Consumer Behaviour and Experience Scenario - Case Study Example

CONSUMER BEHAVIOUR AND EXPERIENCE SCENARIO al Affiliation Consumer Behaviour and Experience Scenario IntroductionVarious influences have led to the purchase of the Smartphone. My consumer experience includes the purchasing of an iPhone that has been caused by different motivating factors. Consumer behaviour patterns have their foundation in the behaviourist approach that includes reactions and responses to stimuli in external environments. My consumer experience was triggered by a consumer memory that includes the gathering of information on the preferred product for a long time and comparing its productivity with other competing brands in the market. My collection and retrieval of knowledge occurred consciously through storing of qualities and efficiency of various Smartphones in the market and later encoding and making the final decision. Interaction, market practices, marketing message on consumer behaviour and decision-making Firms have different approach methods with their clients to enhance competitiveness in the global markets. I had to gather data on various companies through their market platforms. For example, the issuance of pamphlets and discount vouchers to potential customers or populations at targeted markets. Gathering and encoding of the market messages was important in making my final decision because it provided me with in-depth information about all the related products. Competition among firms has led to the influx of contraband and non-productive items in the market. Such factors led to the development of various attitudes relating to the consumption scenario. The presence of advertising by different phone manufacturers provided substantial knowledge on the product’s output and after sale services (Grunert, and Ölander, 2005). I had to analyse different features and relate them to my lifestyle that will include different uses of the smartphone. The phone fulfilled most of my wants in the smartphone sector due to its social, economic, and cultural qualities. Theoretical concepts and their influences on the consumer behaviour and trends Attitudes affect different trends of consumer behaviour through responses by customers on various market messages. Firms have adopted various advertising platforms to increase the number of customers. As a result, they have created various attitudes that can be adopted by potential customers. An advertising method will have a direct impact on the consumer behaviour due creation of individual attitudes (Hogg, 2005). The utilitarian function includes an attitude of maximizing rewards and punishments by the consumer. I had to purchase a product from a company where I had to maximize the rewards offered on behalf of the product. For example, after sale services and features such as warranties affect the decision on purchasing the Apple product. Additionally, most customers will prefer products from firms where they have to exploit the provided rewards. The Ego Defensive Function, on the other hand, ensures that consumers are free from threats and risks that arise due to purchases of various items (Wayne, Hoyer and MacInnis, 2012). I had to purchase a smartphone from one of the best-rated firms so that I would develop an attitude of risk protection. Global trends show that firms have embarked on customer protection and satisfaction to increase the number of sales. Prominent companies such as Apple Inc have an added advantage due to high capital investments that can be used to ensure customer protection. The Knowledge Function is related to the need for order; hence, helps customers in making rational decisions (Hogg, 2005). I found out that Apple Inc had a customer friendly plan while collecting information from various firms before purchasing. The plan included information on the long-term benefits of the phone and the payment arrangement that developed a knowledge attitude in most customers. Consumer behaviour and its extension beyond a transaction (Post purchase behaviour) A post purchase-evaluation is recommended after purchasing a product to assess whether the expectations held prior to purchase have been met. After the purchase of my iPhone 6, I had to compare and contrast its performance and the information that I had gathered before making the decision. I can refer to the post-purchase behaviour as ‘delightful because it met and exceeded my expectations. High satisfaction levels in customers lead to high ratings and loyalty that have a positive impact on a product (Grunert, and Ölander, 2005). Customer loyalty includes the force between repeated patronage and a customers relative attitude towards the item of purchase. My customer experience and satisfaction has made me loyal to the firm for all my expectations that were provided while advertisement strategies have been met. Companies with multiple productions in the same brand name have a higher advantage in the case of customer loyalty since the clients are attracted to other products from the same firm. For example, Apple Inc. has a range of technological products produced under its trademark. My satisfaction levels after purchasing the iPhone 6 will lead to making decisions that include buying from the same company. After purchasing the smartphone, I have plans for gathering information on a laptop offered by Apple that will suit my needs. Customer behaviour is also affected by a customers experience during the purchasing phase of the product. Lack of customer satisfaction will cause a decrease in the number of sales. Purchasing environment and experiential aspects of consumption The purchasing environment encountered by customers during the purchase of products also affects consumer behaviour. Adoption of the consumer culture has led to global changes in shopping environments. Changes such as social and recreational activities have been incorporated into the structure of shopping centres and malls. Personally, I would prefer purchasing in a shopping space filled with fun and leisure. The customer handling skills should also be met to ensure customer loyalty. Social and psychological theories show that consumers will prefer shopping places with proper responses to produced stimuli despite other factors including item’s price. I purchased my iPhone in one of the local malls will spacious walkways and friendly employees. Additionally, there were also refreshments offered during the purchase as one was waiting for the installation of some applications. There was also the presence of other free services such as free Wi-Fi that customers would use to test the performance of the purchased devices before leaving the store. Service capes have been used as setting in various shopping avenues for different products. They include ambient conditions such as temperatures, lighting, and background noises among others. Major firms such as Apple Inc. have ensured that such factors have been incorporated in their stores to enhance customer satisfaction. Additionally, layouts and the presence of symbols and artefacts are also used as a strategy to promote cognitive theories. Such factors can affect the number of customers purchasing at a certain store since customers will tend to get associated with socially comfortable regions. Consumer demographics, consumption, and social profiling Understanding social demographics assists firms in the target marketing and market segmentation. Firms have their production line based on different social profiles. The profiles can be classified by factors such as age, gender, income, family, ethnicity, and decision-making strategies (Otnes and Tuncay-Zayer, 2012). Most of Apples products are suitable for all consumers despite the social profiling. As for my scenario, the iPhone 6 is suitable for all consumers despite their age, gender, religion and family structures. The phone can be used for research, business, and communication purposes. Building such a profile is the work of a companys production and marketing department whereby data is first gathered from various consumers. Consequently, firms are adopting the strategy of coming up with target markets for competition reasons. Social profiles fit target market for various firms to increase the probability of increased purchases. IPhones have different uses; hence, have different market targets. I bought the phone mostly due to communication, research, and socialization needs. As a student, researches and assignments are part of my lifestyle; hence, the phone provides a basis for my research. Socially, it can be used to access social networks and groups where I can share information with my friends despite their geographical locations. Age is not a restriction to purchase the phone because of its secondary uses. The Apple store provides many applications that are suitable for all consumers. For example, an old client can download an application that provides information on health issues; hence, performs an intermediary function between the customer and doctors. Children too can download games and other learning applications from the same app store. Social profiling also assists firms in understanding social classes through social stratification. Social hierarchies include class, power, income, wealth, religion, and occupational prestige among others. Apple Inc. is one of the established companies that produce products related to upper social classes. One of the factors that I had employed in the decision-making process was ‘class. I had the will to purchase a smartphone that would make me recognizable in various situations. The iPhone 6 contains the latest operating system and other improved services; hence, denoting a higher social status. Consequently, the factor was provided in the advertising programs. Reference groups and social comparison Firms have adopted current social trends that include the use of social groups and reference groups to encourage consumer socialization. Formal groups can be used to provide information to potential clients in marketing platforms such as online pages (Close, 2012). Before purchasing the iPhone, I decided to join Apples Facebook page where I would get information on product release dates and answers to frequently asked questions. The online platforms can be used to reach out to a large population in target markets. Reference groups can be used to provide knowledge to customers on any problems encountered before and after purchases. The groups can be organizational in offices or through the internet in various sites. Customers can use social pages to compare various products and provide reviews. For example, after purchasing the phone, I had to rate it according to my satisfaction level. They can also serve as customer feedback position where they can post comments on their social media pages. Blogs have also been used to rate products from different rival companies. They provide consumers with detailed knowledge of the performance reviews, satisfaction rates, and prices for various items in the market. Impacts of advertising and market practices on consumer behaviour Advertisements are used by organizations cause awareness of a product in the market and are used as competition strategies (Percy and Elliott, 2012). My scenario of purchasing a smartphone had a variety of companies to choose from. However, only a few firms advertised the new products online and in the media. Apple was one of the firms that advertised the iPhone 6 before its release. Such advertisements act as a preparation strategy to capture a specified market profile. They also plan to manipulate consumer sensory, short-term and long-term memories through visual effects. The iPhone 6 is slimmer and large than other previous models; hence, creating a perfect visual picture during advertisements. Other firms have also come up with pre-order options where consumers can enjoy the product before it actual launch date. These strategies are used to control consumers based on social theories. Most individuals will prefer being recognized before others, and these advertising principles target such consumers since the pre-order prices are higher. Social and cultural, ethical perspectives Products and advertisements should not only consider consumer behaviours, but also cultural and social factors (Kardes, Cronley and Cline, 2014). Different markets have various cultural bonds that are caused by beliefs and values. Societies, on the other hand, are bound by rules and social norms that prevent the purchase of various goods. As for my experience, I purchased a socially accepted device. Some markets do not allow the access of phones due to the traditional values present in the society. Critics also claim that smartphones should not be accepted in the society since they contribute to laziness. Advancement in technology has led to the production of multipurpose phones that facilitate business, education, religion and transport services at the same time. The advancements have also led to consumer risks such as the security of stored information. However, personal behaviours and lifestyle choices overcome comments from critics. A consumer will purchase whatever he/she wants despite the risks associated with the item. Ethical issues such as pollution and contribution to the society have also become factors affecting consumer behaviour. Most firms are focused on maximizing profits without any concern for the environment and employee satisfaction. Such issues affect consumer trends in the market through transforming consumer attitudes. Since a competition between firms has led to the production of quality products and services, consumers are looking for other factors to rate the businesses. The aspects include the rate at which companies are polluting the environment through non-recyclable goods and chemicals. Major companies have also started charitable organizations that provide for the weak in the society. Such approaches have not been adopted in most markets, but post-modernism will lead different approaches in consumer behaviours. Additionally, firms with poor employee satisfaction rates will also affect the number of consumers purchasing their products. I had to consider environmental pollution before purchasing the smartphone since competition among firms has caused negative social and environmental impacts. Existing market practices Apple Inc has employed efficient marketing practices globally amidst competition from rival firms. Its strategies have differentiated global cultures and geographical regions since social integration has led to the spread of cultures (Lantos, 2011). It has based its advertisements based on individual cultures due to homogenization of cultural tastes. Market segmentation has also been adopted using consumer profiles. Consumer research methods and recommendations Firms can exercise primary and secondary research techniques to understand market and consumer trends (Morrison, 2012). Consumer identity projects should be used to comprehend ways consumers sue market produced materials to better their lifestyles (Lamb, Hair and McDaniel, 2012). Research can be carried out by obtaining first-hand data from potential markets through interviews, focus groups, observations, and phone surveys among others. The gathered data can be used for market segmentation whereby a firm identifies potential markets. Secondary approaches include the use of data obtained from first-hand sources. For example, Apple can use related data collected by other research companies on the number of people with smartphones in an area, the economic status, and demographic records. A recommendation to Apple is to enhance its knowledge of consumer trends and behaviours through research strategies. Consumer research also reduces operation costs due to the presence of market segmentation (Higham, 2009). Consumers can be identified without the need for the supply of extra products in a region. Recommendations and their implications for the business After purchasing the iPhone, one of the major issues of contention was the security of my personal information and identity theft. Apple Inc. should continue with its research on new ideas of preventing hackers from obtaining consumer information through wireless connections. Most consumers use the smart phone to access online banking, stock markets, and sensitive health information; hence, Apple should enhance consumer security. Additionally, it will also act as a competition strategy against rival firms such as Samsung’s smartphone market. Another recommendation is to reduce prices of most of the Apple products so that it can increase the number of consumers. Implications to Apple will include high operating costs due to the firm’s efforts of investing in research. It will also produce unique and technologically advanced devices that will be preferred by most consumers. However, the high operating costs will only be felt in the short-term. Long-run effects include product uniqueness and consumer satisfaction that will lead to loyalty. Consumer socialization may also contribute to an increase in the number of sales due to the sharing of information with other potential customers. A reduction in prices and advancement in market practices will assist the firm to maximize profits. For example, Apple can increase its sales by adopting online commerce. The strategy will increase market coverage through penetrating markets in other geographical locations. E-commerce and international trade facilitates the production of goods in countries with suitable tax laws and operation costs and later selling them in other established markets. Reference List Close, A. (2012). Online consumer behavior. New York: Routledge. Grunert, K., Thøgersen, J. and Ölander, F. (2005). Consumers, policy and the environment. New York: Springer. Higham, W. (2009). The next big thing. 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