Consumer Behavior on Tgv Cinema

1. Introduction

This report is to analysis of five individual factors and five social cultural factors that most affect the selection of the cinema. Each factors will include three parts of analysis, that is the briefly describe the chosen factor, evaluation on how consumers responses and the recommendation of marketing strategy by the cinema management.

The selected cinema for this report is TGV cinema, formerly known as Tanjong Golden Village Sdn. Bhd. The selected branch of cinema was located at 1st Avenue Mall. Gerald Dibbayawan is the CEO of TGV cinema; TGV company mission is to provide the “Ultimate Cinema-Going Experience” to the public. TGV using differentiated segmentation to target customers, our segmentation based on demographic and behavioural segmentation. Following demographic we normally segmented customer based on 3 age groups: 12-24 (students) and 25-64 and senior citizen. Besides that, we further segments our customer based on behavioural segmentation by measuring their movie viewing frequency: Frequent moviegoers / infrequent moviegoers. Furthermore, TGV cinema in 1st Avenue Mall normally show international movie, local movie, Chinese and also Indian movie.

1. Individual Factors

2.1Extrinsic Motivation

Motivation defined as “to be moved to do something” (Ryan and Deci, 2000), and it can be distinguished between intrinsic motivation and extrinsic motivation. Extrinsic motivation means that one is motivated to do something for its expected outcome ( Jenny V. Bittner Jeffrey Shipper, 2014).

Extrinsic incentives can be used to enhance the intrinsic motivation when the aim is to develop a sense of competence and mastery in the consumer (Ryan and Deci, 2000). Consumers can be motivated to watch movies by different external factors and they will expect for the outcome such as a reward or to release pressure.

TGV could apply specific slogan on advertising to motivate the customers. The slogan must be related to company image and brand position to influence the customer wants. Such as “Go movie,  Go TGV” , “ Superior benefits all in TGV”, and more.

2.2 Perception, Just Noticeable Differences

According to Weber’s Law of Just Noticeable Differences is a perception threshold in consumer behaviour. If the changes are above the threshold, consumers just will recognize it. If not, they will probably don't recognize the change at all. Therefore, marketing application needs to determine the relevant j.n.d for their product, advertisement, price, brand position and more.  

Consumers who have a higher awareness of stimuli relevant to their needs or wants such as some attractive promotion or advertising in the market will effective influences their purchases while the consumer comparing between two different cinemas. Most of the consumers are price sensitive, increased the use of price promotions to increase the sales (Harrison 2000, 221).

TGV manager can choose to implement the promotion on weekday’s session, set lower price of the movie tickets that show before 6 pm. The lower price setting must be noticeable to the consumers, the price can set at RM 5.99 for every customers.