Consumer Behavior

Assignment on Consumer Behavior By XXX Dated: Product, Company and Industry A variety of products exist in the world a greater have yet to come. The product that is chosen for this study is the flagship of Samsung it is Galaxy S5, the company understudy is Samsung and the industry that is to be studied is smartphone industry. Consumer Behavior Consumer Behavior is the study of individuals, organizations or groups, and their adopted processes which they use to select, secure, use and dispose of the observed service or product that they need to satisfy their particular needs.When assessing individuals or organizations the point is about a single entity and is always repetitive and predictable, when it comes to a group it involves several individuals. It may be present in form of a family, peer group or a set of unrelated individuals having similar interests in mind. In this study the consumer is observed taking 3 roles these roles are the payer, the buyer and the user. The word consumer basically targets the end user but in studying the buying patterns it is necessary to study role of all three. Mostly all of the roles are fulfilled by a single entity but when a group is concerned, all the roles begin to vary for example in buying Samsung Galaxy s5 for a kid in a family the payer is normally the dad, buyer normally varies between mother and elder siblings and the user of course is the kid who is ultimately receiving the smartphone CITATION Fun08 \l 1033 (Funk, 2008). Process The process of consumer behavior has 5 primary steps. These processes denote the decision making steps of a consumer, whether he is in the shape of a payer, buyer or a user or he is performing 2 or all three tasks simultaneously. These steps are Need Recognition, Search for Information, Alternative Evaluation, Decision for Purchase and Post Purchase Behavior CITATION Per15 \l 1033 (Perreau, 2015). Need Recognition is the first step in this process of consumer behavior. This illustrates the sources of needs, its functional needs and the famous hierarchy of needs. The sources illustrates an external stimuli, the one that arises out of that prospective consumer,and the internal stimuli, it is the one that arisesout of the consumer himself. The external stimuli normally arises out of discussions about smartphones and ads from Samsung and the internal stimuli arises of a number of reasons. For example, increment of needs for a new phone or loss of an older one.The distribution of needs includes functional needs, need for change and social need. All of these can be analyzed by an example, if a person wants s5 due to its new features or due to a fault is previous one this can be denoted as functional need. It is said to be a social need if all or most of his peers have brought an s5 or like iPhone is considered as a status symbol. Need for change happens if he is bored of his old phone and wants a new one. Maslow’s Hierarchy of needs illustrates how a consumer chooses a smartphone such as s5. If the phone tends to be a part of the man himself than he would get it in Physiological stage like s5 gives the slogan “My Life”, if it is considered a measure of protection, then he would acquire in in safety needs, if it is gives a sense of belongingness it comes in the 3ed level of hierarchy of needs if it is considered a status symbol and a source of respect among peers it would definitely lie in need for esteem and if it denotes as a source of leisure and entertainment then it lies in the need for self-esteem.The process of need recognition is based uponthese three primary metrics CITATION Per15 \l 1033 (Perreau, 2015). The process of information collection occurs after the consumer has identified that he needs a smartphone and now is looking for anappropriate phone to satisfy his need. There are two sources of information collection the first is the internal information. It is the background or already existing, though outdated, information that is present in his mind about smartphone features, brands and prices.The external information is however that information that exists in sources other than his mind. These sources includepeers, outlets, rating and comparison websites and forums that normally cover common issues and complaints regarding smartphone features, brands or after sale services CITATION Per15 \l 1033 (Perreau, 2015). The next part of the process is alternative evaluation. This normally is where the customer matches android with iOS and Windows phone, Samsung with Apple and Nokia and s5 with Note 3 andiPhone 6. If android, Samsung and s5 survive this evaluation then the customer would move on to the next phase that is the purchase decision. This evaluation or comparison has two parameters one is objective which includes the features, processing power, camera, pricing and other comparable figures. The second is however subjective comparison this includes design, reputation, rating and other features that cannot be compared objectively CITATION Fun08 \l 1033 (Funk, 2008). The Purchase Decisionis where a rational buyer makes a decision on the basis of alternative evaluation and finally picking the best smartphone that fits both his needs and his pockets CITATION Fun08 \l 1033 (Funk, 2008). Post Purchase Behavior is one of the most important part of this process. In this part the consumer tests that if all the features claimed are in s5 and if the set is fit for use. Furthermore if he doesn’t feel that the claims were fulfilled he tries out the customer service. Their behavior and resonance level determines the decision for future purchases CITATION San00 \l 1033 (Sandhusen, 2000). Black box Model Environmental Factors: It in the consumer buying process environment factor are effect such as social factors, economic factors culture factors and the political environment factor effect the consumer buying process of s5. Therefore, these factors affect the consumer buying process of smartphones. Marketing Stimuli (MS): Market stimuli are the market environment includes four Ps such as Product price, place and promotion. MS are planned and process by the Samsung where the information search such as perception etc. Environment Stimuli: Environmental stimuli everything our environment that impact on the consumer buying behavior such as environment factor are as economic, perception, motivation, personality, lifestyle and the knowledge. Anything that can touch, seen, these are including in the environment factors. Here the native government where Samsung operates can be considered as an Environmental Stimuli. In the morning go to park there are vide variety of stimuli that capture our attention such as tree branches, breeze grass etc. Buyer’s black box: It is the marketing theory of consumer’s buying behavior is what goes on the customer mind when he purchase (buyers black box). Therefore, it is so understood which inputs (stimuli) in form of ads and word of mouth marketing to produce the desired output it is the buying response. Buyer Characteristics: Buying characteristic include motivation for buying a smartphone, perception of s5, personality, lifestyles, and the attitude these are very important factor for buyers with the help of these factors buyer understand that what benefits receive from the product he will purchaseCITATION San00 \l 1033 (Sandhusen, 2000). Issues and Marketing Issues to address those issues The issues that arises in Consumer Behavior lie in all the above stages of consumer behavior. In Creation of need the company’s marketing can be an external stimuli and the company has to be careful in what it claims as these claims are tested thereafter. Samsung Threads softly on this domain and communicates well as well. Furthermore is the targeting of the company. It includes the location of the company in Maslow’s Hierarchy of needs, like s5 is targeted in physiological need and it is used as a tool in physiology as well. Next it is beneficial for a company to have some internal information in the minds of clients, as features comes in the mind when Galaxy S series is being discussed. And it must have a unique and available source of external information and a good word of mouth Samsung possess both these features. Next comes the competitive evaluation the s5 must be both unique and competitive to existing smartphone in order to outweigh its alternative. There is nothing Samsung could do in terms of purchase decision but a lot can be done in post purchase behavior appraisal as this phase leads to repurchase. And Samsung’s strategy regarding post purchase complaint handling is considered an example with its tendency to drastically reduce complaints CITATION Fra15 \l 1033 (Frank Kardes, 2015). References BIBLIOGRAPHY Frank Kardes, M. C. (2015). Consumer Behavior. CengageBrain. Funk, D. C. (2008). Consumer Behaviour in Sport and Events: Marketing Action. Routledge. Perreau, F. (2015, April 9). The 5 stages of Consumer Buying Decision Process. Retrieved from The Consumer Factor: Sandhusen, R. L. (2000). Marketing.

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