Literature Review On Consumer Perception

Buyer’s behavior is strongly influenced by members of their family. Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self-concept. Age and life-cycle have potential impact on the consumer buying behavior. The occupation of a person has significant impact on his buying behavior. Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. Lifestyle of customers is another import factor affecting the consumer buying behavior. There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes. The level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, and social needs. Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior; therefore, marketers are interested in them.

The research results showed that product quality was not the strongest factor that led to brand loyalty but market inertia and that product quality was more likely to lead

I agree with your post. I believe value is an essential element of determining if products are worthy of your purchase. Value entails, whether the product or service is useful and can contribute to saving you time and money. Furthermore, value can be equated to whether or not the product or service will be beneficial and advantageous to our efforts. Personally, I tie value into whether or not the product will necessitate quality, durability, and longevity. Another aspect of value ties into whether or not you are likely return to certain business avenues to obtain more of the products and services in the future. If a person knows that they are receiving quality services and items, then they are more likely to give off free advertising via word of mouth marketing and are likely to refer

Then the report describes the theoretical aspects of the study in the literature review. This section mainly consists of brief description about different important topics about customer value marketing.

According to behavioral economists, consumers don’t always behave rationally, like a market (in theory) does, and they don’t make decisions based solely on facts or logic such as price or quality. Other psychological factors have an impact on decisions. This explains why very often, consumers become complacent when faced with the best value proposition. FEAR OF OVERPAYMENT The opportunistic mindset is engrained in how people shop today. People have an expectation to get a deal and will not very easily purchase if they are convinced they could find better. The way value is framed is key reassuring people that they

Customer value can be defined as what the customer obtains or benefits from the purchase and use of a product versus what they pay for or sacrifice (Gale 1994; Heard 1993-94; Zeithaml 1988). There are four types of customer values, for instance the functional or instrumental value, experiential or hedonic value, symbolic or expressive value and cost or sacrifice value (Smith & Colgate, 2007).

National brands benefit from brand equity and image through their extensive advertising and brand image. Marketing activities can influence the brand image however through pricing and promotions, jingles, slogans and 14 much more. The lower prices of store brands can either be viewed as a competitive advantage or ultimately be associated with lower quality. Brand Loyalty and Store loyalty have an influence on brand purchase choice. Many consumers have loyalty towards certain brands or products and this can be down to their habits and therefore tend to make habitual purchases i.e. purchasing what they always have. Previous research also states that store image also has a major influence on the purchasing behavior of consumers stating that if a store has a nice image and atmosphere then consumers will purchase more of their store brands. Research has also indicated that packaging can be a major influence in purchasing decisions especially at point of purchase and that many store brands try to mimic the packaging of national

Cost, quality, response time, and flexibility are all valued by the consumer. Quality is often a key indicator of what a customer is willing to pay. Creating great quality that are distinct to the organizations can result in consumers paying more. Coach purses are designed and manufacture to be of great quality. For this reason Coach can charge a higher price for their product than the no name brand that is available in Walmart. Better quality items usually are perceived as being product or service that will last longer. Lowering cost by adjusting the value chain and appeal to customers. Consumers will often prefer to remain loyal to your brand if you can make your product affordable. Customers will be willing to pay more for the value received than it costs for the company to deliver value resulting in heightened profitability. The value chain should be able to deliver sustainable competitive advantage leading to sustained profitability. (Presutti & Mawhinney,

On the other hand, there are also contradictions of the value theory, the real essence of value revolves around the tradeoff between the benefits a customer receives from a product and the price he or she pays for it. More precisely, customer value equals to customer-perceived benefits without customer-perceived price. So, the higher the perceived benefit or the lower price of a product, the greater the likelihood that customers will choose that product. This means that, people are not solely buying a product considering a value yet also based on a low price. Since, this situation frequently happens, the marketers repeatedly fail to invest adequately to determine what the

Purchase intention is constructed from consumers’ attitudes and external factors, where attitudes are multiplex consisting of three elements which are cognitive component or knowledge, affective component or emotion, and conative component motivating consumers toward behaviour or response (Adcock et al., 2001). Purchase intention is a significant factor for predicting consumer behaviour (Fishbein and Ajzen, 1975). Also, purchase it can measure the possibility of consumers’ purchases. The level of consumers’ willingness to buy products directly depends on their purchase intention (Schiffman and Kanuk, 2000). Thus, it is an important concept in marketing. Khan et al. (2012) stated that consumers consider many different criteria when they would like to buy products, such as price, quality, product features, brand and convenience. According to previous research, it is found that purchase intention has many different definitions.

This study is very important as well as helpful to understand the reason or factors which induces the customers to purchase the product most, so that manufacturers can take decision with regard to production as customer tastes and preference. this study will also throw some light on consumer expectation.

The research results showed that product quality was not the strongest factor that led to brand loyalty but market inertia and that product quality was more likely to lead

Once there is the decision to consume or purchase good s or services the common factor then becomes the need for that product which is at times evaluated based on attainability and price. In many situations if consumers are not motivated by the need to purchase then the possibility lies that they will not purchase. There may be different justifications that consumers internalize when making the decision to purchase a particular product at its given price. Different decisions supports the need to purchase a product such as

Dawar, N. and Parker, P. (1994), 'Marketing universals: consumers' use of brand name, price, physical appearance, and retailer reputation as signals of product quality", Journal of Marketing, Vol.58No. 2, pp. 81-95.

An element to consider is that the buyer is not necessarily the user of the product and may have influences from others. Some consumers are quite loyal to the same brand, making the decision quite routine. In some instances some consumers might not need to make a decision and knows exactly what they want. Other factors that can influence consumers could range from lifestyle, knowledge, attitude, personalities and even roles they play e.g. if the consumer were to buy snack food for a party they may choose a higher quality product that he would choose when selecting for themselves. Motivation also plays a major role where consumers would look at financial position, time constraints and value for money.