The Consumer Decision-Making Process and Buyer Behavior - Coursework Example

Consumer Behavior Name Tutor Institution Date Buyer Behavior: The Consumer Decision-Making Process as it relates to a Consumer whose Mobile Phone Contract is due for Renewal Introduction There are various that affect the behavior of customers while making decisions to purchase mobile phone contracts. The decision making process is essential to marketers dealing with electronics because it leads to capitalization on the buying behavior. The consumer decision making process influences buying behavior. In this case, the consumer requires a service which is the renewal of her mobile phone contract. The consumer, in this case, is a well off female in her 30s. Understanding the concept of consumer behavior improves the ability of marketers to come up with strategic plans (Maclaran, Saren, Goulding, Elliot & Caterall, 2012, 104). Consumer behavior significantly shapes the characteristics of products and services. The nature of the work of the consumer in this case involves traveling a lot. This makes it necessary for her to be in contact with work and home. In addition, the consumer is more concerned about functionality of products rather than prices. This paper examines the characteristics that affect consumer behavior, the types of consumer behavior and gives necessary marketing recommendations. In addition, there is an analysis of the consumer decision-making process and how it relates to this context. The Characteristics that Affect Consumer Behavior Cultural, social, personal and psychological characteristics affect the behavior of consumers while making purchases. The experience, type of product and situation determine which factor will highly affect the consumer. For the mobile contract consumer in this instance cultural, social, personal and psychological factors all affect the buying decision. Psychological factors are closely related to personal factors that influence buying decisions. The self-concept of a consumer influences the needs and wants of the consumer. Psychological factors are the most relevant in analyzing the buying decision in terms of mobile contract renewal. The four major psychological factors are motivation, learning, perceptions and finally beliefs and attitudes. It is clear that this customer needs mobile phone services to be in contact with people at home and at work. Psychological needs contribute in seeking mobile services because of the urge for belonging. An example of motivation in the study of consumer behavior is hunger while making the decision to buy food. There is a high chance that a hungry person will purchase food compared to a person that is not hungry. Recognition and self-esteem are elements of motivation that drive an individual to buy a certain product (Tadajewski, 2006, 441). Buying of certain brands improves the self-worth of individuals; therefore, the need for recognition is boosted (Sigurdsson, Saevarsson & Foxall, 2009, 742). The product, in this case is not a status symbol, but a necessity for the consumer. The perception of an individual about a product or a service is what an individual thinks about it. The consumer has used a mobile phone contract up to a point where renewal is necessary. The experience of using the service determines whether she will choose the same service or chose a different service. The price and quality of commodities highly influences how prospective consumers think about them. However, different individuals may have varying perceptions of the same product (Belk, 2010, 87). Selective attention, selective distortion and selective retention are processes that contribute to differences in perceptions. In selective attention, consumers pay attention to only information that is useful to them and those close to them (Sigurdsson, 2013, 133). Individuals know about products after using them. This learning process influences whether the consumer will renew the mobile contract. Consumer satisfaction makes individuals highly inclined towards buying the same product or service again. The beliefs and attitudes of individuals create mental images about products. Consumers may have negative attitudes about a product regardless of the quality. The Types of Consumer Buying Decisions There are different types of consumer buying behavior. Complex buying behavior, dissonance-buying behavior, habitual buying behavior and variability seeking buying behavior are among the main types. The type of behavior associated with the renewal of a mobile phone service contract is dissonance buying behavior. This type of buying behavior has high consumer involvement, but there are very slim differences between brands. In dissonance buying behavior, the significance of consumer involvement differs from that in habitual buying behavior. Products like building tiles warrant dissonance buying behavior, there are very little differences between brands. If mobile contract service providers have huge differences, then the type of behavior of the consumer would be complex. Complex buying behavior has high consumer involvement in terms of the collection of information about the features of different services. Consumers with variety seeking behavior make decisions, not because of dissatisfaction, but due to exploring. For the consumer in this case, the need is to renew the contract, meaning that she is not seeking variety. The type of consumer behavior by a consumer depends on the level of involvement and the choices customers have (Noel, 2009, 7). If consumers have wide options to make choices from, there are high chances there will be high involvement. When there are large differences between brands, it becomes challenging for consumers to choose one brand. When different brands serve the same function and have closely related characteristics consumers may pick products randomly. Consumer involvement varies according to the type of product, the perception of the consumer, and the relationship of the product to the consumer. The mobile contract customer in this case may be highly involved in the purchase because the decision has long term impacts. Low involvement levels are common in the purchase of day to day use commodities like toothpaste. Moderate involvement comes about in buying of products like snacks where different brands may have varying calorie content or even prices. Finally, high involvement comes about in purchasing decisions that need research. The level of competition in markets influences the type of consumer buying decisions among the users of a product or service. Clients get highly involved to ensuring they get a good bargain. The variations in the charges of different service providers will be a crucial influence to the level of involvement of the consumer. Studying consumer buying behavior types aids to find out buying trends considers where consumers buy products, why they buy them, the price of products and also when they buy them. The Components of the Decision-Making Process While making purchase decisions, consumers go through a decision making process that influences their final choice (Foxall, 2001, 172). Each stage of the process is essential in determining whether a potential consumer will buy a product. Therefore, marketers need to use this process in analysing consumer behavior. The length of the process depends on the type of product and the characteristics of the consumer. After making the decision to purchase a certain product or service, consumers still engage in decision-making to evaluate the whole process. The consumer decision-making process has five main stages which are all essential. The five steps are problem recognition, searching, comparison, selection of commodity and finally evaluation of the decision. The importance of each stage should not be ignored because they all contribute to the final decision. The first phase of the process is problem recognition, which involves identifying the possible decisions to be made. In stage one, consumers develop a need or want which will be eventually be satisfied by the decision. The consumer in this case gets into the first stage once her mobile phone service contract expires. For marketers, it is necessary to know when potential customers develop the need for given products (Noel, 2009, 19). The first stage leads to a second phase that involves a search process. Stage two of the decision-making process searching and identifying potential decision options. It is necessary to find out about the different variations of the same product before making a decision. The price, quality and size of products influence the choices of consumers. The comparison stage involves evaluating alternatives to understand the pros and cons of making decisions. Consumers seek out the best bargain among alternatives that will satisfy their needs. Gathering and processing information are necessary in evaluating options. The perceptions of consumers play a crucial role in the final selection. Consumers may perceive a product or service to be of high quality even if that is not the case. It is difficult for consumers to make decisions in situations where there are many alternatives (wright, 2006, 218). Therefore, marketers in competitive markets need to analyze the motivations behind consumer choices. The selection stage involves making of the purchase. Here, the consumer decides what, and when he/she will buy, at what price, and where the purchase will take place. Implementation of the decision is the second last stage of the decision-making process that is important to marketers. In the fourth stage, the decision is made based on the actions taken in the first three stages. The information collected in the pre-purchase stages influence the purchase and post-purchase decisions. By phase four, consumers are sure of what they want. In the purchasing of mobile phone service contracts, all these stages are applicable. The making of a decision to purchase a product is not the end of the decision making process. The final stage, which is a main component of the process is evaluation of the decision. The final stage of the five-step process determines whether the decision made was appropriate. Evaluation of purchase decisions influences future buying behavior of consumers. Marketing Recommendations Marketers of commodities need to have a good understanding of their customers and prospective consumers. Consumer research leads to gathering information about the most common type of consumer behavior for giving products. Market orientation of products comes about after understanding the needs and motivations that drive consumer choices (Burrow, 2008, 114). Marketers need to form strategies that will influence the decision-making process of consumers to their advantage. The product, place, promotion and price need to be in alignment with the needs of the target consumers (Calvert, 2012, 39). Promotional activities like advertising need to influence the choices buyers make while evaluating options. Marketers and producers have the power to influence consumers by making their products tailored to suit their preferences. The price of commodities affects consumers during the second and third stage of the consumer decision making process. The searching stage and the evaluation of options focus on analyzing product characteristics, prices, and promotional activities and finally place. Marketers of mobile phone service contracts need to make it easy for potential consumers to access information about the services. In addition, the prices of services need to reflect the quality and the target market. Promotion makes it easy for consumers to gather information about the options they have. The intensity of marketing campaigns needs to consider the level of competition (Ferrel et al, 2012, 215). If a consumer has limited options, then the length of the decision making process is reasonably short. Consumers take a long time to decide if they have many options to choose from. The five steps are problem recognition, searching, comparison, selection of commodity and finally evaluation of the decision. The aim of marketing in commercial settings like in the sale of mobile phone services is to achieve profits. Buying of a phone is different from buying toothpaste or buying a snack. Consumers are likely to spend more time in the search phase of decision making while buying a phone. Complex buying behavior has high consumer involvement that makes it difficult to settle on one choice. Conclusion Consumers go through a decision making process as they choose the best options in markets. Social, cultural, personal and psychological characteristics influence consumer behaviors in different markets. The tastes and preferences of consumers keep on changing due to changes in the above factors. The consumer in this case seeks renewal of her mobile phone contract. Psychological factors like learning, perceptions, motivation and finally beliefs and attitudes highly influence the decision making process (Mooij, 2010, 63). Marketers need to put all these factors into consideration while formulating their strategies. Marketers seek to develop certain reactions from their target market. Therefore, understanding of consumer buying behavior increases the chances of success. Marketers of mobile phone services would be successful in this context by understanding the needs of the consumer. The choice to renew her mobile phone contract is driven by her needs in this case. The five steps are problem recognition, searching, comparison, selection of commodity and finally evaluation of the decision. References 1. Belk, R., 2010. Research in Consumer Behavior, London: Emerald Group Publishing. 2. Burrow, J., 2008. Marketing, New York: Cengage Learning. 3. Calvert, G., 2012. Predicting consumer behavior: using novel mind-reading approaches. IEEE Pulse, 3(3), pp. 38-41Ferrel, C., Lukas, B., Schembri, S. & Niininen, O., 2012. Marketing Principles, New York: Cengage Learning. 4. Foxall, G., 2001. Foundations of Consumer Behavior Analysis. Marketing Theory, 1(2), pp. 165-199. 5. Maclaran, P., Saren, M., Goulding, C., Elliot, R. & Caterall, M., 2012. 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