Understanding Consumer Choice - Case Study Example

Consumer Behavior Report Name Institution Abstract This report will demonstrate how an understanding of internal factors influencing consumer behaviors could assist in developing a good marketing strategy. The paper will use Coca-Cola Company as the company of reference. Coca-Cola Company is a global company that produced Coca-Cola drinks. It is ranked as one of the most successful company, not only in the USA where it is based, but all over the world. Proper understanding of the internal factors that influence consumer behavior can help the company to develop an effective market strategy that could see it become successful in the market. Table of Contents Table of Contents 3 1.0 Introduction According to a study conducted in the year 2014, an effective marketing strategy is the one that is based on the set of concepts and ideas of consumer behavior (Sparkes, 2014). A good marketing strategy is developed from the factors that influence consumer decisions. Analysts agree that failure to consider the factors can negatively affect an organization’s success in the market. A market strategy should address various factors that affect the consumer’s behaviors. These factors are commonly classified into two groups, which include external and internal factors. The influence of the both external and internal factors is equally important for the success of any marketing strategy. This report will demonstrate how an understanding of internal factors influencing consumer behaviors could assist in developing a good marketing strategy. The paper will use Coca-Cola Company as the company of reference. Coca-Cola Company is a global company that produced Coca-Cola drinks. The company is ranked as one of the most successful company, not only in the USA where it is based, but all over the world (Coca-Cola, 2013). Analysts argue that the success of the organization is partly due to its effective market strategy that is based on the consumers’ behaviors. 2.0 Findings and Discussion There are many internal factors that influence the consumer buying behavior (Coca-Cola, 2013). According to Rutta (2012), the factors include perception, motivation, attitudes self-concept and lifestyle, personality, emotions, memory and product positioning. Some factors apply to some products and not all the products. Coca-Cola Company has tried to put into consideration most of these factors in order to effectively achieve success in the market. Some of the factors that the company has effectively addressed include: 2.1 Motivation and Consumer Needs The most substantial internal factor that influences consumers buying decision is motivation to buy something. Motivation is an inner feeling urging a consumer to satisfy a certain need. Motivation comes for an urge to satisfying a personal need. A need is a lack of something that a consumer desires. There are many needs that people would like to meet. Some of the needs include hunger, thirst and need for clothing among others. These needs create an urge to satisfy them which becomes the motivating factor. People feeling thirsty will be motivated to look for a hotel where they can take some drinks and quench their thirst. Apparently, the choice of buying the drink is grounded on the inner motivation of quenching the thirst. Understanding consumer’s need and motivation to buying Cola-Cola drinks can help Coca-Cola to devise an effective marketing strategy. It is arguably true that the company has been capitalizing on the factor to improve it market practices. However, the organization has not fully utilized the factor to develop an effective market strategy. In order to make a good marketing strategy that will further their performance in the market, the company should use Maslow’s Need Theory to motivate their customers. This model was put forward by Abraham Maslow and it requires classification of consumers’ needs. According to the theory, some needs are more important to people and tend to motivate them more than those that are regarded to be less important (Sparkes, 2007). For instance, psychological needs such as water and foods are regarded to produce high motivation to satisfy them. Coco-cola Company can improve it market performance by making the Coca-Cola drinks look like they are psychological needs. The company’s marketing strategy should focus on showing how the drink is a psychological need that should be satisfied. In addition, the strategy should also focus on safety of the drinks. The second level need according to the Maslow’s theory is safety (Sparkes, 2007). Safety needs have strong motivation to consumers. Therefore, a market strategy that focuses on the safety of the drinks when consumed will be an effective market strategy for the company. 2.2 Attitudes Attitude plays a major role in the consumers’ behaviors. It influences consumers buying decisions. Swarbrooke and Hornern (2009) define attitude as what consumers think or feels about a something. How consumers think or feels about a product is clearly mirrored in their buying pattern. Attitude is essential in marketing strategy as it has a strong influence towards their buying decisions and is very hard to change it. Rriedman (2009), states that attitude is a long-lasting general thought of consumers towards a service, company or product. Consequently, business organization cannot afford to overlook it and expect success in the market. Understanding of how attitude affect consumers behaviors, can help Coca-Cola Company develop a good marketing strategy. First, the company should conduct a survey to determine how people think about the Coca-Cola drinks. The survey could help develop the strategies to use to deal with the attitude. For instance, if the consumers have a negative attitude towards the drinks, the market strategy can focus on revising the trend. The strategy should, in this case, focus on convincing consumers that the drinks are good by tackling the initial cause of the problem. If the people think that the drinks are good, then it should capitalizes on the factor to influence more consumers to buy the product. A good attitude of the Coca-Cola drinks can be achieved through proper advertisement using appropriate advertisement methods. Today, there are millions of products that are advisement to consumer. The consumers may not in a position to remember all these products. In cases, some products are very close alike and any of them can affect the other either negatively or positively. Extensive media coverage of the drinks can influence the consumers’ attitude towards the drinks. However, the coverage should be well done such that it associates the drinks with good moments. Currently, people associate Coca-Cola drinks with good moments or happy seasons (Craig-Lees & Browne, 2009). Therefore, every moment they are happy or they want to be happy, they will buy the drinks. This is positive attitude for the company product and should be further enhanced. 2.4 Perception Perception though is related to attitude is quite different. It is the process in which consumers interprets information about something in order to make a decision (Blythe, 2008). Unlike the attitude, perception changes with time and situation. However, it has a significant influence towards consumers buying decision. Perception can be analyzed into three groups which include selective retention, selective distortion and selective attention. Selective distortion perception interprets information to put it in line with the consumers’ beliefs and values. Selective retention state that people will remember or memorize the information that aligns themselves with their values and beliefs. Lastly, selective attention states that consumers will only focus on a small fraction of the total information they are subjected (Blythe, 2008). These perceptions are important consideration when devising a marketing strategy for any company. The increase in the number of the advisements in media has made it difficult to attract the attention of the customers. For example, some consumers are no longer paying attention to television advertisements. This unconsciousness act has come to be referred as Television Blindness ((Blythe, 2008). However, there are certain times when consumers pay attention to the all issues in the television. For instance, during the television news time, most consumers are attentive to their television listen the news reports. By featuring an advert between the reports, the Coca-Cola can capture the attention of these consumers and influence their buying decision process. The company should ensure that their adverts are place just before, during and after the news report times. According to Rutta, selective distortion perception results to distortion of the message communicated to the consumers the producers (2012). However, producers can have the true perceptions of people by conducting a survey. They should interview the consumers about their perception about their brand. If the consumers indicate a positive perception, the company should continue to use their current advisement method. However, if the message is negative, they should change until the message achieves the intended message. A market strategy that focuses on making a brand strong can also help in enhancing the message communicated by the producer to consumer. Lastly, selective retention should be a focus for the Coca-Cola Company. Swarbrooke and Horner (2009) when explaining this point state that people will remember the advantages and the disadvantages of a product and forget the rest. Understanding this can help the company develop a better marketing strategy that focuses on the informing consumers about the benefits or the advantages of the drinks to the consumers. For instance, the company can strategize that its adverts will concentrate on the advantages and should be played quite often. 2.4 Learning This is another major internal factor that is influencing the consumers’ behaviors or the buying decision. Learning is the process by which consumers’ changes consumption behavior after using or consuming a product (Swarbrooke & Horner, 2009). Learning can result to increased sales or negative sales. After consuming a product or using services, the customers can like the product or services or dislike them. Therefore, learning is critical factors that affect consumers buying decision. A good marketing strategy should address the factor comprehensive. Currently, many business organizations are trying to get consumers to test their product and have a real experience. Coca-Cola Company can utilize the factor to increase their sales. Currently, the company has not utilized this factor effectively. It does not provide free samples to consumers like most other organizations in the beverages are doing. Free samples attract consumers to test the product or a service which in the long run increases the sales. After consumers test a product and find that it is good, they will definitely like to buy it again and again. In addition, sampling would enable the company know the exact reason where the consumers are buying or are not buying. Customers give their feedback immediately after using the product. Therefore, understanding of how learning influence consumer behavior is a point worth considering when making a market strategy for the Coca-Cola Company (Blythe, 2008). There are many ways Coca-Cola can do in its marketing strategy to enhance learning. First, the company can provide free samples to consumers. The free samples can be supplied by the distributors together with the real drinks. The retail shops where the drinks are sold should then provide the samples to the consumers. Second, the company can achieve these by setting up a Coca-Cola centers where consumers are given opportunity not only to test but also to learn and ask questions about the drinks. Lastly, the company can feature in its market strategy an open day where the company goes to various markets and provides samples to potential customers. 2.5 Age, Gender and stage of life The last internal influences are stage of life and gender. The stage of life of consumers is dependent of the age of the consumers. The stage of a person in life influences the consumers’ behavior. It strongly influences the consumers buying decision that organization cannot afford to overlook the factor when making their marketing strategy. People of certain age will tend to have a certain consumer behavior that is distinct to that particular group. For example, young and old people will consume much of soft drink while the middle aged people will tend to consumer much of alcoholic drinks. The same happens to gender. Female are expected to consume soft drinks while male are expected to consume alcoholic drinks (Mullins & Walker, 2013). Understanding how age and gender influence consume behavior can help to improve the marketing strategy used by the Coca-Cola. The company marketer can focus on creating a picture that the drink is for young, middle-aged and old people. Coca-Cola drinks are not alcoholic hence they can be consumed by all ages and genders and both religious and non-religious. In addition, the drinks are not purely soft and hence can attract people who are not expected to take soft drinks such as men. Including such as strategy on the marketing place can improve the strategy as it will make the drinks appeal to people at all ages and genders (Blythe, 2008). The company marketing strategy should focus on means of advisements and product promotions that capture the attention of the old and young and male and female. Method such as television and newspapers may not be able to reach the wide market. Radio advert is the best in this case as it has a wide range of coverage and is listened to people of all ages and gender. 3.0 Recommendations From the findings discussed about, it is apparent that Coca-Cola Company has made some strides to improve it marketing strategy. It has put into considerations most of the internal factors that influence consumers behavior. However, the report recommends the following issues: Coco-Cola drinks are product that they can be consumed by of all genders and age. It appeals to male and female gender and to young and old people. In addition, it can be taken by those who do not like soft drink as it is not purely soft. Therefore, their market strategy should be the one that reaches all these kind of consumers. Radio advertisement can be the best method of reaching these consumers radio are listen by all kinds of people. Its market strategy should address this focus comprehensively. Second, the company does not provide free samples which are important in product learning process. Coca-Cola drinks are quality drinks that attract a large number of the people who have tasted them .However, a good number of consumers have never tested the product hence do not know its quality. The company has a chance of utilizing these understanding of how learning affects consumers’ behavior to develop an effective market strategy. It should include in its marketing strategy methods such as free sampling and open day forum in order to provide enhance learning. Free sampling would allow people to test the quality of product which would influence their behavior. Lastly, the Coco-Cola has an opportunity to capitalize their understanding on how attitude, motivation and perception influence consumer behaviors. Coca-Cola marketers can strategies such that it focuses on making the drinks a necessity to the consumers. In addition, it can also focus on creating a positive attitude and creating a good perception for the drinks. The focus on the internal influences would make the company develop an effective marketing plan. 4.0 Conclusion This report has demonstrated how an understanding of internal factors influencing consumer behaviors could assist in developing a good marketing strategy. The paper has used Coca-Cola Company as the company of reference. An effective marketing strategy is the one that is based on the set of concepts and ideas of consumer behavior. These factors influence consumer buying decisions hence can be used to develop a market strategy that can result to business success. Some of the factors discussed include motivation and consumer’s needs attitude, perception, stage of life and Learning. The report has also provided recommendations which the company can implement in order to develop and effective market strategy. References Blythe, J. (2008). Consumer behaviour. London: Thomson Learning Craig-Lees, M., & Browne, B. (2009). Consumer behaviour. Brisbane: Wiley. Coca-Cola, . (2013). 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