Question

Organic Beauty, a company manufacturing organic cosmetics, body care products, and fragrances, doesn't want to pay the expensive costs of carrying celebrity-sponsored fragrance brands. However, since many of the company's customers want to buy these products, its refusal to carry them has caused decreasing market share. As a result, the company eventually started carrying these sought-after brands. This is an example of how

Answer 1

Answer:

Consumer pull caused a company to change its practises.

Explanation:

Consumer pull marketing is when a company devices several means to get customers to buy its products. The aim is to increase product demand, win and retain customer loyalty. Unlike consumer push which is a method used to dispose already existing products by bringing them to consumers ; consumer pull attract buyers to its product.

Generally, most companies uses several advertising mode like word of mouth referrals, placement of a product in a strategic place, sales promotion, blogs etc to stimulate the demand for their products since they know customers are looking for products that would meet or suit their need but needed to be attracted to the solution offered by the company.

Morever, the cost expended on consumer pull marketing is way higher before it becomes a brand and household name among consumers. As in the case above, the celebrities have influence on consumers demand for the products even though they have interest in purchasing them hence result to fall in market share.

Example of consumer pull marketing is children wares. Companies would get the wares advertised through various channels such that children and parents becomes attracted to them. Once they are attracted, demand for these wares will increase and retailers would also want to stock up their shops with these wares.

The whole process of the above example is called consumer pull because the company has been able to get customers to buy its products.