Marketing Consumer Behavior Report: Samsung Note 10 Case Study

This report provides a comprehensive analysis of consumer behavior in the context of the Samsung Note 10. It begins by emphasizing the importance of understanding consumer buying behavior for effective marketing strategies. The report examines the Samsung Note 10 as a premium smartphone, exploring types of consumption (direct), and various purchase situations, including "new task" scenarios where consumers conduct extensive research. It delves into the nature of risks, such as financial and social risks, perceived by consumers. Customer involvement levels (high involvement) are also discussed, considering the product's price and significance. The report then defines the target market profile, demographic segmentation (age and income), and provides marketing recommendations to reach potential customers. The report concludes with a discussion of the marketing strategies that can be used to influence consumer behavior and purchase decisions. This analysis provides valuable insights into consumer behavior.

Marketing consumer behavior
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Running head: MARKETING CONSUMER BEHAVIOR

MARKETING CONSUMER BEHAVIOR
Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion and recommendation....................................................................................................9
References......................................................................................................................................10
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Introduction
Consumer buying behavior plays an important role in the design of the marketing strategy of a
company. The consumer buying behavior and the various associated factors play an important
role in the development of the marketing mix of company. As the behavior of the customers
towards a product or service in the market is affected by multiple factors, therefore it is very vital
for a company to identify those factors and devise strategies for addressing those factor which
leads to the customers purchasing the products and services of the company. The consumer
buying behavior is also affected by factors such as the type of consumption, the purchase
situation of the product and the nature or risks associated with the product and therefore it is very
essential for a company to devise strategies accordingly which will help in addressing those
factors and make simplify the decision making process of the customers. The current report
focuses on the purchase situation and the target market profile of Samsung Note 10 and the
factors influencing the decision making process regarding the product among the customers.
Discussion
The Samsung Note 10 is a new premium smartphone belonging to the Samsung Note series
manufactured and marketed by Samsung Electronics. The Samsung Note 10 is a premium quality
smartphone which boasts of various advanced features and innovation in design. The Samsung
Note 10 will be available in different colors, memory capacity and different variant such as
Samsung Note 10, Samsung Note 10 pro. The Samsung Note 10 will be available both in online
and offline platforms. In Australia the starting recommended retail price of Samsung Note 10 is
expected to be $1799 for the 128 GB variant and the price will continue to increase with the
increase in memory capacity (Rogerson, 2019)
Types of consumption
As stated by Anitha (2016) there are two types of consumption namely direct consumption and
indirect consumption. In case of direct consumption or final consumption, a product or service is
purchased in order to satisfy the needs of the consumers directly and immediately, whereas, in
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case of indirect consumption, the consumer purchases the goods to satisfy the needs of other
individuals.
In case of Samsung Note 10, the type of consumption which is associated is direct consumption
as the customer purchases the goods in order to satisfy their individual needs and demands.
Purchase Situation
There are three types of buying situations which are as follows:
New Task- The new task is defined as a business situation where a consumer decides to buy a
product or service at the first time. The situation of new task is also defined as extensive problem
solving situation in which the buyer has no previous experiences regarding the product of a
company and is totally new regarding the purchase of the product which requires some extensive
effort from the buyer to decide regarding the purchase of the product (Wolny & Charoensuksai
2014). It can take the customers a longer time to make a decision regarding the product as it
could possess an increased risk or cost and consumes more time in getting to know about the
product which is new
Modified rebuy- According to Wolny & Charoensuksai (2014) this is situation of business in
which a manufacturer plans to re plan specifications of product or service, prices, terms and
conditions or suppliers. A modified rebuy can alternatively be termed as a limited problem
situation of problem solving where the manufactures make modifications to the products and
provides the customer with an experience and preference which is new in nature. The limited
problem solving situation provides a chance to the customers for experimenting something
unique and if launching of the new product demonstrates various advantageous to the customers,
then it could initiate a change in the decision making criteria of the customers. It can be also
observed that a modified rebuy can mostly contribute to purchases which are no more existent.
The customers can accordingly decide whether to continue with the current choice of product
and it has been widely acknowledged that extension strategy of the brand assists the customers
for reducing the components of awareness
Straight rebuy- This is a situation of business in which a reorders regarding the same product
some product or services without any modifications. The straight rebuy is also termed as
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problem solving situation which is humbled by its occurrence and which is evident by the
presence of all three criterions of differentiation. As stated by Jha (2015) in the habitual problem
solving situation, the customers are aware of their choices and preferences and they what they
are searching or looking after, their exact needs and preferences based on their own past
experiences or regarding the past experiences of their family, friend or colleagues who have
spoken good words regarding the product. According to Wright (2018) in the habitual problem
solving situation, the customers spend very little or no time in analyzing and comparing the
alternatives and substitute of the product which they are planning to buy as a result of high brand
loyalty associated with the products of the company. The habitual problem solving situation is a
buying situation where the customers of the product perceives a lower amount of risk in
purchasing a particular product or a particular brand.
In case of Samsung Note 10, the buying situation which is noticed is new task, as the product is
new to the market and the customers of the products will purchase the product for the first time
in order to satisfy their demand and intention of purchase. Therefore it can be stated that in case
of Samsung Note 10, the problem solving situation which is associated with the product is
extensive problem solving situation where the customers have no previous experiences regarding
the product as the Samsung Note 10 is a brand new product in the market and therefore before
purchasing the products, the consumer conduct carry out extensive research regarding the
products, its benefits, its characteristics and the price of the product. As the purchase decision of
Samsung Note 10, requires extensive problem solving, the customers of the products also
compares the product with other alternative and substitute products in the market before making
a purchase decision. As stated by Vázquez-burguete, Sahelices-pinto & Lanero-carrizo (2017) in
case of Samsung Note 10, the customers compare the features and characteristics of the product
with similar competing products such as Huawei P20 Pro, Oppo Find X, LG V35 ThinQ and
Google Pixel 2XL in order to get a detailed idea of the product. As the buying situation in case of
Samsung Note 10 is new task, therefore the customers also analyses the various types of risks
which are associated with the purchase of the product before making a purchase decision. There
are various factors which will help in reducing the complexities of the customers regarding
making a purchase decision of Samsung Note 10 such as the high brand awareness of the
company, performances of the previous products of the company and the positive reviews of the
Samsung Note 10.
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Nature of risks
There are various types of risks which are perceived by the customers while purchasing a
product which are as follows:
Financial risk- The perceived financial risk occurs when the customers perceive that they might
be wasting money as a result of purchasing product the product or service.
Social risk- As opined by O’Reilly Kelley (2018) the perceived social risk occurs when the
customer perceive that they might be risking their social status or social identity when
purchasing a particular product or service as people enjoy buying products and services which
gives them social status.
As opined by Shaheen & Lodhi (2016) the various types of risks which can be perceived by the
customers while purchasing Samsung Note 10 are both financial risks and social risks. The
customers perceive financial risk with the Samsung Note 10 as the product is premium priced in
nature and therefore the customers think twice before purchasing that product. The customer
perceives social risks with Samsung Note 10 as the product is a premium product in nature which
carries a social identity and social status with it. Therefore while making purchase decision, the
customer evaluates whether the product will be able to live up to their status expectations
Customer involvement
There are various levels of customer involvement which are associated with product purchase of
the customers which depends upon the value of the product to the customers and the degree of
involvement of purchase to a consumer.
Low Involvement- As stated by Akyol (2016) in case of low involvement, it is seen that the
customer do not involve themselves in the purchase of the products as they do feel very much
involved in the purchase of the product. The low involvement level of the customers in the
purchase decision is generally observed in purchase of product which has a short life-cycle.
Medium Involvement- As stated by Lee (2016) in case of medium involvement, it is observed
that the customer involve themselves in the purchase of a product to a limited extent as they feel
little involved in the purchase of the product. The medium involvement level of the customers in
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the purchase decision is generally observed in purchase of product which has a medium life-
cycle.
High involvement- According to Nouraie, Moorineh & Kordi (2014) in case of high
involvement, it is observed that the customers involve themselves to the highest extent during the
purchase of the product as they feel highly involved in the purchase of the product. The high
involvement level of the customers in the purchase decision is generally observed in purchase of
product which has a high life-cycle.
In case of Samsung Note 10 it is observed that the level of involvement of the buyer during the
buying process is high involvement as the Samsung Note 10 is a high life-cycle product. As the
customers will be purchasing the product for the first time, therefore it means that the customers
will undertake extensive research regarding the product and therefore the involvement of the
customers will be high in the purchase decision. According to Oke, Kamolshotiros, Popoola,
Ajagbe & Olujobi (2016) the other reason for the high involvement of the customers is the high
price associated with the product and as the customers are purchasing a high price product,
therefore they will highly involve themselves in the purchase decision of the product in order to
ensure that product they are purchasing is worth the value of money and it has full capability of
fulfilling their needs and expectations. As stated by Sachdeva (2015) another reason for the high
involvement of the customers during the purchase decision of Samsung Note 10 is the financial
risk associated with the product and therefore the consumers involve themselves highly during
the purchase of the product in order to avoid financial risks associated with it.
Target Market Profile
As opined by Himanshu, Singh & Mishra (2018) the target market of Samsung Note 10 should
be a wide range of customers who seek unique experiences from their smartphones and also seek
unique design and innovative characteristics from their smartphone. The customers that Samsung
Note 10 should target are individuals belonging to the age group of 26-50 as this is the group of
customers who have the most ability to purchase the product considering the price of the product.
The segmentation that Samsung Note 10 should follow is as follows:
Demographic- Samsung Note 10 should segment their target customers based on their age and
income level. In this context it can be stated that the Samsung Note 10 needs to target both
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female and male between the age group of 25-45 who belong to the medium and high income
group in the society.
Psychographic- As opined by Nouraie, Moorineh & Kordi (2017) Samsung Note 10 should also
segment their target customers based on the personality traits of the customers, values, attitude,
interest and lifestyles of the customers. In this context it can be stated that Samsung Note 10
should target individuals who have a high lifestyle and who seek unique and sleek design
products which are innovative in nature and are tech savvy in nature.
Behavioral- As opined by Choudhury, Mukherjee & Datta (2019) Samsung Note 10 should also
segment their target customers based on the usage frequency, brand loyalty, benefits required
and during any occasion of the customers. It can be stated in this context that Samsung Note 10
should target customers who are existing customers of the products of the company or wish to
purchase the product of the company during occasions for self-use or for the purpose of gifting
others.
Factors influencing the consumer decision making process
One of the major factors which can influence the consumer decision making process for
Samsung Note 10 is involvement of the customers as the personal involvement degree which is
considered as a vital factor in designing the decision process type which the customers will be
following. Involvement is defined as the perceived personal importance level and creation of
interest which was initiated evoked by a stimulus within a situation in specialists As opined by
Babayev (2018) it is generally believed that when the product of a company is perceived as of
great importance to the customers, then the involvement level in making the decision is also
mostly appreciated and the consumer of Tesla is likely to regarding a great deal of time before
making a final decision regarding the purchase of the product. In case of Samsung Note 10 it is
observed that, the customers of the company perceive the products of great importance as the
smartphones promises to offer them various benefits and unique features and therefore the
customers of the product spends a great deal of time before the purchase of the product and
therefore the involvement of the customers in the decision making process is high in case of
Samsung Note 10.
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There are various factors which determine the degree of involvement, the customers have in the
decision making process is as follows:
Personal factors- The involvement degree of will appear to be higher when the results of the
decision will affect the customers directly. Example of personal factors includes self-image,
health, beauty or physical condition. As stated by Karimi, Papamichail & Holland (2015) without
the activation of the need and drive among the customers, there will be lack of involvement of
the customers and the customers’ level of involvement will be the greatest, when the product will
be perceived as enhancing of self-image. In case of Samsung Note 10 it can be stated that the
product is designed in such a way considering the needs and requirements of the customers, the
customers will perceive the Samsung Note 10 as a self-image enhancing product which will help
in enhancing the social image of the customers in their social circle and therefore the
involvement of the customers during the purchase will be high as it will help the customers in
enhancing their self-image.
Product Factors- As opined by Glassock & Fee (2015) the customers of the company will also
demonstrate higher involvement during the purchase of the product if they perceive that there are
various types of risks which are connected with the product purchase. The diverse kinds of
perceived risks which are related with product purchase are financial risks, social risks and
physical risks. As opined by Holmes, Byrne & Rowley (2014) in case of Samsung Note 10 it can
be observed that the risks which are associated with the purchase of product are financial risks
and social risks. The customers of the company perceive that the purchase of the product can
cause financial risks to them due to wastage of money associated with it and they also perceive
that the purchase of the product can cause social risks to them due to the destruction of their self-
image among their social circle and therefore they show greater involvement in the purchase
decision making process.
Situational Factors- As opined by Deka (2016) the she continues with includes factors such as
whether the product is purchased for personal use or as a gift and whether it is consumed alone
for the sake of consumption or with others. Situational involvement alters for their customers. It
may be strong on a temporary basis and slowly disappears once the purchasing decisions are
addressed. In case of Samsung Note 10 it can be observed that the customers displays greater
involvement among the customers after they purchase the product for their personal use and also
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for the purpose of gifting the product to others. It is mainly observed that the customers involves
themselves to a great extent when they purchase the product for their personal use and in case of
gifting the products to others, the customers demonstrates even greater involvement as it is
concerned with their self-image.
Conclusion and recommendation
From the findings of the above analysis it can be concluded that the customer purchase decision
is a complex phenomenon which is influenced by various factors and therefore very organization
must design their marketing campaign accordingly in order to address the various factors which
affects the customer purchase decision. Also, it can be concluded that the level of involvement of
the customers depends on various factors such as the type of consumption, the nature of risks
associated with the purchase of the product, the purchase situation of the products and the value
of the product to the customers. Further it can be also concluded that the Samsung Note 10 is a
product which is accompanied by high product involvement, new task buying situation, which
involves extensive problem solving and which also involves financial and social risks owing to
the features and benefits offered by the product and also due to the price of the product. Based on
the above analysis of the customer buying decision and customer involvement, it can
recommended to Samsung that they design their advertising and marketing campaign in an
informative manner so that the customers will know every detailed benefit and characteristics
which are associated with the Samsung Note 10 and the advantages of the product over other
competing products in the market so that the complexities of the customers during the purchase
decision making process reduces and the customers decides to purchase the product without
carrying out detailed extensive research.
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