Buyer Behavior Proposal - Essay Example

?Buyer Behaviour Proposal Table of Contents Page Number Part A Introduction ………………………………………………………………… 1 Methodology ………………………………………………………………. 3 Results and Discussion …………………………………………………. 3 Conclusion………………………………………………………………… 7 Part B Differences and similarities of B2B and B2C buyers………………….. 8 References ………………………………………………………………….. 11 Part A: Buyer Behaviour Analysis Abstract The purpose of this study was to examine the purchase motives of game console consumers. Motives to buy were grounded on the various motivation theories such as the Maslow Hierarchy of Needs, McGuire’s Psychological Motives, Endowed Progress Effect, Expectancy Theory and Drive Theory. The result of the research study revealed that most men students preferred PlayStation and X-Box over Wii and information was acquired through advertising and their friends. Further, they purchase for their free time which used mainly for playing sport, strategy, and role-play games. The participants were enjoying the games either they play it in solo, online and/ group playing and categorized from avid gamer to regular gamer. The price was not also a big deal for the consumer when buying as long as they really wanted the game console. Introduction In the past several years, video games have exploded in popularity and become prevalent pastime amongst young and old. Base on Fly Research, 48.2% from 500 respondents aged 5-16 admitted that playing games on a computer or console is their main pastime (See Figure 1) and 93% of them were spending several hours a week to play the computer games (Ward, 2010, p.9). In this study, video game is “referred to an electronic game played by means of images on video screen and often emphasizing fast action” (Merriam Webster, cited on Khan, n.d. p.1). It includes but not limited to computer games, console games, or games run by arcade machines. The underlying reasons why the people are hooked to play video games could be attributed by its ability to allow the players to perform real-life physical movements through using its unique, motion-sensing controllers (Limperos et al, 2011).The game console is also purposely designed with compelling characters, different opponent as targets and incorporated with various challenges. To make the game more exciting, the players were required to make critical decisions at specific junctures and match a blend of action and strategies in order to win the game or to perceive their primary goals (GamePro, 2011). The innovations of built-in voice technology in the video games such as voice chat and voice command also increased the fascination of the gamers to play even more console games because they could command and control the characters’ actions through dictation or voice-based their strategies. In addition, the voice technology also enables the player to interconnect with other players and make it more easy and convenient to play as a team. The latter becomes the significant factor to consider video gaming as social and community –driven pastime. The evidence of this claim was proven by the research conducted by the International Digital Software Association in the recent year. The findings revealed that 60% of gamers were playing with friends, 33% were playing with siblings, and 25% were playing with spouses or parents (Mangis, 2003, p. 113). Due to the changing pastime or leisure of consumers, the market for digital playground has significantly increased. In 2002, the consumers’ expenditures for gaming had reached up to $ 6.9 billion, placing gaming as the number one industry (Mangis, 2003, p.113). Such in the case in the launching of the Nintendo 3DS in the UK market in 2011. The game console was abruptly sold out some 113,000 even in its first 2 days in the market (Engineering & Technology, 2011). In line with this, the study would try to determine and understand the consumers’ behavior that motivates them to purchase game console products as their form of pastime activity. Figure 1 (Source: Ward, 2010, p.9) Methodology The data in this analysis comes from the results of the interviews conducted to 6 people. The participants of the study were randomly selected from young males aged 18-25. Generally, the participants of this study fall into top two categories: avid gamer, one who plays every day or more; and regular gamer, one who plays at least once a week. This shows that the participants spend more time on their consoles than their casual or social gamer counterpart (See Figure 2) (Mintel, 2011). The interview questions were composed of 18 items which basically focused on some key trends in video consoles and gaming. The answers of the participants were interlinked to various motivational theories in order to conclude which theory is most relevant to people’s behaviour when purchasing a game console. Figure 2 (Source: Mintel, 2011) Results and Discussion Consumers’ behaviour is an important factor in making a buying decision. To clarify the way consumer act and behave specifically in purchasing games console for their leisure, this study has utilized the various motivation theories. By definition, motivation is referred to the forces that encourage people to take or avoid certain action or behaviour in order to satisfy certain needs (Chisnall, 1995, cited in Khasawneh & Hasouneh, 2010, p.42). Based on the gathered data from the six male-student participants, the following findings were obtained: It was found out that 3 of the interview participants owned Play Station 3 and the other 3 owned X-Box 306. There are also other forms of gaming system available in the market like Wii. This gaming console is one of the world’s top selling products because of its distinct feature which allows the gamer to perform real-life physical movements in the game-play environment through its motion-sensing controller (Limperos, 2011, p. 345). However, this study has revealed that mostly who owned Wii are families, young children or those health conscious consumers. Likewise, students and older audience are more preferred to own an X-Box and/or Play Station as evidence on the report presented by Mintel in 2011 (see Figure 3). Hence, the participants were all male students and according to them they preferred these game consoles because it could support the games they like to play like shooting or strategy games which compelled them to act and make decisions for their game characters in order to win the game or to move to next challenging levels. This consumer’s behaviour is more likely associated to Endowed Progress Theory wherein the player is more motivated while progressing. Figure 3 (Source: Mintel, 2011) On the other hand, the participants noted that their primary sources of information and knowledge regarding any types of game consoles were from advertising and their friends in school and neighborhood who they share the same interest. Meanwhile, the participants were motivated to purchase game consoles for their leisure purposes during their free times. By definition, leisure is referred to time free from the demands of work or duty, when one can rest, enjoy hobbies or sports, relax and ease. Base on the answer provided by the participants, their behaviour as consumer in purchasing the gaming system is more likely to associate with the McGuire’s Psychological Needs Theory because of their cognitive growth motives and the need for stimulation. This theory is considered as a classification system which organizes the theories of motives into 16 categories and each system separates motives for the different consumption environments. Furthermore, the participants also admitted that they purchase gaming consoles because they feel they are satisfying a need by playing on it. The need to be satisfied is not always physiological; hence, this motive is associated to Drive Theory. This theory focuses on the biological needs that produce unpleasant states of arousal. The theory proposes that a consumer is motivated to reduce the tension caused by arousal. In the same manner, the answers of the participants on the interview questions revealed that most men like them preferred to play games in their consoles such as football or sports games, action and role playing games as well as shooting games and strategy games. It was noticed that all these games were targeted towards older audience. The liking of these kinds of activities among men is more likely link to Endowed Progress Theory wherein the player will become more committed to win the game because he feel that he had already made some progress towards his objectives. In the same end, it motivates him to purchase his own gaming system because he knows that he could play it and it could give them the experience he wanted to perceive their goal. Likewise, it is also ties up with the Maslow’s Hierarchy of Needs it most likely the types of games people are most motivated to buy are those that challenge them. This theory is a hierarchy of biogenic and psychogenic needs, in which certain levels of motives are specified. It allows the user to feel some sort of self-actualization or personal growth. This theory also emphasized that motivation arise because of needs wherein after a person satisfy his/her needs in one level, he/she will move to the higher level and try to satisfy these needs. Although, in some cases people could satisfy all the levels of needs at the same provided that they have the available resources to fill this in (Khasawneh & Hasouneh, 2010). It was also noted in this study that the consumers’ behaviour in purchasing game console were significantly influenced by advertising both broadcast and print media and updates from friends who they share the same interest. Meanwhile, most of the participants have admitted that they impulsive buy even though the price is quite expensive. The price was not a big deal/matter with them as long as they really wanted the game console that they will purchase. However, a couple of participants have shared that they do not belong to the first category of buyers because they are willing to wait for the price of a particular game to lower even it takes a few months before it happens. Since the participants of the research were students, it was noted that they were not significantly affected when the video game market declined. This was supported by the same situation in the UK video game market wherein the value of the industry has continued to fall since the industry peak year in 2008. This situation was projected to continue through 2011 where recession would create less disposable income (Mintel, 2011). The study also gains an insight into how long the men played on their games consoles each week. Base on the result, the participants were ranging from avid gamer to regular gamer. These are the top-two categories base on Mintel Report (2011). The avid gamer are those who plays every day or most days whilst the regular gamers are those who plays once a week. On the other hand, the participants have disclosed that their game consoles are primarily use for their gaming purposes. However, when they feel bored in playing their console games some of them have admitted that they also exploit the other built-in features of their console such the sky player and watch their favourite films available on their console. The participants also enjoy playing solo, online and group playing with their friends. This consumers’ behaviour is most likely interlinked with the Maslow motivation theory because it emphasized that they need to feel like they belong. Hence, to achieve this purpose they need to build relationships with others. This is already possible with online video games because of the innovation of voice technologies which were incorporated to allow the players to easily play in teams and to connect with other players (Mangis, 2003). In the same end, one of the respondents has disclosed that he preferred to get a Play Station 3 over his X-Box gaming system because the Play Station has more favourable added benefits product such as the Blue-ray player disc formatting. This consumers’ behaviour is interlinked with the Expectancy Theory. This theory suggests that behaviour is drawn from expectations of achieving desirable outcomes rather than being internally motivated. Conclusion Base on the research findings, there were varied motivations when purchasing games consoles. For some, they wanted to satisfy their needs by playing on it (Drive Theory) while others purchase due to liking to strategy or action games and ability to play it (Endowed Progress Theory). Likewise, some purchase for their free time (McGuire's Psychological Needs), due to favourable added benefits of game console (Expectancy Theory) and the need to feel like they belong (Maslow’s Hierarchy of Needs). Indeed, consumers’ motives when purchasing greatly depends on their level of needs and satisfaction. Part 2: Differences and similarities of B2B and B2C buyers In marketing industry, understanding the buyers’ behaviour is of paramount importance. There are twofold reasons why is it considered important to know the types of buyers: to properly sell the products or services and to make the market existing. There are two common types of buyers which include the: the business –to – business (B2B) and the business – to – consumers (B2C). It is in this context that their various differences and similarities will be discussed in order to understand their motives in purchasing products. There are various differences and similarities that exist between B2C and B2B buyers and these included the following: The B2C buyers involve those people who purchase entirely for their own personal needs. This type of buyers is motivated by their emotions in buying goods or services. Whilst the B2B buyers involves those people who purchase for their own business’ needs and business’ customers’ needs. This type of buyers is motivated to purchase primarily based on their business needs, goals, initiatives, budgets and vendors relationship. They are more practical than the former type because they buy products or services which could greatly benefit them such enable them to save money, time , and resources in order to stay profitable, competitive and successful(Radian6, 2010). The B2C also involve only a single decision maker whose primarily the buyer/consumer herself whereas the B2B involves multifaceted decision-making process which usually take months before coming up of a conclusion. In other words, it’s the company or stakeholder decision (Lazarus Research Group, 2006). On the other hand, the B2B buyers are considered as the information seeker consumers. They are not impulse buyers; they take time to research long and detailed information packages in order to understand the product or services they want to purchase. The information they’ve gathered would be utilized to make their buying decisions easier. This information could be sourced from recommendations and feedbacks of colleagues or other professionally skilled buyers. Generally, these types of buyers are not fan of typical advertising-type which are most likely made from colour-rich materials. They want information to be direct and all about facts. However, they do not seek information, only to look for affordable products or services but, instead they do research prior to purchasing because they want to make sure that their purchased products is worth the money they have spent. In short, this type of buyers is more concern on the value-returning of the product or services they purchased and the brand is only secondary factor as long as the product provides them their extend consumption, contentment and satisfaction. Although the B2B are also willing to pay premium price for a product or services as long it promise to provide benefits, service consistency and deliver specific set of features to satisfy their needs and goals (Alexander et al, 2009). In the same end, the B2C buyers need less information regarding the products they are purchasing because most of these consumers were driven by the price and brand of the product or services. These types of buyers much preferred to purchase products or services they mostly like. Most probably these products are those with trusted brand names. Once they have tried it, they tend to stick to it and become loyal to the product or service because it benefitted them personally. In addition, these buyers are also making some research with different brand competitors prior to shopping because they are looking and checking for the best price (Radian6, 2010). The B2C are also considered the simpler buyer because their needs are simply purchased since they stick to their trusted brand products to fulfil their specific needs. As compared to B2C, the buying cycle of the B2B is much lengthier and demands regular touch points between the buyer and the vendor for knowledge acquisition and business case development, forcing deeper relationships between B2B buyers and vendors. Whereas the B2C buying cycle fairly short because it is almost always transactional in nature since the B2C buyers are more fan to branded products. In addition, the B2C products are more readily available for instant purchases since they are not customizable not like with the B2B products that need to be customized. Meanwhile, the markets for B2B products and services are fairly niche and small, and there are fewer vendors to cater to those various B2B needs. The reason of this scenario is attributed to the highly focused B2B needs. On the other hand, the B2C market is pretty large. It is also saturated with vendors toting their wares (Radian6, 2010). Since brand name is important to both buyers although in different level. In this context, brand is defined as the “name, term, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” (Keller, 1998, cited in Khasawneh, K. & Hasouneh, 2010, p. 44). In the market industry, the name of the product or services is the most important manifestation of a brand. It is because it facilitates the identification of a product and differentiates them from their competitor product and standard commodities (Alexander et al, 2009). According to Keller (2003) brand name is used to distinguish the products of one producer from those of another by creating a certain amount of awareness, reputation, prominence, and so on in the market place (cited in Khasawneh, K. & Hasouneh, 2010). Hence, brand names should be carefully and critically chosen because they convey important information to buyers/consumers. However, due to stiff competition of products in the market, branded products were extended beyond the product’s brand name. In recent years, branded products have also incorporated the packaging, quality, reliability of delivery and price (Kotler & Pfoertsch, 2006). Likewise, the emergence of brand names for physical goods, services, retail, outlets, people, places, organization and ideas have also become popular due to the varying needs and satisfactions of the consumer/buyer (Alexander et al, 2009). References: Part A Engineering & Technology (2011). The Teardown: The Nintendo 3DS games console. Academic Journal. Vol. 6 Issue 8, (September). pp. 94-95. GamePro (2011). The 20 Best console games. Pc World, Vol 29, Issue 11 (November). P.94. Khan,M. (n.d.). Emotional and Behavioral Effects, Including Addictive. Council on Science and Public Health Report Khasawneh, K. & Hasouneh, A. B. (2010). The Effect of Familiar Brand Names on Consumer Behaviour: A Jordanian Perspective. International Research Journal of Finance and Economics, Issue 43. Limperos, A. et al (2011). Gaming Across Different Consoles: Exploring the Influence of Control Scheme on Game-Player Enjoyment. Behaviour & Social Networking, Vol. 14 Issue 6 (June). pp. 345-350. Mangis, C. (2003). Social Gaming. PC Magazine, Vol. 22 Issue 12. P. 112. Ward, G. (2010). Digital is just a small part of the media mix for today's children. New Media Age (November). p.9. Part B Alexander, N.S. et al (2009). Impact of branding and product augmentation on decision making in the B2B market. S.Afr.J.Bus.Manage.Vol,40 Series 1. Khasawneh, K. & Hasouneh, A. B. (2010). The Effect of Familiar Brand Names on Consumer Behaviour: A Jordanian Perspective. International Research Journal of Finance and Economics, Issue 43. Kotler, P. & Pfoertsch, W. (2006) B2B Brand Management. 1st Edition. Springer. Lazarus Research Group (2006). Elements of a Successful Business Plan: Market Segmentation. [WWW] Available from: http://www.lazresearch.com/downloads/market_segmentation.pdf. . [Accessed on January 18, 2010]. Radian6 (2010). Social Media for B2b:It’s not as Different as You Think. Community EBook. Available from: http://www.radian6.com/wp-content/uploads/2011/11/Social-Media-for-B2B-Its-Not-as-Different-as-you-think.pdf. [Accessed on January 18, 2010]. Kotler, P. & Pfoertsch, W. (2006) B2B Brand Management. 1st Edition. Springer Read More