CONSUMER BEHAVIOUR & MARKETING
MODELS: LESSONS FROM KODAK
CONSUMER BEHAVIOUR – MK601
PRESENTED TO:
Prof. Manit Mishra
SUBMITTED BY:
Anshu Priya: 24PGDM-BHU011
Kreetee: 24PGDM-BHU028
Vaibhav Sharma: 24PGDM-BHU060
Bishes Das: 24PGDM-BHU082
Kumar Aditya: 24PGDM-BHU091
Sukanya Saha: 24PGDM-BHU118
Riya Soni: 24PGDM-BHU154
INTRODUCTION
Eastman Kodak, which was once the clear frontrunner in the photography sector,
serves as an insightful case study regarding the interplay of consumer psychology,
cultural changes, and marketing strategies with the adoption of technology. Kodak’s
supremacy in the film market was founded on emotional marketing and consumer
confidence; however, its downfall in the digital age illustrates the necessity for
companies to adjust their psychological and sociocultural approaches alongside
technological advancements. This report combines psychological insights, sociocultural
perspectives, and important consumer behavior models—such as the Elaboration
Likelihood Model (ELM), Associative Network Memory (ANM) Model, and Classical
Conditioning Model—to analyze Kodak’s journey and the lessons it presents for
marketers.
PSYCHOLOGICAL ANALYSIS
From a psychological perspective, Kodak successfully built deep consumer trust. Its
products were valued for their simplicity, familiarity, and emotional connection.
Consumers associated Kodak film with cherished family memories, encapsulated in the
iconic phrase "Kodak moments." This trust fostered strong brand loyalty and emotional
attachment. For decades, consumers had little incentive to try competitors' products due
to perceived switching costs, such as the need to learn new technology or sacrifice film
quality.
However, this psychological commitment eventually backfired for Kodak. Once
consumers recognised that digital cameras offered ease of use, instant gratification, and
lower long-term costs, they quickly adopted the new format. Kodak underestimated this
psychological tipping point and clung to film, even as consumer behaviour began to shift
toward digital options. The company's failure to anticipate when loyalty would shift to
abandonment proved to be a costly mistake.
SOCIOCULTURAL ANALYSIS
Kodak had a substantial impact on culture during the film era. Photography was more
than just a hobby; it was a tradition embedded in family moments, weddings, and social
gatherings. The Kodak brand epitomized the capture of shared experiences, turning
family photo albums into valued cultural artifacts.
However, the social and cultural landscape experienced significant transformations in
the early 2000s. With the emergence of social media and digital sharing platforms, the
focus of photography shifted from memory preservation to immediate sharing. In
Western markets, consumers quickly embraced digital cameras and smartphones, while
Kodak remained focused on the slower-to-adapt developing markets, such as China.
This divergence in strategy posed challenges for Kodak, as the evolving sociocultural
trends created a gap between what consumers expected and what the company
provided.
ELABORATION LIKELIHOOD MODEL (ELM)
The Elaboration Likelihood Model provides a framework for understanding Kodak’s
advertising failures. Consumers can process persuasive information in two primary
ways: the central route, which involves logical reasoning, facts, and rational thought, or
the peripheral route, which depends on emotion, credibility, and attractiveness. Kodak
concentrated mainly on peripheral strategies—like nostalgia, family, and happiness—in
its marketing efforts. These tactics worked well when Kodak was known as the leader in
photography.
However, as the market shifted to digital, consumers started to assess their choices
through the central route, emphasizing concrete benefits such as megapixels,
resolution, convenience, and cost-effectiveness. Rivals like Canon, Sony, and Fuji
successfully showcased these logical advantages, resonating with consumers' cognitive
decision-making processes. Kodak’s focus on emotional appeals, lacking robust rational
justifications, weakened its persuasive power during this crucial transition.
ASSOCIATIVE NETWORK MEMORY (ANM) MODEL
The Associative Network Memory Model illustrates the difficulties encountered by
Kodak's brand. Consumers form product associations in their minds as interconnected
networks. For Kodak, the most prominent associations included film, nostalgia, and
reliability. Although these connections held significant strength, they were also inflexible.
On the other hand, digital competitors created new associations such as innovation,
modernity, convenience, and connectivity. When people thought of digital photography,
brands like Canon and Sony frequently came to mind first. Kodak found it hard to
reshape its associative network, leaving consumers with outdated mental connections.
Consequently, even with the introduction of digital products, Kodak's brand failed to
align with the evolving identity of photography in consumers' perceptions.
DIFFUSION OF INNOVATION
The history of Kodak demonstrates that people need not create new things unless it is
used. Kodak was at the innovators level and produced the first digital camera in 1975,
according to the model of Diffusion of Innovation. However, the corporation did not take
it to the market since it feared it would damage its movie sales. That gave rivalry such as
Sony and Canon the early adopters and subsequently the early majority when digital
cameras became mainstream. By the time Kodak appeared, cameras were already being
supplanted by smartphones, and only a handful of late-adopting customers still shot with
film. The point is obvious: it is not enough to invent something, companies should also
assist people in implementing it at the necessary time.
CLASSICAL CONDITIONING MODEL
Kodak’s brand strategy was built on classical conditioning. Their ads consistently showed joyful
family moments LIKE birthdays, weddings, celebrations which made people naturally feel
happiness and nostalgia.
Over time, those emotions became tied to the Kodak name itself, so seeing Kodak meant feeling
joy. However, when the world shifted to digital, Kodak failed to create that same emotional
connection. Brands like Apple and Sony stepped in, linking digital cameras and smartphones
with excitement, modern lifestyles, and instant sharing.
Kodak had taught people to love film, but it never managed to make them love Kodak in the
digital age.
CONCLUSION
Kodak's downfall is more than just a narrative of technological upheaval; it serves as a
profound warning about the importance of understanding consumer psychology and
cultural shifts. Despite being a pioneer in the development of digital photography
technology, Kodak became overly reliant on its emotional branding and strong
associations with traditional film photography. This misstep resulted in the company
missing crucial opportunities to lead in the digital transformation it helped create.
In today’s fast-paced marketplace, marketers must understand that the adoption of new
technologies is heavily influenced by the psychological factors, memories, and cultural
contexts of their target audiences. Consumers do not merely respond to technological
advancements; they interpret these innovations through their lived experiences and
emotional connections.
Successful companies in this landscape will be those that remain agile—constantly
evolving their brand messaging to resonate with both the rational considerations and
emotional desires of their consumers. By integrating an understanding of consumer
behavior and culture into their strategic approach, these companies will position
themselves as leaders in their industries, effectively bridging the gap between
technology and the needs of their audience.
