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The consumer decision making process
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Consumer Decision Process From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company …show more content…
According to Spotify.com, “With Spotify, it’s easy to find the right music for every moment – on your phone, your computer, your tablet and more. There are millions of tracks on Spotify. So whether you’re working out, partying or relaxing, the right music is always at your fingertips. Choose what you want to listen to, or let Spotify surprise you” (Spotify.com). Spotify understands there is a consumer need for on-the-go streaming music. Consumers rely on their smartphones and laptops to listen to music on-demand. Although there are many music streaming companies, Spotify was one of the first to let consumers access millions of artist without buying individuals songs or albums. With Spotify, consumers pay for a premium subscription that allows access to every artist, album, and song within their library of …show more content…
It is now time to make a purchase. Consumers tend to like the purchase step made easy. Amazon offers a one-click purchase option which allows consumers to purchase item and have them shipped in literally on-click. Spotify does not offer a one-click option but a potential subscriber can sign up for a premium subscription in under 5 minutes. Simply choose you membership, enter you billing info, and buy. The best part for the consumer is that similar to Netflix, you can engage in a free 2 month trial before you commit to a monthly subscription. This helps consumers continue to evaluate in order to make sure this is the best service to satisfy their need. Also, subscriptions are monthly and can be cancelled at any
Before the 1990’s, if people want to listen to music, they just visit a music store and pick up a CD and then put it into a stereo equipment. However, the development of MP3 file format gradually changed the way people listen to music. This format lets everyone download music easily and it can be converted to CD as well. But, there is still a problem: searching MP3 files on the internet is maddening and people seldom can find the music they want. Therefore, the birth of Napster solved this problem, creating a virtual music community in which music fans could use the Web as a “swap meet” for music files. More importantly, Napster is easy to use and it’s free, which expands the range of audience in age. Bandwidth also contributed to Napster’s success. The greater the bandwidth, the faster the file can be transferred. So, Napster really changed the way people listen to music, discover music and interact with music.
The Forrester-Miller and Davis Decision Making Model (1996) has seven steps. These steps are outlined in the subsequent sections (Forrester-Miller & Davis, 1996).
1.2. Compare Buyer behavior and decision making process in different situation (P 1.2) ......... 4
The first step is to create a model of buyer behavior that would encourage consumers to buy
Charging a monthly fee for unlimited rentals, Netflix eliminates due dates and late fees, as well as eliminating the long lines of a brick-and-mortar store. ? Netflix uses their great customer service to keep customers happy, which keeps customers from canceling their subscription to the service. If there is a problem that arises during the rental process, such as a damaged DVD, or lost DVD during the shipping process, Netflix addresses the problem immediately, and never charges the customer for the problem. ? Netflix was the first company to offer DVD rentals over the internet. By leading the industry in innovation, selection and delivery time, Netflix enjoys the benefits of a strong brand image, and strong relationships with DVD suppliers and manufacturers.... ...
Netflix has a unique business model. The company strategy focuses on differentiation. Netflix works to outcompete its competitors through the differentiation of its service. Netflix places customer experience above all else. The company prides itself in knowing that customer experiences is directly related to company financial viability, and with that known, the company works to ensure that each user has a great experience with the Internet streaming service. Netflix is a brand that is focused, not one that simply tries to do everything. By focusing on the entertainment industry, Netflix is able to
Consumers now-a-days have so many different platforms that they are able to listen to music on, that the loyalty to one specific medium is extremely low. Substitute options are immense, but having a celebrity do a daily talk show only on your service will drive many consumers to purchase the subscription. The reason for this is because it is very rare that one type of music or song will be limited to a platform; but by signing a contract with these on-air personalities, it can give you exclusive rights to their content making other options obsolete if consumers want to listen to
Another change to Tidal was its focus on the younger music consumer crowd from a less pin-pointed type catalog. This new
They have created a three-step system of buying. Starting with a catalogue, customers select their desired products and
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
The basic concept behind these theories and models are similar. Five steps describing the consumer purchase decision below followed by a brief description. 1. Problem Recognition 2. Information Search 3.
Spotify is one of the most popular streaming services. And since its breakthrough, access to music have never been easier – just type in the name of an artist or a song and press play. The advantage of it is that listeners gets to listen to their wanted music instantly and for free and artist gets paid royalties. But since spotify’s big breakthrough there has been big debates if free music streaming is going to kill the music industry or if it’s going to help it.
Marketers have been using three Step Mental Model theory of marketing for a long time in order to reach a customer and make a sale.
The music industry has rapidly changed over the past several decades, moving away from records and cassettes and through CDs. No longer is the age of hard-copied music, but rather digital copies. iTunes transformed the music industry, but now people are starting to look to other options where they can get more songs for less money. This is where streaming services come in. Many companies, the biggest being Spotify, offer access to practically unlimited music for a low monthly fee. Rather than paying for each individual song, avid music lovers can listen to as many as they want for a flat rate price. Although this sounds like a great deal from the music listener’s perspective, there have been questions raised as to whether it’s detrimental to the music artists. Some feel as they would be missing out of money since people would not be buying their music directly, and instead buying into the services as whole. Hence why some artist’s music seems to be mysteriously missing from streaming services such as Spotify. One of these artists is the Beatles. If you were to search on Spotify for music by the Beatles, you would be able to find mediocre cover versions by other artists, but unfortunately, the real versions are not there. The reason for this being that Apple Corp, who is the rights holder of the Beatles music, has decided not to allow their music to be streamed through such services. As Beatles fans begin to pester Apple Corps, the question raised is whether or not they will join into the streaming services.
Spotify is on-demand streaming music player. After registration and downloading the desktop application user gains access to more than 20 million songs that are currently available on Spotify [1]. The main characteristic of Spotify’s streaming service is that it does not sell music, but it gives access to it. Streaming digital music is based on agreements with content owners - record labels, digital distributors, aggregators and publisher collecting societies, to whom Spotify pays out royalties [2]. Without these agreements there would be no music to stream. Basically, Spotify has an intermediary role as it distributes music content from right holders to listeners.