Consumer Decision Making Process - Assignment

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MARKETING INTELLIGENCE1
Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1BUYER BEHAVIOR AND PURCHASE DECISION MAKING PROCESS...................41.1 Main stages of purchase decision making process................................................................41.2 Theories of buyer behavior in terms of individuals and markets...........................................51.3 Factors affecting buyer behavior...........................................................................................51.4 Relationships between brand loyalty, corporate image and repeat purchasing.....................6TASK 2 MARKETING RESEARCH TECHNIQUES...................................................................62.1 Evaluate different types of market research techniques.........................................................62.4 Prepare a marketing research plan to obtain information in a given situation.......................74.1 Evaluate techniques to assess customer response..................................................................82.2 Sources of secondary data to achieve marketing research techniques...................................94.2 Design and complete customer satisfaction survey...............................................................94.3 Review the success of a completed survey..........................................................................112.3 Assess the validity and reliability of market research findings............................................12TASK 3 ASSESS MARKET SIZE AND FUTURE DEMAND....................................................133.1 Assess market size trends within a given market.................................................................133.2 Competitive analysis............................................................................................................133.3 Evaluating opportunities and threats for the products and services of the brand................14CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................152
Table of Figures3
INTRODUCTIONThe research study is carried out to gain understanding on buyer behavior and decisionmaking process in purchase. It includes theories of buyer behavior for individuals and marketsand analyzing factors affecting buyer behavior. It also describes the relationships between brandloyalty, corporate image and repeat purchasing. The second part of the report undertakes marketresearch techniques to analyse the customer satisfaction for Sainsbury. Various data collectionmethods will be used and analyzed to judge the effectiveness of brands operations in deliveringresults that exceed customer expectations. The third part of the report includes competitiveanalysis of Nokia in terms of market size and trends. It also focuses on analyzing theopportunities and threats associated with the brand.TASK 1 BUYER BEHAVIOR AND PURCHASE DECISION MAKINGPROCESS1.1 Main stages of purchase decision making processFigure1: Stages of purchase decision making processNeed analysis - The first step in the consumer decision making process is to recognize theneed for a particular product or services that satisfies the needs of the buyer. Thisdescribes the actual and desired situation of the consumer. The need can be classified intofunctional, social or need for change (Taylor, and Lee, 2007).Information search - After the need has been identified, the consumer will researchpossible sources of information that helps to fulfill the need. The sources of informationcan be internal or external. Earlier experiences of purchase form the internal sources ofinformation while opinions from friends and family refers to as external sources.Alternative evaluation - The information collected from various sources enables the buyerto evaluate the alternative choices and also to choose the best suitable alternatives thatsatisfies the need and expectation.Purchase decision - The consumer's purchase decision depends on the evaluation processof various alternatives. The purchase decision is also affected by the availability of theproduct, the quality and price and ease of acquiring the product (Leonidou, 2005).4
Post purchase behavior - When the product had been finally purchased the buyerevaluates the appropriateness with his needs.This can be referred to as satisfaction levelgenerated from the use of the product. If the product satisfies his/her needs than he/shewill buy the product again.1.2 Theories of buyer behavior in terms of individuals and marketsIn order to determine the buyer's behaviour in terms of individual and markets than aStimulus Response Model of buying behaviour can be described. This model will well explainthe buyer's behaviour in the market.(Source: Buyer behaviour: stimulus-response model)Through this model, a marketer can assess the buying behaviour of a customer. If themarketing stimuli is given to the buyer that is marketing mix is presented in an effective mannerand along with that other environmental stimuli is given that is economic, political, social andtechnological factors. Both the stimuli determine the characteristics of the buyer and those5Illustration1: Stimulus Response Model
characteristics helps in decision making process of the buyer. After taking decision, the buyerresponses accordingly that is which product to choose, of which brand, form which retail shop tobuy, at what time purchasing to be done, budget of the purchases and frequency of the purchase.Through this model, a buying behvaiour of the buyer can be determined.1.3 Factors affecting buyer behaviorCultural factors - The social class, customers, traditions plays a major role in purchasedecision making process. These factors are inherent from the childhood in the people.From the childhood the individual is influenced by the perception and actions of thefamily, friends and social group. Marketers should be aware of cultural differencesbetween different locations when offering their products for sale.For example, in Islamiccountries pork is prohibited, thus food company have to change their menus whileestablishing its chain in the Middle Eastern countries.Social factors - It includes family roles and status, reference and inspirational group.Their sub culture of the individual which consists of nationalities, religious beliefs, racialgroup and shared values in the geographical location (Johnston and Kristal, 2008). Itmajorly includes the external factors that impact the buying decision of the individual.For instance, the lifestyle of family is very modernized than all the products consumedwill be of highest quality and comes under the category of luxurious product. Thus, thecustomer belonging from that family will be highly influenced by the norms of theirfamily.Personal factors - It includes factors such as age, gender, lifestyle, lifecycle stage,occupation, education, and self developed concept. These are moreover concerned withinternal factors of the individual. The young generation would prefer going and dine outmore frequently as compared with older generation. The up scale customer segmentswould prefer luxury resorts and venues as compared to middle class.Psychological factors - It includes factors affecting motivation level of the individual.The factors affect the perception, beliefs and attitude. Motivation will drive the needs ofthe consumers. As per the Maslow's theory, when an individual satisfies one need, hemoves upwards to fulfill other (Shoham,and Brenčič, 2003).6
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