Consumer Psychology and Marketing: A Report on Huawei's Strategies

This report, titled 'Marketing Consumer Psychology,' delves into the crucial role of consumer psychology in influencing purchasing decisions, using Huawei as a case study. It begins with an overview of Huawei and examines how consumer perception of technologies like facial recognition has evolved, impacting convenience and security. The report then dissects the customer decision-making process, outlining the steps from identifying needs to making a purchase. It explores various influencing factors, including economic, personal, social, marketing mix elements, and psychological variables like personality, attitudes, motivation, and learning. The report also discusses the role of consumer involvement and memory markers. Furthermore, it provides insights into future directions for the changing trends in mobile phones. The report emphasizes the significance of understanding consumer psychology for effective marketing strategies and brand success.

RUNNING HEAD: MARKETING CONSUMER PSYCHOLOGY
MANAGEMENT

MARKETING CONSUMER PSYCHOLOGY 1
Contents
Introduction......................................................................................................................................2
Company overview..........................................................................................................................2
Change in consumer perception.......................................................................................................2
Decision-making process.................................................................................................................4
Influencing factors.......................................................................................................................5
Psychological variables...................................................................................................................6
Personality....................................................................................................................................6
Attitudes.......................................................................................................................................8
Motivation....................................................................................................................................9
Learning.....................................................................................................................................10
Role of Consumer involvement.................................................................................................12
Learning process........................................................................................................................12
Influence of memory markers....................................................................................................12
Future direction..............................................................................................................................13
Conclusion.....................................................................................................................................14
Bibliography..................................................................................................................................16

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Introduction
The report is prepared on the title ‘Marketing Consumer Psychology’. It suggests that
consumer psychology plays a crucial role in the purchasing decision of the customer. It is not a
static concept as it varies from person to person. It is analyzed that a clear understanding of
customer psychology aids the brand in the marketing of a product/service.
The report initiates with an overview of Huawei Company. The first section provides
information about the customer’s perception of the ‘facial recognition technology’ in mobile
phones. The second section lays emphasis on the customer decision-making process and various
influencing factors with respect to purchasing of mobile phones. The third section focuses on the
various psychological variables that have an effect on the individual’s buying behavior. In order
to provide effective information, it involves the application of various theories and models based
on individual attitudes. The last section of the report deals with various social and cultural
elements that provide a future direction for the changing trends in mobile phones. Thus, the
report focuses on consumer psychology with respect to Huawei and its face recognition feature
The key purpose of the report is to pour light on the concept of consumer psychology
with respect to marketing. It also provides an opportunity to upgrade the knowledge based on the
given title.
Company overview
Huawei is a China-based company founded in the year 1987 by Ren Zhenfei. It offers
products based on information and communication technology. It has delivered its products in
around 170 countries including India and Singapore (Huawei, 2019). It provides wide variety of
smartphones to consumers based on different features. Recently, it has launched a face
recognition feature in its smartphones (Tao , Cremer , & Chuno, 2016).
Change in consumer perception
It is analyzed that customer’s has changed their perception of the application of facial
recognition technology in enhancing convenience. It is evaluated that ‘facial recognition
technology’ has improved the customer experience.

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1. Security: Facial recognition technology has helped the user in enhancing the security of
their personal data. It is artificial intelligence and acts as a modern tool for enhancing
security. This security has raised the level of data safety in mobile phones. It is analyzed
that the chances of unlocking the phone by unknown person through facial recognition
feature is one in a million. Thus, facial recognition feature is a tremendously fast process
that enhances the security of a mobile phone.
2. Time saving: This technology has assisted the customers in saving their precious time.
This is because it does not require additional functions operate. It works in the absence of
any buttons. It performs its function by analyzing the various facial features of an
individual. It combines all these features into a unique code that identifies the user (Jain
A. K., 2011).
3. Access to new technology: it is a form of updated technological feature. It has emerged
in the mobile phones and other technical devices. By enabling this feature in mobile
phones like Huawei, mobile brands have helped the customers by acknowledging them
with the latest technology. It is a low cost technology and because of its reduced cost, its
application is used by many mobile brands. Example: Mobile brands like Huawei, One
Plus and Samsung provides the facial recognition features in mobiles phones. Huawei
Honor 7x is one of the example of mobile phone that has facial recognition technology as
a mobile feature.
4. Better convenience: The availability of this feature in mobile phones has provided the
customers with better convenience. It involves recognizing the human face without the
involvement of physical contact. It automatically matches the face of the user with the
image saved in database. In order to match the users face, it usually takes into account
nose shape, colour of the iris and face cut. It allows accessing the essential mobile data
within a few minutes. Through face recognition technological feature, only those users
can access the information that actually owns it. Thus, through the application of its
usage, the customer can alter the long passwords with facial recognition feature (Gates,
2011).

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Decision-making process
A customer does not simply make a purchase decision. It involves a series of steps to choose a
product and buy the same. Thus, the decision of an individual is mainly relying on five major
steps. These are described below:
1. Identification of goal: The initial step in the decision-making process is stating the
problem. It involves defining the aim of the decision making process. Generally, from the
mobile phones perspective, a customer goal is to purchase a mobile phone that is
economical, provides warranty, provides multiple features, convenient to handle and is
technologically upgraded.
2. Gathering information for weighing alternatives: This is the second step in the
decision-making process. At this stage, the customer gathers information about the
available alternatives to check the most appropriate one. Example: Customers will gather
information based on top demanded mobile phones. At this stage, the customer will
differentiate the mobile phones with respect to pricing, features and benefits (Lunenburg,
2010).
3. Considering the consequences: At this stage, the customer evaluates the available
alternatives. A customer thoroughly determines the possible benefits that a product may
offer through its usage. Example: A customer will evaluate the various mobile phones
like Samsung, Huawei and Oppo for making the purchase decision.
4. Making the decision: In this stage, a customer analyzes weather a particular product is
fulfilling the requirements and the goal of the purchasing. After evaluating the pros and
cons of a specific product, a customer makes a purchasing decision by choosing a
particular product.
5. Action: At this stage, the customer implements his/her decision by making a purchase
through a suitable channel. A customer decides to purchase the mobile phones through
various channels like digital and physical. In the digital channels, a customer has various
options to complete its payment through mobile banking, bank transfer, digital card
payment and cash on delivery (Lunenburg, 2010).

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Influencing factors
It includes all those factors that have an effect on the buying behavior of the customer.
The top among them are as follows:
Economic factor: This is the It forms the foundation of a purchasing decision of a
consumer. These factors need is dominated by the affordability of a customer. Thus, it suggests
that customers opt for mobile phones that match their buying power. Example: I phone and
Huawei mobile phones attain a major difference with respect to their price. A customer may
develop a need for I phone. Despite developing a strong urge for I phone, a customer cannot
choose to buy the same as it lies above the purchasing power. Thus, to align with the
affordability, a customer has to opt for Huawei mobile phones. Hence, it concludes that
economic factor attains a crucial role in the buying decision (Rani, 2014).
Personal factor: It involves multiple factors including age, occupation, lifestyle, social
and economic status of the individual. These factors both individually and collectively affect the
buying decision of a customer. Example: A customer of a higher lifestyle and upper economic
status will undeniably opt for mobile phones like iPhone. These is because I phone is expensive
and it acts as a status symbol. Similarly, individual with middle class economic status will opt for
mobile phones of brands like Huawei and Samsung.
Social factors: It comprises of family, reference and peer groups. It also attains a specific
role in the buying decision. Example: Occasionally, a customer also opts for a mobile phone that
is suggested by the family member and peer groups (Rani, 2014).
Marketing Mix: A marketing concept suggests the delivery of the right product at the right time
through the right channels. It has four main components. These are Product, Price, Place and
Promotion. Each of these factors has a major influence on the buying decision of a consumer.
1. Product: It is a commodity offered to the customer in return to price (Brooks, 2012). A
customer will opt for products that provide new features and upgraded technology. In
order to acknowledge its customers with the best product, Huawei brand provides its
customers with mobile features like face recognition and fingerprint sensor for unlocking
phone (Gozalvez, 2016).

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2. Price: It the amount charged to the customer with respect to the product (Londhe, 2014).
In the year 2019, Huawei has slashed down the price of its ‘Huawei Y6’ mobile phone in
Singapore. It had switched the price from $198 to $54. Thus, it resulted in developing
immediate massive demand for the mobile phone. This, in turn, resulted in extremely
high sale of ‘Huawei Y6’ mobile phone in Singapore (Tay , 2019).
3. Place: It involves the various channels and platforms through which the product is
delivered to the customer (Lee, 2011). It is examined that Huawei offers its mobile
phones through digital as well physical channels. Thus, it suggests that having easy
access to Huawei will have a positive effect on the customer’s purchasing decision.
Hence, availability of a product at the required place also attains a significant role in
buying behavior.
4. Promotion: It involves the various marketing activities performed by the brand for the
promotion of a product/service (Riaz, 2012). In order to sell its mobile phone (Huawei
Y6), Huawei has taken a marketing approach. However, it does not prove to be the right
promotion approach because it resulted in chaotic scenes at the Huawei mobile stores.
Additionally, it has also received multiple complaints about its unscrupulous promotion
technique (Tay , 2019).
Psychological factor: There are various elements that constitute the psychological factor.
Some of these are perception, motivation, beliefs and attitudes of an individual. Example: A
customer with an attitude of being economical will unquestionably opt for mobile phones like
Huawei. This is because it came with diverse price range and is usually economical.
Functional factors: It states that customer’s chooses products that fit in their best interest
(East, 2016).
Psychological variables
Personality
It has a distinct significance in the customer buying decision. A personality determines
the inner characteristics of a customer. These characteristics ultimately display the customer’s
choice and preference for various products. Various personality traits have a role in the
customer’s buying decision. Some of these are described below:

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 Need for uniqueness: It states that certain customers avoid being conventional. In order
to remain updated with the current arena, they show a preference for mobile phones that
are unconventional in their usage and features.
 Dogmatism: It is a personality trait suggesting customer preference. It states that a
customer with low dogmatism shows positive behavior towards unfamiliar products.
Therefore, such customers will show a preference for innovative products and features in
a mobile phone (Cobb-Clark, 2012).
Personality theory
As per the personality theory, there are three major theories named as Freudian theory,
Non Freudian and Trait Theory.
Freudian theory states that human behavior is formed by id, ego and superego. Neo Freudian
theory suggests that personality is formed the childhood behavior and experience. Additionally,
as per the trait theory, it is analyzed that personality is made up of number of traits (Peck, 2019).
Thus, examination of personality theory is essential to understand the behavior pattern of the
customer. It will assist in serving the customer with the best suitable mobile phones.
Brand personality
It is the set of human characteristics that are attributed to a brand name. It is analyzed that
brand personality attains a significant importance in the customer buying decision. There are five
major types of brand personality. It refers to the brand personification. Huawei brand personality
relates with a fun loving person. Thus, every individual adores fun. Thus, it becomes easy for the
customers to easily relate Huawei mobile with their personality (Sung, 2010).
Lifestyle concept
Lifestyle determines the behavior pattern, attitude and interest of the individual. As
Huawei mobile are affordable, it is generally developed for targeting individuals with mediate
life style. Thus, it acts as a tool to understand customer behavior (Krishnan, 2011).
Psychographic segmentation

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It is a strategic method by which total market is divided based on customers psychology,
personality, lifestyle and attitude. As mentioned above, Huawei brand focuses on individuals
with mediate lifestyle. Thus, it has priced its mobile to be affordable the mediate lifestyle (Park,
2014).
Attitudes
As per the functional theory of attitude, four major components help the brands in
understanding the attitude of the customers. It also focuses on the significance of attitude in the
buying process.
1. Utilitarian function: It states that customer opts for a specific purchase because it
provides them a specific form of benefits and rewards. Example: Customer opts for
mobile phones because it allows them to connect to other individuals. Similarly, customer
will opt for Huawei phones as it functions like ‘face recognition’. This specific function
will provide the benefit of higher security and me saving while unlocking their mobile
phones.
2. Knowledge function: It suggests that attaining attitude helps the customers in the
decision making the process. The customer that favors Brand loyalty also experience fast
decision-making. Thus, a fast decision-making process also enables fast purchase. This
ultimately benefits both the brand and the customer s it saves time and effort. Similarly,
Huawei Company will also experience fewer efforts in making sale of its mobile phones
to customers (Argyriou, 2011).
3. Value expressive function: It states that it allows the customers to express their inner
thoughts, feelings and preferences. A positive expression or focused attention towards a
specific area also plays a major role in purchasing decisions. Example: A customer with a
high focus for the security of personal data will show preference for mobile phones that
have the feature of fingerprint sensor or face recognition for unlocking the mobile phone.
Thus, Huawei brand has also enabled such features in certain mobile phones for
customers with such attitude.
4. Ego Defensive function: It states that attitude works as a defense mechanism for
consumers. It states that customers safeguard themselves from lowering their self-

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concept. Example: I phone and an android mobile phone provides similar features to
some extent. However, there is major difference in their pricing. Hence, customer that lay
prior attention in status will give priority to I phone in the purchasing decision. Such
customers ignore the fact that it provides similar benefits like other android phones
(Carpenter, 2013).
Motivation
A customer’s motivation for buying a product is not a single step concept. It suggests that
various elements from the customer’s motivation to opt for a specific product in the purchasing
decision.
Process
It involves a series of steps:
1. It initiates by identifying unsatisfied needs from the existing mobile phone.
2. In the second stage, it develops a tension for the based on the unsatisfying need with
respect to mobile phone.
3. In order to minimize the tension, the customer takes an action essential for purchasing the
mobile phone.
4. At this stage, the customer accomplishes the goal of purchasing a better mobile phone.
5. In the last stage, the customer gives valuable feedback regarding the improvement or
befits availed through usage of mobile phone (Weiner, 2012).
Major aspects
As per the Fishbein Model, there are four important aspects of the customer buying
decision. It includes the following:
 Belief: It is the knowledge that a customer has with respect to mobile phones. It suggests
that certain customers are highly updated with respect to newer product launches while
others are not. Thus, the customers with mere knowledge about the mobile phone will fail
to buy the best suitable mobile phone as per the need.
 Objects: It focuses on the belief that a customer has with respect to brand and product.
Example: A customer generally shows a positive belief towards the iPhone. This is

MARKETING CONSUMER PSYCHOLOGY 10
because Apple is a multinational reputed company. Thus, it has the same impact over the
mind of the customers as well.
 Attributes: It relates to the various features that product attains. In order to gain
customer attention, a brand should focus on providing quality features rater then
maximum features in mobile phones (Jain V. , 2014).
 Benefits: It can be considered as an outcome that a customer receives. Thus, it is the
result and an experienced customer faces by using the attributes of a product. It suggests
that a customer that has experienced a positive outcome from the product will undeniably
opt for the same brand in future purchases also (Alsamydai, 2015).
Learning
In order to understand the customer buying behavior, Hierarchy of effect model can be
best suitable. This involves a series of steps that highlight the customer’s behavior towards
making a purchase. As per the hierarchy of effects model, there are six steps that suggest the
process between viewing the product-to-product purchase.
1. Awareness: This is the initial stage in the hierarchy of model effect. It states that the
customer becomes aware of the product (mobile phone) at this stage through the
advertisement. However, it suggests that there is no guarantee that the customer will
remember the product. Thus, effective advertising plays a crucial role in catching the
attention of a customer.
2. Knowledge: This is the second stage. It states that customer gains essential information
about mobile phones through digital platforms and other sites. In the current arena, it
becomes very easy for the customer to collect the required information at the click of the
button. However, if the customers are unable to gain knowledge about the Huawei
Mobile phone, they will switch to other mobile phones like Samsung and Vivo. Thus, it
becomes the duty of the advertising company of Huawei to ensure that essential and
required knowledge is available on the digital platform through easy reach.
3. Liking: At this stage, the mobile company has to develop features that are strong enough
to attract customers. Example: Huawei mobile company has developed a feature of ‘Face
recognition’ for unlocking. Thus, it is a unique feature and it will help the company to
encourage the customers to show fondness to Huawei mobile phones (Kroll, 2010).

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4. Preference: Generally, a customer shows fondness towards multiple mobile phones.
Thus, it develops the duty of the marketer to highlight their mobile phones from the
other. In order to disconnect the customers from the rival product, Huawei Company
shows unique selling points and benefits to its customers. This activity will assist the
Huawei Company to differentiate their mobile phones.
5. Conviction: This stage requires developing the customer's desires towards Huawei
phones. In order to develop the customer desires for the purchase of Huawei mobile
phone, the brand will allow the customers to test the mobile phone. This step helps the
brands in assuring the customers that the product matches the customer expectations and
requirements.
6. Purchase: This is the last stage in the hierarchy of model effect. It states that this stage
should be easy and not time-consuming. This is because at this stage the customer has
agreed on the decision of purchase. In order to not hinder the customer interest, the brand
provides multiple payment option for the customer. Similarly, to sell mobile phones,
Huawei Company offers payment options like cash on delivery, net banking, and digital
card payment (Kroll, 2010).
Theories
Classical theory: A form of learning that has a major impact on the individual
psychology. It is learned response with respect to the stimulus. It suggests that individuals learn
about the new mobiles phones through various stimuli like television and radio.
Instrumental theory: It states that behavior is modified by reinforcement. Thus, it
results in purchase of mobile phone of involuntary choice.
Cognitive theory: It suggests that customer behavior can be understood by individual’s
thought process. It states that specific thoughts of individuals build a driving force to opt for the
purchase of a mobile phone.
Observational theory: It states that individual imitate certain pattern of behavior via
observation. It suggests that individuals observe certain behavior pattern like positive attitude or
satisfaction attained from using a mobile phone. Thus, they purchase the same mobile phone
(Vapnik, 2013)