Effects of Internal Factors on Consumer Decision-Making Process - Samsung Phone Product - Case Study Example

Effects of Internal factors on Consumer decision-making process Name Student Number Unit Name Unit Coordinator Word Count Executive Summary Everyday consumers are involved in making purchase decisions. Sometimes purchase decisions require little thinking while others require more thinking. This paper discussed the various internal factors that affect consumer decision-making process when purchasing a Samsung phone. The factors include motivation, personality, self-concept, perception, consumer imagery, learning and attitude. Also, the paper indicates that consumer decision-making process to involve five significant steps including recognition a problem, searching for information, evaluating alternatives, purchase and post-purchase. The marketing strategy for the product was discussed based on its market segmentation, targeting and positioning. Consumers are motivated to purchase the product and this was shown through the Maslow’s hierarchy of needs’ theory and Trio Needs theory. The Big 5 personality traits theory supported the discussion on consumer personality. The elements of perception in Consumer behaviour include selective perception, perceptional organization and perception interpretation while positioning strategies the company uses include value-based positioning, umbrella positioning and competitor-based positioning. Lastly, behavioural and cognitive theories, and Attitude-towards-object Model were used to explain consumer learning and attitude respectively. From the discussion, it is clear that internal factors play a significant role in influencing consumer decision-making process. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 3 4.0 Consumer needs and motivation 6 References 12 1.0 Introduction Consumers use and buy products or services according to their needs, tastes and preferences, as well as buying power. The types of products consumers purchase include specialty goods, durable goods, consumable goods or, industrial goods (Hawkins, Mothersbaugh, & Best, 2013). Consumer behaviour depends on their perception, attitudes, self concept, personality, motivation any many other factors. Consumer behaviour is the decision process-making process through which consumers experience in acquiring, using and eventually disposing products or services. The process of buying products or services starts in consumer’s mind and leads to consumers getting the best alternatives between products (Hawkins, Mothersbaugh, & Best, 2013). The aim of this paper is to discuss how the internal factors influence consumer decision-making process. Nevertheless, in trying to analyze consumer decision-making process and how internal factors influence these decisions, the paper will use Samsung phone product to achieve this goal. Samsung is considered one of the best mobile phone brands not only in Australia, but across the world. Consumers use the product to communicate with others through calls and short messages. The product can also support other applications depending on the in build features. The discussion will show how internal factors influence the decisions of consumers to purchase this product. 2.0 Steps in the consumer decision-making process According to Gollwitzer & Sheeran (2009) consumers undergo a series of steps in the decision-making process when buying products of services. First, consumers make a decision to solve a problem they face. For instance, a problem could be the need to communicate with others. Thus, information search is conducted with the purpose of meeting the need for communication (Adapa, 2014). The purpose of information search is to find out how the problem can be solved and may require identifying the product that can be used to handle the problem. This leads to evaluation of alternatives to identify the product that can effectively solve the identified problem (Adapa, 2014). The consumer may evaluate different mobile phone brands, for instance between Samsung and LG so as to identify the best product to purchase. Thus, a consumer makes a cost-benefit analysis to decide the best product as well as brand image that can suitably and adequately solve the problem (Sheth, Laroche, & Mittal, 2011). The consumer can now purchase a product and use it after evaluation. As the consumer continues to use the product, he or she will either be satisfied of dissatisfied, which may make the consumer to re-purchase or reject the product (Michael, 2001). This is referred to as post-purchase behaviour. 3.0 Marketing strategy-segmentation, targeting and positioning Before discussing the impact of internal factors on consumer decision-making process it is necessary to analyze the marketing strategy for Samsung phone. First, the product can be categorized under high involvement. When buying this product, consumers engage in more decision making by identifying the possible benefits and risks associated with the product (Richarme, 2001). The demand for Samsung phone is highly dependant on demographic and behavioural characteristics. Demographic aspects include age, gender, education, social class and income. Samsung phones are designed in a way that conforms to these demographic aspects (Thomas, 2007). Behavioural market segmentation for the product relates to the respond of consumers in using it. The decision for consumers to purchase the product is based on their attitude, readiness to buy, loyalty perceived benefits and status (Larsen, 2010). Samsung’s target market is characterised by the consumers’ purchasing power. The targeting process for Samsung phone is undifferentiated strategy. The product is promoted in the target market using the brand name of the company which communicates the same message to consumers (Szmigin, Carrigan, & McEachern, 2009). When a consumer purchases this product, it identifies him or her with the company. The product positioning in the target market is done is a meaningful, clear and concise to influence its perception towards the product. The positioning statement for the brand is “Samsung cell phone is a cost effective, convenient and user friendly product that allows you to stay connected with others across the world”. The perceptual map for the product appears as follows. Figure 1: Perceptual map for Samsung Convenience 4.0 Consumer needs and motivation Consumers are motivated to purchase the product so as to satisfy their communication needs. In addition, purchasing the product gives consumers a sense of accomplishment. Many consumers develop a sense of execution, satisfaction and fulfillment when they buy the product (Kaynak & Kara, 2002). In deed, most consumers purchase products or services for emotional and psychological purposes. The Maslow’s hierarchy of needs and Trio needs are relevant to consumer behaviour in purchasing Samsung phones. The drive by consumers to purchase the product occurs due to unfulfilled need (Adapa, 2014). In this case, consumers for Samsung phone can be driven by safety needs, social needs, esteem needs or self actualization. The motive for purchasing the product varies among consumers depending on the unattained need. According to Maslow theory of needs, consumers’ higher needs are fulfilled after the lower needs are satisfied (Adapa, 2014). Nevertheless, when it comes to purchasing this product, consumers purchase on a higher plane to satisfy their needs at a higher level. Also, in relation to Trio needs, some consumers for Samsung develop a sense of achievement by owning the product. Such customers feel proud to be associated with the brand name of the product (Gollwitzer & Sheeran, 2009). Consumers of the product have different levels of needs which imply that their motivational needs vary considerably and also influence their decisions to purchase the product. 5.0 Personality and self-concept According to Szmigin, Carrigan and McEachern (2009) consumers’ decision to purchase the product is highly influenced by their personality traits. In addition consumer for the Samsung phones may display similar personality traits but this does not mean that they are the same in other aspect of life. Based on the Big 5 personality traits theory, consumers for the product can be considered to be extroverts and open to experience (Adapa, 2014). Consumers who are extroverts will always want to interact closely with the world and this can be achieved through their purchase behaviour. Consumers may buy Samsung phones so as to part of the world. Samsung brands are recognized all over the world and therefore owning the company’s product may make some consumers proud. Alternatively, some consumers purchase Samsung phones so as to experience new product or brand (Sheth, Laroche, & Mittal, (2011). Such consumers are not loyal to the brand but they are interested in testing the product. The strategic marketing applications applicable to the product include consumer innovativeness, variety seeking and need for uniqueness (Adapa, 2014). Consumer innovators in this case are interested in buying Samsung phones as they are introduced to the market so as to try them out. Some of them are consumers of competitors whose aim is to buy the product as they try to seek better alternatives. However, other consumers purchase Samsung phones in order to appear unique from others. According to Adapa (2014) the issue of self-concept also influences consumer decision-making process. Actual self is how consumers see themselves is comparison with others. Consumers for Samsung phones achieve satisfaction because their experience with the product is consistent to their actual self. Most consumers purchase the product because it portrays high self–image. The value the product offers increases the desire for consumers to be associated with it (Hawkins, Mothersbaugh, & Best, 2013). 6.0 Consumer perception The three elements of perception including selective perception, perceptional organization and perception interpretation play a significant role in consumer behaviour (Adapa, 2014). The consumers’ decision to purchase the product first starts with selective perception. Here, consumers develop perceptions of what can satisfy their communication needs by looking for positive information concerning the Samsung phone such as quality. Whether consumers choose to buy the product or reject it depends on selective perception (Gollwitzer & Sheeran, 2009). After analysing the information about the product, consumers try to associate their perception with the Samsung Company in what is referred to as perceptual organization. In trying to link product with the manufacturing company, the consumers seek to identify if the product is of low of high quality before they decide to purchase (Szmigin, Carrigan, & McEachern, 2009). Perceptual interpretation occurs when consumers reflect on what motivates them to purchase the product. Perceptual interpretation among consumers depends on their current motives and interests, as well as past experiences (Adapa, 2014). Thus, consumers will either buy Samsung phone or not depending on how they interpret the reality about the product. 7.0 Consumer Imagery According to Larsen (2010) consumer imagery is influenced by the positioning strategies the company uses on its product. They include value-based positioning, umbrella positioning and competitor-based positioning. Through value-based positioning, the company ensures that consumers get value from using the product and this is achieved by identifying the unique needs for consumers (Hawkins, Mothersbaugh, & Best, 2013). For instance, the company may use consumer experience to create value for them. Umbrella positioning is when the company makes it easier for the product to be recognized by consumers by using a single brand message to market the product (Harradine & Ross, 2007). On the other hand, Samsung phone promotes consumer imagery through competitor-based positioning. In this case, the product is highly differentiated from competitors and consumers can easily trace it from others (Harradine & Ross, 2007). 8.0 Consumer learning Consumers acquire product knowledge and experience through the learning process. The learning theories related to consumer behaviour and applicable to their decisions to purchase Samsung phone include behavioural and cognitive theories (Adapa, 2014). Behavioural model explains that human behaviour develops through repetition. Loyal customers for the product are used to it because they have been using it several times. Thus, past experiences with the product influence the decision to purchase it again (Adapa, 2014). Cognitive learning is the ability customers to use information concerning the product to decide whether to buy of ignore. Unlike the behavioural theory, cognitive learning involves processing information in the mind before a decision to purchase is made (Richarme, 2001). 9.0 Consumer attitude Consumers’ attitude towards Samsung phone influences their purchase decisions. This can be examined through the Attitude-towards-object Model (Adapa, 2014). Through this model, consumers’ attitudes towards the brand can be determined. Some consumers continue to buy the product due to the learning experiences among themselves and others (Kaynak & Kara, 2002). The beliefs and specific attributes consumers learn about the brand explains their behaviour and respond towards the product (Adapa, 2014). The attributes consumers look for when purchasing Samsung phone include among others quality, durability, easy for use and price. Therefore, consumers’ attitude is influenced by these product attributes and they sometimes compare them to other competitive products to determine the best alternative (Gollwitzer & Sheeran, 2009). All in all, the positive attitude they develop towards the product makes them purchase it. 10.0 Conclusion In conclusion, the decision for consumers to purchase the Samsung phone is highly influenced by internal factors including motivation, personality, self-concept, perception, learning and attitude. Before deciding which product to buy, in which quantity and at what time, consumers go through decision-making process which includes searching for information, evaluation of alternatives, purchase and post-purchase. The theories in consumer behaviour discussed in the paper include the Big 5 personality traits theory, Maslow’s hierarchy of needs; Trio needs theory, behavioural theory and cognitive theory. 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