen to work well with others. This tactic can be

associated with the cognitive dissonance theory of attitude formation since it seeks to combine the

benefits of both past experiences for the old and already existing clients and the learning curve for

the new ones through the association with the brands they are loyal to when it comes to repairing

and maintenance of their motor vehicles. Publicizing all the three recommendations through social

media and encouraging customers to contribute to the debate through user-generated content is a

great way to capture new markets as posited by Basri and Siam (2017).

Recommendation 4: Digital Advertising Campaigns via Targeted Social Media Placements

Considering consumer dependence on digital platforms for decision-making, Kashy should

design targeted advertising campaigns on platforms such as Instagram and Facebook to get more

brand visibility and attract potential consumers. As Basri and Siam (2017) suggest, social media

is an influential channel for startups to conquer the market quickly and with less cost than

conventional media. By using short, colorful, and attention-grabbing ads which point to

convenience, cost savings, and trust, the company can to use both the functionalist and cognitive

dissonance principles in the change of the consumers' attitudes. Mackenzie et al. (1986) state that

people's attitudes toward ads can affect brand perception, which means that even short exposures

can direct customer intent. Moreover, the flexibility of digital ads gives Kashy the opportunity to

tailor his message according to different audience segments, which is in agreement with the need

for targeted communication mentioned by Stevenson et al. (2000). Customized communication,

mainly when supported by metrics like click-through rates and user engagement, is a source of

consumer reactions and aids in campaign improvement. Piercy (1987) states that a suitable

budgeting process must be accommodating and reactive and digital platforms can fulfill this role

by giving real-time performance data which can be used to reallocate limited funds with the goal

of achieving maximum impact.

Recommendation 5: Content Marketing Through Educational and Service-Based Messaging

To build consumer trust even more, Kashy must put content marketing in place that will

inform potential clients about vehicle maintenance, taking cost-saving steps, or the advantages of

mobile mechanics. Hwang et al. (2003) found that online platforms allow brands to implement

more varied message strategies targeted at specific audience segments which results in overall

persuasion. For instance, informational blog posts, short videos, or infographics can be the medium

to talk directly to the logical mind of consumers and thus correspond to the functional theory

through showing how Kashy is the solution to their problems. Johar, Maheswaran, and Peracchio

(2006) state that cognition-based appeals are helpful only if consumers are motivated and have the

capability to process the given information which means that educational content can have a long-

term attitudinal impact. Bruner and Kumar (2000) also refer to the hierarchy-of-effects model

whereby purchase intentions are influenced by exposure and comprehension. Besides that, by

using customer feedback and sharing the stories of successful services in the past will attract people

who follow the learning theory because such activities will confirm the positive relationships. The

concept of Day (1989) to gain a “share of heart” is very much applicable in this case as content

marketing is the way for brands to be there in the consumer’s everyday digital world. With little

effort required past the initial production, this method is a good fit for Kashy’s limited marketing

budget and at the same time, it is quite successful in building authority, trust, and familiarity.

Recommendation 6: Interactive Website Enhancements and Live Support Features

A method that can be used to improve the website user experience and also to attract more

users is to upgrade the corporate website with interactive tools such as service booking widgets,

cost estimators, and live chat support. Digital interfaces according to Stevenson, Bruner, and

Kumar (2000) can have a significant impact on the consumer perception of the credibility of the

company, particularly when the visual layout and navigational ease correspond to the user's

expectations. Hwang et al. (2003) likewise highlight that websites operate as advertising spots that

are capable of delivering the one-fold affective and cognitive messages, which are suitable for

establishing a bond of trust with the practices. From the dissonance theory point of view, the

provision of support and the implementation of open processes allow customers to feel at ease with

the uncertainties and hence they can overcome the dissonance that stems from having their

expectations in a contradictory manner with the practices of online service providers. Kempf

(1999) advocates that a direct trial or exposure, either digital or physical, will provide the user with

attitude development as it will influence both affect and cognition at the same time. Furthermore,

the use of customer testimonials and the presence of certain visual elements such as the

presentation of the situation before and after the intervention also help to consolidate the

consumer's learning-based associations. Piercy (1987) maintains that for the efficient allocation of

funds it is required that the production of the utility of the already existing resources must be

maximized, and usually enhancing a website at any time is more priceworthy than having repeated

paid media campaigns. Kashy, by turning the website into the heart of his communication, can

deliver a continuous online experience that not only leads to return visits but also conversions of

higher rates.

Recommendation 7: Customer Segmentation and Personalized Outreach Strategies

To be more specific, by the use of demographics, consumer behavioral data, history with

the company, and other related data, Kashy can communicate their message more effectively to

the market. The research of Johar et al. (2006) pinpoints that in consumer response the major

factors are memory, affect, and persuasion, and these are all considerably heightened by targeted

messaging. Through customer data analysis, dealing with both the customers of the past and the

potential ones, Kashy may be the one who sends out e-mail reminders, creates personalized service

offers, or makes location-based promotions. Mackenzie, Lutz, and Belch (1986) discovered that

ad attitudes mediate advertising effectiveness, which is the reason that carefully constructed

communications can lead to increased brand loyalty. Day (1989) proffers that the "share of heart"

can be influenced by identifying the emotional and cognitive elements that surround consumer

preference. Transforming the consumers with tailored incentives, loyalty offers, or the giving of

early-bird discounts is very compatible with the functionalist perspective as it directly links the

benefits with the needs of the consumers. At the same time, customers learn through the process

of learning theory as they become habituated to receiving outreach that is both consistent and

relevant. Since the implementation of personalization using low-cost digital tools is also in line

with the strict monthly budget emphasized by Piercy (1987) that ensures that financial restrictions

do not pose a barrier to meaningful engagement, these strategies are very suitable.

Recommendation 8: Community-Based Engagement Through Local Events and Micro-

Influencers

Although digital platforms are dominating, local engagement still has its value, especially

when it is combined with strategic partnerships. Working with micro-influencers or local

community leaders who are already trusted within specific demographic groups can help to not

only increase but also authenticity to the brand. Basri and Siam (2017) mention that a channel such

as social media will gain more coverage if the content is shared by people who have very active

and loyal followers. In the context of attitude formation, support coming from familiar or relatable

sources is in line with both learning and cognitive discomfort theories as these endorsements give

examples in everyday life of satisfaction with the service. Day (1989) also emphasizes that

emotional connections significantly influence buying decisions, especially when the messenger is

among those that have credible or common experience. Small events, for example, vehicle safety

workshops or pop-up maintenance checks, can increase the visibility and the level of trust at a

relatively low cost. Kempf (1999) also indicates that face-to-face communication can influence

the customer's emotions, thus prompting increased customer loyalty. Piercy (1987) is of the

opinion that a strategic marketing plan should take account of financial restrictions without

compromising long-term value. Kashy, by combining community-based initiatives and social

sharing, could not only extend its local presence but also facilitate brand advocacy and the change

of attitudes in the long term.

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Appendix

Table 1.

Recommendation

Benefits

Creating a Rewards Referral System

Requires minimal cash investment

Expands client reach

Has the highest return on investment

Implementing a Subscription Program

Improves customer retention

Increases the chances of attracting more

customers

Provides the business with a predictable and

steady revenue stream

Increases the return on customer acquisition

costs

Forging a Strategic Partnership with

Leading Automotive Repair Parts and

Accessories Manufacturers

Helps gain access to new customers

Offers an opportunity to reach new markets

through free advertisements

added value to previous customers

Increases brand awareness

Increases brand trust

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