Steps in Consumer Decision-Making Process - Coursework Example

Internal factors affecting Consumer Behavior January 1 2014 Executive Summary This paper evaluates the manner in which consumer buying process gets shaped due to the presence of different internal factors. The different internal factors have their relevance for marketer as they need to understand the different variables and the impact it will have on their business. The analysis shows that different factors like perception, personality, attitude, past purchases and others influences customer decision making process. The different factors are equally relevant and the marketers need to carefully examine all the factors so that proper strategies can be developed. Table of Contents Executive Summary 2 Section I- Steps in consumer decision making process 4 Section II – Selection of product, positioning and segment 4 Section III- Internal Factors impacting consumer demand 6 Conclusion 10 References 11 Section I- Steps in consumer decision making process Consumer behaviour determines the manner in which people are persuaded towards purchasing a particular product or services. The consumer behaviour gets influenced due to different internal and external factors. Both the internal and external factors have equal relevance on consumer decision making process. This is an important aspect for marketers as they need to analyze the different factors which have an influence on consumer decision making it imperative that different factors are examined so that correct marketing strategies can be developed. This paper looks at examining the different internal factors which has an influence when people look at purchasing Samsung refrigerator. This will help to understand the different factors which are internal to the customer and will thereby provide the marketers with an opportunity to develop strategies through which appropriate marketing strategies can be developed. This will thereby foster an environment through which corrective marketing strategies can be used for the long term growth and potential which will be aimed at maximizing customer satisfaction. The consumer decision making process involve product recognition where the person tries to find out the product which will be required, the information search which looks at searching relevant information related to the product, evaluating the different alternatives based on which decisions are made, taking the decision to purchase the product and post evaluation which helps to determine the level of satisfaction and mechanism through which the different needs are satisfied. Section II – Selection of product, positioning and segment The product which has been selected in Samsung refrigerator as it helps to meet the different daily needs and provides the mechanism through which the business will be in a position through which better results can be achieved. An important determinant which has a role in shaping the consumer behaviour is that it ensures a high level of involvement. Samsung refrigerator has ensured a very high level of involvement by ensuring that they look towards consulting with other people while buying the product (Bechara and Damasio, 2005). This has been possible due to the fact that people involved with Samsung refrigerator at different levels has been able to bring a change in the attitude of the people towards purchasing the product. This makes it important for the refrigerator to look towards ensuring that that products like refrigerator look towards high degree of involvement as the customer looks at searching the different options and based on it decides the manner in which the decision regarding the product will be involved. This is an important factor which has an influence on consumer buying behaviour as past experiences and relations have an impact on the manner in which consumer demand gets influenced and thereby looks towards determining the manner in which the demand for product will be influenced. Motive behind the purchase is another important factor which has an influence on consumer decision making process. When people looks towards purchasing Samsung refrigerator the decision is influenced by factors like the needs it will satisfy and the manner in which it will influence people towards bringing a change in the behaviour of the customers (Dan, 2008). Marketers need to thereby develop strategies which will look towards understanding the motive which guides people towards purchasing the product and has a role in shaping the overall behaviour of customers. The different motives influences customers differently and thereby results in creating an instance through which the customer are guided by different motives to purchase the product. Past experiences and learning has a huge role in impacting the manner in which customers take decision regarding a product or a service. A customer who has undergone good experience is guided by them to purchase the same product again and again. Another important aspect at this juncture is that customers’ recent experience has a huge role as the recent experiences influences the customer to purchase the product and guides their behaviour towards the product. Samsung refrigerator has been able to ensure that the customer experiences get enhanced and look towards providing quality services. Apart from the product offering Samsung refrigerator also looks at improved and better after sales services which has influenced the past experience of the customer and has guided them towards purchasing the same product again and again. This has played a huge role and has influenced the customer as it has guided the customer towards being influenced by factors which determine the buying behaviour. The emotions which a person is able to associate with the product are another factor which has a role in shaping consumer behaviour. A person who is emotionally attracted with a product or services will look towards the same again and again. The fact that Samsung refrigerator is a utliatarian product for the masses it has helped to developed a positive attitude towards the product (Jackson, 2005). Marketers thereby need to ensure that the marketing strategies are developed in such a manner that it highlights the positive attitude and influences the customer in such a manner that they look to purchase the same product again and again. This thereby has helped Samsung refrigerator as it has been able to work on the positive emotions and has thereby transformed the manner in which customer perception and emotions gets shaped so that the customer looks at purchasing the same product again and again. Section III- Internal Factors impacting consumer demand One of the internal factors which have an impact on consumer behaviour is the need for having Samsung refrigerator. The need for refrigerator is usually examined as a psychological need and helps to fulfil the different utilitarian need which people have. When high end Samsung refrigerator are purchased it is done for the satisfying the esteem needs of the customers which means that the person has some personality of status in the society and looks towards ensuring that it is achieved. In a similar manner a middle or lower end Samsung refrigerator implies that it meets the different psychological need which people have identified and provides them the required stature they are looking in the society (Dhar, and Wertenbroch, 2000). This implies that the marketers need to understand the different need which the products will satisfy. In case the Samsung refrigerator satisfies the high esteem needs that the marketers need to develop their strategies which is aimed at promoting higher quality products but when the product is promoted as a utilitarian product than the aim should be towards satisfying the different psychological needs of the customers. This will ensure that the different internal factors are better understood and will help to formulate strategies which will be aimed towards satisfying those. Personality is another important factor which has a role in determining the manner in which consumer behaviour is shaped. Personality has a role in shaping the purchasing behaviour of individuals. A person who is extrovert will look at purchasing products which is stylish and less risky whereas an introvert person will look at purchasing products which is innovative and risk as it provides an opportunity to satisfy the different higher level needs (Cialdini and Goldstein, 2004). Samsung refrigerator has worked on this framework as they looked at describing the different features which the product has so that it appeals to the customers irrespective of the personality. This has helped them to highlight the different features which Samsung refrigerator has and has appealed to the customer based on the personality which the customer has. This thereby ensures that the product is able to appeal to the customers which appeals to the masses and provides an opportunity towards through which they can be attracted towards the product. Perception also has a role in influencing the purchasing decision making process as if customers perceives that the product is superior and provides more value than the money actually paid for the product it bring a change in their purchasing habit (Brennan, 2007). This thereby influences people as change in the perception of people brings a change in their attitude an provides an opportunity through which the different needs of the customers are satisfied. Samsung refrigerator has ensured that the product offerings are such that it helps to meet the different needs and requirements of the customers. Samsung refrigerator has designed their products in such a manner that it looks at confirming to the different perception that people have. People perceive that Samsung refrigerator is superior to other product and the after sales service which product provides them in comparison to other players in the market acts as a differentiating point and ensures that customer are attracted towards the product based on different dimensions. Personality is another important internal factor which has a role in determining consumer behaviour while looking to purchase a product. A customer looking to purchase a product is largely dependent on the personality behaviour of the product. Consumers prefer products which matches their personality. The perception that the customer has towards the brand determines the personality of the brand and thereby has a role in influencing customers. Samsung refrigerator has been able to develop different products for different segment of the society. This has helped the customers to purchase the different based on the personality behaviour that the product provides. This thereby is an important determinant for marketers as Samsung refrigerator has been able to find out the different needs of customer and develop their products and marketing strategies which matches their personality. This has influenced customer towards the product and created the required desire which has guided people towards purchasing the product. The attitude of the customers also determine the strategy which will shape their buying behaviour and provides important impetus based on which customer purchasing decision is made. Customers attitude towards Samsung refrigerator is something of a differentiation one as they feel that double door refrigerator are better than single door. In addition to it the customer attitude is shaped by the fact that frost free refrigerator is hassle free and a higher prices ensures better quality (McKenzie-Mohr, 2000). Samsung refrigerator has been able to work on the dimensions and has thereby developed their strategies which are aimed towards maximizing the overall phenomenon through which a change can be witnessed in the attitude of the customers. This has influenced the customers’ behaviour towards Samsung refrigerator and has determined the manner in which their future needs and requirements will be ascertained. The overall phenomenon thereby determines the manner which customer behaviour is shaped and highlights the manner in which different factors influences customers towards a product or services. In addition to it the life style of the consumer also brings a change in the customer purchasing habits. A customer who prefers a lavish lifestyle would be looking towards products which are trendier and have more features and would be willing to even take a higher risk for those products. In comparison to people a normal life would look towards normal products which is less expensive and meets the requirement by ensuring that the required needs are fulfilled. Samsung refrigerator has been able to identify those and has developed different kind of refrigerators for different customers. The manufacturer continuously looks at innovating and making changes in their offerings so that they are able to make the required changes and provide customers with something different. This has helped Samsung refrigerator to attract all section of the society and has thereby influenced the customer to purchase the product based on the life style they look to carry out. This is an aspect for marketers which needs to be carefully examined as it will highlight the different dimensions which needs to be worked on. Conclusion The different internal factors thereby have relevance on consumer decision making process and marketers need to evaluate the different alternatives and factors so that appropriate strategies are developed. This paper which examines the different internal factors which has an influence when people look at purchasing Samsung refrigerator shows that every factor has an equally important role in shaping consumer demand. This thereby helped to understand the different factors which are internal to the customer and provides the marketers with an opportunity to develop strategies through which appropriate marketing strategies can be developed. The identification of internal factors based on their offerings helps to formulate appropriate strategies and develops a process through which better control can be exercised and the marketers are able to develop correct strategies which will satisfy the different needs and requirements of the customers. Every factor is equally important which makes it imperative that marketers are able to identify those factors and thereby ensure that better marketing strategies can be developed so that different needs and requirements of the customers can be satisfied. References Bechara, A. and A.R. Damasio. (2005). "The somatic marker hypothesis: A neural theory of economic decision." Games and economic behaviour 52:336-372. Brennan, T. (2007). "Consumer preference not to choose: Methodological and policy implications." Energy policy 35:1616 - 1627. Cialdini, R. B. and N. J. Goldstein. (2004). "Social influence: Compliance and conformity." Annual Review of Psychology 55:591-621. Dan, A. (2008). Predictably irrational: the hidden forces that shape our decisions. London: Harper Collins Publishers Dhar, R. and K. Wertenbroch. (2000). "Consumer choice between hedonic and utilitarian goods." Journal of Marketing Research 37(February 2000):60 - 71. Jackson, T. (2005). "Motivating sustainable consumption: a review of evidence on consumer behaviour and behavioural change." Sustainable Development Research Network. McKenzie-Mohr, D. (2000). "Fostering sustainable behavior through community-based social marketing." American Psychologist 55(5):531-537. Read More