Consumer Decision-Making - Internal Factors - Assignment Example

Consumer Decision-Making: Internal Factors Name Professor Institution Course Date Introduction In the field of business, the decision making process of a consumer towards purchasing a certain product or service entails collecting and assessing relevant information concerning the product or service. After that first basic step of the process, the consumer makes choices among the alternative products and services in the market in various organizations, places, and people. The product and service of choice for this essay are the motor vehicle products and services. The essay below seeks to discuss the internal factors that influences a consumer’s decision making process towards motor vehicle products and services. The essay will also entail relevant theories that are relevant to the internal factors that influence consumer decision making process. The process involves five crucial steps that the consumer has to go through before arriving at the desired product or service to be purchased (Dutta, 2012). The process must first be driven by the need of the product, after which the consumer gathers relevant information regarding the product. After that, the consumer evaluates the alternatives of the product in the market, and then purchases the desired product after making a satisfactory evaluation of the alternatives in the market. Finally, the consumer must carry out a post purchase evaluation of the product or service purchased. For instance, there are a number of internal and external factors that may influence the decision making process of a consumer towards a specific product or service (Neal, Quester, & Hawkins, 1999). Internal factors that may influence the decision making process of a consumer are factors that are within the customer unlike the external factors that are the surroundings of the customer. The internal factors have to do with the demographics of the consumer, as well as whom the consumer is. There are a number of theories that are relevant to the internal factors that influence the decision making process of an individual (Gardial, 1986). One of the internal factors is the consumer’s perception about the motor vehicle products and services. A consumer’s perception about a product can be considered as how a consumer processes information regarding the product either consciously or subconsciously. For instance, motor vehicles are of different brands, and these brands are different in efficiency in terms of speed, durability, service delivery, and many others (Mullins & Walker, 2013). Therefore, if a consumer wants to purchase a motor vehicle product, he or she will have a perception about the product on the above grounds. Suppose the consumer perceives that a certain brand has never been efficient, according to him or her, then the consumer will end up not settling on the brand. If the perception is positive, the consumer will definitely settle for that motor vehicle brand (Dutta, 2012). Motivation of the consumer is another factor that can influence the decision making process of the consumer towards motor vehicle products and services. Motivation is based on the Maslow's hierarchy of needs as a motivational theory. Motivation tends to relate to a consumer’s desire to accomplish a specific outcome. Studies have indicated that motivation can fall under either external factors or internal factors in affecting the decision making of a consumer (Rotenberg, 1974). From it being an internal factor, motivation may come from within the consumer to either purchase a car or not. For instance, if a consumer learns how to drive a car, he or she will be motivated to buy one so that his or her driving skills may not fade away. The urge of driving after the person has completed the driving lessons motivates them to own a car. This tends to come from within the consumer, and not from the external sources (Gardial, 1986). A consumers experience and knowledge of a certain motor vehicle product or service will influence the decision making process of that person in purchasing the product or service. For example if the consumer has the vast knowledge about a certain brand of vehicle as having technical hitches sometime after purchase, then it will be clear that the consumer will not settle for that car brand in the market (Schiffman & Kanuk, 2004). According to his or her knowledge and experience on car brands, the consumer would decide to purchase a car brand that is the best in the market. Therefore, this is a clear internal factor that may influence the consumer’s decision on motor vehicle products and services (Neal, Quester, & Hawkins, 1999). The personality of the consumer may affect his or her decision making process towards purchasing a motor-vehicle product or service. Under personality, the consumer may happen to be an introvert or an extrovert. The main theory that may support this particular internal factor is the trait theory. The theory states that a person tends to carry out an activity that is related to his or her character. For instance, an individual who has high class traits will opt for expensive motor vehicle brands that suits their character. An individual’s personality is the way the person carries themselves, talk and react to issues. How an individual visualizes himself or herself according to their personality is known as self conception (Solomon & Rabolt, 2009). Self-conception is the major internal factor that may influence a consumer’s decision making process under personality. For instance, if a consumer engages in a decision making process to purchase a car, self-conception would influence the process. If the consumer has the personality or rather ahs a self-conception of owning a certain brand of car, he or she would probably decide to buy the brand. Hence, personality affects the decision making process of a consumer in purchasing a certain product of service (Neal, Quester, & Hawkins, 1999). Lifestyle of a consumer is another internal factor that may influence his or her decision in purchasing a motor vehicle product or service. Lifestyle is considered as a way in which individuals run their daily lives through the activities they engage in, and the interests they express. In business, products and services are usually purchased to give support to the lifestyles of consumers (Solomon & Rabolt, 2009). For instance, if a consumer is used to having an expensive lifestyle, he or she would probably go for expensive motor vehicle products and services. The consumer with a high lifestyle would never decide to purchase a car that is of a lower lifestyle. Lifestyle is an internal factor that is dictated by how much a consumer spends in purchasing his or her stuff (Schiffman & Kanuk, 2004). This can best be supported by the trait theory. Demographic indicators of a consumer can influence his or her decision towards purchasing motor vehicle products and services. The demographic indicators may include the consumer’s income, gender and age. Under the age factor, the consumer may decide to purchase a car that suits his or her age. For instance, some cars are old fashioned while others are flashy (Solomon & Rabolt, 2009). Suppose the consumer is of a younger age, he or she would go for a car that reflects his or her age, and vice versa. Therefore, it is advisable for motor vehicle dealers to come up with products of all age groups because age is a major internal factor that may influence the decision making process of a consumer towards the products and services offered. It is with no doubt that motor vehicle products and services consumers come in different age groups (Mullins & Walker, 2013). In addition to the age factor under the demographic indicators of a consumer, there is the aspect of income of the consumer. The financial position of a consumer is a major factor that affects his or her decision towards purchasing a desired motor vehicle product or service. The first question the consumer may ask himself or herself is whether he or she can afford the desired brand of car. The income of the consumer is the major determinant of whether he or she ends up settling on a certain brand of car (Gardial, 1986). For instance, it is clear that different car brands are of different qualities and so are of different prices. Supposes the consumer earns an average income for sustaining him and his family, it would be clear that he would not decide to purchase an expensive car in the market. He would instead go for a product that fits his income. Therefore, this is a clear indication that a consumer’s financial position is an internal factor that influences his or her decision towards purchasing a motor vehicle product of service (Neal, Quester, & Hawkins, 1999). The gender of the consumer can also be regarded as an internal factor that influences the decision making process towards motor vehicle products and services. For instance, suppose the consumer is a female, she would not decide to purchase a car that has masculine look but rather one with a feminine look and vice versa. A female consumer would settle for a car that suits her as a female, a car that will not give her difficulties when driving or rather operating. Hence, gender is a demographic indicator that influences a consumer’s decision in purchasing a car brand (Rotenberg, 1974). Personal needs of the consumer is also another internal factor that influences the decision making process of a consumer in purchasing a motor vehicle product or service. For instance, a consumer may feel that he or she needs a car in his or her life for various purposes. According to his or her personal needs, the consumer may gather relevant information in the market concerning a specific car brand that suits his or her personal needs (Schiffman & Kanuk, 2004). The consumer would eventually settle for the brand that fits his or her personal requirement after a thorough evaluation of the product. It is therefore critical that personal needs of consumers drives their decision making process towards purchasing a certain motor vehicle product or service (Solomon & Rabolt, 2009). This factor can be driven by the utility theory. Majority of the discussed internal factors tend to work hand in hand with some theories of consumer decision making process. The theories also influence the decision making process of consumers towards purchasing certain products and services, for instance motor vehicle products and services. One of the theories is the utility theory. Under this particular theory of consumer decision making process, the consumer is perceived to be a rational being. In the utility theory, the consumer tends to make choices towards a product or service to be purchased based on expected outcomes of their decisions. Since the consumer is considered as a rational being in this particular theory, the decisions made on the purchase of a product are usually for purposes of self interest (Neal, Quester, & Hawkins, 1999). For instance, in the decision making process of a consumer towards the purchase of a motor vehicle product or service, the utility theory would probably influence the decision making process of the consumer. It is clear that before a consumer purchases a car, he or she will first establish the need for the car. During the process of the deciding what car brand to purchase, has an expected outcome of his or her decision. The consumer would eventually settle for a car brand of his or her own self-interest(Neal, Quester, & Hawkins, 1999). Another theory that is relevant to how internal factors may influence the decision making process of a consumer towards a motor vehicle product of service is the theory of buyer behavior. Under this particular theory, there is a sophisticated incorporation of a number of social, marketing, as well as psychological influences on the choice of the consumer into a logical sequence of information processing. This is the actual scenario that has been discussed in the essay concerning the internal factors that influence the decision making process of a consumer on motor vehicle products and services (Mullins & Walker, 2013). The essay has thoroughly discussed the internal factors that influence the process of decision making of a consumer on motor vehicle products and services. For instance, some of the discussed factors are more influential than the others to the process of decision making. The perception of the consumer, as well as his or her motivation on the motor vehicle product are the most influential internal factors in this particular case. The two internal factors are considered the most influential as compared to the rest of factors because they tend to influence each stage of the decision making process of a consumer on the motor vehicle products and services. The two influences the need of the consumer to own a car, information gathering stage, evaluation of alternatives in the market, the purchase of the car, as well as the post evaluation stage of the product. For instance, the financial position of the consumer, which is not one of the most influential factors, may only affect one of the stages of the decision making process of a consumer. The financial position of the consumer only touches of the purchase stage of the process, because it is during this stage that the consumer may ask himself or herself whether he or she can afford the car. Conclusion In conclusion, the process of consumer decision making takes place when a consumer first recognizes the desired state that he or she wants or needs to be in. Therefore it is of great importance if an individual would understand his or her own decision making process because it would improve further decision making regarding certain products and services to be purchased (Neal, Quester, & Hawkins, 1999). As discussed in the above essay, it is clear that internal factors may influence the process of decision making of a consumer. Therefore, for a consumer to make the right decision before purchasing a certain product or service in the market, he or she has to have reliable internal factors. This would help him or her in purchasing a suitable product or service for his or her needs. The most influential internal factors are the consumer’s perception on the product, and the motivation to own the product. Two theories have been found to work hand in hand with the factors in influencing the decision making process of the consumer on motor vehicle products and services. References Dutta, K. (2012). Brand management: principles and practices. New Delhi: Oxford University Press. Gardial, S. F. (1986). The role of inferences in consumer decision making: factors mediating process and outcome. London: Oxford Book Co. Mullins, J. W., & Walker, O. C. (2013). Marketing management: a strategic decision-making approach (8th Ed.) New York: McGraw-Hill. Neal, C. M., Quester, P. G., & Hawkins, D. I. (1999). Consumer behavior: implications for marketing strategy (2nd Ed.). Sydney: McGraw-Hill. Rotenberg, R. H. (1974). The role and importance of non-commercial sources of consumer information as an input in the consumer decision making process. Ann Arbor, Mich.: University Microfilms International. Schiffman, L. G., & Kanuk, L. L. (2004). Consumer behavior (8th Ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Solomon, M. R., & Rabolt, N. J. (2009). Consumer behavior: in fashion. Upper Saddle River, N.J.: Pearson/Prentice Hall. Read More