Consumer Behavior Analysis: Factors Influencing Laptop Choice

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This report examines consumer behavior in the context of laptop purchasing decisions. It analyzes the choices of three individuals with varying demographics, personality traits, and economic backgrounds, evaluating their preferences for different laptop models. The study considers factors such as price, processor, memory, screen size, warranty, and weight. The analysis reveals how economic factors like income and price sensitivity, along with demographic elements like age, gender, and occupation, and personality traits influence laptop choices. The report concludes by providing recommendations for laptop marketers, emphasizing the importance of understanding consumer behavior to tailor products and marketing strategies effectively. The report utilizes survey data and statistical analysis to support its findings, providing a comprehensive overview of the consumer decision-making process in the technology market.
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Running Head: SCIENCE OF CONSUMER BEHAVIOUR
Science of Consumer Behaviour
Name of the Student
Name of the University
Course ID
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1SCIENCE OF CONSUMER BEHAVIOUR
Executive Summary
The theory of consumer behavior has an important role to play in understanding attitudes of
business client and deciding marketing strategy. Several factors can influence consumers’
decision (Frederiks, Stenner & Hobman, 2015). The paper applies theory of consumer behavior
in deciding choice of laptop. Behavior of different consumers are analyzed using demographic,
social, cultural, personal and economic factors.
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2SCIENCE OF CONSUMER BEHAVIOUR
Table of Contents
1.Introduction...................................................................................................................................3
1.1 Background............................................................................................................................3
1.2 Problem Statement.................................................................................................................3
1.3 Aim of the Research..............................................................................................................3
1.4 Research Objective................................................................................................................4
2. Findings and Analysis..................................................................................................................4
2.1 Demographics of respondents................................................................................................5
2.2 Personality of respondents.....................................................................................................6
2.3 Analysis of responses............................................................................................................7
3. Discussion..................................................................................................................................12
3.1 Economic factors.................................................................................................................12
3.2 Demographic, social and cultural factor..............................................................................13
3.3 Personality factors...............................................................................................................14
4. Recommendation.......................................................................................................................14
5. Conclusion.................................................................................................................................14
6. References list............................................................................................................................16
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3SCIENCE OF CONSUMER BEHAVIOUR
1.Introduction
1.1 Background
In any business decision behavior of consumers plays an important role. Consumers are
the targeted group of people for whom goods and services are produced. Consumers take their
own decision regarding how much money they are willing to spend on goods and services
(Solomon et al., 2014). Theory of consumer behavior is the study of consumers’ preference and
choices and finally cater to the decision making process of consumers. Decision of consumers
involves six main stages. In the first stage consumers identify their needs (Anker et al., 2015).
The second stage involve collecting information as much as possible about goods of their choice.
In the third stage consumer evaluates the available alternatives. After that consumers decide their
own purchase criteria to select one particular good. Then come the last stage where evaluation is
made regarding the satisfaction level reached by the individual from the purchase made. There
are a number of factors that influences purchase decision of a consumers (Yadav & Pathak,
2016). These factors can be classified as demographic factor, personality, cultural background,
economic and social factor.
1.2 Problem Statement
In a technologically sound world, purchasing decision of laptop is a crucial consumption
decision (Jayasingh & Eze, 2015). The paper evaluates purchasing decision related to five
different laptop model having different specifications. Laptop choices of three different
individuals are evaluated based on designed survey question.
1.3 Aim of the Research
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4SCIENCE OF CONSUMER BEHAVIOUR
The paper aims to analyze preference of laptop for three different individuals. It attempts
to find out factor influencing purchase decision of the individual so that proper recommendation
can be made for laptop marketers.
1.4 Research Objective
The main objectives of the research paper are the following
To find out factor influencing purchasing decision of laptop
To analyze factor related to demographic and personality important in the decision
making prices
To make appropriate recommendation to the laptop marketers
2. Findings and Analysis
In the analysis five different types of laptop are chosen. The laptop models are different
in terms of basic configuration like processors, memory, video card, scree size, period of
warranty and weight (Hajli, 2015).
Option 1 Option 2 Option 3 Option 4 Option 5
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$349 $449
$1,739 $1,689
$1,199
Prices
Figure 1: Prices of different types of Laptops
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5SCIENCE OF CONSUMER BEHAVIOUR
As shown from the above figure, the most expensive laptop model is option 3 followed by option
4, option 5. Price of option 1 and option 2 differs significantly from that of three other.
Now, three different respondents are chosen. Questionnaire has been designed based on different
areas such as demographics, personality indicators and an overall choice of laptop model. Choice
are based on some selected criteria which include price, processor, memory, hard drive and video
card, screen, warranty and weight.
40%
20%
20%
10% 5% 5%
Importance Score
Price
Processor
Memory, hard drive, and video
card
Screen
Warranty
Weight
Figure 2: Important score related to different models of laptop
As shown from the figure above highest weightage has been given on price. Processor
and memory card has an equal weightage of 20% followed by screen size, warranty and weight.
2.1 Demographics of respondents
The demographics of respondent include gender, age, marital status, level of education,
occupation, personal and household income, ethnicity and others (Johnstone & Tan, 2015).
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6SCIENCE OF CONSUMER BEHAVIOUR
The first respondent is a 19 years old male. He is a second year university student and
also engage in some casual work. He is single and belongs to Korean culture. For this individual
household income and own income is same with income being $29,700. The decision regarding
his choice of laptop is taken by himself.
The second respondent is a 26 years old female. She has a bachelor degree and currently
working as a flight attendant. She has a de facto marital status and belongs to Australian culture.
For this individual household income is more than double her own income. The decision
regarding his choice of laptop is taken by himself.
The third respondent is a 38 years old male. He has a bachelor degree engaging in
occupation of fashion designer. He is divorced and is an American. For this individual household
income and own is same with income being $99,100. The decision regarding his choice of laptop
is taken by himself.
2.2 Personality of respondents
The first respondent, the Korean second year university student is sympathetic and kind
to others. He is not extraverted. He is careless and inefficient. He is indifferent towards new
experiences and regarding his mood.
The second respondent who is a female flight attendant is extremely extraverted, moody.
Sympathetic to others, open to new experience and is careful and efficient.
The third respondent, the American fashion designer is extremely moody, extraverted and
open to new experience. He is not a sympathetic person. He is neither careful nor efficient.
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7SCIENCE OF CONSUMER BEHAVIOUR
I am extraverted I am moody I am sympathetic
and kind to others I am open to new
experiences I am careful and
efficient
0
1
2
3
4
5
6
Personality
Respondent 1 Respondent 2 Respondent 3
Figure 3: Personality statistics of respondents
2.3 Analysis of responses
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Price
Respondent 1 Respondent 2 Respondent 3
Figure 4: Responses regarding price
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8SCIENCE OF CONSUMER BEHAVIOUR
Among the five available model all the three respondent consider price of option 1 and option 2
as the most favorable. The second respondent is indifferent between prices of rest of three
models. Only respondent 3 considers price of model 5 to be good.
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Processor
Respondent 1 Respondent 2 Respondent 3
Figure 5: Responses regarding processors
Based on the choice of processor, the Korean teenagers and Australia flight attendant highly
favor option 3 and option 4. The American fashion designers shows strong preference for option
3 while he is indifferent between option 4 and option 5. Respondent 2 also prefers option 1 and
option 2 based on processor choice while other two considers processors of option 1 and option 2
as poor.
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9SCIENCE OF CONSUMER BEHAVIOUR
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Memory, hard drive and video card
Respondent 1 Respondent 2 Respondent 3
Figure 6: Responses regarding Memory, hard drive and video card
Respondent 1 highly prefers option 3, option 4 and option 5. Respondent 2 highly prefers option
3, option 4 and option 5. While she also prefers option 2 and remain neutral about option 2.
Respondent 3 shows strong preference for option 3, option 4 and option 5 while he strongly
dislikes option 1 and option 2.
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Screen
Respondent 1 Respondent 2 Respondent 3
Figure 7: Responses regarding Screen Size
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10SCIENCE OF CONSUMER BEHAVIOUR
So far as screen size is concerned, respondent 1 mostly prefers option 3 followed by option 2 and
option 5. Option 1 and option 4 is preferred by respondent 2 while respondent 3 mostly prefers
option 3.
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Warranty
Respondent 1 Respondent 2 Respondent 3
Figure 8: Responses regarding Warranty
Regarding warranty, the first respondent prefers all the five models. Preference however is
greater for option 3 and option 4 having a warranty of 4 years and 1 year respectively.
Respondent 2 and 3 highly dislike option 1, option 2 and option 5 with warranty of only 1 year.
Both respondent 2 and 3 mostly preferred option 3 with a 4-year warranty period.
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11SCIENCE OF CONSUMER BEHAVIOUR
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Weight
Respondent 1 Respondent 2 Respondent 3
Figure 9: Responses regarding Weight
The Korean student show preference for all the five models when asked about weight. Preference
however is greater for option 1 and option 4. The female flight attendant prefers option 1 and
option 4 while strongly disliking others. The American fashion designer shows preference
towards option 1 and option 4 while for other he remains indifferent.
Overall choice
Option 1 Option 2 Option 3 Option 4 Option 5
0
1
2
3
4
5
6
Rank of Choice
Respondent 1 Respondent 2 Respondent 3
Figure 10: Rank of Choice about different laptops
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12SCIENCE OF CONSUMER BEHAVIOUR
The laptop choice of Korean Second year university student is option 5. For the female flight
attendant, the choice of laptop is option 4 while that for American fashion designer is option 3.
3. Discussion
From the analysis made is section 3, factors influencing choice of laptops for the three
different respondents are can be classified as economic factors, demographic, social and cultural
effect and personality effect (Mylan, 2015).
3.1 Economic factors
In deciding consumer demand the two important economic factors include income and
price. Demand varies with varying level of income and price (Roberts, Hughes & Kertbo, 2014).
Price
The theory of consumer demand suggests that there exists an inverse relation between
price and demand of a particular commodity. As price increase demand decreases and vice versa
(Hainmueller, Hiscox & Sequeira, 2015).
Figure 11: Price and demand
(Source: Panzone et al., 2016)
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13SCIENCE OF CONSUMER BEHAVIOUR
In determining laptop demand, all the three respondent mostly prefer prices of option 1 and
option 2. These two laptop models have lower price as compared to three other. Because of
importance of prices, in the evaluation criteria highest weightage has been given on price (Lee et
al., 2017).
Income
Income by determining affordability determines demand of a good. Not only personal
income but also household income in important to determine demand of a specific good. With
income consumer can afford a better quality of product (Rezaei, 2015).
Among the three respondent, the third respondent has the highest personal income. This
is reason he can afford the most expensive laptop, Dell Inspiration 17 5000 (option 3) with the
price being $1739. Respondent 2 though has a higher household income than respondent 3 but a
lower personal income. This is why she prefers Dell XPS 13 (option 4) having second highest
price. Finally, respondent 2 having a lower household income and personal income and hence,
prefers option 5 (Dell Inspiration 15 7000 Gaming) which have a relatively lower price as
compared to option 3 and 4.
3.2 Demographic, social and cultural factor
Gender, age, education level, occupation and ethnicity is related with behavior of
consumers (Das, 2014). The male Korean university student prefers Dell Inspiration 15 7000
gaming laptop. Teenagers are more interested to but laptop specifically designed for gaming. The
female Australian flight attendant prefers Dell XPS 13. The laptop has a relatively small size
screen and light weighted as compared to laptop choice of two other respondents. The male
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14SCIENCE OF CONSUMER BEHAVIOUR
American fashion designer choses the laptop that has the best specification in all attributes and is
the most expensive.
3.3 Personality factors
Purchasing decision also goes with personality of consumers. The teenager Korean
student is not no efficient and careful. Neither is he extraverted. He is only concerned with his
own preference and prefers the gaming laptop most (Sasmita & Mohd Suki, 2015). The female
flight attendant being extraverted, willing to experience new things, careful and efficient prefers
a laptop that is middle range of price and have an overall good specification. The American
fashion designer is extraverted, moody and open to new experience demands the most expensive
and high definition laptop.
4. Recommendation
The requirements for laptop depends upon the task performed with the laptop and
associated software (Zemack‐Rugar et al., 2016). Dell Inspiration 17 5000 is a high definition
laptop having best specification. The concerned model is 8th generation mode with Intel Core i7
processor, has 8 GB memory, 1 TB hard drive, 17.3 inches’ screen and weights 2.79 kg. With
this specification, the model is perfectly suitable to run high-performance software and play high
generation games. The marketer of this laptop should target clients having need of high
performance software. The marketers should be well-aware regarding behavioral trend of
targeted customers.
5. Conclusion
The research report analyzes attitude of consumers towards different laptop model.
Attitude differs depending upon economic, demographic and personality factor. In deciding
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15SCIENCE OF CONSUMER BEHAVIOUR
laptop demand though highest weightage has given on pricing criteria but none of the three
respondent chooses low priced laptop (option 1 and option 2). This indicates other specification
of each model and characteristics of individuals play a dominating role in making laptop choices.
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6. References list
Anker, T. B., Sparks, L., Moutinho, L., & Grönroos, C. (2015). Consumer dominant value
creation: A theoretical response to the recent call for a consumer dominant logic for
marketing. European Journal of Marketing, 49(3/4), 532-560.
Das, G. (2014). Impacts of retail brand personality and self-congruity on store loyalty: the
moderating role of gender. Journal of Retailing and Consumer services, 21(2), 130-138.
Frederiks, E. R., Stenner, K., & Hobman, E. V. (2015). Household energy use: Applying
behavioural economics to understand consumer decision-making and
behaviour. Renewable and Sustainable Energy Reviews, 41, 1385-1394.
Hainmueller, J., Hiscox, M. J., & Sequeira, S. (2015). Consumer demand for fair trade: Evidence
from a multistore field experiment. Review of Economics and Statistics, 97(2), 242-256.
Hajli, N. (2015). Social commerce constructs and consumer's intention to buy. International
Journal of Information Management, 35(2), 183-191.
Jayasingh, S., & Eze, U. C. (2015). An empirical analysis of consumer behavioural intention
towards mobile coupons in malaysia. International Journal of Business and
Information, 4(2).
Johnstone, M. L., & Tan, L. P. (2015). Exploring the gap between consumers’ green rhetoric and
purchasing behaviour. Journal of Business Ethics, 132(2), 311-328.
Lee, S., Chua, B. L., Kim, H. C., & Han, H. (2017). Shaping and enhancing airport lounge
experiences: The application of brand personality and image congruity
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theories. International Journal of Contemporary Hospitality Management, 29(11), 2901-
2920.
Mylan, J. (2015). Understanding the diffusion of Sustainable Product-Service Systems: Insights
from the sociology of consumption and practice theory. Journal of Cleaner
Production, 97, 13-20.
Panzone, L., Hilton, D., Sale, L., & Cohen, D. (2016). Socio-demographics, implicit attitudes,
explicit attitudes, and sustainable consumption in supermarket shopping. Journal of
Economic Psychology, 55, 77-95.
Rezaei, S. (2015). Segmenting consumer decision-making styles (CDMS) toward marketing
practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and
Consumer Services, 22, 1-15.
Roberts, D., Hughes, M., & Kertbo, K. (2014). Exploring consumers' motivations to engage in
innovation through co-creation activities. European Journal of Marketing, 48(1/2), 147-
169.
Sasmita, J., & Mohd Suki, N. (2015). Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management, 43(3), 276-292.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer
behavior: Buying, having, and being (Vol. 10). Pearson.
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Yadav, R., & Pathak, G. S. (2016). Young consumers' intention towards buying green products
in a developing nation: Extending the theory of planned behavior. Journal of Cleaner
Production, 135, 732-739.
Zemack‐Rugar, Y., Rabino, R., Cavanaugh, L. A., & Fitzsimons, G. J. (2016). When donating is
liberating: The role of product and consumer characteristics in the appeal of cause‐related
products. Journal of Consumer Psychology, 26(2), 213-230.
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