Report on Consumer Behaviours and Decision Making Process

Question: Explain the consumer behaviours influencing their decision-making process. Answer: In conclusion, it is observed that the traditional way of making buying decisions by the consumers is highly altered by the emergence of social media. Different peers of the organization having their influences on the consumers are now playing greater roles in developing recommendations regarding the use of social media (Media 2012). For an example, the proper modification can be done in The Need of Recognition stage with the proper influences from the peers. Apart from that, The Information Search stage can be influenced by the help of different kinds of reviews and recommendations shared on the different social media platforms. By taking these vital understandings into the account, the certain influences of social media in the consumer decision-making has brought some significant amount of implications for the marketers of Samsung. Therefore, the marketers prefer to use the word-of-mouth allowing the customers to develop a major sense about the company (Miller 2013). Moreover, the marketers of the company should need to monitor their different activities in the social media to gain knowledge about the various influencers to engage with the customers effectively. Chapter 1: Introduction 1.1 Introduction to the Topic and its Business Significance By looking at the trend regarding the consumer preference in the modern day environment, it can be observed that the demand associated with smartphones is rapidly increasing and creating a buzz across the different countries in the world. By investigating the trend, it can be determined that almost every consumer around the world is nowadays is opting to own a smartphone. The certain evolution of the identified trend is highly responsible for the increasing amount of innovation involved in the development and designing of the smartphone products. One of the most significant features of these smartphones is its configuration developed with a specific operating system offering computing capabilities and connectivity to the users (Belk and Llamas 2013). Apart from that, plenty of additional features can be observed to be included in a particular smartphone. Despite the high prices of different smartphone devices, the certain category of products is continuously gaining increasing popula rity among the customers over the recent years. Amongst the different available major brands within the marketplace, Samsung plays the major role in capitalising such an opportunity through investing adequately in the superior technology for attracting people towards its smartphone products. There are different other brands available in the highly competitive global smartphone market with the names like Apple, HTC, Sony, Nokia, etc. Therefore, brand reputation is one of the critical factors influencing the buying decision of the consumers around the competitive global environment (Bidgoli 2012). Besides the involvement of technology and brand name, there are different approaches and factors regarding marketing to provide influence on the buying behaviour of the customers. Different buyers with their different buying characteristic itself affect the buying behaviours of the buyers. Considering the advancement of technology this research is developed to investigate the influence of so cial media marketing process to drive the buying behaviour of the consumers in favour of the organizations product selling process. The primary investigation will be conducted in the way Samsung uses social media as a marketing technique to address the demands of the market consumers effectively so that the roles played by the identified version of marketing can be understood appropriately (Brown and Waddington). 1.2 Background of the Research Considering the definition of social media marketing, it is a kind of online advertising, which is done through the different social media networking sites like Facebook, Twitter, Google Plus, Friendster, etc. The overall process requires properly planned communicative message with the effective consideration of the budget. This particular form of marketing is highly centred to the consumers because of the consumers playing their vital roles in deciding the particular fate of the short or long-term advertising communication. It is observed that the changing face of marketing landscape is drastically changed or influenced by the recent emergence of social media. In the era of traditional marketing, where marketers around the world are pushed to confer the marketing message to the potential consumers through the one-way communication process; social media marketing welcomes the two-way communication process to involve the consumers to play a vital role in the transmission of message and determining the success of the overall marketing approach (Charlesworth 2014). As stated by Hoyer and MacInnis (2009) the proper contrast between the traditional marketing and social media marketing can be developed, as the later emerged through the recent years to change the relationship between the consumers and the companies dramatically with the help of the two-way communication channel. According to Cavazza (2010), social media marketing refers to the application of different tools and practices to recognise and evaluate the social interactions within the communities and customers. By citing the statement made by Jaffe (2010), unlike the traditional marketing approach, where the marketers have the power to influence the mind-set of the consumers, social media marketing in todays generation instils the greater power to the consumers to influence on their peers. Over the year, a rapid increase in the sale of smartphone devices can be seen favouring the achievement of leading market position of Samsung, and the process is highly contributed by the significant utilisation of social media approaches in its marketing process (Dess 2012). With the help of social media, Samsung over the different periods acknowledges the associated trends and feedbacks of the customers to design the products according to such requirements while maintaining the quality. 1.3 Data Sources, Collection, and Research Question The data collection process is conducted by categorising two different methods; one is the primary data collection process, and the other is the secondary data collection technique. The primary data for the research has been collected through the adoption of questionnaires and surveys. Therefore, the personal interviews and the questionnaires are the primary research instruments to collect the major facts regarding the consumer behaviour and the influence of social media in the particular scenario. A single set of the questionnaire is formed and administered for the research by prioritising especially young consumers from the three different cities, namely Mumbai, Nashik, and Surat. On the other hand, the secondary data are also prioritised for conducting the research (Eid 2012). Different research articles, publications, news articles, and literature produced by the scholars and researchers are considered as the secondary sources of evidence for analysing and reviewing and developin g the useful knowledge. The primary as well as secondary data collection process is defined by developing and addressing some key questions intended to guide the overall methodology. These are highlighted below: How do the consumers perceive, analyse, and provide importance to the information published through the social media marketing before making their purchasing decision? What are the social media marketing methods used by Samsung to promote its revenues regarding the sale of smartphones? What are the difference between the marketing through social media and mass media? What are the changing impacts of social media to the different stages of decision making by the customers? What are the ultimate result of social media marketing process of Samsung in influencing the mind-sets of the customers in the identified marketplaces? 1.4 Discussion of Methodologies and Techniques The methodologies, as identified for the study will be conducted in two different phases. The first phase will be developed by adopting the exploratory research approach, where the formal way of conversation will be attempted to develop with the young population from the particular community having their interest in the social media and consumer electronic products (Finkel 2012). The second phase is determined to be the descriptive study by analysing the secondary data, mentioned in the earlier portion. Different relevant websites are also considered for successfully accomplishing the process. 1.5 Description of Research Process The overall research process is developed by collecting the data by determining several associated variables for processing and interpreting the information obtained. In this case, the overall processes carried out for progressing and accomplishing the research are categorised in two different divisions, which are known as quantitative and qualitative approaches. 1.6 Research Structure Considering the structure of the overall research, chapter two will focus on the relevant sets of literature in the identified area for articulating the key concepts and developing the strong background of the research subject. As part of the process, different types of theories and models associated with the purchasing decision making process and consumer behaviours related to the influence of social media are included for reviewing and evaluation. In the case of chapter three, the methodologies employed to address and answer the research questions are clearly disseminated. Different philosophies, approaches, strategies, choices, and time horizons associated with the identified methodologies are presented suitably within the chapter (Goh, Heng and Lin 2013). Subsequently, chapter four will highlight the key research findings appropriately, whereas chapter five will discuss the major conclusion drawn from the overall study and analysis. Therefore, the overall structure of the research is determined for outlining the key learning experiences obtained during the progression of the research. Chapter 2: Literature Review 2.0 Management Summary According to Jaffe (2010) before the absence of any kind of direct link between the companies and the customers, the significant change of the marketing landscape can be observed during the last decade. The emergence of social media has meaningfully changed interaction process followed not only by the consumers but also by the global organizations like Samsung (Howard 2012). Therefore, it can be critically mentioned that the consumers have become highly powerful to provide influences to the marketers and other peers of the company through their increasing involvement in the social media platforms and the word-of-mouth approaches. Based on the work developed by Brown and Hayes (2008), Samsung with the help of social media platforms and tools can allow its consumers to share their feedbacks related to the positive and negative user experiences. On the other hand, the company can also distribute its major contents while recommending products with their key features to promote the buying decision of the consumers in favour to the organization. 2.1 Introduction to the Literature Review The development of the chapter will provide a review and synthesis of the key and relevant literature explaining the consumer decision-making process with involving the model used as the framework for the research. Therefore, the selection of the literature will be made in the entire chapter to develop a clear discussion about both the internal and external factors influencing the decision-making process for the consumers. Apart from that, the development of the chapter also emphasises on the literature pertaining the purchasing decision of the consumers regarding the different consumer electronic products like smartphones and its characteristics. Therefore, the primary goal of the reviewing process is developing the framework discussing the factors affecting the buying behaviours of the consumers related to the smartphone devices offered by Samsung (Ishak and M. Zabil 2012). Apart from that, the literature review chapter is formulated by providing importance to the influence of bran d name to the mind-set of the consumers in the identified industry. Additionally, the contents of the review are linked with the identified research questions determined for the study. 2.2 Consumer Decision-Making As dictated by Moon (2004), the technique consumers develop, adapt, and make their strategies to take certain decisions is considered to be one of the fundamental issues of consumer behaviour. Based on the suggestion provided by Du Plessis et al. (1991), the definition of consumer decision-making process is based on behavioural patterns of the consumers helping them to determine and follow the decisions for fulfilling their needs over the particular kind of products, services, or ideas. The process of making decisions by the consumers has been provided with the increasing amount of interest by the researchers over the different periods. Based on the investigation made to the early studies as if the one developed by Loudon and Bitta (1993), it can be clearly acknowledged that these studies were developed by concentrating on the purchase action. Based on the investigation made by Engel, Blackwell, and Miniard (1995), it is ascertained that the modern concepts of marketing including the wide range of relevant activities were incorporated to the approaches of the marketers after 1950s. In the case of the contemporary research, these indicate that wide range of activities is involved apart from the purchasing process itself (Jolliffe and Zinnes 2012). It is also determined that there are many other factors, which have their influences on the decision making of the consumers than the ultimate outcomes. There is a wide range of studies responsible for investigating the iss ues regarding the promotion of position customer buying behaviour with the hell of developing some models accordingly with the aim of representing the certain customer decision-making process and influential factors. Consumer behaviours is a board area of study, which relates to the decision makes by the consumers during the time of their purchase. According to Kotler (2009), the study of consumer behaviour is developed on how groups or individuals use the goods or services for satisfying their needs or requirements. From the context of the social media marketing strategies developed by Samsung, the marketers perceive the consumers as a man with a problem. Therefore, driving the consumers to purchase the product of the company is known as the proper response to that particular problem. There are different criteria that the consumers take into their account during the time of making the purchasing decision, and the large organizations like Samsung always provide emphasis on these factors (King 2012). The marketers of Samsung are continuously engaged in determining different factors associated with the buying process of the consumers, such as how and where they buy, when and why they buy, and what they buy. According to Kotler and Keller (2009), it is easy for the marketers to determine the answers regarding the what, how, and where factors, but it is difficult for them to find a suitable solution related to the why they buy. The result of the study further mentioned that the particular answers regarding what motivates them to purchase often lock in their head. Therefore, by obtaining the reference from the particular study, it can be ascertained that customers purchase products are always based on their assumption which best fit their needs. The further response can also be observed from the buyers end towards the marketers based on their satisfaction or dissatisfaction. 2.3 Models of Consumer Behaviour Based on the different initiatives and approaches adopted by the marketers of a global organization like Samsung, they attempt to influence the decisions made by the consumers. However, it is difficult for them to determine how the consumers will respond to these efforts. Here, one of the major marketing stimuli is known to be Four P marketing combining with product, place, price, and promotion. With the help of Four P marketing, the marketers of Samsung provide influences on the buying behaviour of the consumers to purchase their products or replacing their existing products with the new ones (Kurtz 2012). Apart from that, the economic environment of the buyers provides significant impact on the buying decision, which represents the economic condition or the market condition of the country. Similarly, RD department of the organization also supports the development of favouring consumer behaviour for the company through investigating the needs and requirements of the market buyers an d developing products best fitting their criteria. Therefore, the marketing approaches are selected to develop the social media marketing process by the identified company depending on the particular influence on the buyers characteristics, as mentioned by Kotler (2009). Furthermore, the study also highlights that the buyers come up with some noticeable responses, which are different types of choices regarding the product, dealer, purchasing time, and purchasing amount. Considering the overall fact identified in the section, The Hawkins, Best, and Coney Model is used to evaluate and establish the framework representing the consumer behaviour about the smartphone products in the identified marketplace for Samsung. 2.4 The Hawkins, Best, and Coney Model The development of The Hawkins, Best, and Coney Model is based on the guidelines maintained by the The Egel, Kollat, and Blackwell Model (Lim, Chung and Weaver 2012). However, the selected model further explains the internal as well as the external influences on the identified context. According to Hawkins, Best, and Coney (2004), several needs and requirements of the consumers are greatly influenced by the external factors like culture, social status, family, demographics, and marketing activities, and internal factors such as the motives, emotions, perception, and attitudes. 2.5 Factors affecting Purchasing Decision for the Company Products According to Harter et al. (2007), the purchasing decision of the consumers is influenced by some multiple relevant factors like price, product attributes, features, design, purchasing location, and carrier flexibility. However, another important study developed by Karjaluoto et al. (2005) comes up with one of the major findings that decision-making process led by the customers in the consumer electronics industry is normally affected by the specific attributes of the product. However, the consumers also make the decisions without understanding the particular specification of the new products. By reviewing this particular research paper, it can be critically understood that the decision-making process of the consumers are not always performed in a rational manner, as the particular aspect is also driven by the positive brand image of the company (Mander 2014). Therefore, the same can be observed in the case of Samsung, as acquiring the leading position in the global smartphone market has significantly helped the company to develop a positive brand image in the mind-set of the customers. In this particular scenario, Hoyer and MacInnis (2010) explained that the process of decision making by the consumers is based on the implications of four different stages, which are Problem or Need Recognition, Information Search, decisions Making, Post-purchase Evaluation or Behaviour. The researchers have also mentioned that the second stage can be further divided into two different sub-phases. Known as information search and evaluation of alternatives. With the help of a diagram, the following process can be outlined clearly. 2.6 Conclusion The overall chapter focuses on different theories and models to explain the consumer behaviours influencing their decision-making process. Based on the suggestion provided by Erasmus et al. (2001), different kinds of models associated with the consumer decision-making represents the process of proceeding by involving the key purchasing decisions. Lastly, it should need to mention that the EKB model developed by Engel et al. (1968) is known as the most significant decision-making model associated with the consumers. As discussed in the earlier portion, the proper evaluation to the model id portrayed with the help of a picturised representation. References Belk, R. and Llamas, R. (2013).The Routledge companion to digital consumption. London: Routledge. Bidgoli, H. (2012).MIS 3. [Place of publication not identified]: Cengage Learning. Brown, R. and Waddington, S. (n.d.).Share this too. 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