Internal Factors of Consumer Decision-Making - Coursework Example

Cоnsumеr Dесisiоn-mаking Students Name Course Title Name of Tutor Date of Submission Executive Summary Consumer behavior refers to all activities that involve searching, purchasing, using, evaluating and disposing of the products and or services that consumers expect will satisfy their needs. Whereas for many consumers, the external factors are determined directly by the provider of the service of the sales body, internal factors tend to be factor much hidden from them. Internal factors tend to be very influential in that they tend to affect the perception of the consumer on a certain good or product, thereby, providing a clear platform that is way above the external factors when it comes to decision-making on which good or service to consume. This paper seeks to expound on the internal factors and how they affect consumer behavior. In this respect, the paper would be guided by the need for theoretical undertaking ion the dynamics of consumer behavior. Internal Factors Cоnsumеr Dесisiоn-mаking There are three major areas that may influence the decision on a consumer in purchasing or taking up a certain product or subscribing to a certain service. The three include; situational Influences, Psychological Influences and Social Influences (Geri, 2005, p. 215-216). Cоnsumеr Dесisiоn-mаking behavior is determined by the individual’s perceptions, beliefs, and history, as well as that of groups the individual is a member of. In this respect, the situation surrounding the consumer at the time of purchase or consumption, together with the attitude they have developed over time would determine the consumption decision-making behaviors (Russell, Linda & Soren, 2012, p. 386). In analyzing the internal factors that affect consumer decision-making, there are a number of theoretical frameworks that can be used. Various theories that could be used in determining or explaining internal factors to consumer behavior may include: Consumer needs and motivation, Personality and self-concept, Consumer Perception, Learning and Consumer Involvement and The Nature of Consumer Attitudes. The level of intensity of interest in the product or service/ Consumer needs and motivation The level of intensity of interest in the product or service that the consumer has would determine whether the consumer will frequently purchase the product or not. In analyzing the level intensity of interest on product or service, one cannot ignore the aspect of consumer needs and motivation. The consumer is more likely to go for a product that satisfies his basic needed before that which satisfies his or her secondary need. This will affect the level of intensity or interest in a product. For instance, a person that has strong interests in health products would most likely have the affinity for the sad product. In setting where they get to market place and get targeted to a certain health product. There is a high likelihood that such a consumer would take the product without much ado. The case would be contrary to a product that is not of much interest to the probable consumer. In this case, the consumer would have less levels of affinity to the product (Puccinelli, Goodstein, Grewal & Raghubir, 2009, pp. 15-30). Consequently, the decision to purchase such a product would be more of external in terms of may be packaging, branding or pricing, as opposed to how interesting the product could be to them. The consumer’s problem-solving process/Personality and self-concept The consumer’s problem-solving process is indeed an important internal factor that would affect the consumption behavior. This would depend with the type of product the consumer frequently purchases. Where the consumer is used to purchasing low-priced products on a regular basis, the decision to be made whether to purchase this product or not would not be a major one. It would also depend on internal convictions which make up the personality of the consumer. For instance, a consumer may be inclined more to color blue. This is part of their personality, making them to be more allured into purchasing blue colored products. The personality of a consumer would also determine whether they are keen in purchasing a product or are usually in a hurry to purchase a given product. This would go a long way in determine whether they can buy on impulse of they are good planners who have to bugge5t before buying. Impulse buyers are more likely to be lured into purchasing products based on appearance of price. Consequently, the consumer would have no much haggling on whether to purchase the product or not to. The consumer can get used to purchasing the relatively low-priced products without much reasoning as they are not feeling the pinch in spending the amount demanded by the seller (Judd &Vaughan, 1998, pp. 111-113). How the consumer evaluates alternative choices/Consumer Perception The concept of evaluation of the alternative choices is pegged on the perception the consumer would have on the alternatives. Consumer’s perception would rely on other factors including effects of advertisement and cultural inclinations. Evaluation would take much theoretical concepts on personality and self-concept. The nature of personality would determine how a consumer would perceive an alternative product over the other. Indeed, the consumer would have different perceptions on alternative choices of the product, depending on how well the product has in the past satisfied the intended needs. Whereas the product has satisfactorily served to the expectations of the consumer on the needs that are in question, the consumer may have very thin allowance as to the purchase of the alternative product. Whereas the consumer treats alternatives with ambivalence, than changes of switching between products to the other are very high. In order to deal with such issues, an organization would seek to use branding as a way of locking out competitors that are offering alternatives to the products being provided for by the company (Cleveland, Papadopoulos & Laroche, 2011, p. 244-266). Learning and Consumer Involvement This factor takes us back to the Learning and Consumer Involvement theory and more specifically to the theory of Operand conditioning. Operant has to do with the modification of "voluntary behavior" or what is known as the operant behavior. Reinforcement and punishment remains to be the core pillars of operant conditioning. Indeed, a consumer of the product may opt for a given product because of positive reinforcement as an aspect of operand conditioning. For beverage companies and more so Coca-Cola and Pepsi, marketing of the products is done in a manner that the consumer has a prestigious feeling about the product. Most of the adverts link enjoyment or refreshment to the use of their products. Consequently, the consumer would subscribe to that product as they hope to gain from the other benefits the beverage brings. Operand conditioning is indeed an aspect that defines the choice of many products, particularly when it comes to products on offer. As part of the decision-making process, the consumer may opt to but a product because they have other rewards other than the direct rewards the product offers. For instance, where a beverage company gives an offer to persons buying more than three bottles of a beverage, the consumer is likely to buy the three bottles, not because they are used to but because of the motivation of getting the rewards of the offer (Blackman, 1974, p. 122). Once a client has made the purchase and enjoyed the benefits, they are likely to be lured into going for another purchase whenever the demand is in place. Critical Case analysis Consumer behavior can be analyzed from a case analysis perspective. In doing this, the Coca Cola Company provides a clear frame wok under which consumer behavior can be analyzed. For several years, Coca-Cola Company leads the market of cola soft drink. Apart from the cola, the company has also extended its business to some other soft drinks, as well. The Coca-Cola Company has achieved a dominant position in the market of soft drink with a remarkable market share in the entire market of soft drink. The company has been experiencing competition from other new companies in the market, but it has retained its leading position because of the way it motivates its consumers (Clarke, 2004, p. 78-84). The company chose to spend strongly on motivating cola consumers so that it can challenge any other companies that try to join into the same market. Cola is a result of soft drink, which can be regarded as a thirst-reducing product. However, we can reduce dehydration by drinking water or fresh soft drink, so taking cola to reduce thirst is referred to as a want. The decision made by consumers to buy cola to reduce their appetite depends on the culture environment of the consumer, his background and experience in learning. For example, it is quite common in western states to take cola when one is thirsty while in states that are developing, people will choose to reduce their thirst by using water. Based on learning experience, people will or will not drink cola since they may find it a wish but not a necessity (Lukosius, 2004, p. 435). Looking at this trend, personality and self-concept theory could be used in determining the push factor behind the decision to make such purchases. The personality of a person or the self would guide their interpretation of whether they are satisfied that Cola can help deal with their appetite. In the first place, cola satisfies utilitarian need, for example, it reduces the dryness of a consumer. However, cola can also be taken to reduce a hedonic need. In addition, Cola consumers experience a refreshing time, this is more of an emotional reaction. Therefore, the buyer’s determination to get cola depends on how hard they believe that the product will satisfy their needs and wants. On the other hand, it also depends on the way they are motivated to consume the product, and the learning experience they have concerned cola product. When a consumer learns that cola does not only reduce their thirst, but also that it has many sugar components that are not favorable for their health, it can affect their decision making regarding cola soft drink. Therefore, the consumers will be less motivated to eat cola soft drink (Stanford Business School Research, 2006, p. 1). Pepsi and Coca-Cola are different companies since they meet particular wants and need of the consumers. However, both companies meet the practical need appetite, and physiological. The makers of the two companies have been trying to improve in the production of cola. They need to create a high level of cola that can handle the self-actualization, ego needs and hedonic needs of their consumers (Russell, B., 2007, p. 465). They teach their consumers to understand that consuming cola involves exiting adventure and refreshing. The company has advertised cola product through credible media so that they can win the consumers commitment for ensuring consistence consumption of cola. Motivation of consumers on the decision making regarding the use of cola depends heavily on the consumers experience on the product. In addition, it also depends on how the consumers believe that cola will receive his or her want and need (Canzer, 2006, p. 4). Consumer stimulation has also influenced the user relationship with cola product. Both Pepsi and Coca-Cola companies have implemented tight strategies of increasing the participation and enthusiasm with cola product. The producers of cola soft drink have held a passion passing events to move Olympics games go, in the initial stages of the Olympic Games. This has increased the cola awareness in the new market, and enhanced the customer relationship with cola. It made the consumers of cola soft drink to have a feeling that Coca-Cola Company is part of their life. In addition, this positively increased the customer’s motivation to utilize the cola soft drink. Both Coca-Cola and Pepsi spend most of their income on advertisement; this has shaped their customer awareness towards cola soft drink. In addition, the promotion strategy has increased the education of their consumers regarding the cola soft drink, rather than any other products that the two companies provide. The promotion strategies implied has also increased their customer’s initiative on consuming cola soft drink. Hence, it has increased their customer’s relationship with cola soft drink (Stanford Business School Research, 2006, p. 1). The makers of cola soft drink have come under investor’s intense scrutiny because of the companies familiar to effectively carry out its sales and marketing campaigns. In fact, it is seeking the help of professionals to help in their plans of marketing, which will help the company to educate and motivate their consumers more efficiently and effectively (Jacqueline & Julie, 2002, p. 163-176). This will help the makers of cola soft drink to inevitable retain their iron fist reign on cola soft drink. Conclusion Consumer behavior remains to be an important element that each organization has to put into use in order to reap the maximum from their operations. An organization has to understand both the internal and external factors that push a consumer to using a certain products for them to come up with a successful marketing plan and strategy. To establish a re-birthed sales and marketing plan, the makers of cola will examine thoroughly and critically the research on sales and marketing plan on cola soft drink. 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