Who are consumers?
Consumers are the people who purchase goods and services from the market for their use. So, below we will discuss the behavior of consumer for purchase of good as explained by the economic assignment help experts.
What is consumer behaviour?
Consumer behaviour is the study conducted on individual, society or the company for their choice of goods and services. To simplify it further, studying consumer behavior provide ideas on the process that consumer adapt to purchase any services from the market. Hence, the topic of consumer behavior in Economics addresses the research and analysis of consumer market.
Why is the study on consumer behavior important?
Consumer behavior assignment helper has elaborated and explained the importance of studying consumer behavior in this economical world in the points below:
Achieving the goal: The first priority of any company is to earn profit and this goal can be fulfilled only when they get idea on the service that consumers demand. Hence, study of consumer behavior helps to identify needs and demands of the people and accordingly manufacture such products that benefit company and the consumers.
Surviving competition: Presently, the competition in economic sector is at its peak, every firm or organization struggle to survive, compete and get success in the economical world. This can be fulfilled only when proper research and study on consumer behavior is conducted.
Manufacturing new products: Studying consumer’s behavior helps to either modify the existing product or start the manufacture of new product. Since, consumer demands are not always the same, it keeps on changing according to necessity and requirement. So, the products that are likeable and preferred today may not be used after some months because it fails to provide necessary benefit to the consumer. Take an example of face cream, presently most of the consumer prefer creams providing sun protection but earlier this was not the case. So, companies need to either modify their product or manufacture new one to meet the requirement of the consumer. The one that accomplish this task wins the race, the other that fails remains behind. Hence, studying consumer behavior is very necessary to get information on the present trend of the market.
Inquiring price: Knowledge on Consumer behavior helps to get idea on the price that are shifting in the market. Since, there are number of companies to manufacture same product, so in order to survive in the competitive market and upgrade the position, it is necessary to keep the information on the changing price of the distributed product.
Consumer behavior marketing assignment help covers details on the factors that affect consumer behavior; this includes Social factor, physiological factor and Personal factors.
|Culture||Group and social networks||Age and life cycle stage||Motivation|
|Social class||Roles and status||Lifestyle||Learning|
|Personality and self concept||Beliefs and attitudes|
- Consumers are highly influenced by the products and services that is followed in their family. They prefer to follow the advice of members in the society or family while purchasing any good from the market.
- People following same culture, or people of same age group and gender have the similar taste for the products.
- Consumers choice is highly affect by their class and economic condition. High class people prefer quality over price, middle class consumer looks for quality as well as price whereas low class people prefer price over quality.
- Present trend of market also affect consumers behavior for the product and this is seen mostly in youngsters of present generation. They prefer using the services that are latest trend in the market.
- Reference group includes those individuals whose opinion helps us choose the services fin the market. It can be our family, friends, relatives, or some renowned personality whom they follow.
- The position of any individual in a company, in home or social groups and gathering also have a great affect for the choice of product.
- Likewise, his family and the society also have a great influence in the product chosen by the consumer.
Personal and physiological factor
- Age also have a great affect in the choice of product. The goods that young people require is not demanded by the people of old age.
- Concept also affect the preference of goods. Though a person belong to high class family, still he may find it worthless to spend huge cash in expensive services.
- Moreover, lifestyle also reflects the choice of consumer.
- Norms, belief, perception, motivation, learning are other factors that affect the choice for the products and services.
This is just a short overview of the topic, if you need any help to discover the idea behind black box model in consumer behavior assignment help, get to the homepage of myassignmenthelp.net and interact with the active member.
Black box model
Black box model have major role in consumer behavior. It is based on the input that generate desired output. Black box is well understood in our consumer behavior assignment help that elaborates the central concept behind it and the role of box in determining consumer behavior.
Black box model helps to recognize the stimuli that shapes consumer behavior. Here, stimuli that we talk about is the promotional strategy that is adapted to introduce the product, this is offered to the consumer by suppliers, whereas the environmental factor is tackled by the purchaser blackbox that includes buyers characteristics( personal, social, physiological and cultural) and buyer decision making process( recognition of the problem, search for the detail information on the product, check for available alternative and their comparison, decision for purchase, reevaluation of the decision on the product). Hence, this model provides idea on the consumer behavior for the product taken under proper research and analysis.
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Consumer Theory of Demand
4.9.Buying Decision Process- Five Stage Model
The consumer decision-making process follows the stages shown in Figure.
Problem recognition - Problem recognition arises when the consumer realizes that there is a need for some item. This can come about through assortment depletion (where the consumer’s stock of goods has been used up or worn out) or assortment extension (which is where the consumer feels the need to add some new item to the assortment of possessions). At this point the consumer has only decided to seek a solution to a problem, perhaps by buying a category of product. The needs felt can be categorized as either utilitarian (concerned with the functional attributes of the product) or hedonic (concerned with the pleasurable or aesthetic aspects of the product). The current view is that there is a balance between the two types of need in most decisions.
An internal stimulus, or drive, comes about because there is a gap between the actual and desired states. Drives are generated by encouraging a revision of the desired state. The higher the drive level (i.e. the greater the gap between actual and desired states), the more open the individual is to considering new ways of satisfying the need: in simple terms, a starving man will try almost any kind of food. It is, of course, stimulating and enjoyable to allow gaps to develop between the desired and actual states. Each individual has an optimal stimulation level (OSL), which is the point at which the drive is enjoyable and challenging, without being uncomfortable. OSL is subjective: research shows that those with high OSLs like novelty and risk-taking, whereas those with low OSLs prefer the tried and tested. Those with high OSLs also tend to be younger. Drives lead on to motivation, which is the reason why people take action. The level of motivation will depend on the desirability of the end goal, and the ease of achieving the end goal; motivations are subjective, so it is difficult to infer motivation from behavior. Information search - Having become motivated to seek a solution to the need problem, consumers engage in two forms of information search.
- The internal search involves remembering previous experiences of the product category, and thinking about what he/she has heard about the product category.
- The external search involves shopping around, reading manufacturers’ literature and advertisements, and perhaps talking to friends about the proposed purchase.
The purpose of this exercise is to reduce risk; buying the wrong brand of biscuits involves very little risk, since the financial commitment is low, but buying the wrong hi-fi could prove to be an expensive mistake. Evaluation of alternatives - Having found out about several competing brands, the consumer will evaluate the alternatives, based on the information collected or remembered. In the first instance, the consumer will select a consideration set, which is the group of products that would most closely meet the need. Typically a consumer will use cut-offs to establish a consideration set: these are the minimum and maximum acceptable values for the product characteristics. Signals are important when making choices; a particular price-tag, a brand name, even the retailer will have some effect on the consumer’s perception of the product. Price is frequently used as an indicator of quality, for example, but this can be reduced in the presence of other signals. Occasionally the use of cut-offs eliminates all the possibilities from the consideration set, in which case the consumer will have to revise the rules. This can result in the creation of a hierarchy of rules. For marketers, the challenge is often to ensure that the product becomes a ’member’ of the consideration set. The decision-making process appears lengthy and complex as stated here, yet most of us make several purchasing decisions in a day without going through a lengthy decision-making process. This is because most of us use heuristics, or decision-making rules, for most purchases. These are simple ’if . . . then’ rules that reduce risk by using previous experience as a guide. Heuristics divide into three categories:
- Search heuristics, which are concerned with rules for finding out information;
- Evaluation heuristics, which are about judging product offerings; and
- Choice heuristics, which are about evaluation of alternatives.
The decision-making process may contain a number of interrupts – points at which the search is temporarily suspended. Interrupts come in four categories:
- Environmental stimuli, which include in-store promotions (perhaps eye-catching posters for other products);
- Affective states, which include physiological needs (the sudden need to go to the toilet, or to have a coffee);
- Unexpected information, for example a change of layout in the shop or some change in the product attributes; and
- Conflicts, which occur when the consumer realizes that the original decision making plan cannot be followed, or an alternative plan appears that is not consistent with the original plan.
For example, an approach–approach conflict occurs when a second product is presented that would probably do the job just as well. This means that the consumer has to make a comparison, and the search pattern is temporarily suspended. An approach–avoidance conflict might arise when the consumer finds out the product is much more expensive than expected; an avoidance–avoidance conflict might arise when the two alternatives are equally distasteful. The effect of the interrupt will depend on the consumer’s interpretation of the event. Sometimes the interrupt activates a new end goal, or perhaps a new choice heuristic might be activated. Sometimes the interrupt is serious enough for the search to be abandoned altogether; here the strength of the interrupt is important. Clearly a sudden desire for a cup of tea will not permanently interrupt a search process, but the news that one has lost one’s job very well might. In most cases, consumers will resume the interrupted problem-solving process once the stimulus has been absorbed and accepted or rejected.
Purchase - The actual purchase comes next; the consumer will locate the required brand, and perhaps choose a retailer he or she has faith in, and will also select an appropriate payment method.
Post-purchase evaluation - Post-purchase evaluation refers to the way the consumer decides whether the product purchase has been a success or not. This process usually involves a comparison between what the consumer was expecting to get, and what was actually purchased, although sometimes new information obtained after the purchase will also color the consumer’s thinking. Before the purchase, the consumer will have formed expectations of the product’s capabilities in terms of
- Equitable performance (what can be reasonably expected given the cost and effort of obtaining the product);
- Ideal performance (what the consumer hopes the product will do); and
- Expected performance (which is what the product probably will do).
Sometimes this evaluation leads to post-purchase dissonance, when the product has not lived up to expectations, and sometimes to post-purchase consonance when the product is as expected or better. In either event, the consumer will feed back this information into memory, to inform the internal search for next time. One of the more interesting aspects of dissonance is that there is evidence to show that a small discrepancy between expectation and outcome may provoke a bigger change in attitude than a large discrepancy. This is because a small discrepancy may force the consumer to confront the purchase behavior without offering a ready explanation for it. Consumers will usually act to reduce post-purchase dissonance. There are four general approaches to doing this:
- Ignore the dissonant information and concentrate on the positive aspects of the product.
- Distort the dissonant information (perhaps by telling oneself that the product was, after all, the cheap version).
- Play down the importance of the issue.
- Change one’s behavior.
From a marketing viewpoint, it is generally better to ensure that the consumer has accurate information about the product beforehand so as to avoid post-purchase
Consumers express dissatisfaction in one of three ways:
- Voice responses, in which the customer comes back and complains;
- Private responses, in which the consumer complains to friends; and
- Third-party responses, which may include complaints to consumer organizations, trade associations and TV consumer programmes, or even legal action.
The most effective way of reducing post-purchase dissonance is to provide a product that meets the customer's expectations. This is partly a function for the manufacturer, but is also a problem for the retailer to address since it should be possible to ensure that the consumer's needs are fully understood before a recommendation about a product is made. As a fall-back position, though, every effort should be made to encourage the consumer to complain if things do not come up to expectations. This is why waiters always ask if the meal is all right, and why shops frequently have no-quibble money-back guarantees. Ferry companies and airlines provide customer comment slips, and some marketers even make follow-up telephone calls to consumers to check that the product is meeting expectations.
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