Consumer Behaviour Model 5m236i

Consumer Decision Making Model for Coca-Cola

Submitted To: Dr. Vikas Nath

Submitted By: Siddharth Tripathi PGFA 1147 PGDM (G) Section A 2011-13

Coca Cola Introduction Coca Cola has been an iconic brand that has been considered as a living symbol of Joy, Youth and Prosperity. Since its inception in 1886 Coca Cola has gained momentum making it a globally recognized brand with a portfolio of more than 3000 beverages. Coca Cola has led the soft drink market expanding to other markets achieving an oligopoly position with an immense market share making them the global leader for carbonated drinks. But how has this iconic brand become a legend? More importantly is why consumers are still purchasing Coca Cola? The purpose of this assignment is to demonstrate how Coca Cola has become a success utilizing the consumer decision making process as the framework upon which the principles of consumer behavior will be integrated.

Decision Making Process The consumer decision making process is essential to understanding the various decision processes a buyer experiences. The decision making process is integral for companies to understand how buyers think and behave when making purchasing decisions. Companies utilize the decision making process because they are concerned with both the practical needs of the buyer and the emotional or personal needs of the individual.

Figure: Decision making Model

Purchase Coca Cola has the ability to fulfill the pre purchase evaluation of any consumer due to its aggressive marketing mix strategies. The purchase step means that consumers have come to a decision of the brand i.e. Coca Cola, the retailer as well as the payment method.

Place and Distribution Coca cola does not sell directly to its consumers therefore it utilizes an indirect distribution via intermediaries. In order for a consumer to purchase a Coca cola the following distribution channel is observed:The Coca Cola Company-Wholesalers/ Distributors-Retail/ Corner Store/ Vending MachineConsumer Some consumers may wonder why at almost every food place, gas station or convenience store you can find a Coca Cola. This is because Coca Cola utilizes an intensive distribution method whereby anywhere a consumer goes there is Coca Cola. This is a contributing factor towards Coca Cola’s popularity and it can lead consumers to perceive Coca Cola as being reliable. An example of this can be seen in past Coca Cola slogans Such as:- All Trails Lead To Ice-Cold Coca-Cola. Wherever You Are, Whatever You Do, Wherever You May Be, When You Think Of Refreshment, Think Of Ice Cold Coca-Cola. Along The Highway To Anywhere Coke Follows Thirst Everywhere Coca-Cola Goes Along Dependable As Sunshine

Price and Lifestyle Mobile Vending Due to innovations they have developed a cash freeway of purchasing Coca Cola via SMS text message. This type of payment method appeals to on the go consumers who are part of the modern age whereby cash is a thing of the past.

Post Purchase Evaluation This is an essential step in the decision making process for consumers because it decides whether product purchase has been a success or not. After purchasing a Coca Cola the consumer would experience either: 1) Post Purchase Dissonance 2) Post Purchases Consonance Coca Cola has prided itself on having a high level of post purchase consonance. Evidence of this can be found via the mobile campaign of Coca Cola and Cha Cha Mobile that enables Coca cola to gain a deeper understanding of consumers by allowing them to text questions and their opinions. Coca Cola found that consumers who have had their complaints satisfactorily dealt with are more loyal than those who did not have an avenue to express their complaint. Another important factor when consumers purchase Coca Cola is the level of purchase involvement.

Low Level of Purchase Involvement When consumers adapt a low purchase involvement with very limited post purchase evaluation they generally maintain a high level of repeat purchase. When consumers associate Coca Cola with a low level of purchase involvement it is known as a habitual product that consumers purchase every day. Coca Cola’s has the ability to make consumers feel that they are experiencing an increase in marginal benefit against a constant marginal cost. This means that Coca Cola can give consumers so much satisfaction and enjoyment that they value it far above its price, therefore purchasing it without hesitation.

Conclusion Coca Cola has earned its status in the minds of consumers by being a leader in the world of style and reflecting the tastes and preference of each generation. Coca Cola’s success as the leading manufacturer of the carbonated drink market emanates their understanding of the importance of the consumers psychological core as well as the consumer environment and how it affects the decision making process. From the development of its original logo, to the reengineering of its trademark shaped bottle to the launch of appealing and enticing marketing campaigns the Coca Cola Company has consistently sought to illustrate Coke as a hallmark of quality and style that seeks to remain ever present and relevant. Coca Cola has portrayed its products as being modern and sophisticated that speaks the vocabulary of contemporary consumers as well as reflects the signature style that loyal older consumers have grown up with.