Selection, Marketing and Positioning in Process of Consumer Decision Making - Essay Example

Consumer Behavior Name: Lecturer: Course Name: Course Code: Date: Executive Summary The essay explores the internal factors in consumer behavior like motivation, personality, self-concept, consumer perception and imagery, learning and attitudes influence customer purchase decisions and product positioning. The consumer buying process comprises; needs recognition, available information search, alternatives evaluation, actual purchase and post-purchase. The first sub-section on consumer decision making process outlines the key processes that the consumer takes to purchase a gas cooker product. These are needs analysis, information search, evaluating alternatives, purchase and post-purchase decisions. The second sub-section is on product segmentation, selection, and positioning. A broadly discussion is made on how the gas cooker product undergoes the selection, segmentation and positioning processes. Greater emphasis goes to how businesses position their products to increase market share and profitability. The third sub-section discusses and analyses the internal factors that influence consumer purchase decisions. The internal factors are motivation, personality & self-concept, consumer perception and imagery, attitudes, and learning. In conclusion, the essay emphasizes that internal factors are involved in the consumer decision processes selectively, and is applicable entirely in product positioning. Table of Contents Consumer Behavior 0 Name: 0 Lecturer: 0 Course Name: 0 Date: 0 Executive Summary 1 2. Process of Consumer Decision Making 4 2.1 Needs recognition 4 2.2 Information Search 4 2.3 Evaluating alternatives 5 2.4 Purchase or buy 5 2.5 Post Purchase 5 3. Selection, Marketing and Positioning 5 3.1 Selection 5 3.2 Segmentation 6 3.3 Positioning 6 3.4 Targeting 7 4. Internal factors 8 4.1Personality 8 4.2 Motivation 9 4.3 Self-concept 10 4.4 Consumer Perception and Imagery 10 4.5 Attitudes 11 4.6 Learning 11 5. Conclusion 11 References 13 1. Introduction The aim of this essay is to investigate and understand the consumer decision making processes and the internal factors that help shape these processes. Consumers have specific tastes and preferences when making decisions or choices for certain products or services. Potential or repeat customers more or less undergo similar channels when making decision on buying a product or service (Lamb et al. 2011). This essay will explore the gas cooker as a household product used to prepare and warm food. The cooker comes in various sizes, shapes and colors depending on the brand and manufacturer. Gas cookers are in the range of 3kg, 6kg, 13kg and 50kg alongside their burners. The prices of the gas cylinders range from $20 for 3kg to $375 while the burner ranges in the $50 to $100. The products are available in gas stations, stores and super markets. 2. Process of Consumer Decision Making 2.1 Needs recognition The need to acquire or quench unsatisfied needs is what motivates the customers intending to purchase the gas cooker. Many recognize that the gas cooker is efficient and effective equipment in the kitchen. The burner has up to four hot points to cook food concurrently. Households on quick assignments or hunger pangs are able to meet their cooking needs through this cooker (Samli, 2012). The cooker too is seen by many as essential in meeting self-esteem needs since it is considered as a luxury product by many. For those in the premium segment they regard the cooker has physiological need but customers in the mass market segment consider it as a luxury product. 2.2 Information Search The endless determination to satisfy the innate needs will lead the customer to go on an information search. These include obtaining information from the various sources such as internet, friends, colleagues, search engines, and families. Friends, colleagues and family members are significant groups in ensuring that credible and trusted information is obtained before a decision is made (Samli, 2012). Other sources of information include TV and radio ads, newspapers and magazines. The source of information is credible as long as past experience and contact with the product emanates from testimonials and perceptions of previous customers. 2.3 Evaluating alternatives The customer is seeks to understand the options available for the product and compare the alternatives with their target product. The parameters are quality, performance, price and aesthetic appeal among other factors (Lamb et al. 2011). The customer reads many reviews, compares prices, and eventually settles for the item that meets most of the listed or perceived requirements. 2.4 Purchase or buy The customer decides what and where to purchase the product after tallying the entire criteria of decision making. What to be purchased becomes definite as risk is taken into account. The point of buying has ensured that no other option is available and that the product will satisfy the needs at least for a while (Lamb et al. 2011). Caution is needed to guide one from falling to an attractive promotion or aggressive adverts. Purchase is driven by prior experience. 2.5 Post Purchase Evaluation of whether the need has been satisfied is only done after the customer has purchased the product. The customer makes a judgment regarding the acquired product, whether it is falling above or below their expectations (Weinstein, 2013). Below expectations means poor brand perception and a bad experience while above expectation is a reason for brand loyalty and a strong experience leading to more testimonials and referrals. 3. Selection, Marketing and Positioning 3.1 Selection The gas cooker falls into the high involvement group in the product category and is a high cost and long inter-purchase product. This means that perfectly satisfied consumers interested in the gas cooker product in their ownership anticipate paying less attention to gas cooker advertisements or promotions (Parsons & Maclaran, 2009). The bases selection criteria are consumption-specific given that the usage behavior of the product is highly defined and thus their preferences and attitudes. Selection helps in dividing the market into various segments based on consumer subsets with shared characteristics or needs. 3.2 Segmentation The gas cooker bases for segmentation are largely demographic and psychographic. Demographic bases the customers according to their age, gender, and family size and income levels. The price of a gas cooker is not relatively high for low income earners but consumption and refill is what keeps them off from using the product. The best segment for this type of customers sensitive to the price is the economy segment (Dibb & Simkin, 2013). The desire or need to take cook food in an efficient and effective ways necessitates the use of the cooker. The premium segment is found in the up market and middle income suburbs who consider the need to have the product. The other segment is for a relatively premium, small but steady market for people with higher disposable incomes, self-confident, highly educated and living in up market areas. Their personality traits centered on individual concept and mental terms. Psychographic factors include the newly acquired lifestyle explaining the consumer behavior of gas cooker customers than mere family sizes and income levels (Dibb & Simkin, 2013). Customers keen on psychographic inclinations show the higher energy levels, readiness to purchase, less price sensitive, high intelligence, and showing increased affinity for new technology and aesthetic designs. 3.3 Positioning Positioning Gas cookers against competition is essential for rival firms. The common brands are; LG, Samsung and Ramtons. The preferred suppliers are Canada, Japan, China, Germany, Australia and Turkey. Market positioning is about creating an image to the customers through color, shape, price, and utility. New player like Sumsung are positing their brands as reliable, ambient and stylistic. LG positions as a taste for the new generation. Brands positioning captures the premium and economy segment differently (Dibb & Simkin, 2013). The idea of positioning is intended for newer markets especially those in the emerging market as they experience increased incomes sufficient to buy and maintain the utility of the product at least within the lifespan of the item (Myers, 1996). The emerging economies are China, Taiwan, Brazil, Middle East and Africa. Demographic brand positioning strategy is one way of winning the economy segment irrespective of their affiliation as family, individuals, religion and geographical location. Samsung and LG are market followers who have emerged as unique brands for lower end consumers. They understand that positioning the cooker for the lower market segment in emerging markets will draw huge sales. Superior packaging and advertising guides brand positioning. The current gas cooker brands have attractive designs with automatic functionalities. The branding statement is in functionality and purchasing a cooker that is fairly priced, user interactive, and space driven is essential. 3.4 Targeting Targeting is all about selecting and considering the correct market segments. The target could be based on market classification such as household or commercial, income, family size and lifestyles. The effective criteria for targeting the gas cooker market must be guided by stability, identity, and size. The identity of the target consumers include single and nuclear families with higher incomes buying the 6kg and 13kg cookers while the commercial consumers mainly buy the 50kg cookers. The commercial customers are mainly hotels, hospitals, and learning institutions (Weinstein, 2013). The size of the household is greater than the commercial one. The gas cooker consumer market is characterized by shared need of efficient cooking with no side effects such as smoke or choking smell. The gas cooker market is huge considering the number and size of families in emerging markets. This income based segment is huge enough to guarantee great sales and profitability (Lamb et al. 2011). The premium segment is also stable in lifestyle and consumer patterns and will most likely experience a continued use of the cooker as compared to the economy segment that can switch to a cheaper alternative like stoves, charcoal and wood. The premium segment purchases gas upon exhaustion in the cylinder compared to the economy segment who may take some time to refill. Good news arises from the increased youth employment and rise in income and education levels endearing young families to go for prestigious utilities like gas or electric cookers. The cooker is not based more on aesthetic but price and quantity of gas it can hold. 4. Internal factors 4.1 Personality Personality governs the person’s psychological and physical characteristics that influence the behavior and response to the social and physical environment. Behaviors are subject to change though unique or shared at individual levels. Personality is consistent and enduring, reflecting on individual differences. According to the Trait theory, personality identification and quantitative measurement specific in nature and based on psychological characteristics (Lamb et al. 2011). Neuroticism is the propensity to face negative effects such as depression, anxiety, anger, and vulnerability. People who are neurotic become nervous and sensitive and are likely to change their decisions to purchase items when convinced by minor environmental stimuli (Walters et al. 2009). Extraversion on the other hand is about being outgoing or energetic. The extraverts are talkative, sociable, and assertive becoming stimulated by others. They consult broadly and are likely to get the correct product information, advice and brand variety. Being curious or inventive is the openness to experience encompassing adventure, variety of experience and curiosity. Customers exhibit preference for novelty, intellectuality and creativity. The willingness to experience a new brand or product is openness. Conscientiousness is the state of being organized, efficient, and dependable with perspectives of self-discipline and aims for achievement (Block, 2010). This person has planned instead of spontaneous behavior and acts dutifully. The conscientious individual buys a product after an affirmed decision and self-searches likely to govern long-term purchase decisions. Effective measures of achievement are defined by the person’s goals. The personality applications of the gas cooker product are; consumer dogmatism, variety seeking and consumer innovativeness. Consumers willing to try the cooker are innovative and creative. New products in their households are desirable in their conscience. Consumer dogmatism is the rigidity of accepting untried products. The rural and urban informal market segment are highly dogmatic hence close-minded but the premium up market segment are more open-minded (Block, 2010). Limited education and knowledge are likely to hold the belief that gas cooker is dangerous or expensive for the ordinary people. Variety seeking is specific to customer groups desiring to try new options such as switching from electric cookers, stoves for a new experience. This arises from the vicarious exploration where consumers contemplating trying a new option of the product and seeking information on the new alternatives. 4.2 Motivation The force impelling individuals to act or respond to stimuli is motivation. It arises from the tension brought by unmet needs. Prestige and efficiency of the gas cooker are the common unfulfilled needs. The fact that some small cookers have been designed and produced for the mass market has even motivated individuals to use the product. A Cooker is an object of positive motivation since the cooked food is sweeter and tastier without the bad feeling smell and throw back associated with paraffin and wood. The rural customers have bigger families compared to the urban dwellers. On the same vein, rural dwellers have access to cheaper alternatives like firewood and charcoal and therefore not motivated to buy the gas cooker. Urban dwellers in the lower segment may afford to buy the gas cooker but will find a difficulty in refilling quite often (Walters et al. 2009). This segment has rational options like stoves and charcoal and thus not motivated by the price or lifestyle. The premium segment is a small sized up market urban consumers have personal and subjective goals. Motives to buy a gas cooker are environmental and cognitive as personal achievement and specific environmental cues endear consumers to purchase the product. The needs of the lower end market segments are still driven by physiological needs defined by incomes rather than security or esteem needs. The cooker is a prestige need since consumers have a range of options to meet their cooking needs. The use of a cooker is driven by incomes and status of development of a region. The premium segment meets their esteem needs like making a fashion statement, impressing their peers, and identifying with the affluent social class (Lamb et al. 2011). Lower end alternatives like stoves, charcoal and coal are price sensitive. Upon satisfying the lower end needs people are now motivated by ambience and prestige even when they are highly priced. Power needs originates from the desire to control people and various objects while affiliation need looks for belonging and acceptance. Buying a gas cooker is an achievement need connected to self-actualization and egotistic needs. 4.3 Self-concept Physiological construct desired to be congruent with the consumer self-concept is in fact the self-concept of the. Advertisers assume that consumers read their adverts, understand the contents and check if the ads are in agreement with their self-concepts. Purchase intention is shaped by the actual self-concept more than the ideal self-concept (Huitt, 2011). Self-esteem is the principal motive given that consumers intend to reduce the ideal-actual gap by product choice depicted in the ideal self. The closeness of the product image to an individual actual self-concept is a motivator in enhancing the motive and self-esteem. The brand power is increased by buyer intention of since images show consistency with the ideal self. Hence, if the gas cooker shows congruence with the customers’ actual self, then the propensity to purchase is increased. The likelihood of the consumer to make a repeat purchase of a related item is also high (Huitt, 2011). Past experiences as well as feelings, images and representations are affected by the self concept and widens as one grows. 4.4 Consumer Perception and Imagery Perception relates to how an individual selects, receives, and interprets stimuli to construct a meaningful and coherent picture of the universe. Consumers block what is not necessary while perceive what they want (Schiffman et al. 2013). This depends on expectations or motives; consumers only select messages that pay attention to commercial stimuli and are pleasant to their stimuli which they feel are likely to provide information about their products. Depending on input differentiation or energy, the change has immediate and direct sensation. Some consumers not keen to purchase the item block by terming the stimuli as not consistent with their values and current needs. They do so by resorting to perceptual defense. Gestalt principles; figure and ground, grouping and closure are idealized in the consumers’ perceptual organization (Weinstein, 2013). The expectations of the consumer in the weight of past experiences, the stimuli interpretation is highly subjective and based on the perception motives, interests and plausible explanations. Customers’ objective interpretation of first impressions, descriptive terms, physical appearance, and halo effect are distorted by stereotypes. Their perceptions on brands and products correspond to the individual perception of themselves. The ultimate success of the gas cooker is the perceived image as an essential household item. 4.5 Attitudes Attitudes are learned behavioral predisposition towards an object. It can be favorable or unfavorable. The Attitude-towards-object Model influences how customers perceive the gas cooker. Attitudes towards a brands or product are affected by several previous factors. Several authors contend that attitude changes everything (Schiffman et al. 2013). The absence or presence of attributes is likely to affect the product post purchase decisions and evaluation of key product specific beliefs. 4.6 Learning Learning is the consumption of the experience and purchase knowledge which is deemed to influence future purchase behavior. The learning components include response, motivation, reinforcement, and cues. Gas cooker is a technology product requiring a connection between the stimulus and its response for instrumental conditioning triggering sales. The use and longevity of the cooker is likely to yield a positive response in behavior of future consumers (Loudon et al. 2011). When the cooker is faulty or dangerous, the user or buyer will likely reject the brand or blame the company for failing to provide adequate product information. The ultimate learning point is not by seeking total reinforcement schedule but getting the customer genuine satisfaction. 5. Conclusion The essay has found that internal factors like motivation, personality, self-concept, consumer perception and imagery, learning and attitudes influence customer purchase decisions and product positioning. The consumer buying behavior observes a certain process of needs recognition, available information search, alternatives evaluation, actual purchase and post-purchase (Kotler, 2002). Companies especially for technological products such as have segmented the market in economy segment and the premium urban premium segment based on demography and psychographic reasons. Gas cooker products are positioned to provide a favorable perception and superior image among customers. References Block, J. (2010). The five-factor framing of personality and beyond: Some Ruminations.  Psychological Inquiry. 21 (1): 2–25. Dibb, S. & Simkin, L. (2013). Market Segmentation Success: Making It Happen!. Routledge. Huitt, W. (2011). Self and self-views. Educational Psychology Interactive. 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