HK2011 Buyer Behaviour: Huawei Mate20 Analysis & Marketing Strategy

This report provides an analysis of buyer behavior concerning the Huawei Mate20 smartphone, considering both the marketer's and consumer's perspectives. It evaluates whether the product meets consumer needs, examines customer perceptions before purchase, and identifies internal and external factors influencing buying decisions. The report also includes an overview of Huawei's segmentation, targeting, and positioning strategies for the iMate20. Furthermore, it offers recommendations to competitors based on the shortcomings of the Huawei Mate20. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments, to support students in their academic endeavors.

Running head: BUYER BEHAVIOUR 0
BUYER BEHAVIOUR AND FACTORS AFFECTING IT

BUYER BEHAVIOUR 1
Executive summary:
The report deals with “Buyer Behavior” having base of a product, Huawei mate20.It
takes in consideration the perceptions of marketer and buyer. Here, critical analysis is
done by verifying if the product offered by company is worth buying or not and how far it
fulfills the needs of consumers.
Through this report practical knowledge of buyer’s perceptive is recognized. There are
several factors which affect buyer’s perspective. Under broad categories they can be
classified as internal and external factors. A marketer while designing a product should
take these points into consideration elsewise the product will not get the response the
producer so far expects.
To be in long race, a marketer must analyze competitor’s progress as well which will
make him understand market trends and form new and effective strategies.

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Contents
Executive summary:....................................................................................................................................1
Introduction:...............................................................................................................................................3
Purpose:.................................................................................................................................................3
Segmentation, Targeting and positioning of iMate20:................................................................................3
Did iMate 20 satisfied customers’ needs:....................................................................................................4
Customer’s perception before purchasing a mobile phone:................................................................5
Internal and External factors influencing consumers to buy Huawei mate20:..................................6
Internal factors:.....................................................................................................................................6
External Factors:...................................................................................................................................7
Recommendations to competitors:.........................................................................................................8
Summary:...................................................................................................................................................8
References:...............................................................................................................................................9

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Introduction:
This is a report based on consumer behavior. Consumer who is a potential buyer gets
affected by numerous of factors which cause variances in his behavior. The reasons for
the variances are Psychological factors, social factors, internal factors, cultural
factors, external factors etc. (Karbasivar, 2011).
Psychological factors include the age, habit, taste, perception of consumer, his
requirements, occupation, their attitude and beliefs, lifestyle, demographics, process of
thinking and making choice of buying keeping in scene the cost, features and product
appeal. Social factors include the influence of reference groups, family, status of
individual buyer. Cultural factors include the customs and traditions, values and
behavior of society which affects the potential buyer.
Purpose:
The report aims at evaluating and practically understanding the buyer’s behavior, its
influencers and the theories like Generic, cultural, environmental and internal which can
be helpful in solving issues of organization along with formulating marketing policies and
strategies.
A buyer is going to recognize the need to buy some product and will began his research
comparing the features, cost, benefits, reviews; etc. and then buy a product. After this if
he enjoys the service he becomes a loyal customer for that particular brand. In the
following, such theories will be explained along with an analysis of mobile phone
“Huawei mate20” from the vision of consumer and marketer.
Segmentation, Targeting and positioning of iMate20:
Huawei is a Chinese smartphone company founded in 1987 having its headquarters in
Shenzhen, China. It believes in building a fully connected intelligent world by its
skyrocketed smartphones. As per the statements of Richard Yu (CEO), Huawei does
not go for tactics like to increase market share, the company needs to sell more of low-
end phones instead it is going for selling top-tier phones to increase the revenue and

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financial growth. The example for this decision is imate20, which is a top tier phone
having amazing features and nice physical outlook. (huawei, 2018)
This tripled eye beast has helped Huawei to surpass apple and be the second largest
smartphone vendor company registering an annual growth of 41% (forbes, 2018). The
company uses a segregation of demographic, geographic and psychographic strategies
in order to give out something to each segment of customers. In the current phase,
selfies are becoming a trend for which mate 20 has come out with its best smart
cameras which can not only take pictures but suggest the user the best angle to get a
perfect shot. The company has been able to carry on its legacy since 32 years and has
been serving one third of the world’s population.
Huawei is been infusing 10% of its income in research and development activities,
involving 79000 of its total employees to help company keep its stakes in the dynamic
competitive environment. Through advance features in imate20, the company is being
able to do so fortunately. This can be understood by an example, PUBG, a mobile game
has created obsession among everyone but playing for hours, results in heating of
mobile phones besides the phone is Huawei mate 20. Huawei’s phone does not heat as
compared with other mobile phones. (enterprise news, 2011)
Thus it can be very well understood that to make the mobile phone stand out, Huawei
has definitely form its strategies very carefully keeping in concern the needs of phase.
Did iMate 20 satisfied customers’ needs:
Considering sources iMate20 satisfies the wants and needs of consumers with its very
advance and attractive features. It fulfills the need of an average user. It not only
supports the basic requirement of users but also gives advance features which are
appreciable. Variants in RAM and extended ROM are provided which makes its handy
for all kind of users. The phone offers greater feel of bezel less display and an enjoyable
affair for users.
The phone is user friendly and is attractive enough to support the status of user in
society. Supporting the trend it provide an smart camera, it gives the picture a very soft,

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which understands what it sees and suggests the user to change the angle view to
improve the picture.
Looking at the cost scenario, this phone at a burning deal of $379 is not a bad option at
all, in fact it is the most eye catching phone which standout features enabled. (forbes,
2018)
Customer’s perception before purchasing a mobile phone:
Before buying a phone the customer goes through numerous of things in his mind which
include the kind of phone he wants, in terms of feature like battery, memory, camera,
physical look etc., brand’s reputation, efficiency of phone as compared to other phones
of same category. Status in society also affects the perception of buyer.
For instance taking phone specifications a buyer having heavy usage will go for long
lasting battery backup phone whereas an average user will think of other factors which
can influence his usage experience.
At times of inflation in economy people will tend to expend more so a potential buyer will
not hesitate going for options which are expensive. As nowadays, selfies and pictures
are in trend. Everyone is so focused on pictures; here a buyer will definitely go for a
high quality phone. This means that the buyer keeps market trends in consideration
while buying mobile phones.
Budget of buyer is the most prominent factor which the buyer is very specific about. If
he is willing to expend, high quality phones with maximum features will attract him
elsewise if the buyer is miser, he will stick up to his budget (Kuo, 2009) (Hall, 2017).
Internal and External factors influencing consumers to buy Huawei mate20:
Internal factors :
 Consumer Decision making Process: Consumer tends to buy something new
when the old thing becomes obsolete and before purchasing there are a lot of
researches done (Martindale, 2017). Research implies what kind the decision

BUYER BEHAVIOUR 6
consumer wants to make that is nominal, limited or extended. If the consumer
goes for nominal decision he will not be willing to buy a mobile phone of $927.
However if the decision making is extended, it implies that the consumer is willing
to invest and try unfamiliar products, so he can go for Huawei mate20.
 Convenient Usage: Convenient here means how much the phone is of user
friendly. The simpler to operate it will be the viable choice it will become. In
current scenario people want everything to be at their fingertip which is strongly
contented by imate20 through its wide notch display.
 Dependency and Durability: As nowadays smartphones is just not a source for
dialing and receiving, rather it is much more than that. People use it for
numerous reasons; in fact bright enterprises are coming out of cellphones. For all
these reasons dependency on mobile phones extends and it is the responsibility
of company to provide their best to the users so that their ideas won’t get
stopped by incompetent technology. IMate 20 serves as the platform for
individuals to explore and have amazing experiences with no barriers provided
by its everlasting battery life.
 Budget of consumer: There needs to be enough amounts available to the
consumers so that they can think of buying the commodities. If they cannot afford
it there is no use of advance technologies and brilliant facilities the phone offer.
The mobile phone presented on sale should serve the budget of consumers as
well. For imate20 it is a bit costly as middle class people having fair income will
thinks twice of its decision to buy this expensive phone and look for other options
available.
 Utility for consumer: if a consumer is belongs to the category where he is just
interested in using phone for receiving and dialing calls he will not be pursuing to
buy such an expensive phone which do offers more features but are of no use to
him. Moreover if there is someone using phone as their basic necessity for living
life will definitely consider this phone (Zhang, 2016) (Questor, 2007).
External Factors:
 Brand’s Goodwill: Goodwill of the brand matters a lot to consumers in their
research (Wang, 2017). As Huawei has been the second largest smart phone

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seller; it has definitely gain good image and customer loyalty which will make
iMate 20 an incredible option. However the company is been in news due to its
conflict with Google which comes out as banning in Google services in Huawei
mobile phones. This can act as a clash in sales.
 Availability: if the phone is not geographically available it cuts down the
customers. Huawei is being serving in 170 countries which makes it easily
accessible and form an impressible customer base. This includes the online
availability as well. Shipping and delivery time also affect the choice of buyer.
Faster the delivery is, more the sales will be.
 After sales service: If the company is providing an efficient after sale service
taking the feedback of consumer and implementing them in the best manner
possible, it grows customer loyalty and they will be willing to buy the mobile.
 Social Influence: customer’s buying behavior is affected by the social
influencers including the small groups , social role and status in society etc. the
status of buyer lead him making decide which will have good impact on his
image. Going for a phone which does look stylish along with various astonishing
features will depict quality of life buyer is living, therefore he will make imate20
his choice (Laing, 2015).
 Reference Groups: Reference groups are such groups which have impact on
potential buyer’s behavior and state of mind. In inner world it is one’s family and
friends whereas in outer world it involves other individuals who provide reviews
on the product, the buyer is thinking of. Bad reviews create doubt in the mind of
individual whereas positive reviews encourage individuals to give the commodity
a shot and experience the features themselves. The case with iMate 20 is same.
The reviews have been amazing which motivates the buyer to go for thus
prevailing mobile phone (valence, 1988) (Bai, 2015) (Roose, 2017).
Recommendations to competitors:
Being in an industry which is so dynamic in nature, one needs to keep a check on
trends and on competitor’s move. Doing so will help in forecasting and making accurate
predictions which in result helps in forming effective strategies (Giachetti, 2016). Huawei

BUYER BEHAVIOUR 8
mate 20 is no doubt one of the best phones of this era but like others, it too lacks at
some or the other places which the competitors can use to get an edge over this phone.
Following are some short comings of the phone which the rival firms can use as their
strategies to overcome the straits it has created:
 Updates: Huawei lacks in following trend. The newest updates are not provided
in Huawei phones which can be used as a point of strategies against it.
 Re-sale value- No matter how best the phones of Huawei are their resale value is
still lower. To get edge over this factor competitor need to work on their goodwill
by innovative techniques, which will make their phones value more than usual ad
people will be encouraged to buy them.
 Durability: taking customers on general level, a customer while buying phone
keeps this in his mind the phone is definitely going to work at least for an year
and no problem will arise till then. Huawei lacks in providing durability to
customers which its competitor should pay focus on. Bringing durability in phones
improves their quality and makes them run smoothly in long run, which is why
buyers will shift their choice to competitor’s brand.
 Bringing out innovative marketing policy can also encourage buyer to come to
your doorstep. The attractive ones always catch the attention of buyers and
boost the sales (Andrews, 2016).
Summary:
The research done can be summarized in following points:
a. In the world out there, there are numerous of factors which tend to affect the
potential buyer’s decision on buying or not buying a particular commodity. These
can be family, friends, society, and the firm itself selling commodities, references
groups etc. thus an individual has to make a rational decision in spite of the
factors and not end up regretting a wrong purchase.
b. From supplier point of view, there should be a check on the factors which can
influence the state of mind of consumer as if the impact is negative; the firm

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loses a potential buyer which in long run leads diminishing revenue, profits and
goodwill.
c. Being a marketer, it is important to analyze the market consistently and find out
oppurnities to get an edge over competitors elsewise one will be left behind with
nothing in hand.
d. Taking Huawei into consideration, it is growing, surpassing the rival firms, which
is a good sign but it to require improvising the work concerns because it is
lacking in the facilities offered.
e. The differences in buyer’s behavior can be understood by various theories which
can help the producer to understand the needs to buyer better and give a product
which can satisfy them in the best possible manner.
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