Consumer Decision-Making - Internal Factors - Coursework Example

Consumer Decision-making - Internal Factors Name: Institutional Affiliation: Consumer Decision-making - Internal Factors With changes in tastes and preferences, marketing researchers have been concerned about how to influence the way customers behave in their buying process. This is after realizing that individuals, groups and organisations have a unique way in which they select, secure, use and dispose products, services and experiences (Lynchjr, & Zauberman, 2007). The aim of marketers in conducting this kind of research is to find out how people make their buying decisions and know the factors that influence their buying behaviour. Consumers buy products and services for their individual or household consumption that either satisfies physiological, sociological and psychological needs. Individual buying behaviour is influenced by various factors. These include social environment, individual circumstances, and personal characteristics. This study discusses the influence of different internal factors on the customer’s decision-making process. To be specific this study involves the airline travel services. Consumer decision making takes five distinct stages. The first stage is problem or need recognition. At this stage, the buyer recognises a problem or a need that results from external and or internal stimuli. In this case, the customer identifies he need to travel. Unfulfilled need to travel builds tension overtime on the buyer thereby acting as a drive or a motivator. According to Maslow’s hierarchy of needs, there are five levels of needs. These are, physiological, safety, social, esteem and self-actualisation needs. These needs arise in a person following a systematic order. When one need is satisfied, it ceases to be a motivator (Lynchjr, & Zauberman, 2007). Physiological needs are first level needs that are a person cannot live without. These include food, clothing and shelter. Lack of these needs acts as a big motivator to the buyer and therefore prompts a search for their satisfaction. On the second level are safety needs which consist of need for security. When the buyer is faced by safety needs, he is motivated to look for security measures such as buying security dogs. On the fourth level are the esteem needs. When a consumer is faced with this kind of need, he searches for a means by which he can increase his recognition for example by buying an expensive car. The highest level in the hierarchy of need is the self-actualization need. In this level, the need to fulfil ones vision or dream motivates the buyer to seek a service or a product that can satisfy his dreams or vision (Hutt & Speh, 2013). For example, a consumer can decide to tackle a social initiative like helping the poor in the society. The drive to acquire product that can satisfy a need becomes a goal. Consumer uses cognitive material that has been stored overtime based on previous buying experiences, own personality self-concept or attitude as a basis of satisfying the need. In this stage, the role of the marketer is to find out what brought about the need and respond accordingly. The second stage is information search. When the consumer is aroused by a certain need, he is inclined to search for information. Sources of information include personal sources through friends, family neighbours or acquaintances (Bettman, Johnson & Payne, 1991). Personal sources are informative through the word of the mouth and are preferred based on the buyers trust towards them. Memories from past experiences also form an important internal source of information. Buyers gather public information from published magazines and newspapers. In addition, promotional messages generated by producers and sellers of products inform of advertisements, presentations and sales literature are essential. The fourth stage is the evaluation of alternatives whereby the consumer assess the importance of information gathered in the previous stage. Alternatives under consideration are the product features such as type, shape, appearance, texture, quality and effectiveness; weights attached to a product under consideration, and brand image (Kotler, 1999). The fifth stage is the buying decision. In this stage, the buyer forms preference among brand alternatives and purchases the product from a selected seller. The final stage is the post purchase behaviour where the buyer expresses satisfaction or dissatisfaction for the product purchased. Satisfaction occurs if the product matches buyer’s expectations. In this case, the buyer talks well of a company’s products. In post purchase, dissatisfaction the buyer expresses his frustration if the product does not match his expectations and may take any necessary action for redress such as litigation or talking badly about the company. In the airline service industry, the best marketing strategy is market segmentation. The market is divided into various levels that fit the consumer needs in this strategy. An airline service is a high involvement activity because it involves a lot of money. It is more of a luxury activity. Airline service takes behavioural segmentation where the offer of the service is based on the customers’ needs and the subsequent reaction towards the satisfaction of the need to travel. Variables that are closely related to this service include whether the customer is a first timer or a regular one, cost effectiveness and the circumstances responsible for choosing an airline company. Airline service also takes psychographic segmentation where segmentation is done according to lifestyles and values of the consumers and how these to translate to consumption of such a service. For example in the airline service industry, the pleasure that the customer yearns to acquire during his journey determines the amount of cash he pays. Airline services are therefore divided into three classes that include economical class, first class and second class. Customers who are price sensitive prefer the economy class. This group of consumers are not motivated by much luxury because their main motive is to reach their destination. Customers who opt for the second class are relatively sensitive to price and quality. They take a balance of the need to enjoy a flight and the need to pay moderately. The first class fliers are not price sensitive. They are more motivated by the need to achieve satisfaction by the quality of services they are offered in their flight. They believe that the more expensive they are charged the higher the quality of the service hence the higher the satisfaction they acquire. Airline travels takes a differentiated approach in targeting prospective customers through provision of services that are unique as compared to its competitors. For example, an airline company may differentiate what it offers Internal factors are important to a marketer in determining what affects customers buying behaviour. The internal factors of consideration include personality traits, lifestyle, motivations, beliefs and attitudes, and perceptions (Kazmi, 2007). Personality or character traits of a consumer for example self-assuredness or aggressiveness determine the consistence and predictability of consumer’s reactions. Marketers thus understand the reaction of different personalities to design products and services that satisfy their needs (Cant, 2006). In the airline industry, the emphasis for speed may fit those customers whose personality is aggressiveness. In contrast, customers who have humble and peaceful personalities may not be attracted by such emphasis. Such customers may therefore require airline services that insist on safety and reliability. According to the big five model of personality theories, extroverts or people who like to interact with the world may fit to travel by plane. Moreover, those customers who exhibit the personality of agreeableness may also fit for an airline service since they have a tendency to seek a variety of experiences. Lifestyle refers to the pattern of living as expressed in person’s interests, activities, entertainment, hobbies and opinions. Lifestyle influences how people spend their money and time thus marketers are able to know which lifestyle favours which product (Baumgartner & Steenkamp, 1996). Air service industry is preferred for people who have busy lifestyles. Most of their interests are in businesses that require quick performance and hence cannot rely on other forms of transport. Airlines services also favour the affluent. The services offered are expensive and they cannot therefore fit the lifestyle of low-income earners. Motivation is a dividend force that influences customers to satisfy their immediate needs. Marketers differentiate themselves for competitor by adding features that are tangible and intangible to met high-level needs that motivate purchase (Chapman, 2001). Maslow describes motivation in what he refers to as the hierarchy of needs. Hierarchy of needs is divided into five levels. In the first level, physiological needs are satisfied. This level underlines the relative importance of money as status has no satisfaction for the man desperate for necessities such as food, clothing and shelter. In the second level, safety needs are satisfied. This level demonstrates that money alone is not enough because when basic and safety needs are satisfied, people focus their attention on social and ego needs (Valacich, Parboteeah & Wells, 2007). Beliefs and attitudes are views and opinions that are learnt through individual or other people’s experiences (Kacen & Lee, 2002). Marketers determine the views of customers since they lead to positive or negative attitudes. If the customers have a negative attitude towards an airline company due to its poor service, the marketers of such a company have the obligation of dispelling rumours and addressing the problems that customers complain about. If these efforts are effective, the airlines management is able to convincingly change the attitude of the clients. Negative attitudes can be altered by improving the quality of services and adding new attribute to such a service. Perception refers to how consumers make sense of the world. Consumers select, organise and interpret marketing messages that are exposed to them through selective perception that is eliminating messages that are of use to them and selective retention where they retain messages that they deem important to them. The selection process depends on the past experiences, current needs, beliefs and attitudes and the complexity of messages they are faced with (Reid-Cunningham, 2008). Marketers only hope to persuade potential customers that the product on offer will meet their needs is through breaking perception barriers and reach the consumers with a message that is easily understood, retained and acted upon. Consumer imagery in the airlines travel service evaluates the service based on congruence between the consumer and the brand. If there are price wars between airline companies, one may opt to reduce prices of its services and position itself in for acquiring a bigger market share. It may also opt to increase the services it offers its customers in relation to competitors, that is, positioning of services. For instance, an airline company may decide to offer discounts for repetitive purchases. Learning and attitudes takes place in the purchase and post purchase stages. This is where customers develop experiences and apply them in their next purchase activities (Roberts & Pirog, 1991). After the trave purchase is done, the consumer gains experience after evaluating the alternatives. The experience gained during travel provides the consumer with vital information that is applied in future when the need for travel arises. In case the experience of the customer was good, he or she will use the same means of transport in the next travel need. However, if the experience was not good, the consumer might be forced to tell others about his displeasure for the company. He may also be inclined to inform the management of the airline that their services are poor and if offended in a great extent, he might decide to take a legal action. For airline travel service, customers discomfort can be eliminated by providing quality service, listening to their complaints, suggestions and addressing them accordingly to maintain and attract other prospective customers. The airline company in this case may also associate their travels services with admired group or events to develop a positive attitude amongst the consumers. If there are any experiences of conflicting attitudes, the best alternative for the airline company is to change negative attitudes to positive attitudes and changing the beliefs of the customers regarding the competitor services. The airline company can opt to increase its advertising to create more awareness and remind its customers that its services are still the best in the industry (Niazi, Siddiqui & Abedin, 2012). An airline company through the elaboration likelihood model (ELM) can manage attitude change. This model maintains that consumer’s attitudes are changed by central and peripheral route persuasion. It is very important for marketers to understand what influences their customers buying behaviour. Having such knowledge enhances them to producing goods and services that are suitable for their clients. Having knowledge of what influences the customer is a competitive edge to a firm as it ensures loyalty form the customers thereby assisting in beating competition from rival companies. References Baumgartner, H., & Steenkamp, J. B. E. M. (1996). Exploratory consumer buying behavior: Conceptualization and measurement. International Journal of Research in Marketing, 13(2), 121-137. Cant, M. C. (2006). Marketing management. Cape Town, South Africa: Juta. Chapman, A. (2001). maslowʼs hierarchy of needs. businessballs.com, 1-20. Retrieved from http://www.businessballs.com/maslow.html on 15/4/2014 on 15/4/2014. Hutt, M. D., & Speh, T. W. (2013). Business marketing management: B2B. Australia: South- Western, Cengage Learning. Jayachandran, S. (2004). Marketing management text and cases. New-Delhi: Excel Books. Kacen, J. J., & Lee, J. A. (2002). The Influence of Culture on Consumer Impulsive Buying Behavior. Journal of Consumer Psychology, 12(2),163-167. Top of Form Top of Form Kazmi, S. H. H. (2007). Marketing management: Text and cases. New Delhi, India: Excel Books. Kotler, P. (1999). Marketing management: The millennium edition. S.l.: Prentice Hall. Lynchjr, J., & Zauberman, G. (2007). Construing Consumer Decision Making.Journal of Consumer Psychology, 17(2), 107-112. Emerald, 60/62 Toller Lane, Bradford, West Yorkshire, BD 8 9 BY, UK. Retrieved from http://linkinghub.elsevier.com/retrieve/pii/S1057740807700165 on 15/4/2014. McGuire, W. J. (1976). Some Internal Psychological Factors Influencing Consumer Choice. Journal of Consumer Research, 2(4),302. Niazi, G., Siddiqui, J., & Abedin, Z. (2012). Effective advertising and its influence on consumer buying behavior. Information Management and Business Review,3(3), 114-119. Retrieved from http://works.bepress.com/ahmed_hunjra/30/ on 15/4/2014. Reid-Cunningham, A. R. (2008). Maslow’s Theory of Motivation and Hierarchy of Human Needs: A Critical Analysis. PhD Thesis. 1-83. Retrieved from http://www.scribd.com/doc/8703989/Maslows-Hierarchy-of-Needs-A-Critical- Analysis on 15/4/2014 on 15/4/2014. Roberts, J. A., & Pirog, S. F. (1991). Personal Goals and Their Role in Consumer Behavior : The Case of Compulsive Buying. Business,12(3), 61-74. Robertson & H. H. Kassarjian, Eds.)Handbook of consumer behavior. Prentice Hall. Retrieved from http://www.haas.berkeley.edu/Courses/Spring2000/BA269D/BettmanJohnsonPayne91.pd f on 15/4/2014.Bottom of Form Valacich, J. S., Parboteeah, D. V., & Wells, J. D. (2007). The online consumerʼs hierarchy of needs. Communications of the ACM,50(9),84-90 on 15/4/2014. Top of Form Top of Form Top of Form Bottom of Form Bottom of Form Bottom of Form Read More