External Factors Affecting Consumer Decision-Making - Coursework Example

Consumer Decision Name Institution CONSUMER DECISION External factors affecting consumer decision-making Consumers’ decision making as far as the purchasing of any given product is concerned is normally a very crucial aspect in the market. Every firm work hard to ensure that her products are preferred by the consumers to make profit because of large volumes of sales. Decision-making can be referred to as the process of identifying and making a choice of the many alternatives placed at hand. Consumer decision making solely depends on preferences and willingness of the consumer as well as the ability to acquire the preferred product. The decision ether to buy or not to buy a given product may be affected by several factors which can be classified into internal and external factors. In this paper we will discuss an external factor that strongly affects the consumption of a certain product as far as consumers’ decision making is concerned.(Solomon, Polegato & Zaichkowsky, 2009) Specifically this paper discusses the effects of technology; which is an external factor, on consumers’ decision making about the consumption of the Microsoft operating system. Microsoft operating system is a product whose demand highly depends on the choice of the consumer. This is because the ability to use windows 2008, windows 2007 or even windows 2003 can only be determined by the consumer. However, the consumers’ decision on the consumption of operating systems can be accelerated by technological changes in the market. A technological improvement on this product directly affects the consumer decision. For example introduction of windows 2007 in the market was accompanied by a tremendous migration of consumers from the use of windows 2003 to widows 2007. A similar exodus was witnessed when a window 8 was developed and the same move is about to take place with the further development of the operating system in more technologically advanced operating systems. These changes in consumers preference is as a result of the effects of technological changes. Technological changes are referred to as external factors because firms or the producers do not have any control over them. Whether a firm is favoured by the technological change or not, there is nothing that the management can do to stop the technological change other than improving its products so as to cope with the changing technology. Technology is the most influential factor in the market. This is because it is able to target a certain group and make the group swing or move on a certain side. (Doole & Lowe, 2012) It should be noted that the marketing strategy for any firm is mainly composed of reaching different people in the market. Different people are affected differently by the introduction of a product in the market. As a result there ought to be a specific group that is the major target for the product purchase. In the case of the operating system, the targeted group is mainly the youth due to their high exposure and frequent use of the software. Also the youth can be easily reached to through media marketing strategy. The diverse channels of media e.g. the YouTube, social media and print media can capture the attention of this group more easily. This market segment based on age can be subdivided into various segments depending on their income levels. The marketing of Microsoft operating system is faced by a heterogeneous market positioning where different segments have varied perceptions hence they respond differently.The effects of technology are highly felt in this industry. (Wen, 2009) Recently technology has had a very impacting influence on consumer behaviour. Focusing on our product which is mainly used by working class as well as youths and especially college students, the effects of technology are very rampant on the product. Microsoft operating system continues to transform each day as technology advances.The introduction of any new type of operating system in the market is normally accompanied by a tremendous migrationof consumers from the previous type to the new one. People tend to think that a new technology comes with an advanced way of doing things; of which it is true.For example windows 8 have highly been preferred by the youths due to its advantages in its operations. For instance its wide range of contents that can be easily updated by the help of internet makes it more appealing to researchers. The window also came along with many other enticing features such as an in-built anti-virus among others. Such features would not allow the baby-boomers and the technology native generation continue operating with systems that are lagging behind in terms of technology. Personality and Self-concept on the product’s technological features Another influencing factor about technology is the personality and self-concept that it comes with. For example windows 8 operating system was able to a capture the attention of high class personalities due to its physical appearance as well as the characteristics that one can be able to see. Such features have not only attractive forces but also affect consumers psychologically. This is because some people derive satisfaction from a product through the manner in which that productpresents them in the society. The uniqueness and the level of innovation that was portrayed in the presentation of windows 8 won a group of people who perceived it as of their own class. This window therefore is received differently by different segments based on their inclinations as separate individuals. Based on the Neo-Freudian Personality Theory it can be concluded that the relationships socially are key determinants of personality development and formation as John et al (2010) posits. Different social groups use the windows differently with some being more prominent in some windows than in others. In addition, some people use products based on their own inclinations and hence they look for varieties and brands of a product that suits them. Product’s technological status Introduction of any new product in the market is usually interpreted, selected and received by the consumers depending on its effectiveness to the world. The stimuli or effectiveness of a product is dictated by how much it is advertised, branded or even packaged. This will generally promote the consumers perception towards that product. The perception of a good is also be determined by the impact a previous product (closely related to the new product) had on its consumers. For instance, consumers would compare the stimulus of windows 8 with that of the initial windows so as to find the difference among them (Yoon, Cole & Lee, 2009). This would therefore influence their decision making, as Weber’s law posits. Physical appearance, stereotype information, past experiences only to mention but a few is some of the elements of perception on new products. Most importantly, consumers will base their perception on various expectations such as the competitiveness of the product in the market, pricing, quality and the risk of handling that particular product.(Reyna, Nelson,Han& Dieckmann, 2009) Customers’ involvement and ability to adapt with the product The ability of the consumers to adapt with the new technology based on a certain product is another influencing factor. For example windows 8 operating system had been designed in such a way that one would be able to learn how to use it without any help from a third party provided they were familiar with windows 7. This easy adoption in the market won and attracted more consumers to the product. The ability to adapt to a product easily even if it has been made with a very advanced technology encourages consumers to love that particular product. Theories of consumer behaviour Several theories have been put across so as to elaborate the consumer behaviour especially the process of decision making. Example of such theories include;Neo-Freudian Personality Theory, utility indifference theory, and consumer choice theory among others. These theories try to find out the causes as well as the factors that affect consumer decision making process. For instance, the personality theory shows how the social factors influence one to consume a given commodity. (Low, Chen & Wu, 2011) Moreover, consumerdecision making consists of a five-step process. According to studies that have been carried out it has been noted that before any consumer makes a decision on what to consume he/she follows particular steps as stated below; Recognition need step Search before the actual purchase Alternatives evaluation Decision to buy/purchase Post-purchase decision A consumer can be influenced by various factors at any stage in the process of making the decision. Technological effects are considered the most influential because they do not need a product to be advertised so much for them to be seen but they easily attract consumers just through their physical appearance. Moreover, other than the technological factors, there are other very influential factors that affect the consumers’ decision making. This includes; social norms, family roles, subculture, cultures, household structures among others. Culture refers to a set of beliefs that a given community holds towards given activities or even goods. Culture also consists of behaviours, customs as well as unified attitudes for example religion, food and language. If a community has a culture that bars them from consuming a certain product it is likely that the product will not be consume. Such cultural influences are very severe to a product since theynegatively affect the performance of a company that may want to supply such a commodity in that community. Conclusion In conclusion external factors can be regarded as the most influential factors as far as consumer decision making is concerned. This is because the factors cannot be controlled by the company that produces a particular commodity; unlike the internal factors. Therefore firms should ensure that they are in line with new trends as well as the dynamic marketing world. . For instance the marketers of Microsoft operating system for them to be successful had to consider various external factors. By identifying thesefactors the targeted market for the operating system can easily be reached. References Doole, I., & Lowe, R. (2012). International marketing strategy. Cengage Learning. John, O. P., Robins, R. W., & Pervin, L. A. (Eds.). (2010). Handbook of personality: Theory and research. Guilford Press. Low, C., Chen, Y., & Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial management & data systems, 111(7), 1006-1023. Reyna, V. F., Nelson, W. L., sHan, P. K., & Dieckmann, N. F. (2009). How numeracy influences risk comprehension and medical decision making. Psychological bulletin, 135(6), 943. Solomon, M. R., Polegato, R., & Zaichkowsky, J. L. (2009). Consumer behavior: buying, having, and being (Vol. 6). Upper Saddle River, NJ: Pearson Prentice Hall. Wen, I. (2009). 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