Environmental and Consumer Influences Analysis
Introduction
The mobile phone industry is one of the most lucrative in financial markets. In choosing to analyse economic and other influences on consumer purchasing decisions, the mobile phone and computer industry is a good platform. Consumer purchasing decision sin the phone and computer industry is mainly determined by a set of external factors as well as a set of internal factors. The industry has over one hundred companies around the world and around 100 different products ( Slater & Lee,2007 ).Such a scenario presents a wide array of choices for consumers .therefore, it is necessary for any company that wishes to survive in such a business environment to seek ways to stand out and to attract customers to them. Among the industry leaders are Apple inc,. Samsung Electronics, LG electronics, Nokia, and Blackberry.
Political factors
These are influences that originate mainly from without the consumer that determine his or her decision to purchase a particular product. Among the key external factors influencing consumer purchasing decisions in the phone and computer electronics industry include aspects such as the political stability a region. Political stability is a prerequisite for healthy business practices to take place in a country. The absence of the same therefore greatly impairs business practices ( Slater & Lee,2007 ). It may restrict entry of many electronics into a country or restrict manufacturing of the same. In this way, it affects consumer decisions to purchase. Political unrest also puts luxury products such as are most electronics on a low priority for many consumers. Consumers are therefore less likely to purchase them, seeking to buy other more need-oriented products and services.
Legal Factors.
Legal factors may also cause problems for many electronic companies and thus affect their ability to have a full market presence. In such cases customers end up not buying.
Cultural Factors
There are also cultural factors that play a role in consumer purchasing behavior. Culture forms the basis on which individuals shape their values and behaviors. In this light certain values and cultures may consider certain aspect attractive in products. In Europe for instance, style and sophistication in products is considered to be of great value in the society. As such, most products that hope to do well in that continent have to incorporate aspects of style into heir products. In Africa in the other hand where priority is given to functionality and effectiveness of products, companies focus more on such aspects ( Slater & Lee,2007 ). In the electronics industry, companies focus more of certain aspects of products to ensure specific demand is met. Culture also has an influence eon the particular kind s of products that certain demographic groups of people may be interested in. in the Middle East for instance, demand for electronic goods in significantly less among women as compare to their male counterparts. The culture of the region requires that women take on a more domestic role, which in most cases does not involve phone and computer electronics.
Social Factors
Social factors in man cases acts as a power full force in determining consumer decisions in buying a product. Matters such as the need to be seen as belonging in a certain social class through the kind of products bought influence a lot of consumer decisions. The group in which the consumer wants to identify themselves will determine the kinds of products the consumer buys, their quality, as well as the amount of money a consumer is willing to pay for certain products. Social group s may include nationalities, race and social class. These groupings many times affect people’s priorities a swell as their financial capabilities and ultimately influence purchasing decisions. Affluent people will for instance buy products that are high end, high in quality and finesse. Middle-income earners will most likely concentrate on functionality and some finesse. Low income earners will most times solely prioritize functionality and affordability above everything else. (Slater & Lee, 2007 ).
Technological factors
Technological factors also play a role in influencing buyer decisions. For a consumer to buy a certain electronic product it is necessary that he or she have the ability to support it. The availability of supportive technology in the electronic industry is very essential to consumer purchasing decisions. I third world countries where technology levels are low , buyers who can afford high end computers will be less likely to invest in them a the cost of support for them would be too high. In places with no electricity for example very few consumers would buy electronic appliances unless hose appliances are not completely reliant on electricity.
Economic factors
Economic factors play one of the most fundamental roles in influencing consumer purchasing decisions. This is because it has a direct impact on the ability of a consumer to purchase a product. In the electronic industry, affordability is a big determinant of purchasing. Because of the large variety of choices consumers have in products, the pricing of them really matters to consumers. As such products of the same quality and functionality which are lower priced will find more consumers. However quality does play a role ( Slater & Lee, 2007). If products are of a superior quality and functionality, sometimes many customers will purchase the product.
Internal Factors
These refer to factors that directly determine the consumer’s ability to benefit directly from a product or a service. They therefore influence a person’s desire to buy a particular product or service by directly influencing their perception of a particular product. This desire to purchase a product is in most cases attached to a person’s desire to achieve certain goals or identify with certain values that the product represents ( Dibb &Simkin, 2008). Perception of the values of one electrical product such as a computer over another is mainly informed by their perceived outcome after using the product.
Perception and Motivation
Most companies in the industry have mastered the art of using accretive advertising to stay the perception of consumers concerning different products. They seek to create certain perceptual maps in the minds of consumers to achieve not only increased sales but loyalty. Perceptual mapping in the electronic industry mainly focuses on affordability, quality , functionality and simplicity.
Perceptual Mapping
The perceptual map displays the perceptions of customers about Apple Inc ( Dibb& Simkin, 2008). This perception analysis is done in relation to the brand position. The perceptual maps selects classy- ness and sophistication versus conservativeness and practicality as being key concerns in the industry. These alongside Simplicity and affordability as well as ease of use are the main concerns of customers of these brands products. Apple Inc’s products especially the I phone and ipads rank the highest in a measure of classiness, sophistication and distinctiveness versus ease of use. Other industry competitors rank differently in the industry
Emotions
Another internal factor that greatly influences purchasing is the power of emotions. If certain electrical products are associated with certain feelings in the consumer, then the consumer will always want to buy them. The association of certain electronic brands with certain demographic groups, exclusivity and a superior standard of quality is able to evoke certain emotions in a consumer and influence a purchasing( Dibb &Simkin, 2008) .
Psychographic characteristics of consumers in the industry mainly focus on social standing and self perception among consumers. As such companies try to tailor their products to meet these needs. .
For instance, a psychographic characteristic of Apple’s targeted consumers majors on individuals who place high value on social standing and social status and class issues. Individuals’ buying Apple’s products want to be able to have the finest things in life. They are attracted to the best technology, high efficiency and very high quality. This means that they place a high value on aesthetic appeal and how other people perceive them. They want to be viewed and appreciated as being clearly affluent and able to afford quality (Dibb & Simkin,2008).
Unlike Apple that targets majorly affluent individuals, Samsung takes a dual approach, targeting both affluent and low income individuals in the market. Therefore, Samsung has developed products to suit needs for both markets contrary. Geographically, Samsung targets consumers in both urban and rural areas unlike Apples which only targets urban dwellers. Psychographic characteristics of targeted consumers are much more inclusive than those belonging to Apple Inc’s target customers. Individuals targeted are no solely focused on class and social status but more on functionality and efficiency.
Appendix 1: Perceptual map for Apple Inc in the electronics industry.
Classy,sophisticated and Distinctive
Apple Inc.
Simple and affordable Ease of Use
Black Berry
Conservative and Practical
Reference List
Slater,J. & Lee, J.(2007). Dynamic capabilities, entrepreneurial rent-seeking and the investment
development path: The case of Samsung. Journal of International Management Volume 13 (3) , 241–257
Dibb, S. and Simkin, L. ( 2008).Market Planning :a workbook for Marketing Managers. New York :Sage
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