Marketing Intelligence Report: Samsung's Market Research Analysis

This report provides a comprehensive analysis of Samsung's marketing intelligence, focusing on understanding buyer behavior and the purchase decision process. It delves into the vital stages of individual purchase decisions, evaluates various theories of buyer behavior, and examines factors impacting consumer choices. The report explores the relationship between brand loyalty, brand image, and repeat purchases, and assesses different market research techniques, including the utilization of facts to achieve market research objectives. It also evaluates the validity and reliability of research findings. Furthermore, the report includes a market research plan for gathering information, assessing market size and future demand patterns, conducting competitor analysis, and evaluating opportunities and threats. Finally, it calculates customer satisfaction levels through various techniques, including the design and review of a customer satisfaction survey. The report highlights key market challenges, provides insights into consumer preferences, and offers recommendations for maximizing customer satisfaction and improving Samsung's market position.

Marketing Intelligence
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Table of Contents
LO 1: Understanding buyer behaviour mechanism and the purchase decision process............3
1.1 Discussing the vital stages that are included in purchase decision by individual................3
1.2 Evaluating theories of buyer behaviour patterns of customers and other markets..............4
1.3 Discussing the factors that impact buyer behaviour............................................................5
1.4 Evaluating the relation between brand loyalty, brand image and repeat purchase..............5
LO 2: Utilising market research techniques in several situations for Samsung.........................6
2.1 Assessing different types of market research techniques.....................................................6
2.2 Utilising facts for achieving market research objectives.....................................................6
2.3 Assessing the validity and reliability of findings from conducted market research............7
2.4 Conducting market research plan for accumulating information for a specific situation....7
LO 3: Evaluating market size and future demand patterns........................................................9
3.1 Assessing the market size trends in a given market scenario...............................................9
3.2 Conducting competitor analysis for Samsung....................................................................10
3.3 Evaluating opportunities and threats for Samsung regarding product or service..............10
LO 4: Calculating customer satisfaction levels of Samsung....................................................10
4.1 Assessing techniques to evaluate customer response.........................................................10
4.2 Designing a customer satisfaction survey..........................................................................11
4.3 Review of the success of the survey..................................................................................13
Reference List..........................................................................................................................14
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LO 1: Understanding buyer behaviour mechanism and the purchase decision process
1.1 Discussing the vital stages that are included in purchase decision by individual
As per Creyer (2014), the viability of the purchase decision process is evident from the fact
that it has direct implications on the sale of a company’s products. The purchase decision-
making process is highly a psychological effect that initiates a stimulus that eventually leads
customers to purchase the products of a brand. The purchase decision process is easy to
manipulate but requires aggressive planning and clear idea of customer interests. In the
study’s context, the case of Samsung can be used due to the immense competition it faces
from several organisations regarding customer retention. Purchase decision of an individual
matters in a mobile phone industry due to the massive competition and any changes in buying
behaviour has a direct connection with changing brand loyalties.
Dishman and Calof (2015) argued that several factors can determine the changes of
preferences and choices of individuals that may include buying situation, buying capacity and
various other factors. Keeping in mind the business scenario of Samsung, several key factors
that influence buyer behaviour include:
Figure 1: Various factors in purchase decision-making
(Source: Eggert and Ulaga, 2013, p.110)
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Stimulus
Awareness of the issues
Searching key data
Identifying alternatives
Making final purchase
Evaluating purchase

Samsung has to be aware about the stimulus of consumers as the various social and
commercial issues can be detrimental in their decision to purchase. Competition from Apple,
HTC, LG, Motorola and many other domestic and foreign brands create substitute in the
minds of consumers. Samsung must focus on this factor and strive to build best value product
to cut out competition. The digital age allows consumers to easily access data and make
comparisons between products. The advancements in technology is allowing various brands
to create advanced goods and Samsung being one of the most technologically superior brands
must assert their strength regrading this fact. Constant monitoring of the post purchase
behaviour must be ascertained as well.
1.2 Evaluating theories of buyer behaviour patterns of customers and other markets
According to Fleisher (2014), buyer behaviour patterns cannot be solely understood without a
clear idea about the various markets and psychology of consumers. The use of models and
theories can be made to understand the buying behaviour decisions of consumers in a
competitive market. The use of Maslow’s hierarchy of needs model is critical for
understanding consumer buying decisions and the various market opportunities and threats
that hamper business.
Figure 2: Maslow’s hierarchy of needs
(Source: Frenzen and Davis, 2014, p.10)
The theory model suggest that human needs are based on certain hierarchical needs that must
be fulfilled in order to satisfy consumers. When the consumer is satisfied, the purchase
decision of the individual will automatically be influenced. As per Glance et al. (2015),
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customer needs and preferences are governed by certain physical, monetary and
psychological factors that must be attained in order to gain self-actualisation. As per the
model, the first step is to fulfil the various physiological needs that is followed by safety,
social and esteem needs. The attainment of all these needs leads to the consumer achieving
self-actualisation and this can impact buying decisions of the individual. Samsung must make
sure that the products they create are able to fulfil each and every aspect of this model and
fulfils the social, esteem and self-actualisation needs.
1.3 Discussing the factors that impact buyer behaviour
Gronroos (2013) opined that the buying behaviour in the current market atmosphere is
exposed to various factors both internal and external that affects the customer’s intention to
make purchase. Considering the fact that market competition is at its prime at the moment, it
can be said that factors such as psychological, social, economic and individual lifestyle
patterns.
Considering the fact that Samsung has established its niche market audience in the many
years of service, they still must be aware about the market influencers that can impact buying
decisions. The psychological factors such as motivation, personal needs does play a role in
people’s buying behaviour. Samsung needs to keep this in perspective for their product
designs and cater to esteem needs by building phones that are ergonomically brilliant and
value for money. The quality of products manufactured by them will be tested by another
psychological factor of that of perception. According to Heide and Weiss (2015), the manner
in which a consumer perceives the product is a huge element that can impact the buyer’s
behaviour towards making an actual purchase. The sociological factors like esteem and status
and shared values makes an impact on the buyer behaviour.
1.4 Evaluating the relation between brand loyalty, brand image and repeat purchase
Johnston and Lewin (2016) opined that brand loyalty is a factor that totally decides whether
the consumers are willing to buy and be associated with a particular brand or not. The fact
that brand image and repeat purchase factors are associated with brand loyalty make it
important for companies to work towards customer satisfaction. In the case of Samsung, they
have already established their brand image successfully and now boast of a healthy brand
recall value. This definitely improves their purchase decisions and the ability to manipulate
the buying behaviour. Even though they have strict competition from Apple and other brands,
the customer base around the globe for Samsung is still strong. This is a pivotal aspect as it
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suggests the brand’s liking among customers who are willing to purchase the new products
that the company launches each year. The brand loyalty has been achieved by solid quality of
the goods and the excellence in product performance and after sales performance. This is a
way improves perception of the brand and allows repeat purchase to be possible.
LO 2: Utilising market research techniques in several situations for Samsung
2.1 Assessing different types of market research techniques
Mudambi (2012) suggested that market research is an extremely important element to
understand the various market nuances and individual preferences as it can assist in better
policy making functions. In order to understand consumer buyer behaviour, it is necessary
that the primary and secondary sources of data collection techniques must be utilised. The use
of primary quantitative data will be especially beneficial in understanding consumer’s
preferences and demands.
According to Park and Kim (2013), primary sources of data are abundant and include
methods such as census, interviews, survey questionnaires and must be done from a proper
sampling of a target group. The study needs the use of quantitative data that will be available
after conducting survey questionnaires of 50 individuals from a random sample group. This
allows gathering of essential data about the choices and preferences of people regarding the
brand they prefer. Secondary data is readily available from sources such as books, journals,
websites and academic journals.
2.2 Utilising facts for achieving market research objectives
As per Patterson and Spreng (2014), the achievement of market research objectives gives the
company ample opportunities to highlight its shortcomings and decipher necessary steps that
will allow the smooth integration of new plans for the betterment of the company. Market
research clearly provides the necessary guidance and information that can help the business
in achieving the necessary customer satisfaction that will help in making people loyal
towards the brand. The recent atrocity that Samsung had to face in the form of Note 7, made a
serious dent in the image of the company. The exploding battery issue caused personal threat
and was deemed dangerous to use in public places especially airplanes. Considering the fact
that it was a flagship device at a premium price range. The losses the companies faced was
astronomical.
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It can be attributed that proper market research and quickness to save brand image helped
them take decisions to recall all the existing handsets from the market and even provided
offers to its customers for getting a new phone at its value. It can be assumed that market
research showed the company the popularity of other smartphone companies and the fact that
any slowdown in handling the issue will be harmful for the brand image and it can bear long
term losses. The company must be absolutely careful now to avoid any such mishaps as it can
totally ruin the company image and brand value that Samsung has accumulated in growing
years. Constant market research and innovation is of prime importance to the company.
2.3 Assessing the validity and reliability of findings from conducted market research
Smith (2014) suggested that the need for using valid information and findings in a research is
as important as other operational activities of the company. Any use of false information or
misinterpretation of facts can make the research invalid and lead to different conclusions.
This will have a domino effect on decision making and the business will need to suffer.
Samsung has to be very careful in its market research and must leave no stone unturned for
gathering and using accurate data. They cannot use data that suggests assumption based
information. The risk factor has increased following the Note 7 incident and it will require
them to be extra careful in understanding customer demands and preferences.
Trim and Lee (2013) argued that reliability is a factor that is essentially important for the
research to be valid and useful in integration on the business operations. The whole research
can become null and void if reliable sources and reliable data is not used for this purpose.
Since Samsung is a large organisation, reliability of data is paramount for their decision
making process. Various methods that can be used to test reliability must be used so that the
trueness of information and vital statistics can be used accurately to measure consumer
preferences and adopt ways for maximising customer satisfaction.
2.4 Conducting market research plan for accumulating information for a specific
situation
As per Wind et al. (2015), the development of a market research plan not only highlights key
issues, it helps in finding out steps to overcome the issues and recommending the best
alternative for achieving success in business.
Background Information:
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The massive demands and rise of various brands in the smartphone industry has created a
tough market for business proposition for every company. The have to outdo their rivals by
initiating best quality products so that buying behaviour can be altered and with the hope that
consumers switch brand preferences. Tough market economy and strict competition is
making difficult for business for Samsung.
Problem Issue:
The issue that is of prime concern is the changes in customer buying behaviour and
understanding the causes for the variable changes in buying behaviour decisions.
Objectives:
 Identifying causes for customer buying behaviour changes
 Understanding perception of people about Samsung
 Adopting thorough market analysis to clearly understand consumer preferences and
demands
 Constant conducting and monitoring of competitors analysis
Gathering Information:
Information collection is to be done using primary quantitative methods and by using survey
questionnaire techniques. Secondary information is to be taken from websites, books,
journals so that there is no possibility of falsified information which can hamper the actual
conclusion of the research.
Analysis:
The analysis will allow in developing a clear idea as to what exactly do the customers look
for in the products apart from value for money. The analysis will clearly shed light on the
areas where the competitors are stronger than the company and it can be useful for business
decisions.
Results:
Based on the analysis and findings, the proper results and final decision making process can
be initiated. It will allow Samsung to evaluate its business decisions and conduct operational
activities that is bent towards fulfilling customer interests and preferences. Product design
can be made top priority along with innovative features using latest technological aspects.
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Conclusion:
The various economic and personal factors can be found to be impacting buying behaviour
decisions and steps to eradicate the issues must be taken at the earliest to avoid any chances
of company losses.
Recommendation:
 Enhanced focus on R&D
 Constant competitors analysis
 Innovation
LO 3: Evaluating market size and future demand patterns
3.1 Assessing the market size trends in a given market scenario
According to reports, 80% of people in UK have a clear access of smartphones that accounts
for around 37 million people. The numbers also suggest how much of a reach mobile phones
have made in the country. However, it was also suggested that by June 2016, there was a
slow rise in smartphone purchase by only 7% that was a fall from 9% in 2015
(Computerweekly.com, 2017). Samsung had to face losses up to £1.9 billion due to
production stoppage of Note 7. As per statistical reports, the market size depends on the
preference of operating system that people have. The major players include Android, iOS and
Microsoft.
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Figure 3: Market share as per operating system in UK for 2015
(Source: Statista.com, 2017)
The figure above shows the preference of people for android devices and it is excellent
opportunity for Samsung to target the market.
3.2 Conducting competitor analysis for Samsung
It is evident that a competitor analysis can comprehensively allow in determining the various
strengths and weaknesses of each other. The major market competition for Samsung arises
from Apple. Both are technologically capable companies that have revolutionised the
smartphone market. Samsung has given tough competition to Apple regarding features such
as design, performance and having quick wireless charging. Apple has always been known
for its unique design and overall user experience. Business has been very cutthroat between
the two, but of late Apple has taken a substantial lead in the market with its new iPhone 7.
The new Samsung galaxy S8 is round the corner and it will be a tough fight between the two
big companies.
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3.3 Evaluating opportunities and threats for Samsung regarding product or service
According to Heide and Weiss (2015), every business must be clearly aware about its
strengths and weaknesses as it helps in understanding the various opportunities and threats
that the business can face from the external and internal environment.
Opportunities: The declining sales figures of Apple in recent years is a positive sign for
Samsung to take this opportunity for taking the challenge to Apple. Another opportunity is to
challenge the supply chain of Apple by outsourcing assembling products in countries like
India, China where a high labour force and low labour cost can allow better supply chain.
Constant R&D ensures patents are innovated and registered.
Threats: The negative impact of Note 7 is still lingering in people’s minds. The rise of
domestic competition and Chinese smartphones makes market difficult to operate. The
slowdown of economy in Europe and the BREXIT issue makes business dealing difficult for
the company as well.
LO 4: Calculating customer satisfaction levels of Samsung
4.1 Assessing techniques to evaluate customer response
Fleisher (2014) opined that it is critical that customer response is monitored and recorded as
it allows a direct feedback that can help business activities in redefining their operational
activities. Several methods are readily available that can accurately measure and record
customer response. Few of the techniques include, after-sales surveys, the process of data
mining, telephonic or electronic feedback. Customer response can help Samsung evaluate its
products accurately and identify key aspects that were missing or were appreciated.
Another method of assessing customer response is through efficient product placement. It is
very effective for the clear identification of valuable customers and helps in developing
knowledge about buyer behaviour. Frenzen and Davis (2014) argued that this step is to be
clearly preceded by following up customers as it allows in understanding the dedicated and
existing client base that the company has. This knowledge assists in making the approaches
for new product ideas and offers easier.
4.2 Designing a customer satisfaction survey
As per Creyer (2014), designing a customer satisfaction survey is of primary importance as it
allows in generating valuable feedback from the customers about the level of satisfaction that
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the company could provide to its precious customers. Below is a small example of survey
questions that are used for conducting a customer satisfaction survey.
Which brand of phone do you prefer?
Responses Respondents
Samsung
Apple
Microsoft
Motorola
HTC
Others
Are you satisfied with the smartphones and services of Samsung?
Responses Respondents
Very satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
How far are you willing to shift from preferred phone to Samsung?
Responses Respondents
Very willing
Willing
Neutral
Unwilling
Very Unwilling
What features of Samsung smartphones appeal to your liking?
Responses Respondents
Design
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