Marketing Consumer Behaviour

This report outlines the consumer decision process of the new phone IMate 20 launched by Huawei and various factors that may influence consumers to purchase this new phone. It discusses segmentation, targeting and positioning, consumer satisfaction, decision making process, consumer behaviour and influences, recommendations for competitors, and summary.

Running Head: BUYER BEHAVIOUR `0
MARKETING CONSUMER
BEHAVIOUR

BUYER BEHAVIOUR 1
Table of Contents
Introduction................................................................................................................................2
Segmentation, targeting and positioning....................................................................................2
Consumer satisfaction................................................................................................................4
Decision making process............................................................................................................5
Consumer behaviour and influences..........................................................................................6
Recommendations for competitors............................................................................................8
Summary....................................................................................................................................9
References................................................................................................................................10

BUYER BEHAVIOUR 2
Introduction
Consumer’s interest in buying a product or service always rest on the willingness to purchase
and at the same time ability to pay for the product. The Buyer or Consumer Decision Making
Process is a technique adopted by marketers to recognize and track the decision-making
process of a consumer journey from start to finish (Paul and Rana, 2012).
This report outline about consumer decision process of the new phone IMate 20 launched by
Huawei and various factors that may influence consumers to purchase this new phone.
Huawei Technologies were founded in 1998 with a vision to build innovation capability into
the company. Globally, the brand is on number #2 leaving Apple behind. This new model
introduced by Huawei is a top-notch smartphone with impeccable triple-lens camera. In
addition, it is also power-packed with Kirin 980 processor make it a premium device through
and through. One of its significant attributes is the price of the smartphone that is competitive
as compared to other more-established brands.
In this report, the current STP for the iMate20 is being discussed and the process of customer
satisfaction, decision making process and also the external and internal influences. In last,
several recommendations are suggested based on overall analysis.
Segmentation, targeting and positioning
In this competitive market, STP is considered as a strategic approach to help in creating
effective marketing communication plans that help management to priorities propositions and
deliver significant messages to involve with diverse audiences.
Source: (Wright, 2008)

BUYER BEHAVIOUR 3
The segmentation, targeting and position strategy of this new smartphone Huawei iMate 20 is
being elaborated below –
 Segmentation -
Types of Segmentation Segmentation Criteria Huawei iMate 20
Geographic
Region Australia and International
Density Urban
Demographic Age 20 - 45
Gender Males and Females
Life-cycle stage
Bachelor Stage
Newly Married Couples
Income High Earners
Occupation Graduates, Professionals,
managers and executives
Behavioural Benefits sought
Sense of achievement and
belonging
Self-expression
Speed of service, advanced
features and capabilities
User status Non-users, potential users
Psychographic
Social Class Middle and Upper Class
Life Style
Resigned
Aspirer
Succeder
Explorer
 Targeting – Huawei iMate 20 is being targeted at heavy users who wish to have an
ideal multimedia device in their pocket (Sinha, 2019). This model of Huawei is
targeting those males and females wishing to have latest processor and also concerned
about the design sense, and photo-taking capability. In Australia, this model will
target all the people who can easily buy this product from both online and offline
channels.
 Positioning – Huawei has positioned itself to be a lifestyle product for innovators,
graduates, wealthy people and people having good jobs. The company will position its

BUYER BEHAVIOUR 4
new iMate 20 models based on certain factors. For instance, Huawei iMate 20 will be
positioned by product characteristics. Huawei iMate 20 is backed up with trendy
attributes such as notch design, fast processors, wider camera and so on. This will
help the company to position this product into the customer mind effectively. The
company also make it positioned by pricing element and also it has plenty of discount
potential (in image below).
Source: (finder.com, 2019)
Consumer satisfaction
Huawei needs to embrace every aspect of consumer decision-making process as resulting
consumer satisfaction does not just influence the business bottom line but it also impacts
team morale and retention rate. It is also considered as the key to long-term relationship with
the customers in the form of loyalty. Zhang, Dixit and Friedmann (2010) stated that on
average, loyal customers are worth up to 10 times as much as their first purchase.
There are three pillars on which iMate 20 satisfies the needs and wants of the customers.

BUYER BEHAVIOUR 5
 Empathy – By truly understanding the consumer needs better than competitors
(Apple, Samsung). This can be achieved by focusing on feedbacks posted by
customers on forums and social media.
 Focus – Huawei is required to eliminate all of its unimportant opportunities.
Currently, in smartphone industry, consumers wish for notch smartphone, greater
battery and high processor. As Huawei iMate 20 has been already embedded with
these elements, it can be said that the customer can be satisfied truly with this new
model.
 Impute – People do judge a book by its cover. Huawei may introduce iMate 20 with
useful software, highest quality, etc.; however, the company needs to make it present
in a slipshod manner, as this will help them to impute the desired quality.
Decision making process
Decision making process will play big part with the series of decision while purchasing
mobile phone. These series of actions and decisions are elaborated below –
These are main five stages in the consumer decision-making process for mobile phones. It
starts with the need of recognition where consumer may or may not have various reasons to
N e e d R eco gn iti o n
In fo rm ati o n Se arch
E valu ati o n
P u rch ase
P o st-P u rch ase E valu ati o n

BUYER BEHAVIOUR 6
purchase a mobile phone (Saaty, 2008). This need can be triggered or reinforced with the
company action or practice by undertaking their promotion mix element.
The next stage is information searching where the consumer search for relevant information
relating to the products embracing upon key features and attributes. The company need to
ensure its presence on all external sources including a TV commercial, magazines, and
internet. Furthermore, it follows with an evaluation of the alternatives where the consumer
may compare and search for different brand products and here brand image is a critical factor
when consumer think about the alternatives.
Finally, the consumer purchase the mobile phone enduring with this stage and the purchase
behaviour will happen. However, afterwards, there is also a post purchase behaviour, which
is mainly reinforced from company side including their services such as warranty, guarantee
and other after-sales service, and this stage in future may make the customer loyalty towards
the brand.
Consumer behaviour and influences
There are various factors that influence consumer in their decision making process. It needs
to be effectively undertaken by the marketers and organisation in order to complete the
decision making process positively.
Internal influences
Internal influences initiate from consumer way of thinking, self-concepts, motivation and
thoughts. Internally, there are two sorts of influences –
 Personal needs and motives – This is one of the most substantial internal influence
that impacts consumer inner state and drives that to satisfy the specific needs. In the
decision making process of Huawei iMate 20, there may be various needs, reasons
and desire for purchase of the phone. For instance, a consumer need to present that
phone to any of his family members, need to upgrade it for himself or anything. These
needs and motive are different for different people. For example, one consumer may
purchase this phone for playing game and seek for clicking of good picture. It is
important for the marketers of Huawei to identify different needs of the consumers

BUYER BEHAVIOUR 7
and drive on that needs to make them convert into the sales. It will help them to
significantly serve in the most economical and efficient manner (Wittmann and
Paulus, 2008).
 Attitudes – Consumer behaviour is also influenced by the customer own attitude. It
related to individual desire as well as act in their buying patterns. Attitude plays an
important role in the buying process of any product as if a consumer having some
kind of negative attitude with the brand or any of its product; it is not easy for the
markets or company to change that attitude (Pache and Santos, 2010). Huawei iMate
20 can influence the consumer attitude with their advertisement and promotion mix
tactics. It is being observed that 60% of Huawei users would advocate the brand to
others and this may worry to the competitor (anacanhoto.com, 2017).
Source:
(anacanhoto.com, 2017)
This shows that consumer attitude towards the brand is positive and this will be effective
while marketing of their new model Huawei iMate 20.
External influences
During purchase of any product, there are some external influences also that impact the
buying behaviour of the consumer confronted into their culture, sub-culture and groups.
These influences also called as socio-cultural influences as these occur from the person
formal and informal relationships with the family, friends and association (Basu and Palazzo,

BUYER BEHAVIOUR 8
2008). Gaining insights about these influences and factors help the marketers to make key
impact on the consumer purchase decision.
 Reference Group – These are the groups of individual that may impact consumer
behaviour or attitude while purchasing of Huawei iMate 20. It includes family and
close friends known to be a primary reference group. For instance, a friend of
prospective buyer of Huawei iMate20 may suggest that in this price range, he can
spend some more bucks to purchase Apple iPhone. This may or may not change
perception of that prospective buyer towards iMate 20. Sometimes, members of
reference group are also acting as opinion leaders who influence majorly the customer
(Wooldridge, Schmid and Floyd, 2008). For example, the head of the family may
influence the consumer not to purchase any foreign brand product, as they prefer
native products more. This induces customer to give preference to the native brand
more and hence may impact the buying decision.
 Cultural aspects – It is considered as a combination of knowledge, belief, customs,
traditions, and any other sort of habit that influence the member of society while
taking out a purchase decision. For example, People in Asia give preference to
savings and not to spend on luxurious products. This may result to purchase of any
other smartphone rather than Huawei iMate 20, which is cheaper and suited to the
pocket of prospective buyer. However, in Australia, people are watching smartphones
more but buying them less and as per the mobile consumer survey of 2000 individuals
initiated by Deloitte 2018; it was found that device ownership had risen just 1 per cent
in comparison with the past year (deloitte.com, 2018). The customer is spending more
on telecom packages rather than buying new smartphones. This may negatively
influence the purchase of Huawei iMate 20 as being a new smartphone
Recommendations for competitors
Huawei iMate 20 is packed with a powerful combination of features including extraordinary
camera, processor and design. In addition, the price of this new smartphone is also matched
up with the average pocket of the people and this gives a tough challenge to the competitors
of Huawei iMate 20 such as iPhone Xs Max and Galaxy Note 9 (businesstech.co.za, 2018).

BUYER BEHAVIOUR 9
Hence, some of the recommendations that are needed to the competitors in relation with
lacking aspects of attributes of this new smartphone as well as other strategy includes -
In terms of attributes, the competitors can come up with an upgraded version of the model
leaving lacking attributes of iMate 20 behind such as clucky fingerprint reader, water and
dust resistance, and quadrant camera style. This will help the competitor to attain the market
share more rapidly as well as serving more premium needs of the customers. The competitor
can also come up with pushing their product through more number of channels other than
Optus and Vodafone as this will increase accessibility of their product and thus number of
customers can effectively able to purchase their products. Other than this, Huawei iMate 20
come into limited variants and colours and this will give opportunity to the competitor. For
instance, competitors may launch three or four variants of the phone such as 4 GB plus 64
GB, 6 GB plus 128 GB and 8 GB plus 256 GB. Hence, this will offer more choices to the
customers and will result in positive feedback.
Summary
In the limelight of above discussion, it can be said that Huawei iMate 20 is the perfect
example of game changing smartphone act as a genuine contender in the smartphone space. It
delivers on design, innovations, performance and battery life. However, there is a sequence in
customer buying process and it important for the phone to match with all the respective
stages. For instance, the third stage in the decision making process is evaluation where the
consumer search for various alternatives of the phone in relation to the price, specifications
and attributes. Here, the efforts of both marketers and management need to be emphasized in
order to grab most of the market share with this new model.
However, it can be predicted that Huawei iMate 20 can successfully satisfy the customer
needs with its power packed performance and pricing element. The consumer decision may
be hampered by both internal and external factors such as attitude, personal needs and
motives, culture, social aspects and so on. However, with the successful efforts of the
marketers, the company can effectively make this product a blast in the market and ensure
long-term sustainability.

BUYER BEHAVIOUR 10

BUYER BEHAVIOUR 11
References
anacanhoto.com. (2017) Huawei customers more likely to endorse the brand than Apple
ones. So what? [ONLINE] Available from: https://anacanhoto.com/2017/10/05/huawei-
customers-more-likely-to-endorse-the-brand-than-apple-ones-so-what/ [Accessed
26/05/2019].
Basu, K. and Palazzo, G. (2008) Corporate social responsibility: A process model of
sensemaking. Academy of management review, 33(1), pp.122-136.
businesstech.co.za. (2018) Huawei Mate 20 Pro vs Samsung Galaxy Note 9 vs iPhone Xs
Max – Cameras compared [ONLINE] Available from:
https://businesstech.co.za/news/industry-news/288906/huawei-mate-20-pro-vs-samsung-
galaxy-note-9-vs-iphone-xs-max-cameras-compared/ [Accessed 26/05/2019].
deloitte.com. (2018) Mobile Consumer Survey 2018 [ONLINE] Available from:
https://www2.deloitte.com/au/mobile-consumer-survey [Accessed 26/05/2019].
finder.com.au. (2019) Huawei Mate 20: Compare prices for the best deal [ONLINE]
Available from: https://www.finder.com.au/huawei-mate-20-price [Accessed 03/12/2019].
Grieve, C. (2018) Australians are watching smartphones more but buying them less
[ONLINE] Available from: https://www.smh.com.au/business/markets/australians-are-
watching-smartphones-more-but-buying-them-less-20181129-p50j77.html [Accessed
26/05/2019].
Pache, A.C. and Santos, F. (2010) When worlds collide: The internal dynamics of
organizational responses to conflicting institutional demands. Academy of management
review, 35(3), pp.455-476.
Paul, J. and Rana, J. (2012) Consumer behavior and purchase intention for organic
food. Journal of consumer Marketing, 29(6), pp.412-422.
Saaty, T.L. (2008) Decision making with the analytic hierarchy process. International
journal of services sciences, 1(1), pp.83-98.

BUYER BEHAVIOUR 12
Sinha, R. (2019) Huawei launches its first foldable 5G smartphone, Huawei Mat [ONLINE]
Available from: https://www.gadgetsnow.com/mobiles/huawei-launches-its-first-foldable-5g-
smartphone-huawei-mate-x/articleshow/68140119.cms [Accessed 26/05/2019].
Wittmann, M. and Paulus, M.P. (2008) Decision making, impulsivity and time
perception. Trends in cognitive sciences, 12(1), pp.7-12.
Wooldridge, B., Schmid, T. and Floyd, S.W. (2008) The middle management perspective on
strategy process: Contributions, synthesis, and future research. Journal of
management, 34(6), pp.1190-1221.
Wright, R.E. (2008) Targeting, segmenting and positioning the market for college students to
increase customer satisfaction and overall performance. College Student Journal, 42(3),
pp.891-895.
Zhang, J.Q., Dixit, A. and Friedmann, R. (2010) Customer loyalty and lifetime value: an
empirical investigation of consumer packaged goods. Journal of Marketing Theory and
Practice, 18(2), pp.127-140.