Essays on External Factors Influencing Consumer Decision Making Process - Pepsi Consumers Case Study

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The paper "External Factors Influencing Consumer Decision Making Process - Pepsi Consumers" is a great example of a marketing case study.   Consumer buying behavior could be defined as the purchasing behavior of the final consumer (Kardes, Cronley & Cline, 2014). An individual is influenced by his or her culture, social class, subculture among other factors when making a purchasing decision. In today’ s highly competitive business world, organizations strive to understand consumer buying behavior in order to improve their marketing strategies. The purpose of this paper is to analyze external factors influencing consumer decision making process for Pepsi consumers, including, family, individual’ s reference group, sub-culture and culture. Introduction According to Kardes, Cronley & Cline (2014), purchasing behaviour refers to the decision processes as well as acts of the ultimate consumers.

Some of the aspects that marketers study include the psychology of how the clients are influenced by their environment and their attitudes towards certain brands. Buying behavior is influenced by both internal and extern factors (Kardes, Cronley & Cline, 2014). External factors that influence the buying behavior are those factors that emanate from the external environment (Kardes, Cronley & Cline, 2014).

The four external factors that influence the buyer’ s purchasing behavior include family, individual’ s reference group, sub-culture and culture. These factors play a major role in enabling a buyer to develop brand preferences and loyalty. Although a marketer cannot control these factors, an understanding of their impact is crucial as far as developing effective marketing strategies is concerned (Pride & Ferrell, 2004).   PepsiCo. is an American based company and has several thousand stores in around two hundred countries. The company operates food and beverage stores.

Since its foundation in 1965, the company seeks to always provide consumers with quality products which are easily accessible (Berch, Montoya & Sawayda, 2010). The company is rated as one of the biggest and most profitable firms in the United States. The company’ s turnover in the United States is estimated to be around the US $6.74 billion. To serve its expansive clientele, the company has employed over 72,000 employees that are spread all over the world and work in different branches (Berch, Montoya & Sawayda, 2010). It is worth noting that the company faces competition from other multinationals such as the Coca Cola Company.

To remain competitive and achieve growth, PepsiCo. has taken numerous actions including product diversification, mergers and acquisitions, innovation, employees’ training, expanding its retail outlets to other regions among others. The company’ s brands include Pepsi, Mountain Dew, Diet Pepsi, 7 Up, Gatorade among others. However, Pepsi is the company’ s main brand (PepsiCo, 2015). Pepsi is a soft drink that is consumed to reduce the need for thirst (Berch, Montoya & Sawayda, 2010). However, there are many alternatives that could be taken to reduce the need for thirst including water and Cola.

Therefore, the choice of drinking Pepsi to reduce thirst could be considered as a want. In such a case, the consumption of Pepsi is influenced by one’ s cultural environment, history and experiences. In developed nations like the UK, Australia and the USA, most people consume Pepsi when they are feeling thirst. In developing countries, on the other hand, people drink water to quench their thirst. Thus, people consume Pepsi based on their underlying assumptions and beliefs.


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