A Consumers Decision-Making Process when Buying Smartphones - Case Study Example

The Influence of Different ‘Internal Factors’ on a Consumer’s Decision-Making Process when Buying Smartphones Table of Contents Table of Contents 1 Executive summary In this essay, the influence of different internal factors on the decision-making process of consumers is examined. This is done with reference to how consumers make decisions when buying smartphones. For the purpose of explaining this relationship, the essay is essentially divided into three different sections. In the first section, a brief outline of the decision-making process that consumers undergo before making purchases is provided. From the outline, it is observed that consumers go through the steps of need identification, searching for information, evaluation of alternatives, the actual purchasing and lastly, post-purchase analysis. In the second section, the focus is on the marketing strategy that is generally used for smartphones. It is observed that since the purchase of smartphones is a process that requires a high level of physical and emotional involvement by consumers, a unique marketing strategy is employed in their marketing. This takes into consideration segmentation, targeting and positioning. In the third section, the impact of several internal factors in influencing consumers’ decision-making process is presented. From the discussion, it is observed that factors such as motivation, personality and self -concept, perception and consumer imagery, learning and attitudes have a direct impact on the way consumers make decisions when making purchases. When applied to smartphones, it is observed that consumers are affected by these factors during different steps that make up the process of purchasing smartphones. As such, marketers seek to exploit these influences as a way of helping consumers successfully go through the decision-making process when buying smartphones. Introduction The process by which consumers make decisions about purchasing new products takes place in several different steps. This process is influenced by different factors which arise from both the external and internal environments. In this essay, the influence that internal factors have on the decision-making process of consumers is discussed. This is based on the behaviour that consumers exhibit when buying smartphones. Smartphones have several characteristics that differentiate them from traditional mobile phones. To begin with, the devices combine the basic features of mobile phones with mobile computing applications. Such features enable users of smartphones to access high-speed Internet connectivity and other services that enhance their overall experience. Additionally, by having advanced features such as high resolution touch screens, browsers and other applications, smartphones are used for different purposes other than voice and text as is the case with traditional mobile phones. The most important difference between smartphones and traditional mobile phones is that smartphones provide users with access to a wide range of third party applications. By using particular operating systems, users of smartphones can easily download and install a wide range of applications on their phones. This widens the range and extent of usage of smartphones in comparison to a conventional mobile phone. Throughout the essay, it is argued that consumers, when buying smartphones, are influenced by internal factors in different ways and at different stages of the purchasing process. The consumer decision-making process Essentially, consumers follow a basic five-step process when buying new and expensive products and services. This process takes place in the following steps: need recognition, information search, evaluating alternatives, making the purchase and lastly, exhibiting post-purchase behaviour (Dahlen, Lange & Smith, 2010, p. 71). It is important to note that not all consumers follow all the steps in the sequence provided when purchasing new products and services. Although this is the case, the five steps that make up the process provide an essential framework that guides the decision-making process which consumers undergo when buying new products and services. This is outlined as next. At first, the decision-making process by consumers starts with need recognition. This occurs when consumers realise that they are experiencing an imbalance between their actual state of affairs and the desired one. By experiencing either internal or external stimuli, consumers realise that there is need to address the gap between what they have and what is desired. Second, the decision making process takes the form of searching for all information about various alternatives that are available to satisfy the need or want that has been identified in the first step. According to Lamb, Hair and McDaniel (2012, n.pag), there are several ways in which consumers search for information about possible alternatives to satisfy their identified needs. For instance, they may depend on their memories to recollect stored information about possible alternatives to meeting their needs. As well, consumers may access external information about products and services that may satisfy their desired needs. Lastly, consumers, in their search for information about alternative products to satisfy their needs, may access external information that has been created by marketers as a way of marketing specific products and services. Thirdly, consumers use the information that has been gathered from external sources together with what has been stored in their memories to make criteria that guide them in making decisions on what to purchase. By using desired product attributes, consumers are able to narrow down to a few alternatives which exhibit the desired attribute while doing away with the other products which do not. The fourth step is that after consumers have carefully compared the relative advantages and disadvantages of having a particular product compared to others, the decision to buy is made. This forms of the fourth step. Lastly, after consumers have made a purchase, their expectations about the performance of the product, in this case a smartphone, determine their feelings after using the product. Satisfaction or dissatisfaction arises from consumer evaluation of the actual performance of the product in relation to the expectations (McDaniel, 2012, n.pag). When performance exceeds expectations, consumers feel satisfied about the decision to purchase. However, when the performance of the purchased product fails to meet the expectations of the consumers, a feeling of internal dissonance develops in consumers. This leads to general dissatisfaction and post-purchase remorse (Lindsey-Mullikin, 2003, p. 143). The marketing strategy for smartphones In general, smartphones are high involvement products that require a high level of involvement by clients during the purchasing process. Although segmentation for products is generally based on the geographic, psychographic, behavioural and demographic characteristics of the consumers (Weinstein, 2004, p. 6), the segmentation for smartphones is heavily influenced by psychographic and geographic factors. Markets are segmented based on the general lifestyle and geographic distribution of clients. This has been the focus of several brands of smartphones offered both to the domestic and global market (Giacheti, 2013, p. 71). In addition, differentiated targeting and positioning processes are used for smartphones. This is used as a strategy of developing in the minds of the consumer a distinct image of the different brands of the smartphones. Relevance of internal factors on the purchasing process for smartphones All the internal factors (motivation, personality, perception and attitudes) are of relevance to the process by which consumers make decisions about purchasing smartphones. This is outlined in the section that follows. Motivation plays a key role in influencing the behaviour of consumers when making purchases in general. This because motivation, which is closely related to the deep-seated desire in individuals to achieve particular outcomes, forms the basis upon which consumers decide to purchase smartphones. Moreover, the importance of motivation in the consumer purchase behaviour for smartphones stems from the close relationship that exists between motivation and the concept of involvement. Whereas motivation directs the desire to achieve particular ends, the concept of involvement is applicable for certain products whose purchase requires a high level of mental and physical involvement by the consumers (Saxena, 2010, p. 148). Smartphones, by virtue of their usage, price and complexity, are high involvement products. As such, when consumers are highly motivated, they will be much willing and ready to be physically and mentally involved in the process of purchasing them. One theory that can be used to explain the role that motivation plays in the overall process of making purchasing decisions by consumers is Maslow’s theory of hierarchy of needs. According to this theory, human needs can be placed into a hierarchical order that determines the urgency with which individual seeks to have them satisfied (Saxena, 2010, p. 152). Basically, human beings seek to satisfy their needs in the following order: physiological needs, safety needs, social needs, needs for self-esteem and lastly, self-actualisation needs which are associated with self-development and realisation. There are three key ways in which this theory is of relevance to the consumer decision-making process with regard to buying smartphones. To begin with, promotional programmes for smartphones are designed in such a manner that takes into account the versatility of the hierarchy of needs of the consumers. Also, the segmentation and positioning of different brands of smartphones is done in relation to the hierarchy of needs as presented in this theory. This takes into account different aspects of their lives that define their social class. These include their demographics, activities, interests and opinions. Personality and perception play an important role in influencing the way consumers make decisions when buying smartphones. Personality is essentially made of different physical and psychological characteristics which influence the behaviour of individuals (Blythe, 2013, p. 79). These characteristics, which are entirely unique to particular persons, are consistent and enduring, although they may change over the course of time. On the other hand, perception refers to the way in which consumers select, process and interpret information to determine the way they view particular things and situations (Blythe, 2013, p. 80). Both personality and perception are important internal aspects that influence the way consumers make decisions about buying smartphones. This occurs in several ways. For instance, through consumer innovativeness, personality plays a key role in influencing the behaviour of consumers when making purchases. Since smartphones are new technological products that are subject to a high rate of changes in terms of new technologies and innovativeness, their consumption is heavily influenced by the level of innovativeness that consumers show. Their purchase depends on the willingness of consumers to be the first ones to try new products and own new versions that come with improved applications and features. The second way is through the concept of consumer dogmatism. This refers to the extent to which individuals remain rigid to their belief systems when confronted with different information. This is applicable during the process of evaluating different alternatives of products that may meet the need of the client (Chao, Reid & Mavondo, 2013, p. 617). Smartphone consumers, as a result of loyalty to specific brands, may refuse to accept any information that contradicts their established belief system about their preferred brands. On the other hand, perception influences consumer purchase behaviour in several ways. For instance, it has been seen that consumers make purchases which correspond to their own self-concept (Govers & Schoormans, 2005, p. 190). What this means is that when evaluating alternatives, consumers will tend to consider brands and retailers that closely relate to their self-concepts and images. Further, through selective perception, consumers are able to select, organise and interpret information in a way that supports their preconceptions (Govers & Schoormans, 2005, p. 191). This is of practical importance to the process of purchasing smartphones. In such a process, consumers will tend to disregard unpleasant information about the need to own a smartphone, such as costs, and seek to justify the perceived need to own a smartphone by looking for information which emphasises the advantages of owning a smartphone. Furthermore, when making the actual decision about what specific brand to purchase and when to make the purchase, consumers of smartphones may be influenced by perception distortions. These occur in the form of physical appearances of different models, descriptive terms used in advertising, and stereotypes about the values of the different brands. Lastly, perceptions about the price, quality risk and handling influence the way consumers make decisions when purchasing smartphones. This is applicable to all steps involved in the process: from need recognition to post-purchase evaluation. Another internal factor that influences the decision-making process of consumers when buying smartphones is learning. Generally, learning, which causes changes in human behaviour, influences the way consumers make decisions throughout the purchase process (Kardes, Cronley & Cline, 2014, p. 122). Through this, consumers recognise the need for a product or service. Need recognition, search for information and comparison of alternatives is stimulated and influenced by learning. Additionally, learning occurs as a result of either internal or external factors which form the basis for reinforcement. This forms the basis of marketing campaigns which seek to create a feeling of want within consumers. Lastly, the attitude of consumers plays a key role in influencing the way they make decisions when buying smartphones. According to the multi-attribute attitude model, the attitude of consumers towards a specific product and brand is based on evaluation of specific beliefs and attributes that are associated with the product or brand. This determines the perceived value of the brand by consumers (Ferrell & Hartline, 2012, p. 206). When applied to the way consumers make decisions when buying smartphones, their attitude is based on their relationship with the devices rather than on the devices themselves. This is manifested during different steps in the decision-making process. For instance, when making the decision to purchase, consumers make several other key decisions which include when, what and how to buy. Since purchase for smartphones is usually fully planned ones, the decisions of consumers about these questions will be shaped by their attitudes towards the specific brand of smartphone that they intend to buy. Conclusion From the foregoing, it can be concluded that there are several ways in which different internal factors influence the way consumers make decisions when buying new smartphones. Motivation forms the basis for consumers to identify the need to purchase smartphones. Also, the personality and perception of consumers influences the way they search for information and evaluate possible alternative products that can satisfy their needs. Moreover, learning, which changes the behaviour of consumers, forms the basis upon which the belief systems of consumers are either reinforced or changed. This occurs during post-purchase evaluation. Lastly, the attitude of consumers determines how they make key decisions with regard to the actual purchase of smartphones. References Blythe, J. (2013). Consumer behaviour. London: Sage Publications. Chao, C., Reid, M. & Mavondo, F. (2013). Global consumer innovativeness and consumer electronic product innovation. Asia Pacific Journal of Marketing and Logistics, 25(4), 614–630. Dahlen, M., Lange, F. & Smith, T. (2010). Marketing communications: a brand narrative approach. Chechester: John Wiley & Sons. Ferrell, O. C. & Hartline, M. (2012). Marketing strategy. Mason: Cengage Learning. Giacheti, C. (2013). 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