Factors affecting the consumers decision process Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1168

Fасtоrs Аffесting the Соnsumеrs Dесisiоn Рrосеss

The consumer buying behaviour and decision making process in an organization is influenced by a number of issues. In this case, the market faces an increased consumer buying decision making is influenced by a range of factors implicating on the overall organizational structures as those of the overall industry functioning. In this regard, the changed organizational structures and industry systems implicate on the overall consumer buying decision making process. In this case, among the influencing factors include market information, price and services.

Market Information

On one hand, the level of market information availability is determined and influenced by the presence or absence of information in the industry and market at large. In this case, the available market features greatly influence the overall consumer buying decision making process. In this case, Pandey, Pandey and Bahl (2013, p.10) conducted a study to evaluate the role of information availability in an economy in the respect of consumer decision making process. In this case, the study established that market information availability increases the overall market availability for consumers. As such, the study established that market availability implicated on the first and second decision making process. Consequently, the study established that market availability highly implicated on the decision process. In this regard, information availability increases the overall consumer base knowledge. As such, the consumers have an increased scope through which they can base their information search and consequent alternatives evaluation process. However, information deficiency, in the market limits the available consumer decision making alternatives for information search.

Customers in markets with minimal information supply face an increased irrationality in their decision making process. This evidenced by the case of Myer Company online marketing platform. In this case, the organization has developed an information platform. In this case, the online platform has an increased advertising platform. Moreover, the organization presents an online platform through which customers cannot only view the presented goods but also the prices as well as lines and varieties. Further, the organization has employed the online advertising channels such as social media advertising. Consequently the organizational communication platform allows for increased consumer rational decision making process in the online market. Therefore, Myer Company online platform allows for increase rationality in the consumer decision making process. This perpetuating successful implementation of the need identification, information search and alternatives evaluation stages.

Upon successful establishment of the viable alternative in a consumer decision making process, the consumer decision making process develops onto the purchasing stage. At this stage, the consumers make the ultimate purchasing decision. At this stage, a number of factors come into play including the respective organizations and industry marketing mixes application. Latuszynska, Furaiji and Wawrzyniak (2012, p.76) conducted a study to evaluate the implications of marketing mix variables in the overall consumer purchase decision formulation. In this case, the study sought to establish the role of varied marketing mix variables adoption in consumer decision making process.

In this regard, the study established that consumers level of income, social status and demographic issues were greatly implicated by the marketing mix adoption. Price is one such marketing mi important variable. In this regard, the pricing strategy adopted influences a consumer base decision to either purchase or not. Although a product would emerge as the best selected alternative, high prices discourage its purchasing and would lead to an eventual decision to purchase failure. In this regard, organizations seek to target the market through a range of approaches such as low cost and price discrimination strategies. In this regard, Myer Company applies the low cost approach in its pricing strategy. In this case, the organization charges reduced prices at increased quality level. As such, as Rajagopal (201, p.72) argued, the organization seeks to establish the provision of value concept to its customers in the market. The emerging economic trends reveal an increased economic constraint in the market leading to increased consumer buying capability challenges Therefore, this increased challenges has led to increased organizational success. Thus, the adoption of this low cost approach considerably increases the overall purchases levels as evidenced by its increased sales quantities and subsequent revenues.

Services

Besides products provision, consumers seek out to establish services value in the value chain. The organizational value chain is described through the porters’ value chain. In this case, the value chain analysis enumerates five primary organizational functions that implicate on the overall organizational market competitiveness and appeal to the customer base. In this case, services form part of the five key primary value chain activities. In this regard, services in this case, represent organizational additional activities that aim at enhancing increased customer satisfaction and subsequent loyalty. Numerous marketing studies have been developed to evaluate the implications of cost in the overall organizational success. One such study is the one developed bySureshchandar, Rajendran and Anantharaman (2002, p.364). In this case, the study established that there is a relationship between services provision, customer care and customer loyalty. In this case, the study argued that organizations with increased customer care services registered increased market customer loyalty through increased customer satisfaction.

Therefore, this can be adopted to interpret that organization with increased services; especially the after sales services face increased customer loyalty. Customer loyalty is an imperative component that propagates and enhances increased repurchases. Therefore, the development of services in organizations influences the consumers’ purchases, re purchases and the post purchases decision making stages. In this case, the Myer Company has developed a system through which it offers its online customer base after sale services. In this case, the organization provides for products delivery services.

As such, customers are required to pay for their products online and include their preferred shipment physical address. As such, the organization has partnered with key international distribution and shipment agencies to allow for increased on time and quality delivery services. Indeed, over the years, the organization has established market competitiveness in on time and efficient delivery system. Consequently, this has established an organizational competitive advantage in the market. Consequently, this has played a significant role in enhancing Myer Company customers’ satisfaction that influences their purchasing and post purchase decision making stages (Heinonen, Strandvik and Voima, 2013, p.105).

References

Heinonen, K., Strandvik, T. & Voima, P. 2013, «Customer dominant value formation in service», European Business Review, vol. 25, no. 2, pp. 104-123.

Latuszynska, M., Furaiji, F. & Wawrzyniak, A. 2012, «An Empirical Study of the Factors Influencing Consumer Behaviour in the Electric Appliances Market», Contemporary Economics, vol. 6, no. 3, pp. 76.

Pandey, B.B., Pandey, S. & Bahl, P. 2013, «»A Study on Influence of Brand on Habitual Buying Behaviour of Consumers: With Special Reference to Raipur»», International Journal of Marketing and Technology, vol. 3, no. 4, pp. 8-24.

Rajagopal, 2013, Marketing decision making and the management of pricing: Successful business tools. Business Science Reference, Hershey, PA.

Sureshchandar, G.S., Rajendran, C. & Anantharaman, R.N. 2002, «The relationship between service quality and customer satisfaction — a factor specific approach», The Journal of Services Marketing, vol. 16, no. 4, pp. 363-379.