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The consumer decision making process
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Consumer Decision Process 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 …show more content…
According to Spotify.com, “With Spotify, it’s easy to find the right music for every moment – on your phone, your computer, your tablet and more. There are millions of tracks on Spotify. So whether you’re working out, partying or relaxing, the right music is always at your fingertips. Choose what you want to listen to, or let Spotify surprise you” (Spotify.com). Spotify understands there is a consumer need for on-the-go streaming music. Consumers rely on their smartphones and laptops to listen to music on-demand. Although there are many music streaming companies, Spotify was one of the first to let consumers access millions of artist without buying individuals songs or albums. With Spotify, consumers pay for a premium subscription that allows access to every artist, album, and song within their library of …show more content…
It is now time to make a purchase. Consumers tend to like the purchase step made easy. Amazon offers a one-click purchase option which allows consumers to purchase item and have them shipped in literally on-click. Spotify does not offer a one-click option but a potential subscriber can sign up for a premium subscription in under 5 minutes. Simply choose you membership, enter you billing info, and buy. The best part for the consumer is that similar to Netflix, you can engage in a free 2 month trial before you commit to a monthly subscription. This helps consumers continue to evaluate in order to make sure this is the best service to satisfy their need. Also, subscriptions are monthly and can be cancelled at any
The Forrester-Miller and Davis Decision Making Model (1996) has seven steps. These steps are outlined in the subsequent sections (Forrester-Miller & Davis, 1996).
1.2. Compare Buyer behavior and decision making process in different situation (P 1.2) ......... 4
The first step is to create a model of buyer behavior that would encourage consumers to buy
Netflix has a unique business model. The company strategy focuses on differentiation. Netflix works to outcompete its competitors through the differentiation of its service. Netflix places customer experience above all else. The company prides itself in knowing that customer experiences is directly related to company financial viability, and with that known, the company works to ensure that each user has a great experience with the Internet streaming service. Netflix is a brand that is focused, not one that simply tries to do everything. By focusing on the entertainment industry, Netflix is able to
Consumers now-a-days have so many different platforms that they are able to listen to music on, that the loyalty to one specific medium is extremely low. Substitute options are immense, but having a celebrity do a daily talk show only on your service will drive many consumers to purchase the subscription. The reason for this is because it is very rare that one type of music or song will be limited to a platform; but by signing a contract with these on-air personalities, it can give you exclusive rights to their content making other options obsolete if consumers want to listen to
They have created a three-step system of buying. Starting with a catalogue, customers select their desired products and
Another change to Tidal was its focus on the younger music consumer crowd from a less pin-pointed type catalog. This new
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
Before the 1990’s, if people want to listen to music, they just visit a music store and pick up a CD and then put it into a stereo equipment. However, the development of MP3 file format gradually changed the way people listen to music. This format lets everyone download music easily and it can be converted to CD as well. But, there is still a problem: searching MP3 files on the internet is maddening and people seldom can find the music they want. Therefore, the birth of Napster solved this problem, creating a virtual music community in which music fans could use the Web as a “swap meet” for music files. More importantly, Napster is easy to use and it’s free, which expands the range of audience in age. Bandwidth also contributed to Napster’s success. The greater the bandwidth, the faster the file can be transferred. So, Napster really changed the way people listen to music, discover music and interact with music.
"The mass production of free, high-quality re-recorded music became a serious threat to the music industry" ("Music Industry"). This mass production is costing artists and producers money that they would have made from people buying their music. Listeners have turned to streaming services as a cheaper alternative to purchasing to songs they love. Streaming services have increased the availability of music, which one may think is a good thing but is in fact a fulmination to the music industry because artists are not making as much money as they would have if songs were being purchased individually. People who worked in the music industry had showered praise on to streaming services, considering them a savior that would help the music industry and increase revenue, but they instead had an adverse effect on music sales and artist salary (O’Brien). Streaming services have led to protests from artists on many different levels due to the amount of payment that artists are receiving. "Prince, Neil Young and Ms. Swift have withdrawn their music from some streaming outlets, and various musicians have called for greater transparency in how the music industry operates (Sisario).” While the protests have been successful, it is only when famous high-level artists bring attention to the issues. This controversy is one of the negatives of streaming services because
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.
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
Listening to music for free is the best thing in the world, honestly, without paying for something is better than anything. Music to some-people is a way of life, why should they pay for music when they can download it for free. If you download a song off the internet, you’ll have your favorite song in the palm of your hand, charge free! You can save that money that you won’t spend on a few songs or albums and use it for something more important. “Free music downloads could be a solution to our attempts to scrimp and conserve in these rough financial situations” says Frank Castle from Article Alley.
The music industry has rapidly changed over the past several decades, moving away from records and cassettes and through CDs. No longer is the age of hard-copied music, but rather digital copies. iTunes transformed the music industry, but now people are starting to look to other options where they can get more songs for less money. This is where streaming services come in. Many companies, the biggest being Spotify, offer access to practically unlimited music for a low monthly fee. Rather than paying for each individual song, avid music lovers can listen to as many as they want for a flat rate price. Although this sounds like a great deal from the music listener’s perspective, there have been questions raised as to whether it’s detrimental to the music artists. Some feel as they would be missing out of money since people would not be buying their music directly, and instead buying into the services as whole. Hence why some artist’s music seems to be mysteriously missing from streaming services such as Spotify. One of these artists is the Beatles. If you were to search on Spotify for music by the Beatles, you would be able to find mediocre cover versions by other artists, but unfortunately, the real versions are not there. The reason for this being that Apple Corp, who is the rights holder of the Beatles music, has decided not to allow their music to be streamed through such services. As Beatles fans begin to pester Apple Corps, the question raised is whether or not they will join into the streaming services.
Marketers have been using three Step Mental Model theory of marketing for a long time in order to reach a customer and make a sale.