Why do people decide to buy?
Some consumers use an intense system of thorough investigation before they decide to purchase, while others are basic impulse shoppers. Either way, three factors affect all purchasing decisions.
Apple, Inc. was flawless in their execution when they rolled out the new iPhone and iTouch because they knew what made consumers act. They knew how to create enough excitement about a new line of entertainment gear that for many, a simple “want” transformed into a self-justified, immediate need. The iPhone and iTouch hit the market with a fury like the Running of the Bulls and Apple’s stock skyrocketed. So did the net worth of Steve Jobs, a hard-charging and creative businessman who understands the consumer. The three things a consumer considers are:
…show more content…
People can’t buy what they can’t afford no matter how badly they need it or want it. However, affordability is often a matter of perspective, which would explain why so many consumers use “creative” budgeting to get the things they really want. This practice has led to the special finance market and a struggling mortgage industry, and it has you reading this article. In our business, the economic factor is represented in the terms of down payments and monthly payments. You will be better served to hold your considerations of this most basic of the three factors to the end, long after you’ve gained the attention and interest of your prospects. Otherwise, you will run into the common scenario of “these customers have no money” problems. To stay off that road, focus on the other two factors first.
The Functional Factor
The functional factor is all about needs. It’s about logic, what makes sense and the best interest of the customer. Although it too plays an important role in the decision to buy, it is the boring factor and typically doesn’t affect emotional
The consumer decision process consists of these six steps. First, problem recognition: Awareness of an unmet need. Second, information search: Search for alternatives that will meet your needs. Third, alternative evaluation: Evaluate the alternatives. Forth, purchase decision: Decide on the best alternative for you based on your criteria. Fifth, post-purchase behavior: Determine if you are satisfied with your choice. Sixth, disposal of product: Determine if you will keep it, upgrade it, or get rid of
The consumer rules the roost. They make the important decisions. I answer to them, as we all do. The opinions of Wall Street analysts and media pundits are really just derivatives of our relationship with our consumers. When the young at heart seek out our products, when they respond to our messages and believe in what we stand for, when our relationship with consumers is healthy, that's when we grow. Even so, gaining true understanding of our consumers, and thereby being able to deliver meaningful innovation to them, is a huge challenge. It's not the demographics that change; it's the deliverables. Ours is a constantly moving target. Technology continues to increase the pace and volume of options in all of our lives.
Lindstrom, Martin. Buy-ology: Truth And Lies About Why We Buy. N.p.: Crown Business, n.d. Print. All information gathered from this source.
This report will analyze and discuss the most important elements of the marketing environment for the launch of the iPhone, that is to say the main three levels of the marketing environment: the micro-environment through the customers, competitors and distributors, the macro-environment through technological, economical, social, political and environmental forces and finally the internal environment through the relation of Apple with its employees and its marketing philosophy. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. The report will also give an interpretation for each of these aspects, a conclusion with a rating of the attractiveness of the UK current marketing environment in which the iPhone is launched.
“It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends” J.K. Rowling. In Harper Lee’s novel To Kill a Mockingbird ,Set Maycomb Alabama during the prejudice 1930’s, characters show that courage is needed to survive the unpleasant times. This theme occurs in Tom Robinson’s court case when he is falsely accused of rape. Heck Tate, a respectful, well mannered man and the Maycomb County Sheriff, learns the importance of courage and standing up for what you believe in during the course of the novel.
Product;the key is providing a product that appeals to customers in more than way “iPhone is more than just a phone. It combines three devices in one: a revolutionary mobile phone, a widescreen iPod, and a breakthrough Internet device. All that and more makes it the best phone you’ll ever use” apple website.By investing in a phone that is capable to provide all these different functionalities save consumers ...
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
With the rise of the world’s most valuable brand ‘Apple’, it is becoming essential into understanding how it reached this number one position. As a consumer, it is important to recognise that the strategies implemented by Apple, have been used as a powerful marketing tool for several reasons (Summers, J., Gardiner, M., Lamb, W. C., Hair, F. J. & McDaniel, C., 2005). One of the reasons includes marketers and managers being able to define customer wants and needs more precisely (Summers et al. 2005). The aim of this essay provides a outline on how Apple uses a customer – driven marketing strategy to segment, target, differentiate and position it’s iPhone product to consumers (Kotler, P., Burton, S., Deans, K., Brown, L. & Armstrong, G., 2013). An analysis of the marketing mix is used to support the positioning strategy of the iPhone.
II.1.1. Factors Affecting Consumer Behaviour Shinta (2009) says that, consumer purchasing behaviour is affected by factors of cultural , social , personal , and psychological .
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
To effectively sell a product or service, organizations have to really know how customers behave, regarding to what they buy. The study
Consumer Buying Behavior Buying Behavior is the decision processes and acts of people involved in buying and using products (Kengthon, 2011). Need to understand: Why do consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer (Kengthon, 2011).
I understand the term customer value to define how customers weigh the benefits of individual purchasing decision against the costs of these products.
Researchers, scholars, businesses and marketers study consumer behavior to understand what are the factors that impacts a consumer's shopping preferences and selection of products and services. There are multiple factors that affect consumer behavior, few of them are economic status of the consumer, their beliefs and values, culture they are into, personality, age and education (Kotler, 2004).