Simple Model of Consumer Decision Making

Background of Coca Cola

Coca Cola is the most established item under TCCC which hold as the first position in Best
Global Brand 2019. The item was presented in 1886 began in Atlanta, Georgia, by
Dr.JohnS.Pemberton. In 1895, Coca Cola is enlisted as a trademark in 1893 and now being sold
in each state and region outside of United States over 200 countries. There are three main
mission of Coca Cola which are to refresh the world in body, mind and spirit, to inspire moments
of optimism through our brand and our actions and also to create value and make a difference we
engage.The vision in terms of people is be a great place to work where people are inspired to be
the best they can be, in terms of planet, be responsible citizen that makes a difference by helping
build and support sustainable communities and in terms of profit, to maximize long-term return
to shareowner while being mindful of our overall responsibilities. Their manufacturer is the coca
cola company. There are various types of flavor such as diet coke, light coke, vanilla coke and
others.

Coca-Cola brand has been in Malaysia since 1936, the organization just settled its corporate
nearness here 1979 by franchised its packaging and conveyance to nearby accomplice F&N
Coca-Cola (M) Sdn Bhd. F&N's is a surely understood producer and wholesalers of
neighborhood soda pops which holds 64% offer of the Malaysia sodas market (Fraser and Neave
Holdings Bhd, 2010). F&N capable to creating, bundling, appropriating and promoting Coca-
Cola and additionally complete restricted advertising arrangement created in association with
TCCC.
External Influences

Marketing Efforts in Coca Cola

I. Product

The organization has the most stretched out portfolio in drink industry including 3300 items.
Refreshments are isolated into eating routine classification, 100% organic product juices, natural
product drinks, water, caffeinated beverages, tea and espresso and so forth. According to
Nielson's information, Coca-Cola is the No.1 brand in shining refreshments, squeeze, and retail
bundled water in 2010. Coca cola has its business sector nearness around 200 nations. Examples,
Coca cola brands in India are Fanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbus
crisp, Nested frosted tea and so on.Coca Cola in Malaysia provides consumers with extended
brands which include Coca Cola Classic, Coca Cola Vanilla and also Coco Cola Light. In
Malaysia, Coca Cola design have got fewer changes due to the cultural different.

II. Price

It is because of the accessibility of wide range items the estimating is done by business sector
and geographic portion. Every sub-brand of coca cola has diverse valuing procedure. Their
evaluating system depends on the contenders valuing, Pepsi is the immediate contender to coke.
Drink business sector is said to be an oligopoly advertise (couple of dealers and vast purchasers),
henceforth they frame into cartel contract to guarantee a shared parity in estimating between the
merchants. Coca Cola is generally focusing on moderate cost to customer. Coca Cola evaluation
change as indicated by spot and size. Coca Cola typically set the cost price petrol station and
accommodation whereas for hypermarket pricing especially on events or festivals in Malaysia
such as Hari Raya, Chinese New Year, Deepavali and Christmas.
III. Place

F&N had solid retailers’ relationship through offering and supplying sourceadministrations and
also offer directly to client by means of candy machines. F&N has been broadly conveyed Coco
Cola can size to accommodation stores, hypermarkets, silver screens, fast food eateries and
candy machine to guarantee the item is accessible and reachable to purchasers. When contrasted
with Pepsi, Coco Cola has the upper hand of impacting retailer rack space allotment in
hypermarket which Coca Cola is dispensed in the main rack of soda segments. Coca cola is the
world's most loved brand and is accessible everywhere throughout the world. The circulation
arrangement of coca cola takes after the FMCG dissemination design. The powerful circulation
system of coke has verging on dissolved the little and center level players in the business sector.
In India they have caught even the provincial business sector by broad dispersion and have
disintegrated the piece of the overall industry of Bovonto, Kalimark and so forth.

IV. Promotion

Special exercises of Coca-Cola including sponsorship of worldwide wearing occasions, visual

broadcasting, deals advancement and free brand building occasions. Coca-Cola pick up exposure
through sponsorship of worldwide brandishing occasion, for example, FIFA World Cup 2010
and Vancouver 2010 Olympic Winter Games. In Malaysia, Coca-Cola fundamental visual
publicizing is components in TV advertisement, announcement in provincial zone and through
its official sites. Deals advancement time of Coca-Cola in Malaysia is held at uncommon event.
Coca-Cola additionally propelled autonomous brand building effort "Open Happiness"(2010)
and "Coke Side of Life"(2008). Coca cola receives different spreading and special systems to
make an expanded interest in the business sector by taking up with way of life and conduct and
essentially focusing on quality based promoting.
Sociocultural Environment

A sociocultural environment is a population, and it is described with special attention paid

to social and cultural factors. It includes family and reference groups, noncommercial sources,
social class and culture and subculture. The term is common in business.

I. Family
Includes parents, siblings and relatives. Commonly we as a consumer will look upon this
people style of buying and we intend to follow their lifestyle as well. This is one of the
major influences on our purchase behavior.

II. Reference groups

A reference group tends to influence our attitudes and behavior. A reference groups is a
group to which we compare ourselves. Reference groups can be classified into two types;
informal group and formal group. Informal group includes families, peer groups,
colleague. Formal group includes Union, organization and many more. This will not only
influence our purchase behavior, it might also affect the post purchase behavior due to
the sharing of comments and feedbacks to the entire entity.

III. Noncommercial sources

Define as legal activity that does not trying and making money that will benefits
themselves. It does include for personal uses, fan uses, and even just for fun uses.
Frequently this noncommercial source related to social media sources. People nowadays
have a tendency to follow up the trends and practice that in their lifestyle. A
noncommercial source gives benefits to this particular product as it commercialese the
product’s name and brand worldwide.
IV. Social class
Refers to the groups where a person belongs based on their social life and economic
achievement. Some group of people will only mingle with their own status and does not
mix with others; some do neglect the status and mingle with others. Social class is
important as if will influence the perception of one behavior. This is because upper class
people tend to have more power and influence than the middle and lower class people.

V. Culture and Subculture

People favor to follow their culture and subculture buying behavior. Culture deals with
the norms, beliefs, and perception. For an example, if the parents use to purchase Coco
Cola product through their elderly generation, this will affect the buying behavior of their
next generation.
Consumer Decision Making Process

1) Need Recognition:

Each purchase decision includes a specific procedure that happens in the minds of customers.
The principal stage in this process is need recognition. In this progression, a customer perceives
a need or a problem. This need can be stimulated by interior or external jolts. This interior and
external jolt really figures out which item the shopper will purchase, the amount of its amount
will be furthermore its dependability.

For this we will take the case of coca-cola. For instance, a shopper feels parched and he/she is
searching for some soda. The marketing team of coca-cola is extremely effective in perceiving
the requirements of the customers. Thus, in their marketing activities, this group attempts to
presents the arrangements of the wanted issue by giving various types of advertisements.

2) Information Search:

This is the second stage in consumer decision process. Amid this stage the consumer who has
perceived the need; look for data to fulfill the need. A purchaser can gather the data from
numerous sources. For instance, these may be;

 Individual sources i.e. companions, family and neighbor.

 Business sources incorporate publicizing, bundling and shows.
 Open sources incorporate media and diverse association.

In these sources, business sources are imperative in light of the fact that through advertising,
packaging and displays, the organizations can give the feeling that they have what the customer
is searching for. This advertisement gives the information that the consumer can review
themselves by drinking coca cola.
3) Evaluation of Alternatives:

This is the most imperative stage in consumer decision making process. In this stage, the
consumer measures each brandon the specification it possesses from the information collected
before. At this stage, brand convictions assume a critical part in choosing the item. Marking has
turned out to be strong to the point that today scarcely anything goes unbranded. Brand names
help shoppers recognize item which may advantage them; they likewise enlighten the purchaser
something regarding the item quality. Customers who dependably purchase the same brand
realize that they will dependably get the same components, advantages and quality. (Kotler and
Armstrong, 2004, p.285)

At the point when the customer searches for a soda, he/she may contrast the coca cola and Pepsi
or some other contending brands. This is the point where mental and social components can
assume a critical part in picking the coke and where coke's advertising action can be judged that
how coke utilized these elements as a part of a great way to encourage the customer choice to
purchase coca cola.

Purchase Decision:

This is the stage where the consumers really purchase the coke. Two factors are important at this
stage, attitude to others and sudden situational elements. Though the consumer has made his
purchase decision in the above stage, these factors influence is so strong that the purchase
decision does not as a matter of course result in the genuine consumer’s choice. (Kotler and
Armstrong, 2004).
Psychological Factors:

I. Motivation :
Consumer motivation speaks to the drive to fulfill both physiological and mental needs through
product purchase and utilization. (Blackwell, Miniard and Engel (2006)

II. Perception :
Perception implies awareness. To stand out enough to be noticed is insufficient to get
accomplishment in the business sector. Clients just purchase the item when they see that the item
will be helpful for them. Along these lines, it is clients' observation that leads them to purchase
the item.

Coca cola is completely mindful of this and they have utilized numerous mottos as a part of their
promotions to see the clients. Some acclaimed mottos of coke are bliss, the genuine article,
delight, appreciate and so forth. The motivation behind why coke is well known among the
clients is their trademark "Coke makes you feel great". In the event that we watch the coke, it is
simply chestnut hued sugar water. Yet, the clients pay significantly more than its expense. The
purpose behind this is only their motto "feel great". One thing to comprehend about coke
recognition is quality. Coca cola dependably gives the recognition that they offer worth to their
clients.

III. Learning :
Learning is the procedure through which a generally perpetual change in conduct results from the
outcomes of past conduct. Learning, changes in a man's conduct created by data and experience.
As per established molding hypotheses of taking in, the learning procedure has four components
i.e. drive, signs, reactions and fortification. Drive is a solid interior boost which results in an
activity. In sign boost the customer chooses when, where and how he/she will react to the drive.
The activity to sign is reaction. In the last, support happens when reaction is remunerating.
This is definite what Coca Cola showcasing group is doing. In their advertisements, they are
attempting to offer bliss to their clients. At the point when the purchasers feel cheerful, it makes
a solid interior drive which results in an uplifting feedback. In the accompanying include, Santa
in the wake of drinking coke spread joy all over the place on the planet at the Christmas time. It
makes a solid inward jolt in the buyers to drink Coca Cola.

IV. Two types of personality :

a) Personal factor
Personal factors are those factors which are one of a kind to the client. These components can be
age, sex, demographics and so on. In some cases, we are not the chief in the family; furthermore
there are diverse motivations to buy a thing amongst youthful and old individuals. As age
advances decisions likewise changes. Alongside this, monetary circumstance of the purchaser
additionally influences the buyers' purchasing conduct. To the extent coke is concerned, it covers
every one of the strolls of life. Childs, youthful and old individuals used to invigorate themselves
by drinking coke. Ordinarily individuals used to drink coke as their way of life.

b) Cultural factor
Social elements assume a vital part in customer buying conduct. Society depicts a client's needs
and conduct. Society of one country incorporates values, convictions, recognition and disposition
of the purchasers of that country. As each country has its own way of life so the advertisers
ought to concentrate on the way of life of each country. Cost of the item, limited time programs
and most critical the item ought to be reasonable for the objective populace's way of life.

Coke's advertising group is completely mindful of the social parts of each country. In the event
that we discuss Europe society, Christmas is essential celebration for Europe. Here coke
observes Christmas with the general population of Europe. On the off chance that we discuss
Pakistan culture, the month of Ramadan is the gift month in Pakistani society. Here again coke
praise the month of Ramadan with Pakistan.

V. Attitude :
Beliefs and attitude also plays an important role in consumers' buying behavior. A conviction is
said to be the customers' trust on brands or items. Advertisers are occupied with planning solid
convictions about their item in the purchasers in light of the fact that these convictions make up
item and brand pictures that influence purchasing conduct.

Attitude is a person's like or dislikes feeling about something. State of mind is likewise said to be
a judgment. Once a positive or negative state of mind is shaped it is hard to change it. Coke has
increased great state of mind of customers. Through their advertisements they are additionally
attempting to change the unfavorable mentality of clients by giving them joy. Much the same as
in this advertisement coke offers joy to understudies by giving them free coke along these lines
changing their unfavorable mentality into great.

Post decision Behavior

Purchase Decision, trial and repeat purchase;

This is the stage where the consumers really purchase the product. Two factors are important at
this stage, attitude to others and sudden situational elements. Though the consumer has made his
purchase decision in the above stage, these factors influence is so strong that the purchase
decision does not as a matter of course result in the genuine consumer’s choice. (Kotler and
Armstrong, 2004). For the first time, consumer will only purchase the product for trial. If they
are satisfied with the product they will do repeat purchase that can lead to customer loyalty.

Post Purchase evaluation:

This is likewise the critical stage since it decides the eventual fate of the organization. In this
stage, the consumers really watch that the item fulfills his/her need or not. There will be three
results. On the off chance that the execution of the item is lower than the normal, it results in
client disappointment which can badly affect the eventual fate of the organization. In the event
that the execution of the item is equivalent to the item execution than the client is fulfilled. In the
event that the execution surpasses the desires than the client will be glad. (Kotler and Armstrong,
2004)

Conclusion
In a conclusion, Coca cola is recognized as one of the best and established brand that consume
by the consumer everyday worldwide. Coca cola does not only guarantee the satisfaction of the
taste, but it also guaranteed the quality and freshness in every gulp. Simple Model of Consumer
Decision Making Process will increase the awareness and the consumer knowledge on the
product itself. This process will not only let the consumer knows better about the product, it will
provides benefits to the company as well. Based on the model, Coca Cola Company could
implement a few elements in order to enhance their marketing strategy. Coca cola company does
practice Corporate Social Responsibility (CSR). Corporate Social Responsibility for this
company runs worldwide.
References

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2. Coca-Cola Global: Soft Drinks & Beverage Products. (n.d.). Retrieved June 3, 2016,
from http://www.coca-cola.com/global/glp.html

3. Marketing strategy of Coca cola - Coca cola strategy. (2015). Retrieved June 5, 2016,
from http://www.marketing91.com/marketing-strategy-of-coca-cola/

4. (n.d.). Retrieved June 6, 2016, from http://study.com/academy/lesson/reference-group-in-

sociology-definition-examples-types.html

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http://www.consumerpsychologist.com/cb_Culture.html

Appendix
Figure above showed the popularity they earn on the social media