Impact of Organizations around the Globe - Essay Example

? Consumer Behavior Table of Contents Introduction 3 Consumer Personalities 3 Consumer Perceptions 5 Consumer Decision Making Process 6 Conclusion 7 References 8 Bibliography 9 Introduction Organizations around the globe try to target the consumers in terms of their internal characteristics. According to marketers, consumers’ internal psychology characteristics which reflect in their response towards a new products or services of a company can be defined as consumer personality (Schwarz and Hunter, 2012, p.15). Perception is all about the interpretation of something after the information search. The process by which consumers gathers information about a product by the internal stimuli and interprets can be defined as the perception of a consumer (Williams, 2008, p.27). Decision making about the purchase of a certain product by problem findings, information search and expected outcome evaluation can be defined as Decision making process of a consumer (Hoyer and Maclnnis, 2008, p.62). The study will uncover the effects of consumer personalities, perception and decision making process towards LG washing machine. For the purpose of study LG the company has been selected. The company initially headquartered in Korea, produced TVs, Radios, Refrigerators, Washing Machines and Air-Conditioners. LG is a Merge of two Korean Companies Lucky and Goldstar. Presently LG is a leading electronics company worldwide. Consumer Personalities A company may have to deal with seven consumer personalities to its products. 1) Customers of “Child-Like” personality is always are open to every sales pitch. To sell a product to them is much easier. 2) The “Judgmental Authority figure” is the second personality spectrum. They are also open to sales pitch and moreover they believe in company’s promotional strategy. It is easy for a company to sell them the products. 3) “Socializes” is the third type of personality spectrum, who used to develop a good relationship with the marketers; they never argue but avoid the sales coordinators. It is little tricky for the marketers to sell them the products. 4) The fourth spectrum of personality is the “Relaters”. These types of customers have the tendency to agree with the marketers about the Products’ knowledge. It is much easier for the coordinators to sell the products. 5) The fifth spectrum is the “Argumentative Barterer” who used to negotiate with the marketers. According to company to sell them product is little difficult. 6) The sixth spectrum, where the main problem arises to the company, that is the “Bargain Hunter” who use to negotiate little bit harder. The personality of these consumers is to make a better deal. 7) The last type of consumer personality is “Mature Hunter”. It is very difficult for marketers to close a deal with the consumers as they use tricky negotiations (Hanan, 2011). Basis on LG French Door refrigerator the marketers have to face consumers such as personality of child-like consumer and Judgmental Authority. LG is a leading electronics brand globally. The unique features in the refrigerators, implementation of advanced technology and the easy and time consuming accessibility will attract the consumers. As a result the company does not have to face unfavorable consumer personality. Consumer Perceptions Consumer perception includes price perception, quality perception and risk perception. Price perception is all about the difference of actual price and the perceived price of products. The consumers perceive about the price basis on the product accessories, size features and other existing products of the company. Quality is an intangible factor that may affect the products. The advertisement, promotional strategy helps the customers to perceive about the product quality. Quality perception is the difference between actual and perceived quality of the product. Risk perception depends upon the situation, people, product and culture, brand value of the company. Here consumers make the decision to buy a product without thinking about future uncertainties (Schiffman, 2007, p.158). LG is introducing a French Door refrigerator of largest capacity in Oman. According to the consumer of Oman, they will perceive it as high price refrigerators due to its unique features like Door-in-Door feature for extra space, easy accessible freezer drawers and best cooing facility. As it is a consumer durable product people may perceive that it would be a costlier refrigerator. In terms of quality perception people will find it as a price worthy consumer durable because of LG’s unique promotional strategy, global brand loyalty and existing product’s quality. People of Oman may feel that it will be risky to purchase a high priced product. LG is introducing something different than the other refrigerators in Oman. So people may think, because of new accessories the product can collapse quickly. LG will get the advantage of its brand value. The refrigerators of LG are globally famous because of it quality and price worthiness. So it will be easy for LG to enter in Oman. Consumer Decision Making Process Consumer decision making process is one of the most important factors of consumer behavior. The willingness to buy a product is decided this process which consist five stages of thinking of the customers regarding purchasing a product (Lamb, Hair & McDainel, 2011, p.190). These are recognition of problem or needs for solution of a problem, searching information, comparative evaluation of other alternatives, purchase decision and lastly behavior or feedback of the consumers after purchasing and then using the product or service. These are consecutive stages of buying decision making process i.e. a consumer come across each of these stages one after another in case of purchasing a product (Lamb, Hair and McDainel, 2008, p.173). Consumer decision making process for purchasing a new LG French Door Refrigerator is also consists of these five stages. In the first stage the consumers will identify the problem from their current refrigerator. In second stage, they search for detailed information about the product especially the extra benefits of this new product. Third, they will find other alternative product of other brands in search of similar benefit with comparatively lower price. In fourth stage, if they identify this product has special features which can solve their current problems regarding usage of their existing refrigerator and also no other substitutes are available in the market with lower price and similar benefits, then they will buy the product. In last stage i.e. post purchase stage, the customers will compare the actual benefit with their expectation and the earlier problem regarding refrigerator. They will share their usage-experience with the company or their friends and relatives. Conclusion From the overall sturdy, it can be conclude that demand of a new product in the market depends on consumer personalities, consumer perception and their purchasing decision making processes. Personality of a consumer reflects their response towards a new product whereas their perception determines three major factors of a product. These are price, quality and risk associated with the product or with the purchase decision. These two has substantial impact on each of the stages of buying decision making process of the consumers. References Hanan, M., 2011. Consultative Selling. New York: Amacom. Hoyer, D., W., and Maclnnis, J., D., 2008. Consumer Behavior. Stamford: Cengage Learning. Lamb, C. W., Hair, J. F. and McDainel, C. D., 2008. Marketing. Cengage Learning. Lamb, C. W., Hair, J. F. and McDainel, C. D., 2011. Essentials of Marketing. Cengage Learning. PRADHAN, S., 2009. Retailing Management 3E. India: Tata McGraw-Hill Education. Schiffman, G., L., 2007. Consumer Behavior. India: Pearson Education. Schwarz, E., and Hunter, J., 2012. Advanced Theory and Practice in Spot Marketing. London: Routledge. Williams, C., 2008. Effective Management. Stamford: Cengage Learning. Bibliography Cant, M. C., Strydom, J. W. and Jooste, C. J. 2009. Marketing Management. Juta and Company Ltd. Capon, N and Hulbert, J. M., 2007. Managing Marketing in the 21st Century: Developing and Implementing the Market Strategy. Wessex Publishing. Read More