Consumer Behaviour Brand: Samsung - Report Example

Report on Consumer Behavior Brand: Samsung Table of Contents Introduction 3 Q1: Psychological drivers of Consumer Behaviour 3 1.1 Motivation 3 1.1.1 Maslow’s Hierarchy of Needs Theory 3 1.2 Perception 5 1.3 Attitude and Beliefs 7 Q2: Sociological Drivers 8 2.1 Reference Groups 8 2.2 Self Image and Role 9 2.3 Means-end Chain Model 11 Q 3: Impact of Marketing Mix Element on the Consumer’s Decision-making Process 12 3.1 Problem Recognition 12 3.2 Information Search: Heuristic-Systematic Model (HSM) and Elaboration Likelihood Model (ELM) 12 3.3 Evaluation of Alternatives 13 Conclusion 13 13 Reference List 13 Introduction Consumer behaviour is defined as a branch that deals with different phases through which the customers goes before purchasing the products for their end use. With internationalisation, technological advancement and increased communication; consumer behaviour is developing. The learning of consumer behaviour helps organizations and firms to improve their marketing tactics by understanding matters for example how the consumers think, and choose between the various alternatives; how the customers are manipulated by their environment such as family, culture and media; consumers behaviour while shopping as well as making other decisions of marketing (Perner, 2010; Evans, Jamal and Foxall, 2010). The companies are focusing on new and innovative methods to appeal to the consumers as well as manipulate their purchasing behaviour better than their rivals (Schiffman and Kanuk, 1997). Differentiation strategy allows the companies to differentiate themselves from their rivals and encourage customers to purchase the products and increase dependability towards the brands. The report will focus on the consumer buying behaviour for Samsung products. The product range of Samsung includes Smartphones, tablets, refrigerators, cameras, dryers and washers, PCs, printers, vacuum cleaners, and TVs (Samsung 2014). The sociological and psychological drivers of consumer behaviour are assessed through the branding and marketing analysis of Samsung by using the theoretical models. Further, the decision making procedure in purchasing is also examined. Q1: Psychological drivers of Consumer Behaviour Psychological drivers are defined as the interdisciplinary concept that combines attention and perception, motivational determinants of buying behaviour of consumer, information processing, attitude formation and beliefs, and also the decision making procedure of consumer (Jansson and Catherine, 2010). 1.1 Motivation Motivation is something which drives the consumers to grow or develop a buying behaviour. To augment sales and convince the customers to purchase, all brands should create and strengthen a necessity in the mind of customers so that they develop the purchase motivation (Daft, 2014). If the customers are motivated then they will be more interested in buying the products. The customers are motivated to buy the products of Samsung because of its excellent features such as battery life, good internet connectivity, excellent browsing facility, navigation facility and maps and also due to its compatibility and reliability. 1.1.1 Maslow’s Hierarchy of Needs Theory The most prominent theory of need is developed by Maslow. The “hierarchy of needs theory” of Abraham Maslow states that human beings are motivated through various needs and all those requirements exist in hierarchical order (Daft, 2014). Figure 1: Hierarchy of needs model (Source: Griffin and Moorhead, 2013) Psychological needs: The psychological needs are the basic needs without which human can’t live (Daft, 2014). In terms of Samsung Smartphone the psychological needs for the consumers will be the connectivity, security and compatibility. Safety needs: It refers to the requirement for a secure and safe environment (Daft, 2014). In case of Samsung Smartphone the safety needs will be the battery life, reliability, speed as well as the ease of use. Belongingness needs: In terms of Smartphone business, it refers to the desire of the company that the device would be accepted by the users. So, the belongingness needs for Samsung will be the productivity and communication factors such as better email, SMS, telephony, and web browsing facility. Esteem needs: It relates to the want for an affirmative self-image, appreciation, and recognition from others (Daft, 2014). For Samsung, the esteem needs will be the features provided by its products for daily life such as media player, alarm clock, GPRS navigation and maps, camera, and calculator. Self-actualization needs: It represents the want for self accomplishment such as developing full potential of itself and growing one’s competence (Daft, 2014). Samsung represents itself through an app to improve the studies, jobs and hobbies; an app for fun and entertainment. Figure 2: Features of Samsung (Source: Samsung, 2014). 1.2 Perception The process of perception consists of four different steps such as exposure, interpretation, attention and recall. Exposure: Primarily perception starts with exposure towards stimuli. Exposure takes place when stimuli come within any of the following such as vision, taste, hearing, touch and smell. Stores are also designed with extremely visible shelves as well as locating signs in order to make the things as simple as possible (Strydom, 2005). Marketers plays crucial role in growing these stimuli by the help of marketing activities which will help to build the customer understanding towards the product or brand (Foxall, Goldsmith and Brown, 2005). For the Samsung products sensory stimuli comes from ads and sensory receptors comes from vision, hearing, and touch. The Samsung stores are also designed with extremely visible shelves as well as locating symbols in order to make the items noticeable. Attention: Larger stimuli collect more attention than the minor ones. Some modification in the products and marketing strategies, unexpected silences in the TV advertisements, and the method of displaying the price; all provide as different ways of increasing attention (Foxall, Goldsmith and Brown, 2005). Samsung receives attention through its differentiation as well as low cost strategy. Samsung SMART Signage draws consumers in their stores with touchy, high-clarity images and also engaging interactive characteristic (Samsung, 2014). Figure 3: Samsung SMART Signage (Source: Samsung, 2014). Interpretation: It may happen that same event is seen and heard by several people; however their interpretations about the event differ from each other. The interpretation of consumer is based on their own beliefs, attitudes and experiences. Therefore, the marketers rely on symbols in case of marketing messages in order to support the accurate interpretation (Strydom, 2005). The customers interpret the service and benefit offered by the Samsung product through their personal experience and advantages they received from the product. The Samsung Video Wall is an innovative optical display with thin bezel, conveys an immersive experience of viewing through excellent picture quality (Samsung, 2014). Figure 4: Samsung Video Wall (Source: Samsung, 2014). Recall: Consumers don’t remember all information they hear, read or see so, the marketers use symbols, jingles, rhymes and association which help in the memory and learning process (Strydom, 2005). In order to make their products memorize, the company uses oval symbol with the word Samsung embraced inside it. They also launch their products at special events with the help of celebrity and get promoted through famous people where products are publicized in the films, news and music videos (Samsung, 2014). Figure 5: Symbol of Samsung (Source: Samsung, 2014). 1.3 Attitude and Beliefs The attitude of customers refers to whether they considers and feels negatively or positively towards a brand or product. Beliefs denotes to the recognized facts. The beliefs and attitudes of customers influence their decision of purchasing the product (Peter and Olson, 2010). The efforts of the company are driven towards changing the customer’s attitude and developing an optimistic attitude for the product (Gerd, 2002). The belief that buying Samsung products such as Smartphones, TV, tablet, camera, home appliances etc can lead to the desired result of getting several benefits of apps, experience of new means to watch TV etc; and evaluation of these outcomes leads to the development of customer attitude towards Samsung brand. The customers build up the intention to buy the Samsung products especially the Smartphones due to its special features and low cost benefit and finally make the purchase. Most of the users of Samsung products are adults businessman, students and teachers. Its products are utilised by middle class as well as by the high income group people (Mukit, 2014). Samsung products are heavily advertised on the billboards and ads in between the movies or sports or news. So, it is noticed by all the age groups like youngsters and professionals. The advertisement shows how the life becomes easy with the use of Samsung tablets and Smartphones because it offers various features at affordable price. This makes the professionals and youngsters feel that their colleagues may purchase the Smartphones to take the advantage of its superior quality and features. This makes the brand feel socially acceptable. Samsung is one of the strong brands and by creating positive attitude and strengthening the customers’ beliefs about the brand helps them to transform the promotional effort into actual sales. After consuming the products of Samsung, when consumers experience the benefits of its products, they involve in repeat purchase, which is a result of instrumental learning. In terms of Smartphone market, it ranks second with a market share of 28.4% (Comscore, 2014). The advertisements as well as promotions of Samsung offer the input to build up consumer attitude and beliefs. Top Smartphone OEMs 3 Month Avg. Ending Jul. 2014 vs. 3 Month Avg. Ending Apr. 2014 Total U.S. Smartphone Subscribers Age 13+ Source: comScore MobiLens   Share (%) of Smartphone Subscribers Apr-14 Jul-14 Point Change Total Smartphone Subscribers 100.0% 100.0% N/A Apple 41.4% 42.4% 1.0 Samsung 27.7% 28.4% 0.7 LG 6.5% 6.4% -0.1 Motorola 6.3% 5.7% -0.6 HTC 5.3% 4.7% -0.6 Figure 6: Market Share of Samsung in terms of Smartphone Market (Source: Comscore, 2014). Q2: Sociological Drivers The behavior of groups is very important to humans and thus is vital towards understanding what actually motivates people in order to buy definite brands. 2.1 Reference Groups People recognize groups they wish to join and also the groups they want not to join. The reference group may have a considerable impact on the buying behavior of the consumer because they serve as indirect or direct point of judgment and shape beliefs, attitudes, and behavior (Kotler et al, 2005; East, Wright and Vanhuele, 2008). Approximately all such clusters engage some sort of consumption such as clothes to wear, gadgets to use, or things to be utilized in the groups (Blythe, 2013). The membership reference groups consist of close referents such as family members and peers, whereas the aspiration groups consist of business people and athletes (Solomon et al, 2006). Samsung marketers use both aspiration and membership referents such as businessman, athletes and peers in order to manipulate the buying behavior of consumer. The consumers often believe that the celebrities actually support and like the brand they endorse. The ad of Samsung wireless ear buds starring LeBron features that he is lifting weights while wearing the Samsung wireless headphone/ear buds (Boudway, 2014). Figure 7: Samsung wireless ear buds (Source: Boudway, 2014). This indicates the ease of use of Samsung wireless ear buds while doing other activities. So, the ad lays a great emphasis on the consumer towards the purchase of Samsung wireless ear buds. Moreover, Samsung gadgets are also preferred by the businessman because they need to do conversation with their peers and also by the youngsters because of the accessibility of several apps for their enjoyment (Samsung 2014). 2.2 Self Image and Role The image which the people form is completely derived from the feedback of other people. The only method of knowing about oneself is through the feedback from its peers. People often classify themselves through the products they generally consume (Blythe, 2013). The self image of consumers plays a vital role in foretelling as well as explaining behavior. When consumers purchase something, they not just consider how the items purchased suits their own image but also think about the reaction of other people towards them. Through this method of the reflective assessment, customers understand how others will view them and thus create a common shelf i.e. a picture of how they suppose other people see them (Blythe, 2013). The Galaxy Note 4 of Samsung gives a good feel to the consumers when they use it. They enjoy the crystal clear pictures with the help of advanced camera. Figure 8: Samsung Galaxy Note 4 (Source: Samsung, 2014). Figure 9: Advanced Camera of Samsung Galaxy Note 4 (Source: Samsung, 2014). Through S pen, the consumers can effortlessly select the texts from any screen or apps. It also offers an experience of enhanced digital handwriting through improved pressure sensitivity. Figure 10: S Pen (Source: Samsung, 2014). Moreover, through its multi-window, customers gain litheness by managing various apps at once by using uncomplicated gestures on the single screen. Thus, when the consumers receives good feedback from others with the use of Galaxy Note 4 as it offers enhanced features and also looks great in their hand, they feel that they are possessing a good image and having a good reputation in the society. Therefore, it generates a repeat purchase because of its enhanced features and affordable price. Samsung invest deeply in studying the existing markets as well as innovating within them. Before the release of iPhone 5 by Apple, Samsung has been already selling the Galaxy Note with much bigger display (Nytimes, 2013). It is also having a second rank in terms of Smartphone market. Thus, Samsung is enjoying a good brand image. 2.3 Means-end Chain Model The means-end chain framework is defined as a conceptual arrangement, connecting a product and a customer (Sirgy, 2001). The features of products are supposed to lead a different benefits or consequences of the product use, which satisfies the values of consumers. The model explains that the product is categorized in the minds of consumers in terms of sequence of characteristics, starting from attributes, followed by consequences and ending with instrumental as well as terminal values. For marketers, it is a tool towards understanding how the product affects terminal and instrumental values of consumers. Thus, a product could be designed to transform into the consumers mind that lead to the significant values (Sirgy, 2001). Figure 11: Means-end chain model (Source: Sirgy, 2001). Attributes: The attributes offered by the Samsung Smartphones are clear images with advanced camera, multi window features, dual sim, excellent HD screen, touch screen facility, great battery backup, 16 GB of internal storage, and the benefit of a front camera (Samsung 2014). Consequences: Consequences are the benefits which the customers received from the product. The benefits from the Samsung Smartphone are that people can make use of two networks at a time, receives benefit of good picture quality even in the dark with the help of advanced camera, battery last for two days, and enough internal storage gives the advantage of downloading several apps of their choice. Values: The values are the comfortable life, good reputation and self respect wisdom, fun and pleasure. Q 3: Impact of Marketing Mix Element on the Consumer’s Decision-making Process The decision-making method of Blackwell is one of the important frameworks which enlighten how marketers intend to influence various stages. The different stages of this model are problem recognition; hunt for information; assessment of alternatives; intention of purchase and actual purchase; and post purchase utilization and disposal (Blackwell, Miniard and Engel, 2006). 3.1 Problem Recognition This phase takes place when the customers recognize a difference between their current and desired state (Solomon, 2013). Opportunity recognition is realized when consumers identifies that they can develop or improve the actual state by using more advanced phones and gadgets of Samsung instead of using the phones of other brands and therefore can improve their self image and lifestyle. 3.2 Information Search: Heuristic-Systematic Model (HSM) and Elaboration Likelihood Model (ELM) At this phase, consumers look for the information which may assist them to solve the problem recognized. Heuristic-Systematic processing takes place in terms of low-involvement products such as breakfast cereals (Todorov, Chaiken and Henderson, 2002). According to the Elaboration Likelihood Model the low-involvement processing is connected to minor route to persuasion because customers are not motivated towards considering the opinions of marketers. They consider the products endorsed by the celebrity and also the attractive packaging and discount coupon on the product (Solomon, 2013). Samsung products are also endorsed by the celebrities and it also presents good packagings as well as the displays are very attractive. Sometimes it also offers discount on its product besides offering superior features. The information consumers get about the product’s features help them to solve their problem of selecting the brand. 3.3 Evaluation of Alternatives This phase is important because the brand can only be successful if marketers do well in convincing the consumers that their product can meet their requirements better than rivals would do. For Samsung products, customers are motivated by considering the advertisement they view on the television when the Samsung products are endorsed by the celebrity and when they observe them making use of the Samsung Smartphone. So, the product is evaluated on the basis of celebrity engagement and of course on its superior quality and features offered at reasonable price. Conclusion This report analyzed the psychological, safety, belongingness, esteem and self-actualization needs of consumers in terms of Samsung Smartphones. It also considers that understanding of the consumer behavior is very important for the companies in order to purchase their products. The main rationale of this report is to scrutinize how the components of marketing mix seek to influence the purchasing behavior of people. It was examined that Samsung relies on celebrity endorsement in order to influence the sociological and psychological responses and also its products are related to Elaboration Likelihood Model. Finally, the steps of decision-making process aim to persuade the favorable responses at every stage. Reference List Blackwell., Miniard, P.W. and Engel, J.F., 2006. Consumer Behaviour. London: International Thompson Business Press. Blythe, J., 2013. Consumer Behaviour. California: SAGE Publications. Boudway, I., 2014. Only LeBron can sell Samsung Phones and Apple’s Beats at the Same Time. [online] Abailable at: < http://www.businessweek.com/articles/2014-10-20/only-lebron-can-sells-samsung-phones-and-apples-beats-at-same-time> [Accessed 8 Dec 2014]. Comscore, 2014. Comscore Reports July 2014 Smartphone Subscriber Market Share. [online] Available at: < http://www.comscore.com/Insights/Market-Rankings/comScore-Reports-July-2014-US-Smartphone-Subscriber-Market-Share> [Accessed 8 Dec 2014]. Daft, R., 2014. The Leadership Experience. United States of America: Cengage Learning. East, R., Wright, M. and Vanhuele, M., 2008. Consumer Behaviour: Applications in Marketing. London: SAGE Publications Ltd. Evans, M., Jamal, A. and Foxall, G., 2010. Consumer Behaviour. 2nd ed. New Jersey: John Wiley & Sons. Foxall, G.R., Goldsmith, R.E. and Brown, S., 2005. Consumer Psychology for Marketing. London: International Thompson Business Press. Griffin, R. and Moorhead, G., 2013. Organizational Behaviour: Managing People and Organizations. United States of America: Cengage Learning. Jansson, B. and Catherine, V., 2010. Consumer Psychology. New York: McGraw Hill Publication. Kotler, P., Wong, V., Saunders, J. and Armstrong, G., 2005. Principles of Marketing. Edinburgh: Pearson Education Ltd. Mukit, M., 2014. Samsung Electroni ns Market and Analysis. [pdf] Available at: (Accessed 8 Dec 2014). Nytimes, 2013. Samsung Emerges as a Potent Rival to Apple’s Cool. [online] Available at: < http://www.nytimes.com/2013/02/11/technology/samsung-challenges-apples-cool-factor.html?pagewanted=all&_r=0> [Accessed 9 Dec 2014]. Perner, L., 2010. Consumer Behaviour: The Psychology of Marketing. United States of America: University of Southern California. Peter, J.P. and Olson, J.C., 2010. Consumer Behaviour and Marketing Strategy. New York: McGraw Hill Publication. Samsung, 2014. Samsung and Retail. [pdf] Available at: [Accessed 8 Dec 2014]. Schiffman, J.B. and Kanuk, L.L., 1997. Consumer Behaviour. 10th ed. New Jersey: Prentice Hall. Sirgy, M.J., 2001. Handbook of Quality of Life Research: An Ethical Marketing Perspective. Netherlands: Springer Science & Business Media. Solomon, M., 2013. Consumer Behaviour. 10th ed. New Delhi: Pearson Education. Solomon, M., Bamossy, G., Askegaard, S. and Hogg, M.K., 2006. Consumer Behaviour: A European Perspective. 3rd ed. Harlow: Prentice Hall. Strydom, J., 2005. Introduction to Marketing. South Africa: Juta and Company Ltd. Todorov, A., Chaiken, S. and Henderson, M.D., 2002. The Persuasion Handbook: Developments in Theory and Practice. London: Sage Publication. Read More