Essays on Situational Influences and Consumer Buying Behaviours - GM Holden Ltd Case Study

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The paper "Situational Influences and Consumer Buying Behaviours - GM Holden Ltd " is a great example of a marketing case study.   Selling a product to consumers has become a complex process. In the contemporary competitive business environment, understanding situational influences that affect consumer buying behaviour is paramount for marketers. This is because situational influences affect the buying decisions of consumers. Marketers need a fundamental comprehension of consumer decision-making and aspects that affect this process. Drawing on GM Holden Ltd’ s accessories and parts, this essay identifies four situational influences pertinent to the firm.

The essay discusses how these situational influences affect the consumer purchase decision for the company’ s parts and accessories. Based on the theory of situational influences, the paper discusses how marketers in GM Holden Ltd can use the idea of situational influences in consumer behaviour to enhance their marketing strategies. GM Holden Ltd GM Holden Ltd is an Australian automobile manufacturer that has its headquarters in Victoria. The firm was established in 1856 as Holden but became a General Motors subsidiary in 1931 (Holden, 2014). Currently, Holden forms one of the seven completely-integrated GM operations that develops, designs and sells automobiles for Australia and internationally.

The company offers a wide range of domestically manufactured vehicles complemented through imported GM models. It sells eight brands of vehicles in the United States, Saab, Hummer, Saturn, GMC, Cadillac, Buick, Pontiac and Chevrolet and its international brands include Isuzu, Daewoo, Vauxhall and Opel. In addition to developing, designing and selling cars, GM Holden distributes engines, parts and components. The company is devoted to offering the best products and services for Australian and the world at large.

GM Holden accessories and parts are genuine, tested to ADR principles, backed through a generous warranty and are sold and promoted in Australia. While GM Holden accessories and parts are genuine, situational influences affect their purchase. Situational Influences and Consumer Buying Behaviours According to Pride and Ferrell (2008), buying behaviour comprises of the decision procedures and acts of persons engaged in purchasing and use of products. Consumer behaviour entails the study of how persons purchase, what they purchase, when they purchase and why they do the purchase (Talloo, 2007). Consumer behaviour tries to comprehend the decision-making process of buyers.

The consumer behaviour study assesses characteristics of consumers such as behavioural variables, psychographics and demographics. Viglia (2011) defines consumer buying behaviour as the study of means of buying and disposing of ideas, goods, or services to satisfy wants and needs (14). The study also asses factors that influence the buying decisions of consumers. Understanding consumer buying behaviour helps businesses to enhance their marketing strategies through comprehending issues relating to how consumers reason, feel, think and choose between diverse alternatives. However, it is difficult to identify the exact customer decision-making process given that consumers sometimes make buying decisions depending on their emotions and the situations they are in. According to Pride and Ferrell (2008), there are major categories of factors that influence consumer buying decisions.

These factors include psychological, social and situational influences. Situational influences are external conditions or circumstances subsisting when a customer makes a buying decision. Situational influences involve surroundings, a reason for purchase, time and the buyer’ s condition and mood. Pride and Ferrell (2008) assert that situational influences result from situations, location and time that affect consumer buying decision procedure.

Pride and Ferrell (2008) classifies situational factors into five groups which include social surroundings, physical surroundings, time perspective, a reason for buying and the consumer’ s momentary condition and mood. Physical surrounding includes store atmosphere, location, sounds, lighting, weather and other aspects in the physical environment where the decision procedure takes place. Social surroundings include interactions and characteristics of others such as salespeople, relatives, other clients and friends present when the purchase decision is being made (Pride & Ferrell, 2008). The time dimension includes the amount of time needed to gain knowledge concerning a product, search for it and purchase it.

Time plays a crucial role because a consumer considers the probable regularity of product use, the length of time needed to utilise the product and the length of the product’ s life (Pride & Ferrell, 2008). Other time dimensions that influence consumer buying decision include the time of day, holidays and seasons. The amount of time pressure a buyer is under affects how much time the buyer commits to purchase decisions.

A consumer under serious time constraints is probably either to make haste buying decisions or delays the purchase decisions.



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