Internal Factors Affecting Customers Decision Making - Coursework Example

Internal Factors Affecting Customer’s Decision Making Introduction Apparently, the customer is the most important stakeholder in a business. This is for the straightforward reason that, it is because of the demand created by the customers’ needs that an organization is in operation (Wright 2006). It therefore becomes a matter of common reasoning that an organization should, at all times to endeavor to understand all the factors, both internal and external, that influence the decision making process of an individual. Decision making is a complicated process and it entails a number of steps. Majorly, the internal factors of an individual decision maker outweigh the external factors affecting decision making. For instance, the personality of an individual will always prevail, in the event that an advertisement is in contravention of what the personality of an individual stands for. The study of the manner in which customers make decisions is what is commonly referred to as the science of consumer behavior. This paper endeavors to bring out all the primary internal factors that affect the decision making of an individual consumer, in light of mobile phones as a key product. The paper does this, in light of the most important aspects and theories of consumer behavior. Relevant theories and concepts Talking of internal factors affecting decision making, many theories and concepts come into play. Even so, not all concepts and theories are equally important. Some theories are more significant than others, for the simple reason that they explain the internal factors better than the other perspectives. In this case, the most important concepts include the concept of need recognition, perception, personality and lifestyle, as well as attitudes. These are the most significant because, they show where the urge to buy originates and examine the possibility of such a purchase actually taking place. Summarily, these factors address the force behind the decision to buy, and the major factors that that influence what is to be bought (De Mooij, 2010). Taking the example of a cell phone, the first thing that will initiate the decision to buy, is the need to communicate. As such, the customer must first recognize that the need to communicate. After recognizing the need, personality will come into play, in deciding which type of phone the individual shall buy. Personality refers to the unique characteristics within a person. These dictate the kind phone the person should buy. After that, the person will sample out various types and select one, depending o what his perception directs him to choose. After the purchase, the customer may develop an attitude in such a manner that he will never buy a phone of a different make, design or company. This is what is referred to as permanent attitude. The internal factors influencing the decisions of a consumer Internal factors are those aspects or elements of the inner being of a person, which influence decisions made by the individual. Worth mentioning is the reality that the internal factors define the changes between the individual and other people. Essentially, this means that not all people will make the same decisions. As much as people share tastes and preferences, there are those factors that make an individual go for on option and not the other. Two people may purchase the same good, not because of the same internal makeup, but rather because one is curtailed by such factors as financial ability to purchase the desired product. Below are the most prominent internal factors determining the decisions made by an individual when buying a cell phone. Perception Chaudhuri (2012) defines perception as the subjective manner in which an individual receives, selects and interprets a message or some piece of information. As is the norm, when people go to buy such things as mobile phones in the market, they have to seek prior information on the things before they go. Such information can be sought from many sources, such as newspaper adverts information from friends, facts about a product from the website of the manufacturer and so on. When a person gets information about a cell phone, call it Samsung Galaxy IV, for instance, they may like the cell phone so much, to an extent that they will not be willing to even hear about other phones. They will form a perception that the Samsung Galaxy IV is the best. Usually, such perceptions are hard to change, and are developed when one tries out something and fails to try the competing commodities. Where an individual sees a friend with a cell phone, and thinks that the cell phone performs well, they may form a perception that this is the best phone, and no other can perform better. East et al (2013) explains that when talking of commodities, there is actual quality and perceived quality. Since perceptions are imaginary judgments, which are in most cases subjective, a buyer might form a perception that something is of outstanding quality while in the real sense, the thing is not any better than others. Personality and lifestyle As the world embraces the digital era, the personality of an individual is reflected by the kind of digital devices they associate themselves with. Essentially, a mobile phone is a necessity in the contemporary world. With such things as Smartphone taking over the market, the personality of a person will play a big role in determining the kind of cell phone to buy. Cachon and Swinney (2011) describe personality as a collection of all the unique characteristics that define an individual. Apparently, personality differs from one individual to another and can usually change due to such social processes as learning. When it comes to the purchasing of a cell phone, the buyers will differ greatly. Despite the personality of a person being reflected by the kind of phone they own, such aspects of personality as willingness to learn are paramount. Arguably, personality with innovativeness will make an individual go for things that are new and challenging (Lamb et al 2010). For instance, a person with high dogmatism will not go for new inventions in the market. For instance in buying a cell phone, a person that is highly dogmatic may not buy the new cell phones, or the cell phones of a different company. This is because dogmatic personality is associated with rigidity. On the other hand, an innovative personality will be flexible and open to change. Such an individual will go for the latest technology in a cell phone. Motivation and values The simplest definition of a motive is the reason behind a decision. Motive is the driving force behind any action. Worth mentioning is the actuality that motive is similar to intent. The motives of an individual can be driven by rationality, or subjectivity. In most cases, such as in the buying of cell phones, a person will try to be rational. Rational motivation is the concept behind any decision aimed at gaining the highest utility (Hoyer & MacInnis, 2008). The type of cell phone to be bought depends on the rationality of the individual in defining what utility will be gained from purchasing the cell phone. Rational motivation may play a key role as the ultimate goal of buying a thing is to gain optimum utility from the consumption of such a commodity. In this light, there is positive and negative motivation. Positive motivation is the force trying to push an individual with the aim of convincing the individual. Positive motivation tends to say “here is why should buy this commodity . . . “on the contrary, negative motivation is the force or influence trying to say why an individual should try to keep away from purchasing or consuming something. This can be explained in very simple terms as the voice that says, “Do not buy this thing because . . . “Wright (2006) explains emotional motivation as the direct opposite of rational motivation. Essentially, emotional motivation is subjective, while rational motivation is positive. Out of prejudices and subjectivity, an individual may decide to buy a cell phone which they could not have bought, had they embraced objectivity. Rational motivation is closely connected to perception. Need recognition Everybody has their own unique needs. For this reason, people make different decisions. This is no exception when it comes to the purchase of cell phones. Apparently, identifying a need is the first step towards making a purchase (De Mooij, 2010). Apparently, human needs are the reasons and forces underlying human actions. A person will go to work because they need to pay their bills. Without need, man could not be up and down every day. When a person wants to buy their phone, they must identify all their needs. A person in need of a simple communication device would not endeavor to spend a on the Samsung lot of money Galaxy. Instead, such people will spend less, so as to obtain a simple cell phone that can only make calls and receive feedbacks. On the contrary, someone with a dire need for a phone capable of performing so many multimedia tasks will spend heavily in obtaining their desired Smartphone. Social scientists classify needs as either acquired or innate. Innate needs are those that occur naturally. For instance, physiological needs are innate. On the contrary, the need for entertainment through the cell phone is an acquired need. Such acquired needs keep on changing from time depending on changes in the market environment. A change in the level of technology leads the buyers back to the drawing table to decide how they will adjust to the changes. This explains why the activities in the cell phone market are exceptionally volatile. Acquired needs that affect needs of an individual in relation to such commodities as cell phones include, self esteem, and prestige. Information and research East et al (2013) argue that information in the current era is exceptionally important when it comes to the purchase of things, especially those commodities that are durable, and can stay for long. East et al (2013) explain that, with the rapidness with which technology is changing, it is important for an individual to keep abreast of the times. Keeping abreast refers to being updated on the latest developments relating to the commodity that one endeavors to buy. Scholars in marketing argue that consumers should be on the alert for such changes as changing trends, fast changing life cycle, and other environmental factors such as market stability, availability and so on. Apparently, a customer that has carried out adequate research on a product is much more likely be informed than a person that only observes the adverts done on television. Apparently, assuming that they were going to buy ht cell phones independently, it is a matter of common sense that they will buy different handsets, with the informed person having made a right choice, or ht choice that will yield higher satisfaction or utility. Attitudes According to Cachon and Swinney (2011), attitudes are learnt predispositions that guide human behavior in relation to a certain factor, thing or idea at a given time. Apparently, attitudes are either positive or negative. Attitudes are associated with the first impression created when an individual encounters an idea or something else. A person may be having a positive or a negative attitude towards the product of a company. For instance, the most prominent example in our line of cell phones, are the phones made in China. The international market has defined China as a country with great ideas, but little quality. Currently people associate Chinese phones with low quality and poor overall performance. The notion that the phones are of low quality has already created a negative attitude in most consumers. In most cases, such attitudes do not change and this is a dangerous trend in the world of business. Upon entry into the market, businesses should come up with a strategy so as the first impression can make a positive impact on the attitudes of the individual. Conclusion In conclusion, it is imperative to observe that the internal factors are many and have a serious impact on the buyer decisions. Such factors operate from within a person and cannot be seen. The internal forces cannot be changed easily. As can be observed from above, the primary internal factors affecting the decisions made by a client are perception, motivation and values, information and research, attitudes as well as personality and lifestyle. The aspects of personality such as the ego, id, and the superego influence the need recognition phase. It is highly recommended that all businesses should endeavor to establish good quality in the beginning so as to create a good perception, attitude and information. Working on the market entry strategy can significantly boost the organization to the position where it will enjoy massive competitive advantage. References Cachon, G. P., & Swinney, R. (2011). The value of fast fashion: Quick response, enhanced design, and strategic consumer behavior. Management Science, 57(4), 778-795. Chaudhuri, A. (2012). Emotion and reason in consumer behavior. Routledge. De Mooij, M. (2010). Consumer behavior and culture: Consequences for global marketing and advertising. SAGE Publications, Incorporated. East, R., Vanhuele, M., & Wright, M. (2013). Consumer behaviour: Applications in marketing. London: SAGE. Hoyer, W. D., & MacInnis, D. J. (2008). Consumer behavior. Mason, OH: South-Western. Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2010). MKTG4: Student edition. Mason, OH: South-Western Cengage Learning. Wright, R. (2006). Consumer behaviour. London: Thompson Learning. Read More