In order to clarify and understand how five dimensions of situational influences affect buyer behavior, this essay is going to answer three questions. First of all, physical surrounding and social factors will be demonstrated by providing some definitions and relevant instances. Secondly, case study will be analyzed based on three factors such as social surrounding, task definition and temporal perspective.
Finally, Struck cafe would be chosen as an example to analyze how they has developed their promotion, place and product related to physical factor. Question 1 Firstly, as can be known, situational influences are basically five factors that affect customers when they want to make buying decision. One of the most visible features that may have a direct impact on their decisions is physical surrounding like store location, interior decoration, music, smell, temperature and amount of choice provided.
This factor would be used as a tactic to attract customers or keep them stay longer in stores. For example, these days, Coles and Woolworth have had almost same price and promotion for their customers so most people have chosen to shop in en of these because that is simply the nearest supermarket from their house. In addition, how companies decorate their shops, what kind of music they play and which fragrance they choose to use in their stores or products play a prominent role to approach their potential clients.
According to Bell (1975)g’s study, there is a relationship between store’s atmosphere and purchasing outcome that means the more enjoyable atmosphere the store have, the more money their customers are apparently willing to spend (as cited in Manic and Radars, 2006). Moreover, when they spend more time to stay inside, it may lead to a chance that they would buy enplaned goods.
Furthermore, in 2000, the American Wine Council demonstrated that their most wine consumers were female who prefer having sweeter taste and smell and that is one of the reasons why many companies such as Chardonnay and Cabernet Sauvignon produce sweet wine more than dry one (as cited in Brewer, Salina & Miller, 2011). In general, as can be understood that physical surrounding includes the mostly tangible elements that could be used to influence people’s buying behavior in a straight line.
Secondly, there is one of the most unavoidable impacts that many buyers are usually affected when they make up their mind on archiving a product especially a valuable things such as phone, car, house, etc. Is social surroundings. Culture, family, reference group and social class are the elements, which would be insisted in this situation. In this case, the majority of customers possibly give their decision to buy a product based on the suggestion from their relationship around them. In 2006, Chuan et. Al stated that “Shopping in company increases purchasing outcomes” in their research.
It can be considered that clients who come with friends or group tend to spend more money and buy more items than who go alone (as cited in Manic & Radars, 2006). According to Genevieve (2006), since there are plenty of benefits that social influence are brought, many companies choose to launch their advertisements at the time that they probably know that time for family viewers such as Walt Disney or group of friends like football game. That would lead to a successful effect, which they would like to approach their potential customers.
In short, social surrounding is a significant factor, which seems to help businesses achieving a greater consumption if they may implement it appropriately. Question 2 It is the intention of this question to identify and briefly analyze three key of educational influences
That is the reason why she not only spends a lot of time to find the information for this purchasing but also emphasizes on the feature and brand of smartened that her boyfriend would like to own particularly. In the other words, she prioritize his demands at the first. Additionally, it is easy to understand why she asked his friend and the sale consultant for enforcing her desirable decision. In this circumstance, it is quite clear to realize how social factor affects customer behavior. There are two social surroundings in this case: membership groups and aspirations groups.
In this case study, Kate would be influenced by advise of John’s friend who is in membership group and knew John’s personality and character very well. His recommendation for Phone 5 would have the most vital impact on Skate’s decision because of his better knowledge over her boyfriend’s interests and preferences as mentioned in case study. However, Kate would be confused to give the final selection, for she also consider the option Samsung galaxy SO from professional sale consultant who is in aspiration groups and may have much better experiences in smartened.
Therefore with the purpose of solving this issue, she has to consider the third situational influence – temporal perspectives which would probably enforce her so as to fugue out the most suitable present for her boyfriend due to his fast approaching birthday. In Genitive’s book (2006), he indicates, “Time pressures and technology have combined to produce a rapid growth in high quality’. Thus, it seems to be related to Skate’s problem when she has to determine as soon as possible.
That would cause the issue that the less time she has, the faster decision she has to make. In brief, as following this case study, it is possible to recognize that social factor predominantly affects how customers behave in general and Skate’s in particular. Also, this is the main reason making her hesitated to reach the final selection. Question 3 As stated in the introduction, in this section, Struck would be chosen as an example to demonstrate how a business implies social surroundings and succeeds in
China for making marketing strategy by following three of four stages in UP – place, product, promotion. Struck, which is known as one of the most famous and valuable brands in the world, have opened first outlet in China since 2007 and will have extended to 1,500 stores by 201 5 (China Observer, 2011). Hence, which reasons have made them survive and success in China, where is well known as an initial traditional maintained country, will be described sketchily relating to social features in this bellowed part. First of all, with the aim of approaching Chinese market
Struck has settled store system in many virtual locations where there are crowded pedestrian places as usual as they did in America but with Chinese style’s decoration for making their customers feel convenient. Picture 1: Struck in China (n. D. ) As can be seen in the above picture, that is the general decoration of Struck in China. Furthermore, Struck has especially allocated one of their stores in the Forbidden City (in the picture bellow) where is the most respectful and traditional symbol for Chinese history.
It is one of the noticeable tactics that Struck wants to access China’s market through Chinese cultural architectonic. In addition, with mainly target customers who are the growing middle class they have set their own image to become fashionable and trendy (McKee & Lawmaking, 2009). In this case, their potential customers would like to come in, have a seat, talking with friends and have a Struck cup of coffee. That means they have adapted themselves by using reference groups in social surroundings.
Picture 2: Struck in The Forbidden City (n. D. ) Secondly, According to Wang (2012), there is an important strategy in product placement that Struck introduced their beverages using Chinese popular local ingredients like green tea. This strategy has helped Struck to overcome the upcoming trouble which western cafe would threaten Chinese traditional drink – tea. That means they have tried being a Struck by Chinese and American cultural combination and avoiding totally implementing typical American concept into Chinese market.
Finally, as mentioned previously, since Struck has been running a cafe system to make them become a trend, the most effective promotion for them is mouth to mouth. As long as the development of globalization included China, the monger generation tends to follow the new trend and experience the western culture. By recognizing what is happening in the world, Struck has given their customers “Struck – Experience” (Wang, 2012). That is how they has confronted with China’s market and made it possible and the most second largest market behind original market – America.
In conclusion, the five dimensions of situational influences play a vital role in marketing strategy to attract and deal with how customers behave to make their buying decision.