Influence of Internal Factors on Consumer Decision-Making - SportUNE - Case Study Example

Influence of Internal Factors on Consumer Decision-Making Name Name of Institution Table of Contents Introduction 3 SportUNE Marketing Overview 3 Internal Factors that Affect Consumer Decision Making 4 Needs and Motivation 4 Personality and Self-Concept 5 Consumer Perception 7 Consumer Learning and Involvement 8 Consumer Attitude Development and Change 9 Conclusion 10 Influence of Internal Factors on Consumer Decision-Making Introduction SportUNE is a non-profit organisation that serves the students and community at the University of New England. The organisation provides sporting facilities that range from indoor gyms to outdoor courts (SportUNE, 2017). The aim of this report is to examine the internal factors that have an impact on selecting one of the SportUNE facilities. The paper also looks at how these factors affect the level of engagement with the said services. The internal factors that will be examined include needs and motivation, consumer perception, personality and self-concept, consumer attitude development and change, and consumer learning and involvement. Additionally, the paper will consider the influence of SportUNE’s marketing mix, consumer decision-making process, and diffusion of innovations. An evaluation of these factors will lead to a conclusion on the internal factor that has the greatest effect on the choice of a facility offered by the organisation as well as the extent of engagement and usage of the facility. SportUNE Marketing Overview According to Hatten (2015), the marketing mix defines the factors that a firm can alter in selling products to consumers, and they include product, price, place, and promotion. SportUNE is a university sporting facility which limits all aspects of the marketing mix. First, the product is a collection of sporting facilities like gyms, indoor pools, climbing walls, fields, courts, and fitness classes. The pricing category of the marketing mix is influenced by the non-profit nature of the organisation that prioritises fitness and well-being over profits. Similarly, the place is limited to a small geographical location that is designed to serve students, the neighbouring community, and businesses that might want to sign up for corporate health and wellbeing programs (SportUNE, 2017). The promotion is restricted to the University and the SportUNE website, but the organisation targets people of all ages and fitness levels who happen to be around the facilities (SportUNE 2017). It is apparent that the organisation has limited flexibility when it comes to altering the elements of the marketing mix. The same case applies to segmentation, targeting, and positioning. Regarding the consumer decision-making process, Hutter et al. (2013) state that customers go through five stages when making purchases. These include the need recognition, pre-purchase research, evaluation of alternatives, purchase decision, and post-purchase evaluation (Hutter et al., 2013). It is arguable that external and internal factors play a fundamental role in each step of the consumer decision-making process. Schiffman et al., (2013) list needs and motivation, consumer perception, personality and self-concept, consumer attitude development and change, and consumer learning and involvement as the internal factors that have a bearing on consumer behaviour. Internal Factors that Affect Consumer Decision Making Needs and Motivation According to Schiffman et al. (2013), marketers lack the power to create needs, but they have the ability to increase consumer awareness of needs that they did not previously feel. It is worth noting that needs fall under two categories; innate needs, and acquired needs. The acquired needs are obtained in response to the environment or culture and are the ones that marketers seek to influence. Acquired needs are typically psychological, and they include the needs for self-esteem, affection, and prestige. Covey offers an alternative classification of human needs which has the mental, emotional, physical and spiritual. It is evident that spiritual needs do not have an impact on the selection and engagement with the SportUNE gym. On the other hand, there is a realisation that physical fitness is a factor that affects the overall quality of life. At the same time, the choice and engagement with the gym lead to mental and emotional benefits like stress relief, boosting self-esteem, prestige, personal growth, and developing a sense of belonging. Therefore, needs have an important role in the decision to utilise the SportUNE gym. It is essential to note that the SportUNE gym will have beneficial effects only when it is used on a consistent basis. This presents a challenge for new gym members as they are likely to experience soreness, aches, and pain as their bodies get used to the routine of physical activities. Positive motivation is, therefore, relevant to the use of the gym as it provides the driving force that pushes an individual towards taking action despite the potential negative consequences (Schiffman et al., 2013). Motivation is also essential when it comes to meeting targets. A fundamental characteristic of needs, both innate and acquired, is that they can never be fully satisfied (Hoyer, MacInnis & Pieters, 2016). This feature is particularly relevant to fitness because numerous factors can inhibit the ability to attain the desired level of fitness. For example, it is easy to gain weight after holidays where the SportUNE gym is inaccessible. In such cases, motivation is very necessary as it helps to overcome the frustration that comes from unsatisfied needs. Overall, physical, mental, and emotional needs had a key influence on the four initial stages of the decision-making process, while motivation mediated the post-purchase evaluation and thus the extent of engagement with the facility. Personality and Self-Concept Personality describes the inner psychological characteristics that determine and reflects how a person responds to the environment (Schiffman et al., 2013). Personality is an important concept in marketing as it allows marketers to divide individuals into groups on the basis of their traits. Personality played a role in the decision to select the SportUNE gym due to a willingness to try new products and services indicating consumer innovativeness (Ling, D’Alessandro & Winzar, 2015). Low dogmatism also leads to open-mindedness, while an outer-directed social character allowed the opinions of family and colleagues to have an impact on the decision to use the SportUNE gym. As stated, the first weeks of physical activity can be challenging for new gym members, indicating that the members need to take physical risks as well as the social risk of failing to keep up with other gym users. It is apparent that a sensation seeking trait played a role in creating the willingness to take both physical and social risks (Schiffman et al., 2013). While the identified personality traits led to the selection of the gym, self-concept had a greater influence on the frequency of use. According to Schiffman et al. (2013), self-concept refers to the totality of an individual’s feelings and thoughts with reference to him/her as an object. Self-concept deals with who people think they are and what they think they should be. As a student, it is essential to prepare for life outside of the current education. An essential part of this preparation is developing habits that will improve health, fitness, and well-being. Therefore, the actual self is a key driver of the decision to spend time at the gym. When it comes to the ideal self, there is the desire to improve on the current level of fitness with the gym providing examples of individuals who become role models. Overall, personality had an influence on the need recognition, pre-purchase search, and the evaluation of alternatives. On the other hand, self-concept mediated the purchase decision and the post purchase evaluation that led to frequent use of the gym. However, the influence of personality and self-concept was not as pronounced as the effects of needs and motivation. Consumer Perception Consumer perception is also a factor that has a major role in the consumer decision-making process. Perception refers to how an individual receives, selects, and makes sense of stimuli to develop a meaningful and coherent picture of the world (Sethna & Blythem 2016). Perception played a role in the need recognition step through consumer imagery, an aspect that defines the selection of brands that match with their self-image. As stated, students need to develop healthy habits that will improve their performance and efficiency in their careers. Fitness plays a role in creating an environment that enhances the chances of success. Therefore, the choice of the gym is consistent with the self-image of an individual that wants to develop habits that will contribute to overall wellbeing. Consumer perception also applies to the pre-purchase search and evaluation of alternatives. Sportune offers students a wide range of facilities with each having similar benefits. As a potential member, there was the challenge of examining the different offerings and determining the one that would provide optimal benefits. Consumer perception allowed me to focus on my specific needs and to block out unwanted or unnecessary information. In this case, the particular need was to find a program that provides maximum flexibility. Unlike the facilities that are designed for team sports, gym membership offers a high degree of flexibility when it comes to usage. Selective perception facilitated the identification of this need, selection of the gym, and blocking the benefits of other facilities offered by SportUNE. Consumer perception also mediated the purchase decision and the post purchase evaluation. SportUNE’s product positioning emphasises the benefits that come with membership. As a non-profit, the organisation does not seek to compete with other providers of sports facilities, but it aims to become the best University Sports facilities. This approach is reflected in the prices where the annual SportUNE membership costs $440 (SportUNE, 2017). The cost is lower than the $25 a week that one million Australians spend on gym membership alone, a cost that goes beyond $1,300 per year (Elsworth, 2017). Overall, the perception of the benefits offered and the low costs led to the purchase decision and a positive evaluation that encouraged more engagement with the SportUNE gym. Consumer Learning and Involvement Consumer learning is an internal factor that applies to the purchase and post-purchase stages of the consumer decision-making process. Schiffman et al. (2013) define consumer learning as the process by which buyers acquire purchase and consumption knowledge and experience that can be applied to related purchases in the future. As a new gym user, the SportUNE website provided information on the cost of membership and the amenities that would be available. The actual purchase and use of the gym facilities led to an improved understanding of the functioning of gyms and the features of a good gym. This knowledge is necessary due to the appreciation of fitness and the critical role that gyms can play in maintaining a healthy lifestyle. It can, therefore, be concluded that gym membership led to a positive response and there will be positive reinforcement through repeated engagement with the gym in the future. Consumer involvement is also relevant to the decision-making process. Involvement refers to the extent of the association between a brand and an individual. By definition, gym membership is a high involvement product that requires extensive problem solving when making the purchase decision (Szmigin & Piacentini, 2014). The implication of the high involvement is that there was an extensive pre-purchase search and evaluation of alternatives that required considerable cognitive effort. The social judgement theory also applied to the assessment of alternatives and the purchase decision as the opinions of reference groups was crucial to the final choice (Schiffman et al., 2013). It is apparent that consumer learning and involvement played a role that is as significant as the needs and motivation because involvement and learning extended the evaluation of alternatives and also the extent of engagement since the SportUNE gym associates with my image as a fitness-conscious individual. Consumer Attitude Development and Change Attitude represents a learned predisposition to behave favourably or unfavourably towards an object. Attitude is an internal factor whose role was restricted to the need recognition phase of the consumer decision-making stage. However, this is the most significant step in the process because no purchase can be made without the identification of an unsatisfied need. As noted by Elsworth, Australian society has changed its attitude towards health and fitness in recent years. This change in attitude has extended to friends and family as well as mass media. In my case, friends and family have been influential in changing my attitude towards what was previously considered as a fad. In turn, personality traits like a willingness to try new products, low dogmatism, and sensation seeking have made it easier for the external influence from friends and family to result in a change in attitude. It is, therefore, arguable that consumer attitude development has been central in converting the need and motivation for fitness into the decision to select the SportUNE gym as the means to achieve the fitness goals. Regarding diffusion of innovation, SportUNE has been in existence from 1938, meaning that it is in the latter stages of its product cycle. However, there has been a recent obsession with some of the products and services that SportUNE and other similar establishments offer, with Australians spending billions on health and fitness programs. The fitness culture has been in existence for most of the past two decades, with the implication that new SportUNE members are part of the late majority in the diffusion of innovation (Lamb, Hair, & McDaniel 2011). The conclusion is reinforced by the previous research on the external factors that influenced the decision to use the SportUNE gym where the finding was that friends, family and the UNE subculture were the primary drivers. This shows that majority of family, friends, and colleagues had gym membership meaning that new users become part of the late majority. Conclusion In conclusion, the paper evaluates internal factors and evaluates their effect on the consumer decision-making process. In particular, the report examines how needs and motivation, consumer perception, personality and self-concept, attitude development and change, and consumer learning and involvement affect the decision to select the SportUNE. The finding is that internal factors are as significant as external factors, with needs and motivation having the greatest influence on the selection of the gym and the consistent use of the facility. Consumer attitude development and change are found to be the second most important internal factor because a change in attitude towards gyms facilitated the selection of the SportUNE gym to be the means through which the fitness needs will be satisfied. A willingness to try new products, low dogmatism, and sensation seeking are personality factors that also influenced the purchase decision. Consumer perception, learning, and involvement were significant factors in the choice and engagement of with the gym, but their effects were not as pronounced as the other factors. Overall, the report shows the importance of internal factors in the consumer decision-making process and the need for marketers to be aware of these factors when creating marketing strategies. References Become a member. (2017). SportUNE PTY LTD. Retrieved from http://sportune.com.au/become-a-member/ Elsworth, S. (2015). Australians spend $8.5 billion a year on gym memberships, sports equipment, fitness fads. News Limited. Retrieved from http://www.news.com.au/lifestyle/fitness/australians-spend-85-billion-a-year-on-gym-memberships-sports-equipment-fitness-fads/news-story/d0092769eaea24b59aa1b32d86999c98 Hatten, T. S. (2015). Small business management: Entrepreneurship and beyond. Nelson Education. Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2016). Consumer behavior. Nelson Education. Hutter, K., Hautz, J., Dennhardt, S., & Füller, J. (2013). The impact of user interactions in social media on brand awareness and purchase intention: the case of MINI on Facebook. Journal of Product & Brand Management, 22(5/6), 342-351. Lamb, C. W., Hair, J. F., & McDaniel, C. (2011). Essentials of marketing. Cengage Learning. Ling, P., D'Alessandro, S., & Winzar, H. (2015). Consumer Behaviour in Action. Oxford. Schiffman, L., O'Cass, A., Paladino, A., & Carlson, J. (2013). Consumer behaviour. Pearson Higher Education AU. Sethna, Z., & Blythe, J. (2016). Consumer Behaviour. SAGE. Szmigin, I., & Piacentini, M. (2014). Consumer behaviour. Oxford University Press, USA. Read More