Buyer Behavior

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Added on  2023/03/20

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This report discusses the buying behavior pattern of the Huawei Mate 20, including segmentation, targeting, and positioning strategy. It also analyzes the satisfaction of customer needs and wants, the buyer decision-making process, and the internal and external influences on buyer behavior. Recommendations for competitors are provided.

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Running head: BUYER BEHAVIOR
Buyer behavior
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1BUYER BEHAVIOR
Table of Contents
Introduction......................................................................................................................................2
Segmentation, targeting and positioning strategy of Mate 20.........................................................2
Satisfaction of the needs and wants of the customers......................................................................4
Buyer decision making process.......................................................................................................4
Determination of the internal influences.........................................................................................5
Determination of the external influences.........................................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9
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2BUYER BEHAVIOR
Introduction
Determination of the buyer behavior and their trend is important for the marketers due to
the reason that the value propositions should be created accordingly. In this case, the target
market should be properly segmented and targeted and the value proposition should be properly
positioned to have the maximum favorable outcome from the of buyer behavior (Rani 2014).
Moreover, it should also be noted that it is important for the business entities to design the value
propositions according to the needs and wants of the customers in order to fend off the negative
influences on the customer behavior. Hence, determination of the buyer behavior is a holistic
process that involves a number of steps.
This report will discuss about the buying behavior pattern of the Huawei Mate 20 and in
doing so, this report will analyze the current segmentation, targeting and positioning for this
product. In addition, value propositions of Mate 20 in meeting the needs and wants of the target
customers. The decision making process of the customers in buying mobile phones will also be
analyzed along with the discussion of the external and internal influences. On the basis of the
identified factors, a few recommended steps will be discussed.
Segmentation, targeting and positioning strategy of Mate 20
The current segmentation strategy of Mate 20 involves majorly behavioral and
psychological traits. For instance, customers with having the preferences for active lifestyle and
higher end gadgets are being targeted. Customers seeking for the maximum utilities and
alternative usages from the mobile phones are also the target segment for Mate 20. In terms of
the demographic segmentation variables, customers between the age groups of 25 and 40 are the
core target segment (Ramsey, Wagner and Kelly 2013). This is due to the reason that this target
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3BUYER BEHAVIOR
High price
Low price
Less features More features
Mate 20
Samsung S10
Iphone X
OnePlus 6
segment is having the major preferences and acceptances for the higher end technological
devices and this age group also include professionals and earning members. Thus, they are
having the financial capability of buying the Mate 20. Moreover, both the high income male and
female customers are being targeted for this product.
In terms of the targeting, market focus and product differentiation strategy is being
followed by Huawei for their Mate 20 mobile phone. This is due to the reason that mate 20 is a
premium device and not a mass market model. Moreover, premium pricing is important for
managing the premium positioning of Mate 20 (Jisana 2014). Thus, with the help of the product
differentiation strategy, the distinctive features are being offered, which is helping in enhancing
the value propositions. Moreover, market focus strategy is helping Huawei in targeting the niche
segment for premium gadgets and design the value propositions in accordance to their preference
and expectations.

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4BUYER BEHAVIOR
The current positioning strategy of Mate 20 involves positioning on the basis of features.
This is due to the fact that almost all the brands competing in this segment possess high sale
price and Mate 20 is positioning itself on the basis of more features compared to their
competitors. This is due to the reason that Mate 20 is offering more features at the same price
level of their competitors.
Satisfaction of the needs and wants of the customers
As discussed in the previous section that, Huawei is following market focus approach for
targeting their customers. Thus, in the case of the market focus approach, the expectations and
requirements of the target customers are being identified and the product design is being done
accordingly. In the premium smartphone segment, the core need of the customer is having the
latest technologies and their core want is the aesthetic values. In this case, Mate 20 is being
offered with the latest android operating system and with attractive designs (Jaworski and Kohli
2014). The design of Mate 20 is one of the major points of differences with the competitors. In
the premium segment, customers expect that the smartphone should have head turning design to
have the distinctive attention among others. Thus, in terms of the aesthetic value, Mate 20 is
meeting the core desire of the customers. The actual need of the customers in the premium
smartphone segment is alternative usages and utilities. They seek different jobs being done
through the smartphone. In this case, the internal specifications including the processors are
designed in the way to ensure the smooth multitasking for the users (Kim et al. 2015). Moreover,
the features added in Mate 20 are also enabling the users in doing up various jobs. Thus, this
need of the customers is also getting fulfilled by Mate 20.
Buyer decision making process
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5BUYER BEHAVIOR
In purchasing the mobile phone, the first step in the buying decision process of the
customers is need recognition. This involves the internal need by means of replacement of their
older phones or the external needs by means of getting motivated by the advertisements or
promotions. The next step is the search for information, which involves external search in the
forms internet and other mediums. Internal search involves the review and opinions from the
close acquaintances. Searching information helps the customers in short listing the potential
smartphone brands based on their personal criterions (Kumar and Raju 2013). The next step is
evaluation of the alternatives. This step involves the analysis of the identified alternatives and
customers tend to select brand, which is meeting their expectations well. The last step is the
buying process, which involves the purchasing the selected alternatives. However, in the case of
purchasing a smartphone brand, the brand value and identity plays an important role. This is due
to the fact that premium mobile phones involves high cost and it is considered as shopping goods
and brand value and identity denotes the quality of the product. In the case search for
information step, brand loyalty of the customers plays an important role in the buying decision
process (Wolny and Charoensuksai 2014).
Determination of the internal influences
The major internal influences that will act in motivating the customers in buying the
Huawei Mate 20 are perceptions, learning, attitude and financial capability. Perceptions will be
influential in the buying decision making process due to the fact that perceptions towards a
certain brand will determine the buying preferences of the customers. For instance, Huawei is a
Chinese smartphone brand and if the particular customer is having wrong or negative perception
towards the Chinese brands, then they will less likely to buy for Mate 20 (Griskevicius and
Kenrick 2013). On the other hand, if the perception of the customers is not negative towards any
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6BUYER BEHAVIOR
country specific brands, then Mate 20 will be considered by them. Learning is another form of
internal influence for the customers. This refers to the information and knowledge being gained
by them. If the knowledge being gained by the customers or if the customers learn that Huawei
Mate 20 is not quality product and is not durable, then it will affect the buying decision of them
and vice versa. Attitude also influences the buying decision of Mate 20 because if the customers
are having the preferences towards the big brands of smartphones such as Samsung and Apple,
then they will not prefer Huawei and vice versa. On the other hand, if the customers are having
positive and equal attitudes towards all brands and prefer the quality and features more over the
brand value, then they will consider Mate 20 as an alternative (Muruganantham and Bhakat
2013). Lastly, Mate 20 is a premium device and is the flagship product of Huawei. Thus, the
customers should be financially capable enough of purchasing the flagship devices and their
lifestyle choices should also match with the objectives of availing premium devices. If the
customers are not financially capable enough, then they will not buy Mate 20 irrespective of their
choice and desire.
Determination of the external influences
External influences of the buying decision of the customers in buying Mate 20 are
cultures, family roles and groups. Cultures and social norms play an important role due to the
reason that if buying a premium smartphone is well acceptable and common factor in the society,
the customers will consider Mate 20 as a potential alternative and vice versa. If the particular
customer belongs from the conservative society, then investing more in buying smartphone
might not be well accepted (Lee et al. 2014). Social norms and cultures also influence the
mindset of the customers in terms of the buyer decision. This is due to the reason that certain
norms and rules in the society have long term influence on the customer attitude. For instance, if

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7BUYER BEHAVIOR
the customers learn conservative approaches from his home society, then they will unlikely buy a
premium smartphone even after gaining financial capability. On the other hand, family roles also
play an important role in influencing the buying pattern of the customers. This is due to the
reason that if the motivation from the family is present in buying a premium smartphone, then
the customers likely to consider Mate 20 and vice versa. In this case, it should be noted that
family opinion also matters in brand preferences. If any of the family members are using Huawei
smartphones, then the preferences for Mate 20 for the customers will be more and vice versa
(Johnson and Cui 2013). Groups are also having the similar sets of influences as much as the
family. Group includes the friends and relatives and the reviews and opinions from the can
influence the buying behavior of the customers. In this case also, Huawei devices used by the
any of the group members will increase the preference pattern of the customers towards Mate 20.
Recommendations
It is recommended for the competitors of Mate 20 that they should have the value for
money approach for their flagship devices as well. This is due to the reason that it is a widely
publicized perception that the flagship devices should not be value for money products.
However, in the current scenario, competition in the flagship segment is intense with the
presence of different brands. Moreover, entry of the competitors such as Huawei Mate 20
popularized the value for money trend even in the higher end segment as well. The average
number of features being offered with Mate 20 is more compared to their majority of the close
competitors and that also in more competitive price points. Thus, it is important for the major
competitors of Mate 20 to increase their feature lists in their devices in order to stay competitive.
The more features they will offer with their existing devices, the more will be the value for
money proposition for the customers. It is also recommended that all the major competitors of
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Mate 20 should have extensive virtual presence in order to increase the pull factors among the
customers. This is due to the reason that the more will be the virtual presence of the brands, the
more will be the brand recall among the customers in their need recognition process and will get
more preferences in the evaluation of alternatives step. The brand preferences being discussed in
this report among the customers will also be satisfied by gaining the extensive virtual presence.
Conclusion
This report concludes that the segmentation, targeting and positioning approach of
Huawei mate 20 is well coordinated and is based on the target market trends. Moreover, it is
identified that market focus strategy being initiated by Huawei for their Mate 20 smartphone is
helping in offering the value proposition according to the needs and wants of the target customer
segments. Thus, the customer satisfaction rate is also high among the target audience. However,
it is also noted that Mate 20 is trailing behind its major competitors in terms of the brand value
and identity. Hence, it is important for them to enhance their brand value in competing with the
established brands such as Apple and Samsung. This report recommended that due to the entry of
Mate 20 in the premium segment, it is important for the other competitors to offer more value for
money propositions in the same price points.
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9BUYER BEHAVIOR
Reference
Griskevicius, V. and Kenrick, D.T., 2013. Fundamental motives: How evolutionary needs
influence consumer behavior. Journal of Consumer Psychology, 23(3), pp.372-386.
Jaworski, B. and Kohli, A.K., 2014. Co-creating the voice of the customer. In The service-
dominant logic of marketing (pp. 127-135). Routledge.
Jisana, T.K., 2014. Consumer behaviour models: an overview. Sai Om Journal of Commerce &
Management, 1(5), pp.34-43.
Johnson, J.W. and Cui, A.P., 2013. To influence or not to influence: External reference price
strategies in pay-what-you-want pricing. Journal of Business Research, 66(2), pp.275-281.
Kim, J., Kim, K.H., Garrett, T.C. and Jung, H., 2015. The contributions of firm innovativeness to
customer value in purchasing behavior. Journal of product innovation management, 32(2),
pp.201-213.
Kumar, D.P. and Raju, K.V., 2013. The role of advertising in consumer decision making. IOSR
Journal of Business and Management, 14(4), pp.37-45.
Lee, Y.K., Chang, C.T., Lin, Y. and Cheng, Z.H., 2014. The dark side of smartphone usage:
Psychological traits, compulsive behavior and technostress. Computers in human behavior, 31,
pp.373-383.
Muruganantham, G. and Bhakat, R.S., 2013. A review of impulse buying behavior. International
Journal of Marketing Studies, 5(3), p.149.

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10BUYER BEHAVIOR
Ramsay, J., Wagner, B., & Kelly, S. (2013). Purchase offering quality: The effects of buyer
behaviour on organizational supplying behaviour. International Journal of Operations &
Production Management, 33(10), 1260-1282.
Rani, P., 2014. Factors influencing consumer behaviour. International journal of current
research and academic review, 2(9), pp.52-61.
Wolny, J. and Charoensuksai, N., 2014. Mapping customer journeys in multichannel decision-
making. Journal of Direct, Data and Digital Marketing Practice, 15(4), pp.317-326.
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