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1. What's the most important factor in your cell phone purchase and why? 2. What's the...

1. What's the most important factor in your cell phone purchase and why?

2. What's the most important factor in your cell phone plan and why?


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Expert Solution

1) Five Non-Product Factors That Influence Purchase Decisions

When it comes to choosing one product versus another, consumers – whether consciously or subconsciously – weigh a variety of factors. In an effort to organize these factors, it would be appropriate to create two distinct categories. There are product factors and non-product factors.Product factors are directly related to the product itself. For example, if you’re shopping for a mop and you find two similar products on the shelf, you may choose one mop over the other because it’s made from sturdier materials. That’s a product factor.

Then you have non-product factors. These are aspects that aren’t directly related to the product itself, but still influence a customer’s decision. Specifically, there are five non-product factors that commonly come into play. From a business perspective, you need to consider these as much as you do the product factors.

  1. Brand Name

The brand name is huge – and we’re not just talking about brand equity. The way the brand name sounds and the images it evokes both impact the purchase decision. That’s why coming up with good company names is such a crucial task when launching a brand or product.

Using the mop example, would you be more likely to purchase a mop sold by the brand name Pure and Clean Solutions or Products Ltd. The first evokes strong imagery, while the latter is boring and non-descriptive – most would choose the first.

  1. Product Placement

In physical retail environments, product placement is hugely important. You’re obviously going to see much better results if your product is on an end cap in a highly trafficked area of the store versus tucked away on the bottom shelf in a back corner. This has nothing to do with the product itself, but is totally related to location.

For ecommerce businesses, product placement looks a little different. If you’re selling on Amazon.com, then placement is all about getting your product listing on the first page or in the side bar. You’re much likelier to earn sales in these positions than if you’re hidden on the fifth or sixth page.

  1. Packaging

While some would argue packaging is a product related factor, most would agree it’s a non-product factor. If you remove the packaging and dispose of it in order to access the product, it’s not part of the product itself. With that being said, you should spend a considerable amount of time and effort perfecting packaging if you want to grab attention and positively influence purchase decisions.

According to Yasushi Kusume, the innovation and creative manager for IKEA and other leading brands, product packaging must do three things. First, it needs to stand out and grab the audience’s attention. Second, it should encourage a purchase by conveying a unique and relevant value proposition. Third, it should fit with your brand’s positioning and remain authentic to your overall stance.

  1. Reputation

In an age where social media is king, word of mouth marketing is the key to promoting and maintaining a positive reputation. “Customers don’t give much weight to seller messages anymore,” writes business expert Kristin Zhivago. “They talk directly to each other. What your current customers are saying about you will either help you sell more – or drive away business.”

If you can develop a positive brand reputation in the marketplace, you’ll be able to influence customer purchase decisions more frequently. People will look at your product, recall what others have said, and choose you over the competition. In many cases, a positive reputation can even offset deficiencies in other areas.

  1. Pricing

The fifth non-product factor that buyers consider is pricing. The challenge here is determining just how price sensitive your target market is. In some industries, price is the number one non-product factor. In others, it plays a very minimal role.

For example, a customer buying a mop may be very price sensitive. If one mop is $9.99 and the other is $24.99, chances are they’ll choose the cheaper option. However, if you’re selling $75,000 convertibles, a couple thousand dollars in difference may not matter much.

2)  Pre-paid or Post-paid Plans

Most cell phones users have post-paid plans. They receive a bill every month. On the downside, these plans require a two-year contract and impose loathsome “early termination fees” should you need to drop the plan. However, they also offer the best discounts on top quality phones.

A pre-paid plan can be an excellent choice for a user who doesn’t need the most advanced phone and who isn’t a major consumer of cellphone minutes or text messages. PC Magazine did an excellent article on pre-paid plans that are likely unknown to you.

Data and Text Message Plans

Phones aren’t only used to hear the sweet sound of your child’s voice when you’re away on a business trip anymore. Plans from the major carriers handle data transfers and text messages in a variety of ways.

It’s important to understand your usage and opt for “unlimited” text and generous data plans if you tend to bump up against the limitsAnother piece of the data puzzle is the level of service provided in your area. If you are a big data user – or will be within the two years of your contract – make sure your provider has excellent 4G coverage. The competing claims providers make and the coverage maps they publish are more helpful than an ancient Greek map of the world but not by much. Talk to friends who are heavy data users and see how they rate data transfer speeds.

Finally, don’t rush into signing a contract. Do your due diligence. Think about future plans.


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