Preview

Decision Making in Households for Samsung S3

Good Essays
Open Document
Open Document
739 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Decision Making in Households for Samsung S3
Consumer Behavior
What is a group? A group consists of two or more people who interact with each other to accomplish mutual goals. One type of group defined in consumer behaviour is reference groups. Marketers use reference groups effectively to create desire, need or to promote a product or service. In my case, Samsung also used different types of reference groups to promote its product, Samsung Galaxy S3. While purchasing a product or service, consumers usually have contact with other people whether it’s direct or indirect, which in return affects their purchasing decisions. Depending on how attractive and credible the reference group is, it can influence the purchasing decision by different intensities. Reference groups are classified into two direct face-to-face and non-direct.
One such reference group is a comparative reference groups. Comparative reference groups consist of lifestyle, fashion, and socializing. Samsung S3 comes into the category of all three—lifestyle, fashion, and socializing. Samsung S3’s target consumers are businesspeople. So yes, lifestyle is a main key factor to be able to target the right consumers. Also, trend followers are another factor that Samsung S3 has kept up with. A lot of people have started buying Samsung S3 because it is very much in trend at the moment. Yes, people are still favouring Iphone 5, but Samsung S3 is rapidly increasing with fame. Socializing plays a main role in purchasing a product/service. Most people talk to others who are directly or indirectly related with a certain product/service who in return influence other people’s purchasing decisions.
Another issue that Samsung S3 faces is that it depends on indirect reference groups for advertising its product. What is an indirect reference group really? Indirect reference groups consists of individuals whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities. Basically,

You May Also Find These Documents Helpful

  • Good Essays

    Unit 7 Assignment AB140

    • 915 Words
    • 3 Pages

    Managers in all kinds of companies are using groups and teams to enhance performance, increase responsiveness to customers, spur innovation, and motivate employees. A group are two or more people who interact with each other to accomplish…

    • 915 Words
    • 3 Pages
    Good Essays
  • Good Essays

    SOCI 1301 Paper 5

    • 649 Words
    • 2 Pages

    Group: Any number of people with similar norms, values, and expectations who interact with one another on a regular basis.…

    • 649 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    LS Unit 521

    • 866 Words
    • 1 Page

    Groups may be defined in many ways, indeed providing an absolute definition of a group, as with much of the theory around group work, is highly problematic and contestable. However for the purposes of discussing group work within a context of working with vulnerable customers l may define a group as a small gathering of customers. Group work may simplistically be described as the study and application of the processes and outcomes experienced when a small group comes together.…

    • 866 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    When you think about reference groups, there are a number of perspectives that one has to consider. According to Hawkins (2010), a reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Thus, a reference group is simply a group that an individual uses as a guide for behavior in a specific situation (p.227). Groups may be classified according to a number of variables. Four criteria are particularly useful: membership, strength of social tie, type of contact, and attraction.…

    • 723 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Marketing Concepts

    • 609 Words
    • 3 Pages

    One of the most challenging concept in marketing deals with understanding why consumers behave in a certain way or do what they do (or don’t do). Two major psychological concepts are often used to explain and understand the consumer’s behaviour. The first is the so called in psychology the cognitive psychology in which the focus of the study is the mental behaviour i.e. the internal influence such as perception, memory, attention, attitude, beliefs, values, personality and buying motives. The second psychological concept is the social psychology in which the phenomenon of consumer behaviour is completely influenced by the external forces, i.e. social and referenced groups. There is no doubt that the consumer behaviour is extremely complex due to the nature of human beings differences in all the levels. Nevertheless, a common definition of consumer behaviour is the study of individuals, groups, or organizations and the processes of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas. But such knowledge is critical for marketers since having a strong understanding of buyer behaviour will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to customers.…

    • 609 Words
    • 3 Pages
    Good Essays
  • Better Essays

    A person's reference groups consist of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior. Groups having a direct influence on a person are called membership groups. Some membership groups are primary groups, such as family, friends, neighbors, and co-workers, those with whom the person interacts fairly continuously and informally. People also belong to secondary groups, such as religious, professional, and trade-union groups, which tend to be more formal and require less continuous interaction. (Kotler & Keller, 2006, p. 213)…

    • 1973 Words
    • 8 Pages
    Better Essays
  • Good Essays

    When it comes to consumer influences, and the environment in which they are subject and seem to play a huge roll when spending money on a certain product or service. Society today is a product of their own environment in the way that we react and purchase a product or service based on demographics and what people around us have. This behavior is affected by many different elements in society such as; motives, perceptions, attitudes, personality, family, social class and reference groups. The values of society is driven by a behavior. It is the question of what must we have and what do we really need? In doing a survey to and analyzing it a marketer can see who they need to market and sell their product too based on the information gathered. It seem that every person today is in need of a cell phone, at smartphone at that, and the never ending innovations in the development of these products.…

    • 971 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Samsung Marketing

    • 11787 Words
    • 48 Pages

    2 All references to Samsung or SEC refer to Samsung Electronics Company and not to other affiliate companies or the Samsung…

    • 11787 Words
    • 48 Pages
    Good Essays
  • Best Essays

    Fashion Opinion Leadership

    • 4332 Words
    • 18 Pages

    Consumers use several sources when they seek information or opinions on decisions; informal and social (Goldsmith and Clark…

    • 4332 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    Many celebrities who are considered to be persuasive role models often appear in TV beer commercials. Does the use of such celebrities in beer advertising constitute an unethical marketing practice? Discuss.…

    • 519 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Samsung Electronics Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol.…

    • 2663 Words
    • 11 Pages
    Good Essays
  • Powerful Essays

    References: Alba, J., Lynch, J., Weitz, B., Janiszewski, C., Lutz, R., Sawyer, A., et al. (1997). Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in electronic marketplaces. Journal of Marketing, 61(3), 38–53. Andreasen, A. R. (1968). Attitudes and customer behavior: A decision model. In H. H. Kassarjian & T. S. Robertson (Eds.), Perspectives in consumer behavior (pp. 498–510). Glenview, IL: Scott, Foresman and Company. Ansari, A., Essegaier, S., & Kohli, R. (2000). Internet recommendation systems. Journal of Marketing Research, 37(3), 363–375. Ardnt, J. (1967). Role of product-related conversations in the diffusion of a new product. Journal of Marketing Research, 4(3), 291–295. Bakos, Y. J. (1997). Reducing buyer search costs: Implications for electronic marketplaces. Management Science, 43(2), 1676–1692. Bearden, W. O., & Etzel, M. J. (1982). Reference group influence on product and brand purchase decisions. Journal of Consumer Research, 9(2), 183–194. Bearden, W. O., Netemeyer, R. G., & Teel, J. E. (1989). Measurement of consumer susceptibility to interpersonal influence. Journal of Consumer Research, 15(4), 473–481. Brown, J. J., & Reingen, P. H. (1987). Social ties and word-of-mouth referral behavior. Journal of Consumer Research, 14(3), 350–362. Childers, T. L., & Rao, R. (1992). The influence of familial and peer-based reference groups. Journal of Consumer Research, 19(2), 198–212. Cyber Dialogue (2001). The personalization consortium’s online consumer personalization survey. Duhan, D. F., Johnson, S. D., Wilcox, J. B., & Harell, G. D. (1997). Influences on consumer use of word-of-mouth recommendation sources. Journal of the Academy of Marketing Science, 25(4), 283–295. Folkes, V. S. (1988).…

    • 9018 Words
    • 37 Pages
    Powerful Essays
  • Good Essays

    Social factors include reference groups, the family and roles and status. Reference groups expose an individual to new behaviours and lifestyles, influence attitudes and self concept, and create pressures for conformity that may affect product and brand choices. Reference groups include groups that have a direct influence on purchase decisions which include primary groups (family, co-workers, neighbours) as well as secondary groups (religious, professional, trade-unions). Other groups that an individual may not belong to but have a bearing on purchase decisions include aspirational and dissociative groups. Marketers also have to examine the role of opinion leaders (who offer informal advice or information about a product or product category) and direct efforts to informing, educating and reinforcing the product message to…

    • 1244 Words
    • 5 Pages
    Good Essays
  • Good Essays

    One of the factors that influence consumer buying behavior is social factors. Social factors can be classified into three classes which are reference groups, family, and social roles and statuses (Kotler, 2000). Reference groups comprise of people that directly or indirectly influences a person’s behavior (Kotler, 2000). Membership groups are groups that have a direct impact on an individual (Sarangapani, 2009). Family, friends, neighbors and co-workers are some examples of primary membership groups in which the interaction that takes place is informal and large groups such as professionals and trade-union groups fall under secondary groups where the interaction is likely to be more formal (Kotler, 2000). According to Bearden and Etzel (1982), consumers’ reference groups can influence their selections on products and brands. In addition to this, Kotler (2000) stated that people are exposed to new behaviors and way of living by their reference groups, attitudes and self concept causing peer pressure affecting their choices of products and brands. Individuals often select products and brands that are recommended by their peers. This is mostly due to their peers having purchased it and was satisfied with the product and finally has come to an agreement to buy the product with the same model or brand. Also, reference groups affect the aspiration levels of individuals thus contribute in creating satisfaction and frustration (Stafford, 1966). Apart from reference groups, family members also influence the behavior of a buyer. Kotler (2000)…

    • 1731 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Consumer

    • 279 Words
    • 2 Pages

    Emotions also play a role in business buying. Volvo stresses that the trucks’ benefits will make “drivers a lot more possessive”.…

    • 279 Words
    • 2 Pages
    Satisfactory Essays

Related Topics