Question

1.    Identify and discuss the influences of THREE macroenvironmental factors that may affect consumers in buying the product / service of your choice.

                                                                                    (50 marks)

2.    Using the FIVE steps of consumer buyer decision process to illustrate how you are going through the whole process in buying a car for your family.                                                                                                    (50 marks)

Answer 1

1.    Identify and discuss the influences of THREE macroenvironmental factors that may affect consumers in buying the product / service of your choice.

three macro environmental factors for purcahse of a CAR is described below. The selected macro environmental factors are ecological factors, economic factors and socio-cultural factors.

1. Ecological factors: With increasing awareness about environment, consumers are moving towards cars that are eco-friendly. Pollution from the cars are the major source of environment deterioration. Therefore, cars whose emmissions are not harmful or less harmful to the environment are being preferred. Therefore, ecological factors is one of the major influencer in purcahse of a car.

2. Economic factors: Purchase of a car is a major invetstement decision. Therefore, it is dependent on economic factors like inflation in the economy, income of the consumers, purchasing power of the consumers etc.

3. Socio-cultural factors: Society and culture also play an important role in purchase of a car. For instance, a car that is considered as a status symbol by a section of society to which the consumer belongs, he/she is most likely to purchase that car.

2.    Using the FIVE steps of consumer buyer decision process to illustrate how you are going through the whole process in buying a car for your family.    

a. Problem recognition: In this stage, I will discuss what could be done to address the problem of travelling. I wil discuss the need for purchase of a new car or replacement of the existing car due to some problems with it.

b. Information search:Once it is decided that a new car is to be purchased, I will start searching for cars that are available in the market in my budget. I will visit online websites as well as stores to get information about the price and features of the cars.

c. Evaluation of alternatives: After deciding on which car to purchase I will compare the chosen car with similar cars in the market. A detailed comparison of price and features will be made in this stage.

d. Purchase decision: Once comparison is done, a final decision on purchase of new car will be made. The car thst suits my budget and price will be finalized as purchased.

e. Post purchase evaluation: At this stage, purchase decision is evaluated and feedback is provided.