Essays on External Factors Affecting Consumer Decision-Making Coursework

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The paper "External Factors Affecting Consumer Decision-Making" is a great example of management coursework.   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 works hard to ensure that her products are preferred by the consumers to make a 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 either 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 in this product directly affects consumer decision. For example, the introduction of Windows 2007 in the market was accompanied by a tremendous migration of consumers from the use of windows 2003 to windows 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 are as a result of the effects of technological changes. Technological changes are referred to as external factors because firms or producers do not have any control over them. Whether a firm is favoured by 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 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)

References

Doole, I., & Lowe, R. (2012). International marketing strategy. Cengage Learning.

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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). Factors affecting the online travel buying decision: a review. International Journal of Contemporary Hospitality Management, 21(6), 752-765.

Yoon, C., Cole, C. A., & Lee, M. P. (2009). Consumer decision making and aging: Current knowledge and future directions. Journal of Consumer Psychology, 19(1), 2-16.

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