Decision making processes within Intel Corporation

Intel Corporation is founded by Robert Noyce and Gordon Moore in year 1968, and allocated at United States, and slowly grow to be the leader of the market of microprocessor market. Microprocessor is one of the part of the computer and most of the people called it as the brain of the computer, it actually help to transfer data from the computer to the other data storage and respond to the hardware for an example show the word we type on monitor and others. From year 1968, Intel Corporation start to introduce several famous series of microprocessor like MCS-40 family, Pentium series, Atom series, Core 2 Duo series, i3 series,i5 series and the latest i7 series. For this assignment that brand or series of microprocessor introduced by Intel will be Intel Core i7 series which as know as the best microprocessor for the time.

High and Low involvement decision making

For Intel microprocessor product such as i7, it actually could be categorized in to both level of involvement. For the consumer who wanted to have a very good performance and long lasting processor they will do lots of research on the certain products and for the consumer who always purchase the Intel processor are also a high level of brand loyalty due to their purchase history in processor is just Intel, most of them will have a feeling that they only want Intel as the processor but not others like AMD, beside that Intel Core I7 also consider as a high price product compare to the other microprocessor. So in this case, Intel i7 is a high involvement products but at the same time due to the risk taken by the consumer to purchases it actually it just a low involvement product.

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Consumer decision making process is a cognitive process which start when a awareness of needs of the consumers and it ends when the consumer have dispose that particular product or service. In consumer decision making process, there are numerous different model but in this assignment the model that we will go through deeply will be the 5 stages of consumer decision making process.

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The Five Stages of Consumer Decision Making Process

The five of the consumer decision making process will be, need recognition, search for product information, product evaluation, product choice and purchase, postpurchase use and evaluation of product, disposal of the product.

Need recognition

In this stage, consumer will concerned about what they want. For an example, a consumer actually found out that they need a better computer to play games or to do work, then they will start determine that what kind of processor they actually need, a better performance microprocessor come with a high graphic support for gaming or just a normal microprocessor for normal usage.

Search for Product Information

When the customer recognized what they want, they will look for information about microprocessor. For an example, there is a customer who realizes that he need a high performance of microprocessor for gaming then he will started to look for information of the existed product no matter from Intel or AMD.

Product Evaluation

When the customer finished on looking information in the microprocessor market, they might start to compare several product deeply to ensure which one will be the best for him to purchase. For gaming usage, the customer might choose Intel Core I7 and AMD Opteron as the choices available due to the performance that the product that can supply, and they might choose other product like Intel Core 2Duo or AMD Turion for their choice just because of the cheaper price and durability for normal usage.

Product Choice and Purchase

When the customer finish compare the featured between the microprocessor they choose, they will come to this stage to choose the product which they think is the best and purchase it mean the customer might purchase Intel Core I7 because after comparison they found out this microprocessor can provide a better performance and the reputation of this product is also good compare to the other microprocessor after the research made.

Post purchase uses and Evaluation of the Product

After consumes of Intel Core I7, the customer will come to this stage to evaluate whether Intel Core I7 meet their expectation or it did not. The features that the consumer will evaluate might the performance of the microprocessor whether is it fast enough or smooth enough when they playing game and how long is the microprocessor last for, few months or few years. These attribute will be the features that the consumer will evaluate after they consumer or used the product.

Psychological Core

Attention

From this advertisement, it actually attracts attention of the people while people saw it. This advertisement actually mentions that there is a series of new microprocessor being introduced to the market by Intel through the sentence stated in the advertisement. From this advertisement, it also mentions that the brand new series of the Intel microprocessor will also be faster and even smarter compare to the old series of the microprocessor. And this kind of attention we called it as selective attention.

Intel also created a very popular stimulus attention to most of the consumer which is a start up sound of the Intel computer, and this unique sound have been memorized by most of the Intel user and they will know that while this unique sound started up when the people on their computer, their microprocessor must be Intel.

Perception

The brochure above is one of the products from Intel Core I7 series with the information. When there is a consumer going to a PC Fair and he received this brochure and he does not having any interest on getting a microprocessor, he will know the exists of this product but will not go deeply on it and this is one of the perceptual stage that we called exposure stage. For attention stage, that customer who in the PC Fair when he get this brochure and he having a intention of getting a good microprocessor for gaming or any other usage they will read this deeply and do the research of this product and compare to the other product and at the end they might create a certain sense to this product which might be fastest processor that he can be founded and when the sense is created, it will be another perceptual stage which we call interpretation stage.

Motivation

Motivation is a inner force which able to drive us to reach the target or goal set to achieve, the inner force might be desires or wishes. For motivation there actually 2 famous theories which able to apply to product and services which is:

Maslow’s Hierachy of Needs

W. J. McGuire psychological motives

W. J. McGuire psychological motives

W. J. McGuire had list out 16 different needs of motive and from this advertisement we know that this actually attract 2 of the needs that have been listed.

Needs of stimulus is the first needs that created by this advertisement, this need actually mention that the consumer will always seeking for change due to the boringness or some other reason. So while consumer have been fed up with the old computer which giving a very slow performance. And they will start to look for the information and might adopt Intel Core I7 to fulfill their needs.

Teleological need is the second needs created by the advertisement while the consumer always think that their microprocessor should be able to support their computer to run the game fast and smooth but at the end it actually unable to do so. So they will try to look for a new item which able to fulfill their ideal situation, the microprocessor will able to make the game fast and smooth so when they saw the sentence ‘fastest processor on planet’, this will attract them and they might try to adopt it to fulfill their need.

Learning

A consumer might be learns about the featured of the processor due to the performance and durability while the people around him purchase a different microprocessor. So while there is a reward and a punishment given through the evaluation of product from the consumer, he might adopt Intel Core I7 because it might get a better evaluation from the others

Memory

For consumer who not so interested on purchasing a processor, they would not pay much attention on the attributes of Intel Core i7, so the memory toward the featured of the product is just a short memory while there is a consumer who being very motivated to search for a ideal processor, he will go and do lots of research and comparison between Intel Core i7 and the other processor while he keep doing comparison and research, the memory against the product will slightly change to be a long term memory due to the time he went through it.

Attitude

Product

Performance

Durability

Price

Brand

Total

Intel Core i7

9.3

8.7

8.1

9.7

35.8

AMD Opteron

8.7

8.0

8.5

8.7

33.9

Intel Core 2Duo

8.0

8.4

8.9

9.0

34.3

Attitude is the feeling on what we feel on certain thing that we can see, touch or heard through our sensory organ and this will be a part of long term memory in our brain and the long term memory will slowly be a belief. While we use Intel processor and we actually satisfy with the product through the durability and the performance, so through the experience we will create a certain belief in Intel that the quality of product is the best and this is a long term belief in our heart and brain. While this belief is stay strong in our mind, other competitors like AMD is very unlikely to convince them to purchase AMD processors.

In year 2006, Intel runs a marketing strategy which consists 3 basic strategies that used to change the attitude. The 3 basic include will be change belief, shift importance and changing ideal point. The marketing strategy actually is running a campaign named ‘Sponsor of Tomorrow’. In this campaign, Intel trying to change the belief of customer which think that they are just a business organization by telling them the company is not only a business organization but also a company which trying to create a better future through technology and they also trying to tell the consumer that the money is not so important while customer paying a higher price for Intel microprocessor, they also giving a fund to Intel as a sponsor of creating a better tomorrow. Besides that, Intel also trying to changing a ideal point of consumer towards a microprocessor when they are purchasing a Intel microprocessor, they are not obtaining a best processor but also helping Intel to build a better tomorrow.

Culture

Culture is a ways of life which including but not limited to, language, art, science, thought, spirituality, social activity and interaction. Culture actually is words that represent the entire element mentioned and it would always change due to the different environment that we stay and we born. Nowadays as a modern world, among the teenagers around 7 years old to 20 years old there is a new culture, which called gaming culture. Gaming culture is a culture that the people would enjoy on playing video or computer games and this actually lead to increase of demand of the service of cyber café, due to the increment of demand. To satisfy the needs and wants from the teenagers cyber café will always need to upgrade their facilities which consists of ram, processor, sound card and the monitor. Intel Core i7 as the latest and the fastest processor will be one of the first choice for those cyber café because it able to provide better performance and the better performance will able to increase the reputation and the sales of the shop. So due this kind of situation, the gaming culture actually increases the awareness of Intel Core i7 among the cyber café to improve their facilities and business.

Subculture

Subculture is a segment of a culture which having a different social status, history background and belief. For gaming culture, there also a numerous subcultures, such as online gaming culture, Local Area Network (LAN) gaming culture and single playing game culture. For online gaming and single playing game culture, those gamer will most likely to play the game at home but not like the Local Area Network gamers who prefer to play at cyber café to enjoy the group gaming, they would like to upgrade their own computer at home to enjoy the games, so they will pay attention the Intel Core i7 which have a better performance compare to the others and do certain research and purchase it to enjoy their games.

Society

Society formed by a group of people decided to work together to reach same target or goal. The goal might be form by entertainment, profession, religious or some other factors. For an example, there a group of teenagers who like to play games and have decide to come together just to form a society to enjoy the fun of the game while they started to enjoy game together, they will started to compare the function of the processor due to the performance given when they playing game. Intel Core i7 as the fastest processor will be aware by those people in sense of good performance and able to maximize the satisfaction on gaming.

Life cycle stage

Life cycle stage consists of 4 different stages which represent our life and started with the day we born. The stages in our life cycle will be child, teenager, adult and aged. Child is the stage while we had born and before 12 years old, teenager will start from 12 years old to 30 years old people, adult will be stage around 30 years old to 50 years old, and the aged will be the people who is exceed 50 years old. For different life cycle stages, people will have different needs and wants with different purchasing power due to the ability they have. For child, they would not have a high purchasing power so they cannot afford a luxury thing and they might not even know what the use of luxury goods, they would just simply like candy which adult and the aged would not adopt. For the segmentation of Intel, Intel Core i7 actually is targeting the teenagers which would like to play game with a good processor and this product is actually affordable for people who around 22 years old once they start working.

Group

The reference group that will help Intel to influence other will be the associative reference group. While there are a group of teenager are using Intel Core i7 for gaming, the new member who not using that product will feel uncomfortable while they talking about the performance of the computer, this lead to the awareness of that member on Intel Core i7 to do research or purchase it

Segementation, Positiong and Target Market

Intel Core i7

TM

Intel Pro 2 Core

Intel Core i3

AMD Phenom

MCS-40 family

Intel Core i5

AMD Opteron

Intel Xeon

Low Performance

Less Innovative

High Performance

Performance

Innovative

Asus

AMD Turion

AMD Athlon

Intel Pentium Series

AMD K7 series

Graph 1: Perceptual mapping against microprocessor available in market (without a support from a statistic data)

Segmentation

Segmentation is a marketing strategy that used to pick a small group of people from the entire market by different attributes like ageing, height, weight and others.

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Demographic

Demographic is one of the best information to segment the market through the ageing, for Intel, they actually targeting the segmentation of the age of 15 to 30, because for this ageing area, most of the citizen will interested to have a better performance of processor for gaming so this actually categorise as Intel Core i7 targeted market.

Target Market

For Intel Core i7 targeted market will be the consumer is age of 15 to 30, due to the favourable on getting a high performance processor for gaming and following the trend of innovative. Because of this reason, Intel would not like to target the age which is below 15 or above 30 is because of the purchasing power of peopl below 15 is unable to afford that processor and people who above 30 will not interested on the innovative item and the performance of the processor for gaming as well.

Positioning

In most of the consumer perceptual mapping, Intel Core i7 actually is the lastest and it’s also the best product due to the confident tag line it having ‘fastest processor on planet’ and lead to a trend that they think that this is the best product compare to other product like AMD Opteran, Intel i3 and i5 from the speed performance of processor and the graphic supply as well.

Product Repositioning

For every product, consumer will have a different perceptual mapping against them and their competitors, to reinforce the perceptual level of consumer against their product, most of the company will choose to use different packaging, advertisement slogan and others factors which is useful. For an example, Intel Core i7 advertisement will be one of the product repositioning, due to the sentence wrote in the advertisement ‘fastest processor on the planet’ this actually did reinforce the perceptual level of the consumer against Intel Core i7 due to the performance level and innovative level because this product is the fastest processor in the planet nowadays, if without this sentence, the perceptual level of consumer will definitely drop.

Product Mix Strategy

Product

Intel Core I7 processor having a better performance and better durability and high graphic support which able to attract the attention of the gamer in the market at the range of age between 20 to 30 years old.

Price

The cheapest Intel Core I7 processor in Malaysia will cost around RM800.00 which could be consider as a expensive product compare to the other competitor’s or other Intel product. Intel Core I7 consider as a valuable purchase even those the price is slightly expensive compare to the other due to the performance and the durability given by the product and the licensed operating system Window will also given free while consumer purchase a Intel processor.

Place

Intel Core I7 processor is a very common processor that able to be found in any IT retailer shop. Except IT retailer shop, Intel Core I7 also can be found in most of the laptop or desktop retailer shop like Dell, Hp Compaq, Acer and Logitech.

Promotion

In Malaysia, Intel did not do much of the promotion, there just a little advertisement of Intel in Malaysia which mostly appear in Astro TV at ESPN channel, even those not every citizen will aware of Intel Advertisement but there still will be a grow of awareness increase from the advertisement.