Consumer Decision Making : Consumer Behavior

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;

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

Marketing and advertising play a major role in the promotion of companies and products in the United States. Consumers are constantly surrounded by advertisements by means of television and radio commercials, billboards, magazines, and even social media. But how exactly do companies appeal to their consumers? My topic explores the different strategies used to persuade everyday people to use a certain product or service. One of the biggest effective strategies used in advertising is by appealing to the audience’s emotions. I chose to analyze two different sources for my research. The first source is called Emotional Moneymaker: Why Advertisers Need to Appeal to Emotions, and it talks about emotion-based

Panda, Professor of Marketing, and Mishra, Doctoral Scholar at Ravenshaw University, find in their contribution to The IUP Journal of Brand Management that companies whose advertisements created emotional links with their audience through colour, music, and tonalities were far more successful in garnering an audience willing to pay high premiums than those whose advertisements focused on information, formatting rational appeals. Their research also shows that affective buying behaviour (behavioural response to an affective advertising appeal) is not only less stressful for consumers, but also that consumers required less information about their product before they buy it. Panda and Mishra’s work demonstrates that emotion has the potential to override the need for information and rational decision making because “when exposed to an affect-laden advertising appeal,

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).

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.

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.

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

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

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

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

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.

Studies in the past two decades has provided that there should be a scientific inquiry in the field on marketing (Ming-Hui, 2001). Psychology theories have been heavily adapting to marketing and trying to appeal to emotions of consumers. Although psychology is not regularly incorporated when developing ad campaigns, it can indeed enrich the campaign. In the study The Theory of Emotions in Marketing by Ming-Hui Huang, one of the main concerns of scientists is, do emotions have a legitimate place in the field of marketing? There are three characteristics of emotional marketing says Ming-Hui, that stress the need/existence of emotions in marketing (Ming-Hui, 2001). These characteristics are are: range of emotions, intensity of emotions, and positive/negative emotions (Ming-Hui, 2001).

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

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.