Reference no: EM131753715

What do consumers think about bottled water? Many of them say “I never saw the need.” Even though consumers in the United States enjoy a vast quantity of clean, public source drinking water (a true privilege considering that many countries have a dire shortage of good-quality water), Americans consumed more than 8 billion gallons of bottled water in 2006 alone.41 The increasing trend toward bottled water consumption simply baffl es many marketing experts and critics worldwide. How can it be that a society that has good-quality public water systems consumes so much bottled water? Also, given the strain that all of those plastic bottles put on the environment, why do consumers tend to look the other way? It is generally well known that older consumers have a hard time understanding the trend. For them, buying bottled water is expensive and nonsensical. On a per-ounce basis, bottled water is extremely expensive especially compared to tap water. Although this is true, many consumers wholeheartedly trust that bottled water is simply better for them because it offers true healthrelated benefits. Because consumers today are generally more health-conscious than ever before, bottled water is certainly attractive. Bottled water seemingly fills an important consumer need for better health, and younger consumers have grown up with the belief that bottled water is simply better at delivering health-related benefits. Convenience is another important issue. Bottled water packaged in plastic containers is simply easier to carry around during the day. Convenience is not as important as health, however, and for the first time in 20 years, sales volume for soda declined in 200542 while sales of bottled water surged. Of course, other beverages like teas, juices, and isotonics (sports drinks) have also enjoyed category growth due largely to the new focus on health. But how much better is bottled water than tap water, really? This is a question that is currently garnering a lot of public attention. Bottled water consumption clearly puts a strain on the environment. It has been estimated that nearly 80% of empty bottles end up in landfills or incinerators.43 When 8 billion gallons have been consumed, that’s a lot of empties going straight to the landfill! Also, oil is required to produce the plastic bottles, resulting in a double whammy for the environment. As a result of these issues, among others, local governments are beginning to take action against bottled water marketers. For example, the city of Chicago has recently begun a citywide tax on bottled water that is expected to bring in as much as $10.5 million in tax revenue annually.44 Although the pressures from outside groups can be considerable, consumer perceptions of health benefits are still key. As long as consumers perceive that bottled water sufficiently fulfills a true need and delivers good value, the product is likely to continue to grow in popularity. Although other consumers consider such purchases as wasteful and foolish, bottled water enthusiasts strongly disagree.

Questions- Minimum 500 words all together

1. How does the need recognition portion of the consumer decision-making process apply to this case? What need is being addressed?

2. What brands of bottled water are you familiar with? Do these brands easily come to mind when you think of bottled water? Explain this issue from the perspective of the consideration set. How would you describe your consideration set for bottled water?

3. The next time you are in the classroom, take note of how many students are drinking bottled water as compared to soda. Does this surprise you? Ask a friend why he or she chooses bottled water over soda. Can you relate? Do you agree with his or her reasoning?

4. Go to a website that markets bottled water. Does it explain the health benefits of the product? If so, what does it claim? Why do you believe or disbelieve the information that you have found? Do you believe that the water is significantly better for you than is tap water? Explain.