External Effects of Consumer Decision Making Process: Mobile Banking Service - Coursework Example

External Effects of Consumer Decision Making Process: Mobile Banking Service Student Name Institutional Affiliation External Effects of Consumer Decision Making Process: Mobile Banking Service Introduction There are numerous reasons behind consumers deciding whether to purchase a commodity or service or not. Most of the times, this decision is dependent on their personal feelings tastes and attitudes. In other cases, consumers are not placed in affair position to determine the course of purchasing. This is evident in the manner in which external influences come in hand to offset their willingness and ability to purchase. It is argued that consumers might at times make decisions regardless of the need to maximize their welfares. However, in most cases, they are perceived to be rational and independent subjects of consumerism behavior. It should be noted that there are both internal and external influences that affect the manner in which consumers conduct purchasing decisions. It is also fair to mention that each of the aforementioned influences depict the possible level of risks involved. In its nature, consumer behavior refers to the process involved with distinctive coordination of either one’s behavioral aspect in relation to the immediate environmental changes in the course of participating in exchange programs of their lives. It should be understood that in the course of determining consumer behavior patterns certain aspects of psychology are utilized. They might include both cognitive and social psychology that aims to differentiate consumer behaviors into ones for which they possess control over from the ones they do not possess the controlling aspect. Therefore, the key goal of this paper is to try and establish the external fundamental factors that inhibit the manner through which consumers make decisions to either purchase mobile banking service or not to purchase at all. Body As earlier stated, the purpose of this paper is to try and connect some of the external influences that affect consumers’ behaviors while trying to make purchase decisions for mobile banking service. First, consumers are perceived to be affected immensely by the element of culture in the course of making decisions on whether or not to purchase mobile banking services (Weizsacker, 1984). Culture is defined to be aspects concerned with the perception of one’s culture, beliefs and the manner in which human beings try to relate to and learn from other members within a given society (Weizsacker, 1984). Thus, it is safe to postulate that consumers depict elements of associated with shared mode of behaviors that has been passed from one possible consumer member of a given society to another. In regard, it is quite worthwhile to postulate that the aspect of culture provides a wider avenue upon which consumer behavioral patterns can be established and expounded in that matter (Weizsacker, 1984). Thus, there has been the need to distinguish the element into sub-cultural phenomenon. Accordingly, sub-cultural aspects help to define consumer behaviors that occur within a given smaller group of members. It should be noted that the aforementioned smaller groups are also interlinked with elements of values (Weizsacker, 1984). Values, in this mode, is perceived to be interlinked with such facets as ethnic background, religious beliefs, geographical location and special levels of consumer interests towards the service being provided: mobile banking service(Weizsacker, 1984). In the case of mobile banking service, the aforementioned cultural values go hand in hand in determining the level of decisions for purchasing the service. For instance, given that mobile banking service operates on a given demography, there is higher possibility that consumers living within a certain geographical location will embrace the service. This might be caused by the necessity brought about by convenience of the service in receiving and sending money. In Africa, the use of mobile banking service has been necessitated in relation to the geographical locations of both the sender and receiver of money from the banks (Simcock, Sudbury and Wright, 2006). This is highly associated with the assumption that most potential consumers are placed far away from the financial institutions and thus, will make efforts to consume the service for convenience purposes. In relation to the ethnic background, potential consumers of mobile banking service will exhibit interest depending on the level of enlightenment and exposure to the product as a whole. It should be understood that particular ethnic based communities might garner immense access to the service because of the manner in which promotional aspects have been conducted (Simcock, Sudbury and Wright, 2006). For instance, certain ethnic based communities might enjoy exposure to newer service features and sales distributions of mobile banking service as opposed to other ethnic communities. This, in turn might led to a higher popularity index of the service in comparison to the other communities within the same locations (Simcock, Sudbury and Wright, 2006). Religious beliefs are also meant to foster or delineate consumer purchasing decisions (Simcock, Sudbury and Wright, 2006). For instance, it is perceived wrong for Muslim believers to undertake in banking services that promote interest levels. Thus, this fundamental perception of Muslims towards interest-based banking service might cause immense levels of repulsion towards the mobile-banking service in case it promotes the aforementioned prohibited activity (Simcock, Sudbury and Wright, 2006). On the other hand, such religions as Christianity do not establish limits to the manner in which business activities should be conducted. In fact, within the Christianity beliefs lies the fundamental assumption that investments or talents gathered should be multiplied for their immediate benefits. Thus, mobile banking service is likely to face higher levels of assimilation within the Christian fraternity in comparison to the Muslim counterparts (Simcock, Sudbury and Wright, 2006). Consumer interests might be special in one way or another. This forms an external force upon which consumers have no control over while making distinctive decisions. Thus, it is fair to establish that mobile banking service might be adopted on the aforementioned ground given that different consumers would want to utilize the service for different purposes that is not within their control. Speaking further, it should be understood that marketers are the ones who possess the control over both cultural and sub-cultural influences of consumer decision making (Senecal, Kalczynski and Nantel, 2003). They use all manners of cultural representations so that the purchases of mobile banking service is greatly understood and embraced by the consumers within the sub-cultures. Marketers often use promotional appeals in order to achieve their external influencing goals. Subsequently, Senecal, Kalczynski and Nantel,(2003) expounds that the potential consumer of the mobile banking service is made to feel comfortable and relaxed about the service given that it has a huge following of people within a culture. It should also be understood that marketers determine the level of culture influences to mobile banking service by way of conducting intensive research about the current trends within the culture at hand. In regard, the information that is gathered is later used for maximizing control over the consumers in respect to the service. Such capitalized aspects as value addition to the service is likely to leave potential consumers with no other choice but to make favorable purchasing decisions (Senecal, Kalczynski and Nantel, 2003). Second, consumers purchasing decisions are affected by social class influences. By definition, social class influences is defined to be a distinctive number of people, within a particular location, who possess a similar income-based position within the greater society. It has been observed that different consumers, who place themselves within a certain societal position, tend to share similar beliefs and values (Senecal, Kalczynski and Nantel, 2003). They are also perceived to be depicting fundamental purchasing behaviors and consumption as well. Consequently, members of a society are perceived to be either highly or lowly placed in the societal class indexes (Senecal, Kalczynski and Nantel, 2003). It should be mentioned that societal classes are distinctive and unique within each society. Thus, they are also entitled depending on the current attributes of given functionalities. Furthermore, members of a given social class might or might not be able to maintain such position over an elongated period. In consequence, social classes are formulated depending on two formidable aspects that have been perceived to be changing overtime (Senecal, Kalczynski and Nantel, 2003). The aspects include both occupation and income level of particular people within the society. Considering the assumption that mobile banking service cuts across all the social classes regardless of the amount of income one is able to access, the service has been a success in most of the African and Asian countries where most of the population is middle-class based (Shapiro,1983). However, the level of income and occupation determines the type of banking service one can comfortably maintain. It should be noted that banks charge different fees for holding and sustaining consumers’ accounts thus, the potential utilization of the mobile banking service depends on the financial institution itself. For instance, in Africa where mobile banking service is perceived to have taken a greater percentage of the market niche, different banks provide the same service to different social classes. Such multinational banks as Barclays Bank and Standard Chartered Bank provide mobile banking services to the high-end consumers while localized banks provide such a service to the middle and lowly-placed consumer markets. Depending on the bank one holds, the type and features offered is unique and concise. For example, consumers who opt to utilize mobile banking service with such banks as Barclays and Stan-Chart are placed at a fair position to access immediate loans and bank overdrafts over their mobile devices as opposed to the ones who hold accounts with localized banks. This is highly associated with the level of income flow one depicts in their respective accounts that puts and advantage to the high-end consumer to embark on such banks for such features. On the other hand, consumers using the mobile banking service of a localized bank are forced to make trips to the bank in order to conduct manual applications for such financial services. Thus, Shapiro (1983) expounds that consumers will tend to make critical decisions with such external factors for which they do not possess control over at any given time. Third, consumers can be affected such external influences as social groups (Schiffman and Kanuk, 1996). A particular social group is determined the distinctive collection of persons that share similar sense of attitudes and relationship due to constant interaction with each other. It should be noted that social groups can be classified to be either primary focused or secondary focused. Primary social groups are defined by the ability to conduct a non-formalized face to face interaction processes. These groups might include study groups and family groups (Schiffman and Kanuk, 1996). On the other hand, secondary focused social groups are extensively formalized professional interactions. This group is perceived to be less personalized and they may include Rotary Clubs and relationships created on the basis of a shared professional career body like CPA. In consequence, the consumer purchasing decisions for this external facet is greatly influenced by the behaviors of other members within the group. Schiffman and Kanuk(1996) argues that the behaviors of consumers in deciding on whether or not to undertake a purchase on mobile banking service highly depends on the activities and behaviors of the peers within the aforementioned groups. In case of the social group embarking to adopt mobile banking service for a particular bank will influence the other undecided lot to embrace the service. In other cases, the social group might dictate to the newer members on which mode of mobile banking service to emulate in order to access certain features (Schiffman and Kanuk, 1996). In that case, the consumer will be forced to utilize the services of the chosen mobile banking service regardless of their perception towards the idea. Even in the case that the mobile banking service is meant for high-end consumers, the newer consumer will be faced with no option but to engage with the popular mobile banking service at hand. For example, in Africa most banks have tailored their mobile banking services to suit such social groups as school-going children in order to pay for fees and other requirements. For instance, in Kenya Equity Bank has facilitated a product feature to the mobile banking service where Lion Group members might be able to access for such features as insurance covers and also make relevant donations to the charity foundation (Schiffman and Kanuk, 1996). Therefore, newer members of the organization are not left with any other choice but to embrace Equity Bank mobile banking service in order to enjoy the benefits of a being a members as well as for convenience purposes. Notwithstanding, in this case, Equity Bank is perceived as having adopted the strategy of promoting its mobile banking service features as a single package to the Lion Group who, in turn, are attracted and finally embrace the service. Fourth, Richarme (2010) argues that consumers can be affected by such external influences as family in the course of making relevant decisions pertaining to whether or not to purchase certain products or services: mobile banking service. Families are social groups that can be depicted as having qualities of a particular primary group. For families, consumer decisions are made in a holistic approach so that different members within the family are allowed the freedom and right to make joint decisions. Therefore, different members are perceived to possess the capacity to exert unique influences on the final decision made. Numerous studies have also indicated that children will always learn of their particular family patterns and even adopt them to their future lives (Richarme, 2010). The fundamental assumption that families undergo a continuous alteration in its structure paves way for single as well as extended families. Thus, the decisions that are made are conducted taking into account the overall members of the given type of family present. Thus, no one member of the family is able to make sole decision rather they will rely on each other for a more complete decision (Richarme, 2010). Considering the mobile banking service, different family members might depict distinctive interests on given mobile banking service providers as opposed to others. For instance, the well-enlightened and educated lot within the family members might opt for high-end mobile banking service because of its convenience purposes as well as additional features. On the other hand, the less informed members of the same family might opt for cheaper mobile banking service since they will perceive it to be cheap and affordable in that matter. In this situation, it will be difficult to make reasonable sole decisions without allowing each and every member to make contributions that will used for final purchase decision: complete decision(Richarme, 2010). Thus, for the aforementioned case, the family members will be given time to evaluate and analyze each and every mobile banking service and come up with resolutions (Richarme, 2010). In the course of making final decision, the family will tend to compromise certain mobile banking service over the other in order to establish the way forward in respect to the particular service to be adopted for the entire family. For example, mobile banking service that is provided by equity bank adopts a strategy whereby promotional appeals depict single nuclear families enjoying their mobile banking service in order to exert the influences to other families that might want to embrace the service altogether. Fifth, consumers’ purchase decisions can be affected by the external influence associated with the purchase situations they might find themselves in (McGuire, 1976). It should be put clear that different consumers have no control over the situation upon which they find themselves in within any given time of their lives. Speaking further, a given purchase situation refers to the exact circumstances that potential consumers face in the course of making buying decisions. These situations can be attributed to particulars of their immediate physical nature, their emotional nature within the given time and time factor as well (McGuire, 1976). As it can be perceived, the situations above are non-controllable in nature and thus, the consumers might be forced to use shortcuts while making purchase decisions (McGuire, 1976). For instance, in case the consumers’ bank of choice does not offer mobile banking service, they might be forced to embark on utilizing the mobile banking service of another bank. This means that they will have to make complete transfer to the competitor’s service given that they are required to possess a formal account before consumers can enjoy mobile banking services. As earlier noted, marketers can use the uncontrollable aspect of consumer purchase situation to their advantage in order to promote their mobile banking services over their competitors (McGuire, 1976). There are two ways for which the mobile banking service marketers can adopt in order to ensure greater purchases by consumers. First, the marketers can decided to deploy unique promotional appeals in order to catapult the selection of their mobile banking service in cases where the consumer is confronted with certain uncontrollable circumstance. For example, the consumer can be availed with an option of receiving first hand service in case their mobile banking features fail to work at any given time and place. Second, the mobile banking service marketer might use distinctive marketing approaches that can be used to convince the consumer that they are likely to face lesser problems in case the service is selected (Lejniece, 2011). For example, the consumer can be assured that by utilizing mobile banking service of particular banks; perhaps, a multinational and established bank, they are less likely to encounter financial issues with their account. Barclays Bank, being an established multinational firm, might attract more consumers for its mobile banking service as opposed to localized banks. This is because of the assumption that unlike localized banks, such multinationals banks as Barclays Bank are less likely to experience financial meltdown. Thus, customers will have no choice but to embrace the mobile banking service provided by the aforementioned bank over its immediate competitors. Thus, it can be noted safely that external facets that affect the manner in which consumers make their decisions towards purchasing certain mobile banking services over the others are greatly determined by uncontrollable elements of marketing strategies (Klemperer, 1987). Another important feature to note about the behavioral patterns depicted by consumers while making purchase decisions is highly attributed to the different types of consumers purchase decisions being practiced in respect to the mobile banking service at hand. It should be comprehended that consumers make purchase decisions in the course of lives. However, consumers do not treat the decisions on a similar manner given that some of the decisions are perceived to be complex in nature as opposed to others (Kotler, 2003). Thus, Kotler and Armstrong (2002) note that they require immense levels of efforts and information before execution is done. On the other hand, there are decisions that are made on a routine basis hence require little or no efforts. Basically, mobile banking service marketers identify four distinct types of purchase decisions as exhibited by consumers of the service as a whole. First, there are minor new purchase consumer decisions. For these decisions, consumers embark on conducting them not necessarily because of their significance but to satisfy a certain status within an identified group (Hey and McKenna, 1981). For example, the consumer might be forced to purchase a given mobile banking service over another because of the perception they want to portray to the surrounding environment. In a bid to identify with the high-end consumers of particular professional group, individual members of the society might embark on purchasing high-end mobile banking services (Hey and McKenna, 1981). Second, there are minor re-purchase consumer decisions. For this decision option, the consumer is limited in terms of their ability to purchase one mobile banking service to another (Hey and McKenna, 1981). They are defined to be brand loyal thus will continue to make similar purchases over and over again without giving much of a thought for other available options. Mobile banking service providers are aware of this facet and they tend to use it to their advantage given that they strive to make their products competitive and affordable over the competitors (Dillen, 2009). Third, there are consumers who conduct major new purchases. In this model of consumer purchase decision, the purchases are considered to be sophisticated and significant to the needs of the potential buyer of mobile banking service (Assael, 2005). However, the potential consumer is perceived to be lacking formidable knowledge about the purchase at hand and thus will tend to engage in extensive decision making process given that they lack adequate confidence in making the purchase decision. For this case, marketers of mobile banking service might embark on formulating marketing procedures that tend to signify the importance of selecting their service over the others within the market (Assael, 2005). Fourth, there are purchase decisions that involve major repurchases amongst the consumers (Amemiya, 1981). For this decision criterion, the consumer makes effective buying decisions because they possess previous experience on the process and thus feel certain about the whole procedure. In this regard, the consumer take little or no time to purchase certain mobile banking services over the others given that they have taken time to learn and understand the features provided therein. Conclusion As it can be perceived from the discussion above, it is safe to indicate that the external influences associated with consumer decision making process are those for which they possess little or no control over. These external influences determine the manner in which the customer might embark on adopting certain mobile banking services over the others within certain periods. The discussion identifies five external influences that exert uncontrollable directions on the manner in which the consumers make decisions pertaining to buying of mobile banking services. First, consumers are perceived to be affected by cultural aspect. Culture provides a wider avenue upon which consumer behavioral patterns can be established and expounded in that matter. For instance, given that mobile banking service operates on a given demography, there is higher possibility that consumers living within a certain geographical location will embrace the service. This might be caused by the necessity brought about by convenience of the service in receiving and sending money. Second, consumers purchasing decisions are affected by social class influences whereby they are ranked in respect to their respective social indexes. Thus, certain members of a society placed within a highly-end consumer bracket will purchase top-notch mobile banking service as opposed to the low-end consumers. Third, can be affected such external influences as social groups so that the buying decisions being made depend on the alternate behaviors of the peers within the groups. Social groups can either be primary or secondary. Thus, consumers can be affected by the manner in which formal based peers embark on making purchase decisions on mobile banking service while secondary focused peer groups are formalized in nature and exerts influences on the manner in which the consumer conduct the decision making process. Fourth, consumers can be affected by such external influences as family in the course of making relevant decisions pertaining to whether or not to purchase certain products or services: mobile banking service. Families based decisions are holistic in nature so that each and every member of the family is allowed to contribute towards the final decision. Fifth, consumers’ purchase decisions can be affected by the external influence associated with the purchase situations they might find themselves in. purchase decisions are reflected by the immediate physical environment and time framework upon which mobile banking service can be accessed all the same. References Amemiya, T. 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