Consumer Behaviour Purchase Decision Process

Question: Discuss about the Consumer Behaviour for Purchase Decision Process. Answer: Introduction Consumer purchase decision process refers to series of steps that a consumer crosses before buying the ultimate product of his choice. Different factors, characteristics and specificities have an impact on the consumer and these factors influence the consumer in the decision making process and purchasing behaviour. A purchase decision may be the result of one or all of the factors (Wilson et al., 2012). The domains under which these factors may be categorised are cultural, social, personal and psychological. Among the four kinds of factors, it has been found that social factors significantly have a greater impact on the product and consumer purchase decision process at all stages. Marketers attempt to implement their marketing methods based on this consumer purchase decision process considering the factors that impact the overall buying process (Hair Lukas, 2014). ABC is an apparel company that aims to establish itself as one of the most recognised names in the apparel industry. The company manufactures clothing for both the genders. In order to fulfil the aims it has, ABC must have a robust marketing plan giving focus on the consumer purchasing behaviour. The present report identifies two social influences that are relevant to the consumers of ABC Company and discusses how the social factors impact on the consumer purchase decision process. The report also discusses how marketers of ABC Company can apply the understanding of the social influences for improving the marketing strategies of the company. Impact of social influences on the consumer purchase decision process Consumer behaviour is the selection, purchase, and buying of products and accessing services for attaining the satisfaction that is desired. A number of factors impact the mindset of the consumers and the views they have with regards to a certain product. Whether the consumer would buy a certain product or choose a particular service depends on these factors. The factors together lead a customer to select a certain product or service among the other options available (Jobber Ellis-Chadwicl, 2012). Hollensen (2015) state that social factors have the greatest impact on the consumer purchase decision process. The social factors refer to the external influences on the purchase decisions of the consumers either in a direct or an indirect way. Three major social factors that influence purchase decisions are social status and role, family and reference group. All the three social factors influence the purchasing decisions of a consumer while buying apparel and therefore are significant for ABC Company. Social status and role- the position an individual holds within the society, in his family, his workplace and his circle of friends is defined as the social status and role he possess. A social role is the activities that the individual carries out and attitudes he have. These are found to be developing as per the position he holds at work, the gender, the profession he chooses and the expectations he has to meet considering the environment around him. The apparels that an individual buys is based on this social role and status and the buying process is marked by the impact of the social environment on the individual. For instance, a consumer may have the desire to buy apparels from the top apparel brand for the quality of the apparel. However, this decision may also be due to the desire to show external signs of social success. The success and standard the individual has in society drives the individual to buy the apparel that is of high price and representing high class (McKenzie-M ohr, 2013). Moreover, chances are high that a person holding a respectable position in an organisation and wearing clothes from not-so famous brands would get less attention from the stakeholders in his company than if he is wearing apparels from a top brand. Such behaviour is found at all levels of the society. Brands must have the understanding of this concept and create a brand image for their products that reflect a significant social status (Czinkota Ronkainen, 2013). Family- The family can be the most influential social factor for a section of the population. Family forms the milieu of socialisation and it is within this environment that the individual shape the personality, evolve and acquire values. This atmosphere of socialisation also helps in developing opinions and thoughts on various subjects, like clothing and food choices. Consumer behaviour is significantly impacted by the family members of the individual. For example, if an individual has not bought any apparel of a certain brand previously and a family member gives a negative feedback about the brand, it is likely that the individual would not consider buying clothes from that brand (Eagle et al., 2013). According to Lang Armstrong (2016) a certain brand may be making apparels of a certain material and if a family member has given build up a particular viewpoint about the material, there is less chance that the individual would buy apparels from that brand. Reference groups- As stated by MacInnis et al., (2014) membership group refers to the social group an individual belongs to, and it is this membership group that has the ability to influence him in due course of purchasing a product. A membership group relates to the age, social origin, work, leisure, and hobbies. Reference groups possess the potential to form an individuals behaviour and attitude. The influence that the reference group makes is found to be varying across brands and products. For products such as apparels, the influence made by reference groups is high. The reference group provides to the buyer certain aspect of comparison directly or indirectly about the consumer habits. The groups have an impact on the image an individual has about himself and his behaviour. As opined by Hoonsopon and Puriwat (2016) the wishes and desires that an individual has about buying an apparel results from what the reference group suggests. An individual may like to buy the same product tha t a member of the reference group has bought. For example, a teenager may want to buy a dress that her friend has bought. A young boy may want to buy a shirt in order to be accepted by his group of friends. Reference group may be impacting purchasing process either by providing suggestions or by advising a product. Reference groups, therefore, does not permit evaluation of products before buying; rather it compels an individual to buy a product (Matulich, et al., 2015). How marketers can apply the understanding of social influences on consumer behaviour to improve marketing strategies For becoming a successful consumer-based company, one must work by understanding the psychology of consumers for procuring consumers. By considering the social factors, marketing strategy can be made favourable for the company and goals of the valuable consumers can be fulfilled (Kotler et al., 2015). Shani and Chalasani (2013) highlight that consumer satisfaction is the objective of marketing for all organisations big or small and factors affecting consumer buying behaviour must be made the fundamental driving force for marketers. ABC needs to suitably apply the understanding of social influences on consumer behaviour for improving the companys marketing strategy. A number of marketing strategies are in place that can guide ABC in successfully reaching to its target customers. The most important strategies that ABC can consider for its marketers are as follows: Marketing mix: 4 Ps The marketing mix is a basic concept in the field of marketing. It is a widely used marketing strategy tool that helps in defining key concerns effecting marketing of the products by a firm and pursuing marketing objectives (Huang Sarigll, 2014). Rahmani et al., (2015) highlighted the four broad levels of marketing decisions and elaborated the marketing mix technique. According to the author, the four domains that a marketer must look into while setting the marketing plan are product, place, promotion and price. These 4 Ps are elementary to any marketing plan as it helps in evaluating the appeal of the product. ABC must use an appropriate marketing mix considering the 4 Ps for achieving the business goals. In order to establish itself at the highest peak of success in the apparel industry, it has to make a craze of the brand among the enthusiasts of fashion. Product- ABC needs to way out means to respond quickly to the evolving needs of the target customers. The exclusive selling preposition needs to be an imitation of the latest trends in the apparel industry. Customer survey regarding their choices as per the latest fashion is to be carried out to understand the recent needs and choices customers have. Seasonal variations are to be included in the range of apparels. Usually, apparels following the new trends are sold very fast in comparison to other apparels made following the previous trends. In case ABC founds that the products are not selling as desired, it must immediately pull them out from the stores. The launch of new products must consider the cultural needs of the people. It is desirable that ABC reaches out to the local people and understands what their choices are with relation to apparels. Designs must consider the integration of local traditions with modernisation (Singh Sarvanan, 2013). Pricing- ABC needs to give special attention to the products of the apparels. It is to be kept in mind that the products must be available at a reasonable rate. However, since the target customers also include cream customers, premium stores of the ABC apparels selling some special products can be set up. A premium pricing strategy can lead to optimisation of development as well as training costs (Gupta Hodges, 2012). Promotion- the best promotional strategy for ABC would be to have anything unique. The zero investment in marketing would be a suitable marketing option for the company. The company can use the money set aside for advertising for opening more stores. The key marketing strategy would be based on affordability, differentiation, and exclusivity. In essence, promotion of the brand would be based mostly on word of mouth advertisement. The products mainly target age group of 18-50 years. The reason for this is that this particular group is more fashion conscious (Wolfe, 2014). The showrooms are to be given special attention in order to draw the attention of the customers. Well groomed attendants and elegantly made showrooms would effectively promote the brand and reach to the consumers. The theme of the brand needs to be uber fashion that is common for all ages. Use of innovative window display along with store and ensemble grouping would successfully attract customers (Yan et al., 2012). Place- in order to reach out to the maximum number of consumers and cater all the needs of the consumers, ABC must make itself a stand out brand by being a vertically integrated retailer. This implies that the company needs to design, manufacture and distribute the products itself. This would be working since customers would develop a trust and loyalty for the apparel products (Na Na, 2015). Another very crucial factor is that ABC must imbibe in it the culture of the places where it wants to open stores. This would be a real strength for the company and cater the needs of the consumers. Young designers can be hired and given adequate training for incorporating their culture and choices in the designs of the products (Hultn, Vanyushyn, 2014). Segmentation Strategy The segmentation strategy of ABC needs to be based on the typical demographics that the target customers have, like psychographics, age, and gender. Moreover, the company must also consider targeting the customers on the basis of the style and the fashion sense they have, for instance, classic, trendy, grunge and contemporary. The marketers must blend the ethnicity along with tastes of the customers. The products must match the products with the settings in which they are sold. In relation to the personal knowledge and information read, marketers of ABC must clearly segment itself into different regions. This would demonstrate the demographic intentions regarding segmentation of customers having different tastes and choices and pricing preferences. The company must produce the complete value of its products on a dissimilar manner from other brands (Kotler et al., 2015). Targeting Strategy ABC must target a wide gap in the retail market in order to have a robust targeting strategy. The firm needs to target customers who have a consistent interest in the high fashion apparels. These customers have the desire to be in-line with the latest fashion trends; however, they cannot afford clothes from high-end boutiques and couture. Launching the outlets in locations that are high profile is an appropriate measure. Customers can be provided with a turnover time frame of around 5 weeks for the newly available collections. These collections would be priced at nearly a fraction of what it would cost at couture (Lahiri Siddika, 2014). The marketers must carry out primary as well as secondary research for creating demographics options. The firm can implement a fashion direction by targeting older age group customers who are willing to use apparels that make them look young. High fashions following customers are to be targeted and modern clothing is to be produced keeping in mind th eir desires (Lee et al., 2014). Positioning and Differentiation Strategy The main objective of ABC with regards to positioning needs to be democratize fashion.' ABC needs to position itself as a low cost brand that delivers the actual value of the product that is sold. Products need to be high fashion, accessible and trendy. Moreover, it needs to position itself as a popular brand within the group of generation Y (Islam et al., 2014). ABC can differentiate itself from the other apparel brands by offering low value for high quality. Quality received is a major factor that influences the buying decision process of consumers. Good quality at an affordable price is what all customers want. Lastly, ABC must spend enormous time in researching for the future trends. The reason for this is that the firm must design the product line half a year prior to its launch. Following these marketing strategies, ABC would accomplish its set goals and objectives and achieve further growth and set a benchmark in the apparel industry (Kotler et al., 2015). Conclusion How consumers respond to marketing messages put forward by different brands and how they make purchasing decision is a topic of significance for marketers across all industries. Social influences are found to be quite diverse, and such kind of influencers encompasses the consumers social interaction, family, work and the group that a person affiliates with. The living conditions, income level, the social class also fall into this category of influencers. Social factors need to be critically analysed while developing the marketing plans for a certain firm. By the identification and understanding of the factors influencing the customers, ABC has the good opportunity to develop an effective strategy for marketing its apparels to a broad range of consumers. Marketing mix, targeting, positioning, differentiation, and segmentation are the key concerns in relation to a robust marketing plan, and a suitable combination of all these factors would lead to success for the company. References Czinkota, M. R., Ronkainen, I. A. (2013).International marketing. Cengage Learning. Eagle, L., Dahl, S., Hill, S., Bird, S., Spotswood, F., Tapp, A. (2013).Social marketing. Pearson Education. Gupta, M., Hodges, N. (2012). 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