Consumer Engagement and Consumer Decision Making Process - Coursework Example

Consumer and Organisational Behaviour Table of Contents Table of Contents 2 Introduction 3 Discussion 3 Consumer Engagement 3 Consumer Engagement Strategies 4 Benefits of Consumer Engagement 6 Consumer Decision Making 6 Consumer Decision Making Process 6 Conclusion 10 Introduction Table is a material for conveniences at home, corporate offices, and in other places. The widespread use of tables has made it one of the most demanding furniture in the world. Tables have been in use since its inception, but the commercial market for it first evolved during the 16th century. This was largely because of the creation of highly decorated and statistically designed tables that were used for luxury. The design for tables has changed highly with the passage of time. The raw materials generally used for the production of tables are woods, but in the present day plastic, glasses, and others are also used for the same. Moreover, the recycling of the tables by the table manufacturing industries to reduce the cost of manufacturing and to protect the environment is also prominent in the present day competitive business environment. However, the quality control is also an important factor to be considered for attracting the consumers and hence, there are also certain quality control agencies that inspects the quality of the tables that are being produced by the manufacturers. Furthermore, the manufacturers are also concerned about the consumer behaviour that would lead to the sale of their products. These table manufacturing companies of the modern era of business are also concerned for undertaking sophisticated decisions that would lead to maximisation of sale and hence, gather competitive advantage (Advameg, Inc., 2014). Contextually, the essay intends to illustrate the process through which the organisations related to tables engage with the consumers. Correspondingly, the essay intends to discuss the decision making strategy of consumers while buying tables, with due consideration to the marketing theories. Discussion Consumer Engagement The engagement of the consumers with a specific organisation or a brand is known as consumer engagement. The process of initiation of consumer engagement either takes place through consumer’s end or through the organisation’s end. The consumer initiates the same in order to avail the warranty or guarantee of the product and to avail after sale service from the organisation. This is beneficial for both the parties. From the consumer’s end, it conveys higher satisfaction from the product. While, from the organisation’s perspective it brings loyalty of the customer towards the organisation or the brand (Jobber & Ellis‐Chadwick, 2013). Consumer Engagement Strategies There are certain strategies through which the companies engage with their consumers. One of the most popular and one of the most effective tools is the use of internet and online engagement. This can be in the form of the email messaging through the internet. This tool provides a significant cost benefit to the organisation. Moreover, if the organisation is at distant place located at an offshore location, then this type of tool is considered very effective. This does not let the customer or the organisation to travel the distant places. This approach of the companies connecting with the customers is widely seen in the furniture industry, while selling tables. The suppliers like Amazon, Flip-kart, and others have used the process of connecting with the customers through the process of internet and online media like the emails, and more. Furthermore, there are certain furniture brands that use the online media to provide information regarding the tables they make. Through the online media, these companies also provide information regarding the mode of use of the table and the convenience that the consumer would derive from the purchase of the product. This is prominently observed in some of the brands such as “Hickory, Thomasville, Lane Furniture, Henredon, Drexel Heritage, Broyhill, and many more” (Jobber & Ellis‐Chadwick, 2013; Equion Consulting, 2009). The companies also strongly embrace steps to connect with the consumers with mobile marketing. This strategy is highly effective because mobile phones are widely used by a majority of the people. Moreover, communicating through the mobile phones also provide cost benefit to the organisation. There are certain ways through which mobile phones can be used as the tool for enhancing consumer engagement. One of this is the application of the short message services (SMS). This is very much effective as it takes a lesser amount of time to connect with the consumers and it takes a reasonably lesser amount of money for the engagement. Moreover, the mobile phones supporting several applications also lead to the consumer engagement. This is observed in the suppliers of tables such as Amazon and Flip-kart, which provides certain applications that support mobile phones for the enhancement of consumer engagement. These organisations also send text messages to the consumers to resolve issues regarding the delivery process of the table to the clients. They also send text messages to the consumers, after the successful confirmation of the order made by the consumer and after the successful confirmation of the transaction. Besides text messages, suppliers such as Amazon, Flip-Kart and the manufacturers send multimedia messages to the consumer to attract them (Jobber & Ellis‐Chadwick, 2013; Equion Consulting, 2009). One of the aspects that are very much popular in the present day business environment with regards to the consumer engagement is the introduction of call centres. Call centres are the institutions through which the consumer gains the information regarding the product and the organisation. This is done by a telephonic call to the call centre. There are certain call centres that calls the prospective consumers in order to enhance the consumer engagement and hence, benefit both the parties. It should also to be noted that most of the call centre institutions act as an outsourcing agency for the business entities. Thus, are known as “Business Process Outsourcing”. Several of the furniture organisations for enhancing consumer engagement use this type of strategy. One of those companies is ‘iDEAL Furniture’ that uses the outsourcing of its business process through the help of call centres and thus simultaneously encourages the consumer engagement towards the organisation. This approach is highly effective because the consumer engages in the direct conversation with the representatives of the organisation (Jobber & Ellis‐Chadwick, 2013; Equion Consulting, 2009). Besides all these, there is also very generic form of engagement of the customers to the organisation. This is the engagement through the personal face to face meeting with the consumers. The representatives of the organisation meet with the consumers to sort out his/her issues regarding the product. This approach also leads to convincing of consumers in the purchase of the product. This type of engagement is also known to be as a perfect consumer engagement as the consumers are physically present in the location of the organisation. Contextually, this type of consumer engagement is also observed in the case of furniture industry selling tables. Hickory Furniture is one of such furniture organisations that sales furniture products including tables in their retail outlets. This makes the organisation to boost the consumer engagement towards the organisation by a direct conversation with the representatives of the organisation (Jobber & Ellis‐Chadwick, 2013; Equion Consulting, 2009). Benefits of Consumer Engagement There are certain benefits of the above strategies which enhances consumer engagement. One of such is that the strategy would increase the sales of the organisation. Moreover, it also decreases the operating cost of the furniture company engaged in the sale of tables. Furthermore, these strategies of enhancing consumer engagement would also lead to the increase in the brand loyalty of the customers and so also the company image and the reputation towards the brand or the organisation. Furthermore, it also increases the awareness of the consumers towards the brand (Equion Consulting, 2009). Consumer Decision Making Consumer decision making is the process through which the consumer recognizes his/her needs and then gathers information regarding the need. This is followed by the assessment of the alternatives. Hence, the consumers purchases according to their convenience (Jobber & Ellis‐Chadwick, 2013). Consumer Decision Making Process The understanding of the consumer decision making process is a very important aspect from the perspective of an organisation. This is also similar in the case of the organisations that are engaged in selling furniture including tables. There are certain theories of marketing that are also required to be considered before the understanding of the consumer behaviour. One of such theory is the reasoned action theory. This theory suggests that the behaviour of an individual depends upon the intention of the individual that he/she might possess. This intention towards the behaviour depends upon the attitude of the individual towards the behaviour and on the subjective norm, which is the social pressure of the individual to be engaged in the certain behaviour. Moreover, it is to be noted that the individual behaviour is the result of the belief that the individual possess with regards to the attitudes. Correspondingly, the subjective norm depends upon the individual belief on the people’s perception towards behaviour (Jobber & Ellis‐Chadwick, 2013; Terry & et. al., 1993). The model of reasoned action theory is depicted below: (Source: Terry & et. al., 1993) The theory of reasoned theory can be applied to the furniture industry selling tables. The consumer of the tables while buying the same undergoes a certain behaviour which can be illustrated through the application of the theory of reasoned action. Tables are mostly used in the corporate offices, where it is observed that almost each and every employee and the employer have a certain table for work. The employer, who is most likely to undergo the purchasing decision of the tables, the typical behaviour of the same would determine the sale of the table. If the employer is more concerned about his own individual belief with regards to the brands of tables then he/she is more likely to buy those brands that are of his/her choice and does not bother about the comfort of the employees. On the contrary, if the employer is more concerned about the perception of the employees than he/she is more likely to purchase tables that are of the choice of the employees. However, if the employer were more concerned about the perception of the society towards the organisation, then the employer would purchase tables that are trendy, despite the individual choice of the employees. Thus, the theory summarizes that the buying behaviour of the consumer largely depends upon the behavioural intention of the consumer, which is equally applicable in the case of purchase of a table. There is also another concept that needs to be considered by the organisations in understanding the consumer behaviour. This is the “5 stage purchase decision process”. In this regard, the consumer during the purchase at first recognises the problem that he/she faces with the absence of the product. Considering a case of purchase of a table for an office, the decision making body that is the employer at first identifies the problems with regard to the table that are to be used in the offices. The identification of the problem is this case is the need generation for the tables that would make the employees comfortable. This also means the identification of the choice of the employer with regards to the tables. This is followed by the search for brands that would suffice the needs of the employer. This process is done by the search on the online medium and through various other sources as mentioned in the above consumer engagement means. Information gathering is also done by the primary references as well as the secondary references. Through this information the consumer evaluates the various alternatives. In this case, the employer evaluates with the several alternatives from the sources of information, and hence attempts to make a perfect decision that would suffice their need. Through the evaluation, the customer makes the decision and chooses a particular brand and the specific model of the product. This is followed by the purchase of the product and hence, the consumer decision making process ends (Jobber & Ellis‐Chadwick, 2013; Pride & Ferrell, 2008). The pictorial representation of the “5 stage purchase decision process” model is depicted underneath: (Source: Pride & Ferrell, 2008) The purchase of the product by a consumer also depends upon the theory of “Consumer Purchase Behaviour”. This theory is also applicable in the case of the purchase of tables by a consumer. If the consumer has the higher involvement in the purchasing decision and has the higher effort in decision making, then the decision turns out to be very complex. This is observed in case where consumer purchases a car. For buying tables by the consumer through complex decision making is less likely to happen. Moreover, if the consumer has low involvement in the purchase decision and simultaneously has higher effort in the decision making, the decision turns out to be variety seeking. This is observed in the case of consumers purchasing snacks and other foods. This type of scenario can be observed in the case of consumers purchasing tables, when the purpose of the table is for the use in marriage for dining. Furthermore, if the consumer is involved in purchasing decision, but has the low effort in the decision, which is more like a habitual decision, then the outcome of the decision is certainly a loyalty to a particular brand. This type of purchasing behaviour is observed in case of buying athletic shoes. The purchase of tables also fits in this scenario, if the individual purchase tables for his/her personal use. Last but not the least; the consumer observes consumer behaviour of inertia in case of the low involvement in the purchasing decision and there is a lesser effort by the consumer, which is more of a habitual decision. The consumer observes this type of consumer purchase behaviour in case of purchasing laundry detergents. This type of scenario can also be observed in case of buying table, if the table is for insignificant purpose (Jobber & Ellis‐Chadwick, 2013; Deaton, 1980). The underneath table shows the table for consumer purchase behaviour. (Source: Deaton, 1980) Conclusion From the essay, it can be concluded that several ways are available, which facilitate in enhancing the consumer engagement. The certain examples mentioned in the essay that also strongly support the strategies of boosting the consumer behaviour. This enhancement of the consumer engagement would lead to a significant benefit to the organisational perspective and in the perception of the consumers. Moreover, the essay also illustrates the consumer decision making process through the application of several theories of marketing. These include the reasoned action theory, where the purchase of a table is determined by the behavioural intention of the same. It is also observed that the decision making process involves “5 stage purchase decision process” theory, which reveals that the decision making process includes the 5 defined steps in the process of purchase by the consumer. Last but not the least; the consumer behavioural theory is also applicable in the purchase of a table. In the purchase of a table, a consumer may portray a variety seeking, brand loyalty or inertia in his/her purchase behaviour. However, the possibility of complex decision making is rarely observed in case of buying a table. Thus, from these theories, any organisation in this world can understand the consumer buying behaviour and hence, can build their strategies accordingly. This would let the organisation to gain competitive advantage. References Advameg, Inc., 2014. Table. How Products Are Made. [Online] Available at http://www.madehow.com/Volume-7/Table.html [Accessed October 16, 2014]. Deaton, A., 1980. Economics and Consumer Behavior. Cambridge University Press. Equion Consulting, 2009. Customer Engagement Benefits. Home. [Online] Available at http://www.equionconsulting.com/customer_engagement [Accessed October 16, 2014]. Jobber, D. & Ellis‐Chadwick, F., 2013. Principles and Practice of Marketing, 7th Edition. Maidenhead: McGraw Hill. Pride, W. & Ferrell, O. C., 2008. Marketing. Cengage Learning. Terry, D. J. & et. al., 1993. The Theory of Reasoned Action: It’s Application to AIDS-preventive Behavior. Psychology Press. Read More