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Consumer Decision-Making Processes

Verizon Wireless Environmental Factors

There are a number of environmental factors that go into the decision of not only what wireless provider a customer uses, but what type of plan they will buy. The major external factor is the technology at the heart of wireless. Rapid new product cycles are driving wireless sales, and they can also encourage consumers to buy for specific time frames. Further, the development of technology is such that it will dictate the data needs in particular of customers -- the smartphone has created a tremendous shift in demand for wireless companies. The regulatory environment is also a factor. Telecommunications is heavily regulated, and this will dictate things like the packages and pricing, bandwidth availability and mergers, all factors that contribute to the ways that the company can package products for consumers and influence their decision-making.

Consumers are also influenced by their friends and their families. These influencers can influence both the choice of technology, but also the choice of carrier. The reason a company like Verizon will offer special deals for its customers when contacting other people who are also Verizon customers is because there is value in building entire circles of people into the customer base. Furthermore,...

Each consumer has a consumption pattern, how much data they use, how much they travel and other variables. The company that can create a plan to match up to a consumer's specific needs is more likely to win that consumer's business. So it is important to understand that whether the consumer uses wireless for business or for social reasons, the usage pattern is one of the most important consumer factors. Price/wealth can be another, at least in terms of providing a constraint on one's technology usage in some cases. Many consumers specifically prefer flat rate plans because they would prefer not to have to micromanage their accounts and monitor their usage. So there is a fairly significant consumer preference for wireless that is simple and easy to understand for the consumer.
So consumers are driven primarily by their consumption patterns, the influences of their friends and family, and in some cases by their economic means. There are distinct age-related factors that affect consumer…

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AdCracker (2015). Consumer involvement theory. AdCracker.com Retrieved June 6, 2015 from http://www.adcracker.com/involvement/Consumer_Involvement_Theory.htm

Perreau, F. (2014).The 5 stages of the consumer buying decision process. The Consumer Factor Retrieved June 6, 2015 from http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/
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