Pepsi AM Was Positioned as a Coffee Substitute

question 69

Essay

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out of the vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs or values, often leading to an alteration in one of the beliefs or behaviors.

Consumer Decision-Making Process

The stages a consumer goes through before purchasing a product, including recognition of needs, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Values

Fundamental beliefs or standards that guide behavior and decision-making, reflecting what is important to an individual or organization.

Opinion Leaders

Individuals who exert an unequal amount of influence on the decisions of others because they are considered knowledgeable about particular products.