MRKT Consumer behavior model PDF

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Week 4 Assignment

In this paper the product is iPhone X, Apple product Part 1 - Consumer Behavior: How People Make Buying Decisions

1- The consumer behavior model is based on several factor. Consumer behavior can be economic model. The economic model of consumer is the consumer’s goal to buy product with the most benefits while minimizing coast. `` For instance, a consumer will buy a similar product that is being offered at a lower price to maximize the benefits; an increase in a consumer’s purchasing power will allow him to increase the quantity of the products he is purchasing.’’ Paine, M. (2011, March 20). We Also have personality and socio-cultural factors. Human beings have his own disciplinary and are also influenced by internal and external factors to make decision. Another model of consumer behavior is consumer cultural behavior based on consumer region product, consumer use a local product for cultural reason. All factors that developed above are environmental factor.

2- Consumer factor is a buyer’s decision processes. That factor can be physical (social, time, purchase reason and mode) consumer buy Apple X product depending on those factors. Physical factor is really on consumer to make his decision to purchase a product. We also have personal factor. An individual’s personality also affects his buying behavior. Every individual has his/her own 1

characteristic personality traits which reflect in his/her buying behavior. Personal factor includes self-concept, gender, age, life stage and lifestyle. Teenagers would be more interested in buying Apple product as compared to a middle aged or elderly individual who would prefer decent and subtle designs. Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the way an individual stay in the society. It is really important for some people to wear branded clothes whereas some individuals are really not brand conscious. An individual staying in a posh locality needs to maintain his status and image. An individual’s lifestyle is something to do with his style, attitude, perception, his social relations and immediate surroundings. Another category of consumer factor is psychological. Psychological factor includes consumer motivation to buy iPhone X, what perception consumer have about the product and consumer attitude. The last category of consumer factor is societal factor (cultural, subcultural, social class, reference group, opinion leaders and family)

3- Involvement is an internal state of mind which a consumer experience. It makes one analyze and rationalize his/her choice. Involvement of consumers can be induced by external sources and agencies. The degree of involvement of buyers in making purchase decisions include their level of knowledge, information, psychology, culture, lifestyle, social system. Even for the same product or service the degree of involvement of an individual may vary depending upon the circumstances. In marketing we have deux level of consumer involvement. One is low-involvement and the other one is high involvement. Low-involvement 2

decision are more require little risk, are repetitive and often lead to habit. In this case purchase are not really important to consumer. Financial, social, and psychological risk are not nearly as great. A low-involvement purchase usually involves an abridged decision-making process. The high-involvement decisions are those that are important to the buyer. These decisions are closely tied to the consumer’s ego and self-image. They also involve some risk to consumers such as financial risk (highly priced items), social risk (products that are important to the peer group), or psychological risk (the wrong decision may cause the consumer some concern and anxiety). When is come to high-involvement decision, consumer take his time to do a deep research and consider all solutions alternatives very carefully. The more consistence is the highinvolvement decision when consumer want to buy an Apple product. Consumer take his time to get all necessary information before spend money on expensive product.

4- In decision making for Apple product, it depends to the client needed like say Smith and Quelch: “The presence of decision marking problem is obvious in developing a need or a want which the consumer want to be fulfilled.” (Smith and Quelch. 2013) That is first step of consumer decision making. After that consumer will focus on search process to make sure his / her get the proper product. That step consists to explore information from other people and also go to different web site for information. Consumer always want a good deal then his / she start to evaluate all alternative possible for price, quality, warranty … In 3

addition, consumer pass to the selection stage. And finally, we close with the evaluation of the decision. Apple company has a good marketing strategy to satisfier his costumers. This affirmation can be verified with Koklic and Vida:” The maintenance of good quality and the offering of better price of the product can only keep the brand loyalty of the company stagnant”. (Koklic and Vida. 2011)

Part 2 - Market Segmentation, Targeting, and Positioning

1- Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. Apple segmentation, targeting and positioning represents the core of its marketing efforts. ‘’ Common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment’’. (John Dudovskiy, January 18, 2018) as two group of mass market we can have segmentation demographic that include age, gender, life-cycle, income, and occupation. Apple target customer segment depend to segmentation criteria. For example, iPhone, iPad, Mac, iPod devices are more used by people of age of 20 to 45 and age of 18-35 for Apple Services: iTunes, the iTunes Store, Mac App Store, iCloud, Apple Pay. And the accessories: Apple TV, Apple Watch and related accessories are more used by age of 20 to 45. For the gender males and females are apple target 4

customer. The second group is Psychographic segmentation (Social class and Lifestyle). The target market that have the most potential for future growth is Apple devices (iPhone, iPad, Mac, iPod) because those devices make our daily live essay.

2- For target market we will go with Apple devise with enefits sought segmentation. We chose be Apple target market because of the performance of Apple devices, speed of service, advanced features and capabilities. And self-expression as well. That target can be name “technology products’’.

3- Target-market strategy is an important term in marketing. Jobber (2010, p281) has divided the target marketing strategy into four types: (undifferentiated marketing, differentiated marketing, focused marketing and customized marketing). Apple market strategy is based on segmentation targeting and positioning of the brand. Apple segmentation is urban population who buy Apple product. Apple marketing strategy has three target group. The first one is the music lovers who are targeted by the Apple iPod and iTunes, then we have the professionals or even teenagers who are targeted for Apple iPhone, Tablets, MacBook and other such gadgets which can be used by anyone, irrespective of age. And the last one is the crowd which can use their other products and services like Apple TV and Apple IWatch. They also use iBook’s, Apple pay etc. Apple market strategy is very attractive with its designs Macs, the best personal

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computers in the world, iPhone X and App. With that strategy we can say that Apple target market will continue to growth.

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Smart

Samsung, sonny iPhone X, iPad, Mac, iPod Hard to use

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------------Easy to use, speed

Nokia copy devises

Other quality phone

Apple devices (iPhone X) perceptual map

References Bahasin, H. (2019, January 11). Marketing strategy of apple inc - apple marketing strategy. Retrieved from https://www.marketing91.com/marketing-strategy-apple/ Hayley, T., & Geoffrey, F. A. (2018, September 12). Apple unveils its largest, most expensive iPhone.

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Jack, N. (2019, January 4). 5 Reasons You Wouldn’t Want to Be in Tim Cook’s Shoes Right Now. Paine, M. (2011, March 20). what are the different models of consumer behavior? Retrieved from https://bizfluent.com/info-8083297-different-models-consumerbehavior.html Pantano, E. (2011). Cultural factors affecting consumer behavior: a new perception model. EuroMed Journal of Business, 6(1), 117-136. doi:10.1108/14502191111130343 Smith, & Quelch. (2013). apple on consumer's decision-making process. Retrieved from https://www.bestassignmentexperts.com/samples/apple-on-consumer %E2%80%99s-decision-making-process

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