How to Understand the Buying Behaviour - Case Study Example

The markets that are seen through strategic windows are not abstract concepts—they contain people. In order to understand how changes in the market occur, not only does an organization have to understand the broader issues in the business environment and the views of the market perceived by competitors, but it also has to understand the buying behaviour of the people themselves. In studying buyer behaviour, a distinction is made between complex decision-making situations and those in which little consideration is given to the purchase being made. Where a product is relatively expensive and possibly technologically complex, prospective purchasers often go through a complex search and evaluation process prior to making a purchase. Various models of consumer behaviour have been developed over the years. The models reflect the different buying situations in which consumers find themselves. Factors influencing consumer behaviour must be considered as well as similar factors influencing the buying decisions in business to business transactions. An understanding of these factors and how they influence the buying decision are extremely important when putting together a selling strategy. Market research also plays an important part in helping to identify relevant facts about buyer behaviour (consumer or organizational) and provides all kinds of information which forms the basis of strategy formulation. A motive to make a certain purchase is an internal state of the purchase. While consumer behavior is observable, motives are psychological constructs that can only be inferred. Buying motives for consumer products may be classified as economic, emotional, product, and retail patronage. Some of the motives may be rational while others are emotional. To illustrate, economic motives include product durability or economy in use. Emotional motives might include romance, pleasure, or prestige. Product purchase motives might involve ease for making repairs or ease of installation. Patronage motives relate to variety for selection or promptness in delivery. Motives relate to perception. Motives come from the consumer's real self, self-image, ideal self, and looking-glass self. The way consumers envision the situation to themselves helps to shape their reactions or responses to marketers' appeals (Sharon, Boyle, 2004: 343). Consumer goals and needs are constantly changing in response to environmental conditions, interaction with others, and physical conditions. As individuals realize their goals, new objectives may be established. New levels of aspiration may surface. For example, if an individual loses ten pounds of weight another objective to lose an additional fifteen pounds may be established. Moreover, marketers need to be attuned to changing needs and goals. Automobile manufacturers have recognized the consumer's need for prestige or status. This need may be less important as some consumers seek safety or family enjoyment as reasons for purchasing a new car. Since many families own more than one motor vehicle, ownership of a Volvo sedan or station wagon, a pickup truck, and an economical used car for an adolescent might represent diverse needs. The reason consumers choose one brand over another may be vague and unknown to them. Why consumers choose one brand of refrigerator over another may be based on personal experience, an advertisement, a friend's comment, a salesperson's presentation, the location of the retailer for service or some other factor or combination thereof. Brand switching may occur as a result of changing needs, a dissatisfaction with the current brand used, or because a friend, relative, advertising campaign, an article in Consumer Reports, or other influence persuaded that consumer that a better benefit or value can be derived by switching brands. Marketers, by identifying and appealing to consumers' motives, can generate a positive environment for the sale of their products. A study of men depicted their motives for purchasing specific magazines. The male population was divided into traditionalists (27%), searchers (22%), achievers (20%), fast trackers (17%), and young urban techies (14%). Traditionalists have a high regard for religion and family and enjoyed reading about cars and hunting. (Sealey, 1999: 175) Searchers were likely either to be divorced or single and tended to watch a lot of science fiction or television. Achievers earned the most money, exhibited great confidence in every aspect of their lives, and tended to read business, news weeklies, and computer periodicals. These three groups tended to be middle aged and older. Fast trackers tended to be about age twenty-five and prized earning money and eventually believed they would be successful. The young urban techies averaged about age twenty-seven and were well-educated and politically progressive. (Whelan, 2001:18) This study linked attitudes based upon market segmentation and results in understanding the lifestyles and motives of a market segment of males. Motivation theories Many of an individual's specific needs are dormant or latent much of the time. The arousal of any particular set of needs may be related to the individual's physiological condition or may emanate from the emotional or cognitive processes or may be a reaction to stimuli in the external environment. The diversity of motives among consumers makes it difficult to activate motives that are satisfying to groups of consumers. However, it is possible to identify groups with common motives and goals. Marketers have been more successful in developing strategies that involve product classes rather than specific choices within a product classification. A need must be aroused or stimulated before it becomes a motive. Some of the reasons that needs, and thus motives, are never fully satisfied are that new needs emerge as old needs are satisfied. Physiological Cues Most physiological cues are involuntary. Since marketers cannot cause physiological arousal, measures can be used to satisfy this state once it has been aroused. Bodily needs are rooted in an individual's physiological condition. A drop in blood-sugar level or stomach contractions may trigger hunger awareness. The secretion of sex hormones causes the sex need. Thirst may be triggered by the dryness of the mouth. Marketers can demonstrate associations with these physiological needs that show solutions such as soft drinks, iced tea, or bottled water. Food snacks can be shown to revitalize or energize the individual. Males and females can be shown kissing an individual of the opposite sex who has just used a specific brand of mouthwash or chewing gum. Cognitive Arousal Motives can be triggered by information stored in the individual's memory. A cognitive awareness of needs can result from perceptions, attitudes, and beliefs that may serve to arouse motives. The cognitive processes are viewed as directional inasmuch as they serve the individual in his or her attempts to achieve need satisfaction and rely on the ability to reason. This approach is especially useful in introducing new products to satisfy new consumer needs. The cognitive and behavioristic philosophies are both concerned with the arousal of human motives but are in opposition to each other. The cognitive school of thought maintains that all behavior is aimed at goal achievement. Needs and past experiences are classified and developed into attitudes and beliefs that act as predispositions to behavior. These predispositions are directed to satisfying needs. In contrast, the behavioristic school of thought considers motivation to be a mechanical process. Behavior is envisioned as a response to a stimulus. Elements of rote memory are used. An example is the Pavlovian stimulus-response theory of motivation. Impulse purchasing can be partly explained by behavioristic learning. A single purchasing situation does not involve just one specific need. The consumer is driven usually by a combination of needs. It would be another mistake to believe that identical behaviors have identical motivational environments. Therefore, the purchase of a BMW by different consumers results in the same purchase but the environmental backgrounds of these consumers vary. Although consumers have different needs based upon their personalities, experiences, and environments, usually consumers assign a priority ranking to the satisfaction of these needs. A set of needs is frequently determined by specific cues in the environment. Consequently, television advertising, for example, could activate needs for a new car or dishwasher that were only close to the surface and perhaps even dormant. The cognitive approach is designed to educate through promotional campaigns and usually provides more information about the product than other techniques. (Featherstone, 1991) MOTIVATION AND CONFLICT IN PURCHASING BEHAVIOR Motives can conflict with each other and affect how consumers behave in purchasing situations. For example, should the individual make a down payment on a new car or use the money for a trip to Europe? Motive conflict can be viewed from a positive perspective in that although it may build tension, it may also facilitate goal attainment. Kurt Lewin, an authority on motive conflict, viewed motives as a positive and negative force once the individual is motivationally aroused. (Ben, 2002) The specific patterns of consumer behavior may vary widely depending upon the specific motives, the individual, and the purchasing situation. However, conflict is most likely when motives are of approximately equal strength. Sharon and Smith Maguire (2004) designated the short-term motivational situations: approach-approach, avoidance- avoidance, and approach-avoidance conflict. Approach-Approach Conflict This is a purchasing situation in which conflict exists between two desirable alternatives. The purchase choice may be between a car or a boat. Since both purchases will give some degree of pleasure this is the least painful of the conflict situations. Nonetheless, a certain amount of vacillation will occur between the alternatives because choosing one means losing the other. Some product offerings help to resolve the conflict, such as “fly now and pay later.” However, promotional literature might help to resolve the conflict between the purchase of a car or a boat. Resolution of approach-approach conflict might also develop through a reassessment of goals. For example, it may be determined that a purchase of a car is more important at this time than the purchase of a boat. Another resolution of the conflict might occur if a decision is made to purchase relatively inexpensive models of both a car and a boat. Avoidance-Avoidance Conflict This purchase situation develops when there is conflict between two negative choices. For example, the choice may be the repair of a fifteen-year-old washing machine which would be quite expensive or the purchase of a new washing machine. Both choices involve the outlay of a large expenditure. This purchase situation may involve a considerable search for information. The purchase of a “do-it-yourself” repair kit is designed to turn the negative alternative into a positive one. Approach-Avoidance Conflict This purchase situation is probably the truest conflict and it develops when the consumer is both attracted and repelled in the same direction. For example, to purchase a home, a sizable amount of cash for a down payment may be needed. Resistance to the home purchase may be present unless the pressures can be reduced. Financial institutions may be able to make credit terms easier, thereby easing the avoidance aspects of such conflicts. Prestige or status retail stores, such as Bloomingdale's or Neiman-Marcus, may offer private labels that identify the merchandise as expensive to others. The availability of credit cards, warranties, return privileges and more personalized selling contributes to the easing of large purchases at these upscale stores. Retail salespeople may try to summarize the features of each product to assist the customer in determining which alternative appears to be the better choice. IMPLICATIONS FOR MARKETERS Although much has been investigated about consumer purchasing behavior, it is frequently overlooked that consumer behavior consists of three distinct activities: shopping, buying, and consuming. John O'Shaughnessy (2003) focused upon consumer goals, wants, and beliefs to help explain why consumers buy. Much of O'Shaughnessy's work was developed based upon different consumer motivation theories. However, little is known about consumer motives for the shopping function. Edward Tauber explored the determinants of shopping behavior. 7 The examination of why people buy and why people shop demonstrates the interdependence of needs and goals. Consumers are not always as aware of their needs as they are of their goals. For example, an individual may join a photography club to learn more about photography but may not be consciously aware of the need to meet new friends. The awareness of physiological needs is more apparent than psychological needs. When hungry or thirsty, appropriate measures are taken to satisfy those needs. However, the needs for social approval and self-esteem may not be as sharply identified. Tauber (2003) has hypothesized that social shopping motives are social experiences outside the home, communication with others, peer group attraction, status and authority, and pleasure of bargaining. These variables would vary in intensity from individual to individual and environmental influence would also be an important factor. Tauber's study was not empirically tested. As a result, marketers still can only conjecture how to prioritize these social-shopping motives. Shopping motives can also be based upon impulse. The likelihood of going shopping on impulse has probably increased over the years as consumers' lives have become more complex. Moreover, the distance or time traveled to the mall, shopping center, or store is a convenience element that might trigger impulse shopping behavior. Time availability may also trigger impulse shopping either traveling to or from work. The list of personal and social shopping motives might suggest that social and recreational factors are an important part of shopping behavior and therefore a sense of drama or theater in the retail store would be viewed positively by consumers. Purchasing motives are complex. There is a combination of rational, emotional, and patronage motives that comprise many pur chases. Typical buyers for a product may have different motives than other purchasers. For example, both men and women of varying ages are buyers of the Ford Mustang, but the typical buyer is a middleaged male, about forty-five, with an avid interest in motorcycling and power boating. The typical purchaser by inference would seem to enjoy showing off these material goods. The Ford Mustang sells best in Los Angeles, Dallas, and New York City and sells poorly in Lafayette, Indiana; Cheyenne, Wyoming; and Anchorage, Alaska. In the end, changes in the approaches taken by marketers to lifestyle market segmentation strategies are rapid as companies seek more effective ways to know their customers better. New approaches to identifying market opportunities and defining customer groups have made it easier for marketers to develop strategies to reach specific customer groups. However, to predict buyer’s behavior and guarantee success of purchase is not possible without careful research and significant input into brand development. Bibliography: 1. Abraham H. Maslow, (1943). “A Theory of Human Motivation, ” Psychological Review 50. Pp.: 370-396. 2. David Whelan, (October, 2001). “Men, Their Motives and Their Magazines, ” American Demographics 23. Pp. 18-21. 3. Edward M. Tauber (2005). “Why Do People Shop?” Marketing Management 4. Pp. 58-62. 4. Featherstone, Mike (1991) Consumer Culture and Post-Modernism. London: Sage. 5. Fine, Ben (2002) The World of Consumption: The Material and Cultural Revisited. London: Routledge 6. John O'Shaughnessy (2003). Why People Buy.New York: Oxford University Press. 7. Kiran W. Karande and Jaishanhar Ganesh, “Who Shops at Factory Outlets and Why? An Exploratory Study, ” Journal of Marketing Theory and Practice 8 (Fall 2000): 29-33. 8. Peter Sealey, “How E-Commerce Will Trump Brand Management, ” Harvard Business Review 77 (July-August 1999): 171-176. 9. Posonby, Sharon and Emily Boyle (2004) ‘The ‘value of marketing’ and ‘the marketing of value’ in contemporary times – a literature review and research agenda’, Journal of Marketing Management, 20, 343-361. 10. Zukin, Sharon and Jennifer Smith Maguire (2004) 'Consumers and Consumption', Annual Review of Sociology. 30. 173-197. Read More