Buyer Behaviour: The Consumer Decision-Making Process as it relates to Replacing a Laptop Computer - Coursework Example

Buyer Behaviour: The Consumer Decision-Making Process as it relates to Replacing a Laptop Computer Teacher Section Introduction(196) This marketing research paper seeks to understand how those consumers, who need to replace a laptop, will make choices for what they plan to purchase next. It is not always a cut-and-dry process and while they may want to purchase something similar to what they had before, chances are that models will have upgraded several times since their original purchase. In an age where we now have capabilities of retaining within a customer relationship management (CRM) system what previous purchases were made, we can utilize this information to continuously reach out to purchasers about the new upgrades provided and the different capabilities now included along with those upgrades. Surveying the customer base, as well as retaining information from social media, customer service reports, will all provide our company with trends of what our customers and consumers in general, are looking for in regards to communication devices (Oracle, 2012). Not only can we help our customers through this process of determining what they like in their current products, we can also tailor design our future products to meet those needs, and thus, give our customers what they need in new options and advances from their old products. Section 2: The Characteristics that Affect Consumer Behaviour (419) Consumers today, use the Internet to begin research for the products that will replace what they currently have. Market research is important in determining who our customers and potential consumers are and how they interact across our various platforms. These are obtained through web analytics of the social media and electronic devices used and are particularly effective when tied with customers already part of the company’s CRM system. Knowing who our customers are, what their characteristics tell us about them, are essential to being able to provide them with what they need and want. Are they students or professors, white collar professionals, blue collar workers, females or males, and do they fit certain age and salary groups? Retaining this information in a CRM system, gathered across all platforms, then allows us to do analysis to determine the profiles and characteristics of the customer base (Ferrell et al, 1999). The following questions are important to be asked in terms of what information about our customers can be gathered in regards to answers, which also help us to move forward with a marketing strategy. Those questions are: Who is connecting with us and where are they coming from? What is their interaction pattern in search requests and links clicked? Are these customers buying from us, relative to the links they click on? What are the most popular categories within our products which lead to more browsing and purchases? Does pricing make a difference or is quality more important? How do we see our overall strategy of mobile/social media/Internet messages as influencing consumers’ patterns of browsing versus purchasing from our stores? (Oracle, 2012) In a recent online survey that Oracle conducted in April 2012 for the e-tailing group, the consumer base (1,033), for survey purposes, showed the following as background profile characteristics: 50 % male, 50% female Shopped online four or more time in the last year Typically spends $500 or more annually online 100% own a smartphone (required criteria for inclusion) 48% own a tablet device 29% are Amazon Prime members (Oracle, 2012). The largest group by salary was more than $100,000 annually at 35%, with the secondary group at $75,000-$100,000 annually at 22%, and 20% for both $60,000-$75,000 and under $50,000. Only 3% declined to respond to this question. The highest age group was 36-44 with 18-34 at 25%. There were 67% with college degrees and 53% who had no children living at home. The basic profile characteristic showed these were a fairly older group, professionals with higher education, with high-salary jobs (Oracle, 2012). Section 3: The Types of Consumer Buying Decisions (403) When asked about how they chose to make a purchase, the following answers gave the highest percentages. In general, research and purchasing online was most convenient, easy to do, and saved time. There were a fairly high number who liked seeing the products in the store first before making the purchase. However, they most likely did research online first to see who had the best prices before venturing out (Oracle, 2012). Almost half said that getting the cheapest price was most important and it didn’t matter through which market channel it was done. There were also 37% who enjoyed the shopping experience in the store as opposed to making the purchase online. The highest rated answers are given in the table below. Answer % Conduct in-depth research on the Internet first before buying 81% Does comparison research before making a purchase 81% Internet shopping is more convenient 77% Prefers to shop in a store to see it better first 67% Purchasing online is cheaper 67% Shop in a store so as to avoid postage charges 57% Shop online but make returns directly to the store physically 55% Fig. 1 (Oracle, 2012, 8) The types of consumer buying decisions are then based mostly on convenience, ability to make a purchase online which saves time from a busy schedule, and also gas fees (MSG, 2012). For those who return items to the physical store, this may be to make sure to get the refund immediately rather than waiting for the product to be returned through the mail back and potentially, get lost in the system. What was the most important response was the ability and ease to be able to research products first through a number of online channels, whether through advertisements, messaging, or just researching at will, based on need (Oracle, 2012). The key here is to be visible as a company that provides many options, not only for our loyal customers, but also for those who are just browsing around and have come to our website for more information (MSG, 2012). This means keeping a viable and active presence on the Internet through website interaction and also through social media outlets and other electronic devices such as smart phones and I-Pads. This would mean tailoring messages to fit several models of interacting from various points such as the Internet website and across to electronic devices that require a different interface structure within the message output (Oracle, 2012). Section 4: The Components of the Decision-Making Process (502) In the survey, it was noted that 29% of respondents said that 50-74% of shopping (includes actual store visit, Internet, catalogue or mobile device) involved online research first through online services. The devices used were the laptop (51%), smartphone (32%), tablet (25%) and in the retail store (22%)(Oracle, 2012). Researching for product availability at a given store was also essential before heading to the physical store to make the purchase. Another point made is that customer service is also important (Oracle, 2012), especially if an associate has significant knowledge about the product, can provide other options, and outline any packages that can be added on at time of purchase (cross-selling and up-selling). The personal contact with a store can be very satisfying, particularly if it is a high expenditure and the buyer needs extended advice regarding the product (MSG, 2012). The study also addressed the components of decision-making in the purchase, utilizing three categories as regards the amount of research involved before making the final purchase: technology purchases (75%), discretionary purchases (65%) and commodity purchases (50%). The discretionary category reflects apparel, accessories, furniture and commodity refers to office supplies, health/beauty and diapers. Therefore, research is a necessary part of today’s shopping experience, particularly in making informed decisions that save money (Oracle, 2012). When thinking of purchasing a laptop, most likely, purchasers will research the products online to find out what brands have the best beginning components included in the package such as hard drive size, processor size, random virtual memory availability, and external outlets such as USB ports, SD ports and wireless access, all built in, along with a DVD with full capabilities. Then it would be a process of finding out who carries that product and going to the store to look at it, check out a display model and then make the purchase and bring it home (MSG, 2012). It is also as simple to recognize that purchases can be made simply because of need: the owner’s laptop failed at an inconvenient moment, a husband needed a laptop quickly to give as a gift to his wife, or one is needed to start a new business immediately (MSG, 2012). In other situations, where a laptop researched has a number of high-end components and extensions, it may be only available by ordering online from certain manufacturers( Kanwar, 2012). Much of the information for these high-end laptops are available online at the manufacturer’s website but may also require a phone call to learn more about the technical capabilities under certain situations, such as heavy duty graphic cards for design and 3-D CAD software programs. Basically, the components of making a purchase are based on need, the desire to own a new gadget, ability to be able to do more than ever before, being able to either have it delivered, or else being able to go to a close-by store to pick the laptop up because it is convenient. Yet it starts with the research online first, which is the most important part for businesses. Section 5: Marketing Recommendations (305) It is important to be able to capture the customer through as many channels as possible: the Internet via the website, social media platforms for which there are now new ones coming online every day, new media devices in smart phones, I-Pads, and others being developed (Maritz Research, 2012). It is important to stay in touch with new developments in order to take advantage of marketing opportunities as they are developed. This also includes building online videos which can show off a product, such as the newest laptop design through pictures, provide training videos about the new capabilities, and also show off any recent reviews and rankings provided by major reviewers in the technology market. It is also important to provide strong supporting copy that outlines the laptop and also sells it at the same time by showing all the benefits of owning the laptop. As pricing is important to the consumer, providing the benefits of a high-quality laptop should also be at the forefront of any marketing campaign as many consumers are happy to pay for quality than just settling for the cheapest one (MSG, 2012). Making the product available at as many stores as possible is also a big factor in that consumers, who see that the prices is pretty much the same across the board, will go to the closest store to pick up the laptop. Yet if a laptop is priced cheaper, a person may go out of his or her way to the other side of town, in order to make the purchase. If the product is the same price at all the contracted stores but available online for cheaper, then chances are that the consumer will order online instead of going to a physical store to make the purchase, unless it is just to look at the physical model before making the purchase online. Section 6: Conclusion (about 150 – 200 words) In today’s market, the consumer is king and therefore, has the power in getting what she or he wants and will go to great lengths to get it. This means doing the research to become informed first before spending hard-earned money. Therefore, businesses must cultivate the customers through all the varied channels available and with the Internet and development of the varied social media outlets, as well as a quickly developing new media technology, those who do not keep up, will fall behind or go out of business (Miller & Washington, 2010). Understanding the customer is also key and certainly, the information gathered through surveys and through the different channels, is the most viable way to stay in touch with what customers want and are looking for. Market needs can change almost overnight which means that businesses must be able to adjust accordingly. Staying on top of market research and analysis of the information contained in any business’s CRM system, is vital to success, to market strategy development, and finally, to making sales to the customer. References ADP, n.d., ‘An Overview of the Foundations of Shopper, Buyer and Consumer Behaviour,’ Chapter 1 in The Shopper, Buyer and Consumer in the Marketplace: Modelling the Process, Atomic Dog Publishing, Available at Applebaum W, n.d., ‘Studying Customer Behaviour in Retail Stores,’ Journal of Marketing, American Marketing Association, USA, Available at Ferrell OC, Hartline MD, Lucas GH & Luck D, 1999, Marketing Strategy, Dryden Publishers, Philadelphia Kanwar R, 2012, “Study of consumer Behaviour while Purchasing Laptops in Chandigarh & Mohali,’ International Journal of Computing and Business Research, 3(2), (2 May 2012), Available at Maritz Research, 2012, ‘Maritz Research’s Tablet Re-contact Study Reveals New Insight on Consumers’ Purchase Behaviour,’ Maritz Research Online, Available at Miller, RK & Washington, K, 2010, ‘Consumer Behaviour, 2010,’ Richard K. Miller & Associates Online, Available at MSG, 2012, ‘Stages in Consumer Decision Making Process,’ Management Study Guide (MSG), Available from Oracle, 2012, The Connected Consumer 2012: Evolving Behaviour Patterns, the e-tailing group, Oracle Retail, Available from (August 2012). Read More