Dell Direct Case Study
Dell Direct Case Study
Dell Incorporation was founded in 1984 by Michael Dell. The company‘s starting capital was only $1,000 and was based on a simple concept of selling computers and computer appliances directly to customers. This is because the founder thought it as the best way to efficiently provide the right computer solutions to customers and to understand their unique needs. This paper will examine three critical aspects that affect Dell Corporation in its effort to sale directly to customers. The computer company has to be aware of the psychological characteristics of its consumer the consumer’s decision making processes buy PC from Dell and the best method to examine consumer behavior. The direct sale method allows Dell to base its business on consumer’s behavior such as setting price.
Dell provides its customers with an opportunity to mass-customization in various aspects of its computer products. The main aspect that defines mass customization strategy is that it focuses on consumer participation in the design process. In this strategy, it is also necessary to consider the customization of products with monetary price and production costs that are similar to those products that are mass produced (Kaplan & Schroeder, 2007, p. 176-177). This means that the psychological characteristics of the consumers play an vital part for products has to be made to match the individual needed of the customers and should be at an affordable cost. The psychological characteristics are derived from their beliefs, social issues, affect, cognition, sensation and perception. This calls for the need to understand the cognitive processes and limitations, their contextual factors, social influences, choices and behavior that has an impact on their decisions making. By understanding these factors, Dell will gain the insight that will help in implementing and designing the desired products for customers. It is crucial for Dell to appreciate the segment and individual difference in the outcome and process.
Understanding the decision making process is also essential. A company like Dell should consider aspects that may make a customer choose a product over another. For instance, it should know the actual reason that may make a customer buy PC from another company like Apple and not from Dell. Aspects such as the designs, price, appearance, efficiency, durability and many more can be found to be the real cause. With this understanding, Dell can make the right changes so as to fit the customers’ demands and preferences. The decision making process of a customer is based on his or her search for information. The information will help the customer evaluate other available alternatives of a given product and after purchasing the product. It is necessary for Dell to go ahead to evaluate a consumer’s behavior after purchase. This will help the company know whether the client is satisfied with the purchased product or not.
Searching for the solution in understanding the psychological factors and aspects that impact on a customer’s behavior can be evaluated externally or internally. Internal is based on what the customers think about the product while external is based on what customers have said or posted on the company’s site concerning a product. It is vital for Dell to provide room for trial whereby the customer can test a product before purchasing. Knowing the customers views will help the company to provide clients with options. The options can be considered by the customers. For those products that have low customer demand and involvement, Dell will aim at affecting the internal search of a customer. The main decision issues to considered are the consumers locus of control, their involvement level, consumer knowledge a product category complexity. The attitude component is derived from customers, belief, feelings, and behavioral intentions. A customer’s belief can be accurate or inaccurate, negative, or positive or can contradict other beliefs. Dell can generate the right beliefs through advertising. These advertisements should have statements that can be believed, remembered, comprehended and perceived. Positioning of products can also help in beliefs creation. To impact on customers’ attitude dell has to ensure that its products can be easily accessed and area available. The products should further have strength and last long (Simonson, 2005).
The decision making process of consumers starts by recognizing that they need a product that will help to satisfy their want. Firms should help in facilitating the search of a product by providing personal selling and promotional materials. This will equip the consumers with adequate information. The information will help consumers to make a choice by evaluating alternatives. The final stage will be the actual purchase of the product. The decision making process does, however, end with the purchase of the product. The customer will, further be satisfied or can be dissatisfied with the product. Dell at this stage will ensure that it proactively reverses the perception of the customer so as to retain the customer.
Reference
Simonson I (2005) Determinants of customers’ responses to customized offers:. Journal of Marketing 69 (January): 32-45
Kaplan A, Schoder D, and Haenlein M (2007) Factors influencing the adoption of mass customization.
Journal of Marketing , p 176-177
Is this your assignment or some part of it?
We can do it for you! Click to Order!
