Internal Factors Influencing Decision-Making - Coursework Example

Consumer Decision Making Process Name: Institution: Consumer Decision Making Process Introduction Scarcity of resources possess a daunting challenge to consumers as they try to satisfy their wants. A satisfaction of a given want automatically triggers the need for another and this further complicates the choice of a product. The challenge is further made more practical when a consumer is faced with alternatives upon which he has to make a rational decision as consumers are assumed to be utility maximizes subject to the budget constraints. A rational consumer thus has to choose a bundle that will best maximize his utility (Michman, Mazze & Greco, 2003, p. 111). Opportunity cost is weighed against any preferred choice before the actual choice is validated. A consumer hence only settles on a product with lesser opportunity cost after a close evaluation of the salient issues surrounding a given preferable bundle. In a nutshell, the whole process before settling into a particular product by a rational consumer is referred to as the consumer decision making process. Selected product Mobile phone is the product chosen for this paper. Decision making process Problem recognition A consumer identifies the need for the mobile phone, this comes in three folds. For a first time consumer who is acquiring the product for the first time. We can also have a consumer who is considering replacing his old product with a new but same brand. The third situation is where the consumer is fed up with his exiting brand and is considering another advance brand. As noted by the Mass law hierarchical need, consumers are restrained as per the necessity, safety, self –esteem, ego and self-actualization. Information search The consumer shares the problem with others or may go for the customer care services to get more about the kind of phone he wants. In this cases for a first consumer, higher involvement is called for where need to gather massive information including the degree of easiness of the said product to acquire including the risks attached to such products and even the side effects if any. For a consumer who is replacing an old product but the same model, lower involvement will apply. Evaluation of alternatives At this stage the consumers seek to make the right choice of the mobile phone he requires depending on the budget line he is facing. In this case, the perception of a consumer about a given brand plays a major role as he weighs the best option to settle on. Consumers would want to associate themselves with the best products. Product choice The consumer at this point settles on a given mobile phone after every evaluation of the alternative upon a vigorous cost-benefit analysis for the brands available subject to his constraint. The perception and the consumer preference plays a vital part in this stage. We may have the same model with similar features but with different colors and hence the consumer will use the color to have the preferred choice. The consumers’ mind faced with a choices tries as much as possible to simplify the time spent in making a choice, some associate higher price with quality and hence will use this to make a choice (Richter, 2012, p.118). Criterion such as brand equity which refers to the value of the brand’s name as well as brand loyalty help consumers to make decisions. Post-purchase evaluation In this case one acquires the mobile phone and carries it home. This aims at whether the customer expectation is met to meet his satisfaction or whether one will be dissatisfied. This may include things such as whether there is applications installation needed as well as the ability of subsequent frequent maintenance and the ability of such expertise to render these services and at what cost. Internal factors influencing decision making Perception This is based on how the customer select, organize and interpret the information at hand. This is aided by sensation which is the immediate response of our receptors based on our senses in respect to stimulus; a consumer will attach greater meanings to such sensations (Reid & Bojanic, 2010, p. 117).). Exposure to the product, individual interpretation as well as perceptual selection based on the predetermined interest will aid acquisition of the product. Motivation Motivation activates a goal oriented behavior it is the internal urge to satisfy our needs. Motivation is pegged on the Maslow’s hierarchical theory of needs. A more basic and cheap phone would be satisfied first. Needs are hierarchically classified as psychological, safety, belongingness, ego-needs and self-actualization. Acquisition of a mobile phone will be based on self-fulfillment. Learning Information and acquired experience about a given product determines a relatively permanent change in consumer behavior and hence aids in satisfaction of wants. This comes in two fold, either deliberate or vicious learning. Cognitive theory of learning aids in consumer decision making in case of high involving. Behavioral theory explains the lower involvement during decision making process. Attitude affects the consumer choice and can either be cognitive based on information processes for high involvement or behavioral attitude based on the learning process. Personality Consumption of product is viewed as an extension of personal traits of a consumer. Personality influences response to a given product by the consumers. Personality comes in several folds, innovativeness which sees people as those who want to try new things as well as technology. Another personality is categorized as sociality which is attached to choices for entertainment and the third form of personality is self-confidence which is based on self-evaluation and determines choice of products that improve oneself. Discussion of product in accordance to; Consumer motivation and needs This can be understood by cross-examining the mobile phone against the Mass laws Hierarchical needs. To understand whether one requires a mobile phone as necessity or luxury will be based on the brand type and its price as well the reason for the acquisition. For a consumer acquiring a phone for only communication purpose of texting and making a call, we would categorized such as necessity satisfying the psychological need (Stroud, 2007, p.167). On the hand, for one who aims at innovating by acquiring an expensive phone would be categorized as satisfying the ego-needs or would want to self-actualize. An example of a person who wants to self-actualize is that who is already operating an expensive blackberry phone but is considering replacing this brand with a more expensive one either similar model or from another company for example apple iPhone. Consumer personality Lifestyle determines the acquisition of a product as it determines taste, values and preference of a product. Initially, mobile phone would be categorized as a luxurious good but this has changed to necessity and need for belongingness (Stroud, 2007, p.187). Some expensive mobile phones may be viewed to serve as self-actualization needs or the ego-needs as consumers will always feel to be innovative and will try acquiring phones for fashion achievement. Consumer self-concept Self-concept determines the consumer’s ability to identify the problem he is faced with and enable one to develop the urge to acquire a new phone. This is based on his own evaluation of the available product and will develop a predetermined interest and the brand of choice. This will enable the consumer to acquire the product. Consumer perception Different consumers will buy a particular phone based on the sensation that the phone attached to one senses as perception is based on sensation of an individual. A consumer will chose phones of same brand and features differently and may also distinguish them based on ones preferred color. Predetermined interest and exposure all revolves around the perception and one will acquire a give brand based on his interest. Consumer learning In this context acquisition of mobile phone for a first timer would be high involving and this will require a cognitive informational process. It will take much time to acquire the necessary model. For those considering replacement, it would take less time as it will be behavioral and the consumer will have gathered the behavioral attitude required to buy a given brand. Consumer involvement Consumer involvement about a particular mobile phone acquisition is two folded, where there is a high-involvement and low-involvement. Cognitive theories help in case there is a high involvement like cases of higher expensive and technical mobile phones as consumers take much time looking for necessary information about the product before developing an attitude to acquire the product (Grünewälder, 2008, p.156). Behavioral theories comes into play where we have low involvement as one only want to spend less time to make a rational decision on product. This is applicable when one buys less featured and less expensive user friendly phones. Consumer attitude development and change Attitude development and change is acquired through leaning and having acquired the particular information about a phone one needs. Change of attitude will change the loyalty a consumer had developed for a given product (McDonald & Dunbar, 2012, p.122). This will make the consumer, currently operating a given brand to develop the urge of replacing this by acquiring another but of different brand. Attitude makes one associate with a brand and subsequently decides to purchase based on post-purchase influence which aims at satisfaction. Product marketing mix element Place This refers to the location coverage of a given marketing strategies. A marketer realization that different markets have different preference is significant. Segmentation is key in determining a given strategy to be used (Schmid, 2011, p.145). Multinational firms should understand the kind of brand preferences per segment and tailor their products to meet such needs. Product Perception on a given product which is based on the consumer sensation is vital when choosing marketing mix strategy. The consumers will evaluate the product design, branding and its marketing style. One of the most unique features with mobile phone industry is that, consumers post-purchase basically the core and hence they will look at such features like phone’s retina-display screen, and associate it with either low or high-resolution screen. Purchasing mobile phones have also been based on features like 3G internet enabled, touch pads, glossy appearance, music player and wide screen makes. Another vital feature consumers would want to ascertain is Phone’s density pixel which attracts consumers as it serves them with quality images and well displayed texts. The shape and color of the phone is vital as consumers have several choices resulting from this feature, for example iphone’s curved front edges and the color combinations drive consumers crazy in different niches (Jackson & Jenkins, 2009, p.211). Consumers will determine a given phone’s contrast ratio which is a combination of brighter white screen resolution and deeper black In-Pane that improves the product’s viewing angle. Durability of a particular phone play a role in consumer decision making, for instance, iPhone is receiving a lot of customers based on its chemically-hardened glass pane that is ultra-durable and highly resistant to scratches. Price Marketers are very keen when it comes to pricing policies of their product. Different prices can be charged on different target market niches based on a proper analysis of the competitor’s actions. Firms may choose to charge a lower price for the same mobile phone product in order to attract more customers thereby increasing their sales volume and at the same time use this as competitors’ elimination tool. The price charged on a phone brand determines the number of customers. Consumers tend to associate higher prices with quality cell phones and may buy at higher prices. Promotion Competition results daily product promotional strategy change with new shifts of roles on producer, consumers and marketers. Core creation is playing a vital role in marketing as consumers are made to feel part of the companies promotional team and promote a given mobile phone products via the virtual communities (Grünewälder, 2008, p.234). Phone producing firm have to understand the innovativeness of consumers and their perceptions which internally determines hence coined in their promotional strategies. Marketing strategy Marketing strategy refers to the methods by the firm uses in order to promote its product and to be able to sell (Rao, 2007, p. 156). Currently most mobile producing firms have diverted the focus from the initial strategy of product differentiation which was product oriented and have consequently applied the use of STP also referred to as segmentation, targeting and position which is consumer focus. It has given mobile companies a platform where proposition prioritization and subsequent development personalized and relevant information are delivered to the various appealing audience. Segmentation This involves the identification of bases of segmentation of the mobile phone users and consequently important features of each niche are determined to serve customers based on the recognized preferences. For mobile phone, psychographic and demographic factors such as lifestyle and attitude will help in this determination. Targeting Once the segment’s significant feature are ascertained, evaluation of the potential and commercial pull in effects are identified per each segment and one or two segment will be selected for commercialization. In this context, targeting will work as it is more specific area with all the preference and internal factors influencing decision having been ascertained. Target selection is aided by the following, undifferentiated targeting in which a market is viewed as one group without individual segment hence the application of a single market strategy for all. This is so rare and may not work in this context of mobile selling as it more applicable for products without close substitutes and hence less competition to which cell phone industry is not a party (Giachetti, 2013, p. 122). Concentrated targeting approach which is based on a specific market niche and diversion of all marketing efforts to such a niche. Multi-segment strategy is applicable with concentration on more than one niche and a marketer develops two different strategy per each niche. This comes with a more practical package but is not cost effective as it is associated with increased promotions, market research and more inputs from the firm’s executives for its workability. Positioning Marketing is aimed at developing the brand’s image in the firm’s customer’s minds. Improvement of the consumer’s perception targeted at convincing them of the degree of satisfaction accruing from purchase of a good. This entails the establishment of a marketing mix per each selected segment (Dziri, 2011, p. 89). A successful position requires a well-defined business in the eye of the consumer of a particular firm against it competitors which is pegged at the ability of a firm to understand it competitors’ products and develop differential added advantage that will attract consumers towards firm’s product. Relevant marketing strategy Differentiated marketing strategy and in particular Concentrated Targeting Marketing strategy remains the best strategy for the mobile phone marketing (Burrow & Bosiljevac, 2009, p.112). This traces it benefits from being a small area hence easier to understand customer preferences. The success of any given firm will be determined by how much a firm plays its marketing role. Conclusion The need to acquire a particular mobile phone depends on the Maslow’s theory of hierarchical needs. Decision making process would be very difficult at times but rational consumers have to carefully follow the right process before acquiring a given product. The papers outlines every step and the internal factors influencing such decision making process. Consumer’s budget constraint on a price of mobile phone will not solely determine what brand of a phone to buy. The consumers will be influenced by the marketing strategy applied and hence calls for consumers to acquire the necessary knowledge as outlined by both behavioral and the cognitive theories. Reference Burrow, J., & Bosiljevac, J. (2009). Marketing. Mason, OH: South-Western Cengage Learning. Dziri, R. (2011). Avoiding strategic drifts in a hypercompetitive market: Analysis of Nokia's position in the mobile phone industry and suggestions. München: GRIN Verlag Gm Giachetti, C. (2013). Competitive dynamics in the mobile phone industry. Basingstoke: Palgrave Macmillan. Grünewälder, A. (2008). Analysis of Nokia's Corporate, business, and marketing strategies. München: GRIN Verlag GmbH. Jackson, S., Sawyers, R., & Jenkins, J. G. (2009). Managerial accounting: A focus on ethical decision making. Mason, OH: South-Western. McDonald, M., & Dunbar, I. (2012). Market segmentation: How to do it and how to profit from it. Chichester: John Wiley & Sons. Michman, R. D., Mazze, E. M., & Greco, A. J. 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