The paper 'Consumer Decision-Making and Internal Factors' is a wonderful example of a Management Case Study. Samsung Refrigerators have become successful in increasing their market share as a better understanding of consumer needs and wants to have enabled them to develop strategies that have helped to capture a huge market. Understanding the internal factors which have a role in consumer decision making determines the manner in which organizations look to attract people. This paper thereby looks to analyze the different internal factors which have an impact on consumer purchasing decision while looking to purchase Samsung Refrigerators.
The paper will analyze different factors like consumer needs and motivation, personality and self-development, perception of consumers, consumers learning, and involvement towards the products. In addition to it, the paper will also look to link the different marketing mix elements with consumer behavior keeping in mind the segmentation, targeting, and positioning strategy that has been used. Lastly, the paper will present the external factors like diffusion to innovations and social change which has resulted due to different changes in consumer behavior. Consumer Behaviour and Market Analysis The wants and needs of consumers are continuously changing and evolving which has made it difficult for the marketers to determine the strategy which they will use.
Studies carried out in understanding consumer purchasing behavior have brought forward five important steps that usually a consumer carries out before purchasing the product. The different steps are problem recognition, information seeking, evaluation of various alternatives available to the consumer, purchase decision, and lastly post-purchase behavior (Cateora, Mary & Graham, 2009). The different factors play a crucial role in each step and determine the manner in which a consumer will be influenced towards purchasing the product.
Both internal factors and external factors influence consumer purchasing habits but this paper will primarily focus on internal factors that have an impact on consumer behavior. Internal factors are that factor which is part of the consumer and includes different dimensions like age, education, self-concept, learning and knowledge, attitude, motive, etc. External factors on the other hand are social environmental factors that have an impact on consumer purchase decisions. Both factors have a significant impact on consumers and determine the manner in which their purchase habits will be shaped for the present purchases and future purchases.
Marketers thereby need to analyze and understand the different internal and external factor which influences consumer and based on it has to develop strategies through which operational efficiency will be gained (Chew, Cheng & Petrovic-Lazarevic, 2006). Since the previous paper analyzed the different external factors which are useful for marketers this paper will focus on internal factors so that marketers can use both while formulating strategies for Samsung Refrigerators. Internal Factors Affecting Consumer Decision Making Process Consumer behavior is a subjective word as the behavior of consumers varies from one person to another as different internal and external factors influence consumers to act in a particular manner.
Some of the internal factors which impact consumer behavior are perceptions, attitudes, learning styles, motivation, and life roles which play a significant role in the purchase decision of any product/service. A detailed analysis of the different internal factors having an impact on the consumer while purchasing Samsung Refrigerators are
Azad, N. and M. Safaei, (2012). The impact of brand value on brand selection: Case study of mobile phone selection. Management Science Letters, 2(1): 1233-1238
Bhatacharjee, A. and Premkumar, G., (2004). Understanding changes in belief and attitude toward information technology usage: a theoretical model and longitudinal test. MIS Quarterly, 28(2), pp. 229-254.
Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall
Bateman, T. & Snell, S. (2004). Management: The New Competitive Landscape. 6th Edition, McGraw Hill, New York
Cable, D. & Judge, T. (2006). Person-organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294–311
Chen, I. (2003). Understanding Customer relationship management: people, process and technology. Business Process Management Journal, 9 (5), 672-688
Cook, D. & Dave, D. (2004). Structural element of service quality product. International Journal of Business Performance Management, 6 (2), 189-207
Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York
Czinkota, M.R. & Ronkainen, I. A. (2004). International Marketing, 7th edn. South-WesternPublishing:Australia.
Cateora, P.R. & Mary, C. G. & Graham, J.L. (2009). International Marketing, 14th edn. Irwin: McGraw-Hill.
Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic, (2006). Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, Vol. 2, No. 1
Carpenter, G. S. and K. Nakamoto. (2009). “Consumer Preference Formation and Pioneering Advantage.” Journal of Marketing Research 26, 285-298.
Hollebeek, L. D. (2011). Demystifying customer brand engagement: Exploring the loyalty nexus. Journal of Marketing Management, 27(7-8), 785-807.
Isabella, G., (2012). Influence of discount price announcements on consumer’ behavior. Journal of Business Administration, 5(26): 657-671.