The report aims at providing an insight into marketing in relation to Samsung, Hong Kong. It analyzes the stages of consumer decision making journey, importance of mapping a path to purchase for marketers, and how marketers of Samsung respond to decision making process.
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Running head: MARKETING Business Consumer Behavior Name of the Student: Name of the University: Author Note:
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1MARKETING Executive Summary: The report aims at providing an insight into marketing in relation to Samsung, Hong Kong. Samsung is one of the top ranking global brands that have been an industry leader in the technology. The company represented a multinational conglomerate with headquarters located in the Samsung Town, Seoul. The company comprises of various affiliated business that has been united under Samsung brand. The company was found in the year 1938 as trading company and within the couple of decades, the group underwent diversification in various areas that included textile, insurance, retail and securities. The company entered into electronics business in the late 1960 and introduced Smart phones, television and audio visual, computing and appliances. The report commences with an analysis and explanation of the stages of decision making journey of the consumers for its chosen product Smart phones. The report also provides an explanation of the importance of the marketers for mapping the path of purchase. The report further evaluates the response of the marketers to the process of decision making. The reports not only compare and contrast the difference between B2B and B2C but also evaluate the various approaches of the market search along with an understanding of decision making process. The report also puts forward an evaluation of how the different factors influences the buying behavior and the decision making process.
2MARKETING Table of Contents Introduction:....................................................................................................................................4 1. Explanation and Analysis of the Stages of Consumer Decision Making Journey for the Chosen Product/Service................................................................................................................................4 2. Importance of Mapping a Path to Purchase for Marketers..........................................................8 3. How Marketers of Samsung Responds to Decision Making Process through Application of Relevant Concepts and Models.......................................................................................................9 4. Comparing and Contrasting the Key Differences between B2B and B2C through Examples..12 5. Evaluation of Different Approaches to Market Research and Methods of Research for understanding Decision Making Process in B2B and B2C...........................................................14 6. Different Factors Influencing Decision Making and Buyer Behavior with Examples..............16 7. Influence of the Marketers on the Different Stages of Decision Making Process of B2C and B2B................................................................................................................................................18 Conclusion:....................................................................................................................................19 References:....................................................................................................................................20
3MARKETING Introduction: The aim of the report is to provide an overview of marketing in context of Samsung, Hong Kong. This particular report tries to draw in an answer to the various questions related to the aspects of marketing. 1. Explanation and Analysis of the Stages of Consumer Decision Making Journey for the Chosen Product/Service Inregardtotheconsumerbehavior,itisnecessarytounderstandtheconsumer preferences and the needs for motivation otherwise it can hurt them.The focus of the aspect of marketing remains in meeting and satisfying the needs and wants of the target consumers. In this particular question the study revolves around the individual selection, buying and the use and dispose of the services and the goods. It is however not simplistic to know the consumers as it might seem as consumers might say something while they might do something else (Wolny & Charoensuksai, 2014). In fact, the buying behavior of the consumers might not be in touch with the deeper motivation. They might respond to the influences that changes the mind in last minute. However, observing consumers provides a clue for the development of the newer products, product features, alternative marketing strategy and prices. The figure mentioned below describes the step of consumer buying behavior:
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4MARKETING Figure1: Diagrammatic Representation of Consumer Buying Behavior Source: (Muruganantham & Bhakat, 2013). The first step isproblem or need recognition. This is the stage that helps theconsumers in recognizing the needor problem andidentify the kind of the product that would meet the need(Rani, 2014). This represents a crucial step in helping the consumers in buying the services and the products because until the consumers does not perceive a need or a problem they would not be able to move forward with the purchase of the service or the product. A need is often triggered by the internal or the external stimuli. The internal stimuli refers to the personalized perception as experienced by the consumers which includes hunger and thirst. The external stimuli however represents the outside influence such as the word of the mouth and advertising. In present times, Smart phone has become one of the necessities of themodern society. Most people communicated and derived information through the apps used in the smartphones. Smartphone also ensurres easy transportability and allows theconsumers in accessing the
5MARKETING internet through Wi-Fi. Thus, this facility allows the consumers in obtaining any information irrespective of the place they are in. Thus, it portrays how a Samsung smartphone is able to fulfil a consumer need thereby motivating them in making a purchase. Information searchrepresents the secomd stage in the process of consumer decision making. It is the stage when the consumer who has already recognized the need will be persuaded in searching external or internal information in relation to the product or the service. This is the time, when the available options to consumers requires identification or further clarification. The internal search refersto the memory ofthe consumer or therecollection of the product guided or trigged by the personal experience. This is when the person tries to recall whether they have any previous experience with the brand, service or the product. In case the product is staple or represented something that is being purchased frequently then the internal information might not be enough in triggering the purchase. External research is carried out when the person does not have any prior knowledge regarding the product that encourages them in seeking information from the personal sources such as the word of the mouth from the family or frieds and other public sources like the consumer report or the online forum. They can also derive information from the marketer dominated source that involved advertisements through newspaper, radio, print and television and the sales person. Dependency on the external source is possible when the consume have a limited previous experience.In respect to the information search about Samsung, it can be obtained through advertisements as Samsung spends a huge portion of the budget on advertisement in radio, television, magazine or newspapar. It is also possible to find the advertisements of Samsung Galaxy S Series in every area from where one can learn about the products of the company. The warranty provided by the company represents
6MARKETING one of the area of its success. A good warranty srervice creates positive thoughts about a company and helps as a reminder when the consumer plans in buying the product. The third stage represented thealternative evaluation.During this particular stage, the consumers evaluates all the available product and brand optionsin a scale of attributes that possess the ability of delivering the benefit that the consumer seek. The brands and the products that the consumers compares put across the alternatives that the consumer consider during the process of problem solving. During the stage, the consumers remain influencedby theattitude amd the level of involvement that they might have with the brand, product and the overall category. In case, the consumer has a higer involvement then they might evaluate various brands whereas a lower involvement will involve them in looking into more than one brand.Thus while purchasing a Samsung smart phone consumers compare it with companies like Blackberry and Apple. It has been found that Samsung invest huge amount of money in designing its department as well as advertisements forattracting young people and give the company a competiive advantage over the strong competitors(samsung.com, 2019). ThePurchaserepresents the fourth stage of the process of consumer decision making and determines when the purchase of the smart phone usually takeplace. It the stage when the consumer is able to decide from whom they should make a purchase that is influencedby the environment,storeatmosphere,constraints,timepressures,shoppingexperienceandthe presence of the sale. It is also time when the consumer is also able to decide against making of a purchase decision. Here they might also take a decision of making a future purchase when the price remains higher compared to their means.
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7MARKETING Thepost purchase behaviorrepresents the situation when consumer is able to access whether he remains satisfied or dissatisfied with the purchase. It is the final stage of the process of consumer decision making that determines how the consumer feels about the purchase that also influence whether the purchase satisfies him in making a future purchase. Through sharing of his own feelings he will also be able to influence the decision of others. In case of Samsung Smart phones it has been found that the consumers deliver positive evaluation. There has also been an increase in higher repurchase intention amongst the consumers. 2. Importance of Mapping a Path to Purchase for Marketers Thepath to purchaserepresents the customer journey that helps the marketers in telling a story about the customer experience with the brand into a hopefully long term relationship (Chiu et al., 2014). The journey might seem pretty simple at the first glance but going into the detail makes it pretty complex. This because, the customers might come in contact with the business in number of ways and from the various starting points like referrals, marketing, search, social media, above the line campaigns and enquiries related to customer service. Thus, as a marketer it is important to make every experience of the customer as good as possible so that no interaction slip through cracks along with mapping out each of the experience or touch point along the journey of the customer. The mapping of the path to purchase helps the business in stepping into the customer shoes and in viewing their business from the perspective of the customers. It also helps the business in gaining insights into the common pain points of the customer for which they could adopt means in improving the customer experience and in defining what the customers as well as the prospective customers require for completing the purchase(Islam& Rahman, 2016).
8MARKETING However from the customer perspective, it is to be noted that the customers wants an experience with the brand to be seamless and connected(Chinomona & Sandada, 2013). They even expect the companies in knowing and remembering the multiple touch points regarding who they actually are and what they have been looking for without the need for repeating and clarifying the needs. The maps help in revealing the issues with the siloes of the business. The benefits ofmapping the pathof the purchase include(Seiler & Pinna, 2017): Enable the marketers in seeing where the customers interact with the business Enables the business to focus on the specific customer needs at the various stages in buying funnel. Helps in identifying whether the journey of the company is in logical order Provides an outside prospective on the process of sales Portrays the gaps between desired experience of the customer and one that is received in reality. Helps in highlighting the priorities of development. 3. How Marketers of Samsung Responds to Decision Making Process through Application of Relevant Concepts and Models. Conceptually, the process of decision making helps the managers and the other professionals related to the business in solving problems through examinations of the alternative choices and thereby deciding on the best route to be undertaken (Challagalla, Murtha & Jaworski, 2014). This involves making use of a step by step approach in making thoughtful and informed decisions that have a positive impact on the short term and the long term goals of the
9MARKETING organization. The marketers of Samsung respond to the process of decision making by following the seven steps. This includes (Kotler et al., 2015): 1.Identifying the decisions made 2.Gathering information 3.Identifying the available alternatives 4.Evaluating the evidence 5.Making a choice amongst common alternatives 6.Undertaking action 7.Undertaking review of the decision In addition to this, the marketers of Samsung also respond to the process of decision making through application of the following models: 1. Rational Model:It represents the initial attempt in knowing the process of decision making. Some of the features of this model include(Orquin & Loose, 2013): Clarity in problems Clarity in objectives People agrees on weights and criteria Known alternatives Anticipation of all consequences Rational Decision Making 2. Administrative Model: This particular model does not assume individual rationality in theprocessofdecisionmaking.Rather,ittakesintoconsiderationtheassumptionthat individuals often settle for less when they seek out for theseeking the best solutions since the
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10MARKETING decisions confronted typically demands greater time, information and the processing capabilities than they actually possess. This leads them in setting for bounded rationality or the limited rationality in the decision making. This particular model depends on certain basic concepts which are follows (Pescher, Reichhart & Spann, 2014): Sequential Attention to the Alternative Solution: This represents the tendency for the people in examining the possible solution considering one at a time instead of identification of all the possible solutions and thereby stops searching once the acceptable solution is available. BeingHeuristic:Thisrepresentsassumptionsthatguidesthesearchforthe alternatives into the areas that possess higher probability of yielding the success Satisficing: This involves a choosing a course of the action that is satisfactory under circumstances. This refers to the tendency of the decision makers in accepting the first alternative that meets the minimal acceptable requirement. This solution is preferred either when time represents major constraint or the alternative option seems essentially similar. 3. Retrospective Decision Model:This particular model focuses on how the decision makers attempts in rationalizing the choices after they were tried or have been made in justifying decisions. The entire process has been designed for justifying an intuitive decision. Through this means the individual is convinced that he or she is not only acting rationally but taking a reasoned and logical decision.
11MARKETING 4. Comparing and Contrasting the Key Differences between B2B and B2C through Examples Business to Business (B2B)refers to the commercial transaction that occurs between two business organizations like the manufacturer and supplier, wholesaler and manufacturer and the retailer and wholesaler (Janita & Miranda, 2013). Figure 3: Diagrammatic Representation of B2B Transaction Source:(Holliman & Rowley, 2014). For example, this can be explained with the help of the shoe as to how it come to showroom and reach the consumers. First all the merchants would acquire the raw materials from supplier after which the machining and cutting is done that followed making of shoe and its finishing. This is followed by packaging in the boxes the distribution of these boxes in the showrooms that are meant for purchase by the consumers. A series of the transactions occurs in the making of the shoe. B2B starts with the purchase of the raw materials and ends with the distribution of the product to the showroom.
12MARKETING On the other hand, the transaction that exists between the businesses and the final consumers is known as the Business to Customer (B2C). This might include any sales process where the selling of the goods and rendering of the service is directly done by the company to end user (Paris, Bahari & Iahad, 2015). Figure 4: Diagrammatic Representation of B2C Transaction Source:(Braojos, Benitez & Montes, 2015) For instance, the examples includes the purchasing of the clothes from the mall, paying for the internet connection and taking of beauty treatments from the parlor. Base for comparisonB2BB2C ConceptsThis involves selling of the goods and services between the two This refers to the transaction where the business sells the services and
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13MARKETING Base for comparisonB2BB2C entities of business.goods to the consumers CustomerRepresents the companyRepresents the end user Key focusesOn relationshipOn products Quantity of the merchandise It is largeIt is small Relationship builtSupplier - Manufacturer Manufacturer – Wholesaler Wholesaler – Retailer Retailer-consumer Horizon of the Relationship Vision for Long termVision for short term Selling and Buying cycle It is lengthyIt is short Decision of Buying Logical and planned, dependent on needs. Emotional and mostly based on the desire and want Brand Value Creation Mutual Relationship and TrustPromotion and Advertising
14MARKETING 5. Evaluation of Different Approaches to Market Research and Methods of Research for understanding Decision Making Process in B2B and B2C. Market research refers to the reporting, interpretation and the analysis of data about the marketsothattheorganizationssuchasthepublicsectoragencies,non-profitandthe corporations in making informed and thereby leading to successful decisions pertaining to the products/ services, competitors and the customers(Hague, Hague & Morgan, 2013). There however exist certain important distinctions within the market research world and amongst the vital ones refers to the difference between the Business to Business (B2B) and BusinesstoConsumer(B2C)marketresearch.Thereareactuallyfiveareaswherethe approaches actually differ. 1.B2B Market Research Keen on Involving Mixed Technologies Compared to B2C Market: It has been found that all the B2B studies related to the market research involves market research which is not always the case with B2C (Cortez & Johnston, 2017). The requirement depends on the three factors that are integrated for involving the complexity of the B2B markets, the necessity of capturing sufficient data and the needs of testing and verifying the results for achieving satisfactory levels of statistical assurance 2. B2B Market Research Involves Web, Telephone and Email Compared to B2C: The participants of the B2B market research has been business professionals and people belonging to the management level and the others and there it is more cost effective and practical for the studies for involving web, telephone and the surveys through emails versus the in person interviews (Durugbo, 2013). Besides, the focus groups are rare in the B2B market research due
15MARKETING to the logistical difficulty in getting the participants together at the same space and time. Further, the decision makers might be competitors and hence expecting them in providing candid feedback is not realistic. 3. B2B Market Research Involves Small Sample Sizes Compared to B2C:The pool of the B2B participants for market research is smaller compared to the B2C which also involves smaller sizes of the sample (Lilien, 2016). Most of the researchers rely on 80/20 rule which implies placing greater weight on the responses of the influential and the important respondents. There it is necessary for having sufficient number of the qualified participant otherwise the results of the market research will be unreliable and skewed. 4. B2B Market Research is Involved with Units Instead of IndividualsCompared to B2C: In a company with close to 100 to 200 employees close to 7 people will get involved in single purchase decision. The market research of B2B should reflect this by focusing on the decision making instead of the individuals. For instance, it is necessary for targeting various types of respondents separately for understanding the bigger picture as to how the decisions are being made within the environment of the enterprise. 5. B2B Market Research faces More Difficulty in Identifying Incentives and in Getting Buy in:In the B2C market research incentives for the participation involves fairly straight forward rewards such as the gifts cards, cash, special discounts and the free goods. However, the incentives remain more complex for the B2B market research since the incentives needed be geared toward business that participant is working for. Besides, the participants for B2B market research remain too busy in getting the buy in and in staying on the radar screen.
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16MARKETING 6. Different Factors Influencing Decision Making and Buyer Behavior with Examples The factors influencing the buying decision and buyer of the consumers are as follows: 1. Influence of Economic Factors:This acts as the foundation of the purchasing decision. It is to be noted that a person cannot buy what they cannot afford (Muruganantham & Bhakat, 2013). For example, affordability will only allow a person in buying a Samsung smart phone even when he needs one. 2. Influence of Functional Factors:This factor plays a key role in the buying decision of the consumers and it completely defines the needs. For example, the an individual will only make a purchase backed of what is making sense and fits in the best interest of customer. 3. Influence of Marketing Mix Factors:These represents the components of the marketing mix including product, promotion, pricing, place of distribution having an indirect or direct impactonthebuyingbehaviorofconsumers(Huang&Sarigöllü,2014).Forexample, consumers will take into account different things like the characteristics of the Smart phone, product availability at required location before making a purchase. 4. Influence of Personal Factors:They mostly include the occupation, age, lifestyle, economic and social status and gender of consumers. For instance, the model of the Smart phone chosen will depend on the personal factors that can collectively or individually impact the buying decision of consumer. 5.Influence of the Psychological Factor:In this case for example, the buying decision is influenced by the motivation, perception, beliefs, attitudes and learning (Lysonski & Durvasula, 2013).
17MARKETING 6. Influence of the Social Factors:The factors include the family, reference groups and the social status. For example, the buying decision of a consumer for a particular product model definitely gets influenced by the feedback from the reference groups. 7. Influence of the Cultural Factors:These factors have subtle influence on the purchasing decision of the consumers (Goodrich & De Mooij, 2014). As every individual lives in a complicated cultural and social environment, the types of service or products which they intend in using can indirectly or directly influence by the cultural context. For example, the buying decision of a product will remain influenced by the tradition, religion, moral values and caste. 7. Influence of the Marketers on the Different Stages of Decision Making Process of B2C and B2B. The marketers can influence the different stages of the decision making process of B2B and B2C in the following manner: 1. By understanding Decision Cycle:It is necessary for the managers for listening and learning the stages of the decision making that will enable them in developing a perspective (Hadjikhani & LaPlaca, 2013). 2.Through Establishment of Trust:In absence of the aspect of trust, the manager would not be able to have an influence (Christopher, Payne & Ballantyne, 2013). A simple way of establishing trust lies in talking less and listening more. Through alleviation of stress 3. Creation of Urgency:To ensure this, the managers’ needs to ask probable questions that would help people in considering issues, further contemplate the probable situation and also comprehending the consequences (Felix, Rauschnabel & Hinsch, 2017).
18MARKETING 4. Gaining Commitment:It is necessary to have a moment of truth and commitment for the managers in initiating the change. 5. Initiation of Change:In initiating change the managers must make use of softer phrases and words that would help him or her in boiling down a chance of initiating a change. 6. Through Overcoming Objections: The basic human nature lies in resisting a change due to the fear of the change, feeling if no hurry and considering it to be unwanted (Mintz & Currim, 2013). It is therefore necessary for the managers to clarify which will allow him in bottomingdowntosomeone’sconcernandcreateadistinctionbetweenobjectionsand procrastinations in reality. Conclusion: On a concluding note, it can be said that the report has provided a deeper insights into the various aspects of marketing in relation to Samsung, Hong Kong. Through the report, one is able get an overview of the stages of consumer decision making, importance of mapping a purchase path, marketers response to decision making, comparison between the differences between B2B and B2C, insight into the different methods of marketr research of B2B and B2C and the factors influencing the decision making and the buying decision. One is also able to get an insight into the marketers influence on the various stages of decision making of B2B and B2C.
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19MARKETING References: Braojos-Gomez, J., Benitez-Amado, J., & Montes, F. J. L. (2015, March). Impact of IT Infrastructure on Customer Service Performance: The Role of Micro-IT Capabilities and Online Customer Engagement. InPACIS(p. 41). C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers' repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic value and perceived risk.Information Systems Journal,24(1), 85-114. Challagalla, G., Murtha, B. R., & Jaworski, B. (2014). Marketing doctrine: a principles-based approach to guiding marketing decision making in firms.Journal of Marketing,78(4), 4- 20. Chinomona, R., & Sandada, M. (2013). Customer satisfaction, trust and loyalty as predictors of customerintentiontore-purchaseSouthAfricanretailingindustry.Mediterranean Journal of Social Sciences,4(14), 437. Christopher, M., Payne, A., & Ballantyne, D. (2013).Relationship marketing. Routledge. Cortez, R. M., & Johnston, W. J. (2017). The future of B2B marketing theory: A historical and prospective analysis.Industrial Marketing Management,66, 90-102. Durugbo,C.(2013).Competitiveproduct-servicesystems:lessonsfromamulticase study.International Journal of Production Research,51(19), 5671-5682. Felix, R., Rauschnabel, P. A., & Hinsch, C. (2017). Elementsof strategic social media marketing: A holistic framework.Journal of Business Research,70, 118-126.
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22MARKETING Wolny, J., & Charoensuksai, N. (2014). Mapping customer journeys in multichannel decision- making.Journal of Direct, Data and Digital Marketing Practice,15(4), 317-326.