Consumer Decision Making : Consumer Behavior

Understanding consumer behaviour is essential to succeed in business. As Solomon et al. (2013) stresses, businesses exist to satisfy consumer’s needs. By identifying and understanding the factors that influences their customers, firms have the opportunity to develop a more efficient strategy, marketing message and advertising campaigns that is more in line with the needs and ways of thinking of their target consumers (Perreau, 2015).

In today’s world of various products and services, businesses aim to excel and lead the competition by marketing the most number of consumers, which is a full time endeavor of business. To survive in the market, a firm or an organization has to be constantly innovating and understand the latest consumer trends and tastes. Marketers need to understand consumer behavior because the decision-making process for consumers is anything but straight forward. Consumers’ behaviors and their purchasing patterns is a huge advantage to understanding the way customers think and the reason for their purchases. Therefore, the study of consumer behavior is important because it allows the

Consumer behaviour is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. The emerging costumer trends play an important role in analysing the marketing opportunities. A consumer buying behaviour is influenced by cultural, social and personal factors. The consumer passes through five stages of the buying decision process: Problem Recognition, Information Search, evaluation of alternatives, purchase decision and post purchase behaviour. This model is important for anyone making marketing decision and customer pass through all stages in every purchase.

I have been longing for one sunglass for a long time after I accidently stepped on my old one and broke it. Since summer is on the way, nice and sunny weather has always reminding me to think about consumption. Unfortunately, I am such a picky person that I determined to get the perfect fit only for my special. My criteria are primary focused on the quality, brand, and the style. Probably style can be considered as the most important one because I want everything I possessed to reflect my personal conception. Price is an important but not most significant element for me because I tend not to use budget to restrict my preference. Apparently, around Bellingham area, the only place I can think of

The process that a consumer goes through when deciding what or whether to consumer. This lies beneath the act of making a purchase, and may be attributed to the psychological core of the person. The process includes seven steps which consumers go through before making a purchase. Step one may be described as 'problem recognition '. As the main starting factor of the decision making process, it requires in depth analysis and research. Problem recognition conjures the idea that problems only exist when we recognize them. Hoyer and MacInnis describe the problem recognition stage as 'the perceived difference between an ideal and an actual state. ' (Hoyer & MacInnis, 2008). The ideal state in this context refers to the way the consumer wishes things were. An example of this may be the wish for a nice house or car. In comparison to this, the actual state refers to how life really is, or how the consumer views it. Examples would then be 'this house is too old ' or 'my car is not fast enough '. It is the recognition of the actual state and ideal state that leads a consumer to the stage of problem recognition. It is within the problem recognition stage that the psychological problem solving variants are considered. These include Extended, Routine and Limited problem solving, and the level of commitment contributing to each may or may not lead to purchase. In addition, psychological and

Consumption is a process of acquiring, using and disposing of goods and services. Emotions play a very large role in consumer behavior. This behavior and emotions are affected and created by the society and the culture in which the consumer lives. For example, an American may approach the purchase of a costly car with relatively less pressure than a person in a developing country where a car could be a high unaffordable luxury. The customer will comprehend brands, offers and the meaning of the product based on the understanding that he or she has of similar brands and their experience by analogy or by hearsay from peers and form an opinion. For example a new soft drink from Pepsi may not be very informative in its advertisement but that it is from the stable of PepsiCo makes the users of Pepsi brands take it in without much research. Such an opinion is not based mostly on the complete set of facts. Where there are many alternatives or the information is scarce the customer has to make a lot of effort or 'high effort' to reach a decision and such a situation could be a turnoff. On the other hand the customer may not be inclined to devolve deep into facts in case where the brand value is established and may make a decision on little or even sometimes no information. (Hoyer;

The value of influence is also a crucial element in understanding consumer purchase decision. Brown and Hayes (2008) interpret influence as ‘the action of creating a conductive environment which shapes other consumers’ perspective on a particular matter’ and ‘the ability to alter a person, item or route’.

[23] utilize previous research of traditional WOM that had any similarities with E-WOM they develop the new construct into five utilities:

Consumer behavior is the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of, products and services. The study of consumer behavior as a separate marketing discipline all started when marketers realized that consumers did not always react as marketing theory suggested they would. Many consumers rebel at using the identical products that everyone else used, instead they prefer differentiated products that they feel reflect their own special needs, personality and lifestyles.

As consumers play an important role to businesses, businesses must always satisfy all consumer’s wants and needs. In order to do so, marketers conduct research to learn consumers’ impression and awareness on the companies and their opinions on the companies’ products and services. Consumer perception is defined as a process where consumers select and gather information then form opinions regarded products. Together with advertising, consumer perceptions strongly affect consumer behaviors. Consumer judgment study offers the companies opportunities to know how their consumers behave in the market and to develop marketing strategies in order for the companies to reach the primary goal of earning a profit.

HOW TO CAPITALIZE ON MASLOW’S NEED THEORY IN ORDER TO REGAIN MARKET SHARE WITHIN THE MARKET FOR ICE CREAM IN GERMANY?

The concept of “emotional branding” refers to the relationship and connection people have with certain brands. Built through strategic marketing and communications, brands have been able to develop campaigns that shape attitudes of its audiences that drive decision making and behaviour. The concept stems from the realization that many customers do not, in fact, make buying decisions through a purely rational approach, focusing solely on the financials, and attributes of products, but rather, these decisions are influences in large part by their emotions. While many purchasing decisions are certainly influenced by the subconscious emotions of the consumer, emotional branding can also determine the strength and length of a customer

Consumer behavior is a significant aspect while developing strategies in marketing within different market segments. Though there are many studies and researches done on consumer behavior, it is important to note that consumer behavior varies from one product to another and one market to the other. On the other hand, marketing is concerned with the preparation, and producing a good or service, pricing as well as marketing and distributing that product or service to the market or consumers. In order to reach the consumer, the people bestowed with the responsibility of marketing such products or services should understand the consumer needs as well as the specific market for which the product or service will sell. Additionally, it is prudent for marketers to understand that consumers only buy products that give or offer value to them.

In order to advertise the JW99, one needs to sell an experience and demonstrate what problem it can solve i.e. improving health instead of simply selling the product. The Expected Utility Theory states that each person seeks to maximize their own gains. Putting that in context with a low self-control, one can identify that an offer should be fair since the key demographic might reject an unfair offer out of altruism. The decision making process of the consumer is a quick and intuitive one [See Appendix A]. In order to start advertising a change needs to happen in the eating habits. The strategy is to spread the word, create a buzz and sell an experience.

During the early years after independence i.e. in 1950s, two wheelers were considered as a luxury good. In 1950s most of the people were dependent on agriculture for their earnings, sources of income were very few, due to which the disposable income with people was also low and only a few could afford two wheelers. Two wheelers were sometimes given as dowry in marriages and considered as a status symbol, since very few families were able to afford them. But now as the income levels have increased and people have easy access to credit and loan facilities, most people can a two wheeler. It is not considered as the luxury good anymore, it has rather become a necessity for some consumers who commute daily and look for economical options.