Analysis of The External Influence Elements to Affect Consumer’s Decision Making

Introduction

There are many elements of external influence that can affect consumer decision-making. For SQD Athletica, three important external influence elements are particularly significant.

Analysis of The External Influence Elements to Affect Consumer’s Decision Making

Culture

On one hand, culture is one of the biggest elements. According to Babin and Harris (2018), consumer culture represents a universal social belief that defines what is satisfying in a particular society. As we know, there are five kinds of dimensions of cultural value: individualism, masculinity, power distance, uncertainty avoidance, and long-term orientation. All core societal values can influence cultural differences.

Firstly, "individualism" refers to a loosely integrated social organization structure in which each individual values their own needs and relies on personal efforts to seek benefits. Australian society is much more individualistic, and people in such societies prefer purchasing radically, often changing their choices frequently. SQD Athletica focuses on producing fitness and lifestyle apparel for males in Australia, where these products are consumables due to sports being an integral part of the culture.

The next element is masculinity, which refers to the difference between gender roles in a group that values self-confidence and control, as opposed to femininity. Those who identify with masculinity pay more attention to achievement, power, and success, while those who identify with femininity focus on the quality of life and personal taste. The deciding factor is whether society prioritizes masculinity or femininity. SQD Athletica addresses both aspects. The goal of SQD Athletica is “a brotherhood focused on finding balance, refining style, and inspiring men to be fit for life.” SQD Athletica's 'SQD life' section on their website includes articles by individuals sharing their sports experiences, demonstrating how sports have improved their quality of life and meet all your sports or training needs.

The third element is power distance, which refers to the extent to which power and rights are distributed among different groups in society and how people accept these realities. Low power distance means people have lower respect for power, while high power distance means people have higher respect for power. Australia is a low power distance country, and SQD Athletica targets all Australian male adults.

Next is uncertainty avoidance, which refers to how people feel threatened by uncertain, vague, or unknown future situations and their efforts to prevent them. Consumers often change their minds when purchasing products due to changes in price, style, and quality. SQD Athletica frequently updates its products to meet customers' changing requirements.

Lastly, long-term orientation means consumers value frugality, pragmatism, and persistence, maintaining long-term relationships. SQD Athletica provides high-quality services and uses social media platforms like Facebook and Instagram to build long-term relationships with consumers.

Microculture

On the other hand, microculture is also an important external element influencing consumer decision-making. Microculture refers to a group of people with similar tastes and values within a larger culture, such as similar age groups, people with similar habits, or those interested in the same things. SQD Athletica is a new Australian brand focusing on males aged 15 to 54 who are interested in sports and gym training. More than 85% of purchases from SQD Athletica are online, indicating that the target market is greatly affected by network information. Therefore, SQD Athletica focuses on website and social media information.

Situational Influences

The last important element is situational influences. While culture and microculture depend on the environment in which customers live, situational influences can be determined by the brand or product characteristics. There are three situational influence categories: time, place, and conditions.

SQD Athletica holds a mid-year sale annually, coinciding with the seasonal transition from summer to winter in Queensland, Australia. They conduct anti-season clearance during this time. Seasonality is a significant influence for every clothing brand, including SQD Athletica, which updates its fitness clothing to match the corresponding season.

Regarding place, SQD Athletica has only one shop in Gold Coast, leading most customers to opt for online shopping. Every customer is susceptible to unplanned and impulsive behavior. SQD Athletica sometimes offers promotions like “the second one at half price” or “buy one get one free.” Additionally, the SQD Athletica shop provides water and juice, ensuring comfort for customers and their companions during shopping experiences.

Conclusion

In conclusion, SQD Athletica navigates a complex array of external influences affecting consumer decision-making. By understanding and leveraging cultural, microcultural, and situational elements, the brand successfully tailors its offerings to meet the needs and preferences of its target market. This strategic alignment underscores the importance of external factors in shaping consumer behavior and brand success.

References:

• Babin, B. J., & Harris, E. G. (2018). CB8. Cengage Learning.