Consumer Behavior Model Environmental Factors †Free Samples

Question: Discuss About The Consumer Behavior Model Environmental Factors? Answer: Introducation The consumer business model is significant for Wells Fargo due to improving the customer to use of banking services and make successful consumer behavior. There are two kinds of environmental factors such as economic and technology, which are also relevant to the goods and services of company. Additionally, such factors are discussed below: Economic Factor Enhancement in the rate of inflation can increase income level of consumers, which can directly impact on the demand for Wells Fargo product and services effectively. At the same time, declining inflation rate of the country can reduce the income level, which declines demand of product and services of market. Therefore, it can be said that changes in the economy can be the basis of profit and loss of Wells Fargo (Armstrong, et al., 2015). Technological Factor A rapidly changes in technology can also affect the growth of product and services of the specified organization. Additionally, Wells Fargo has used many software and new apps to secure confidential data of potential customers. The modern technology is supportive to enhance the performance of products and services in a significant manner. Consumer Behavior Model:Consumer factors Wells Fargo has used three significant factors such as personal, psychological, and social are directly affect consumer behavior. These factors are discussed below: Personal Factors The personal factor refers to the basic features, characteristics, perception, and idea regarding any stimuli of a specific person. At the same time, the personal characteristics of an individual can influence decision and decisions are affected by gender, age, culture, and additional problems. Therefore, it can be said that Wells Fargo can attract the customers by creating a depth understanding regarding personal factor of customers. Psychological Factors Customers are influenced in their daily basis by many factors which are different from their assumption procedure. The psychological factors incorporate situation, attitude, perception, ability needs of the potential customers. So that Wells Fargo has also focused on psychology factors in case of creation regarding campaigns at the same time company has also reminded that the campaign will request to their estimated customers. Social Factors The social factor also affects the consumer behaviors of the company in a significant manner. Additionally, it can be said that the social factors incorporate some significant factors such as family, friends, social group, school communities, and community of individual. At the same time, it can be said that individual class can be related to their income level, the standard of living, and learning level. Therefore, an organization can focus on the social factor due to enhancing the sale of the company (Dinnie, 2015). Role of involvement in consumer decision-making Generally, three kinds of involvement are considered by Wells Fargo such as low involvement, medium involvement, and High involvement. The company has used high involvement for the lengthy decision, which is implied for vehicles loan and property loan. At the same time, it can be said that medium involvement considers simple decisions means saving decision. In additionally, low involvement considers habitual decision is related to cash transfer. At the same time, the company has focused to attract more customers to have high involvement due to enhancing the growth of the organization in long-term. Consumer decision-making process There are six steps that are incorporated by customers to make an effective decision to buy any product and service. These need to buy, selection of suppliers, and order of purchase, satisfaction, receipt, and supplier payment. In the first step, customers have given the preference to their need before having a purchase decision. Therefore, Wells Fargo has identified the need of customer regarding quantity, place of delivery and product due to making an effective customer buying behavior. At the same time, the company has used marketing mix strategy to make successful this step. Subsequently, customers identified the supplier to purchase the product and service where they determine the cost and lead time of supplier. So Wells Fargo has used cost leadership strategy to attract the customers to have company product and service. Additionally, the customer has used the order of purchase to decide the actual quality of product and price for products. So, well Fargo has used cost leadership, by which it offers low cost and higher quantity to their potential customers (East, et al., 2016). Moreover, in fulfillment steps, customers have focused on suppliers that who more satisfied the basic needs. So, the company can use the competitive strategy to more satisfy the suppliers in long-term. In last second step, customers have identified a supplier has mention same order product or different product. The company can check receipt before the offer to potential customers and make an effective relationship with customers in long-term. Payment steps, the customer has also checked that supplier provide or not invoice before the payment in case suppliers not provide the invoice message to customers then they never select such kind of supplier for having product. Wells Fargo can offer the invoice message to their customers for enhancing the demand of customers. Market Segmentation, Targeting, and Positioning Market Segmentation, Targeting, and Positioning (STP) play a significant role to improve the brand image and enhance the market shares of the company in long-term. Through the utilization of STP, a company can aware about their product and services to the potential customers, and make an outline before producing product and services. The outline can be based on the type of customers, location to deliver the product, cost of product, and way of promotion due to increasing demand and services in long-term. The following point demonstrates market segmentation, Targeting, Targeting market strategy, and Positioning in context of Wells Fargo: Market Segmentation Wells Fargo has used market segmentation to divide the market for its potential customers. The market is segmented on behalf of a demographic factor, where it considers age, gender, education level, occupation, and marital status. Additionally, it can be said that the market segmentation is effective to easily improve and boost the financial performance of an organization (Hollensen, 2015).Moreover, Wells Fargo also involved the psychographic factor, wherein it focuses mainly on lifestyle, opinions, values and attitudes, and social class of student. It will support to easily enhance the market share of company. Target Market Wells Fargo has mainly targeted the college students together with recent college graduates to sell its products and services. A significant business decision is made at the time of changes in the life. There are some significant kinds of loan, which can be effective for both current college graduates and college scholars. Wells Fargo targets specific students because the company has aware the students can spend more on any product and services than others. In another word, young people can more beneficial to enhance company performance in existing period together with long-term. An organization can use healthy- wealthy students as a slogan to attract a large number of students significantly. Target Market Strategy A targeting market is a combination of two factors such as market and marketing mix. Where Wells Fargo has focused on their target market and marketing mix due to enhancing the performance in long term. At the same time, Wells Fargo has also used concentrated marketing strategy to attract customers for use of product and services in long-term. Positioning Positioning plays a significant role to enhance the performance of the organization in long-term. Additionally, it can be said once a company can make a favorable image in the mind of customers then it can attract customers in the long term in less time and cost. Wells Fargo has used the scratch card to make a robust and unique image in the market place. Additionally, it also provides discounts on some specified kinds of loans such as Cars, TVs, education loan, and property loan to their targeted customers. It can support to enhance the market share and attract more customers in long-term (Keegan, et al., 2015). Perceptual map The following chart indicates the perceptual of Wells Fargo consumer banking services: The perceptual map shows that Wells Fargo have high image in the marketplace that offers the product and services in low cost than the market players. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. USA: Pearson Education. Dinnie, K. (2015).Nation branding: Concepts, issues, practice. UK: Rutledge. East, R., Singh, J., Wright, M., Vanhuele, M. (2016).Consumer behavior: applications in marketing. USA: Sage. Hollensen, S. (2015).Marketing management: A relationship approach. USA: Pearson Education. Keegan, W. J., Green, M. C. (2015). Global marketing. Upper Saddle River, NJ: USA: Pear