Consumer Is the King - Essay Example

Consumer behavior The buying nature of consumers has undergone tremendous changes for the past few decades. The incessant innovations and technological advancements made people spendthrift more than ever before. People today are forced to purchase beyond their limits and requirements. The prevailing mindset of consumers could be best illustrated by the term ‘consumerism’. Consumer Behavior is no more a trivial subject for all marketing agencies and advertising companies. Before launching a new product every company designs new promotional strategies to persuade the consumers to buy that particular product. Major portion of their budget is being spent for the same purpose. People today tend to be more selective, alert, enlightened and powerful. The traditional concept of shopping has been effaced and a new slogan emerged “consumer is the king.” The conventional shops and outlets are at the verge of extinction. This makes the marketers to put their best efforts to categorize consumers according to their response toward the unfamiliar products. According to the studies conducted on the consumer behavior, consumers can be classified in to the following segments like highly dogmatic consumers, inner directed consumers, consumers with high Optimum Stimulation Levels and consumers with high need of cognition. This paper also discusses the various promotional strategies to be employed in the case of consumers who are visualizers versus consumers who are verbalizers. The essay tries to pinpoint the specific consumer traits of each category of consumers with a view to design the most appropriate marketing strategies for each group. Factors affecting consumer behavior The buying behavior of consumers depends upon the individual personality. Many factors can influence the buying behavior of consumers. Culture plays a dominant role as most of the attitude s and beliefs of customers are strongly rooted in their cultural backgrounds. A child as a growing individual is influenced by his/her environment, cultural milieu, parents, siblings and all other right and wrongs that he learns from the elders and the people who come into contact with him/her. These factors are most likely to influence an individual’s purchase conduct too. The economical conditions also have a role in determining the behavior of consumers. Marketing strategies and advertising obviously influence the consumers purchasing performance. Goodwill or brand name of certain products and companies would promote the interests of consumers. Social status of people is yet another important factor that has a direct impact on their buying manner. For example the life style of someone who earns a huge amount will certainly be different from someone who earns a small amount (Consumer Buying Behavior). Trait theories According to the Freudian theory consumer’s buying manner reflects his/her own individual traits. Freudian theory points out that “unconscious needs or drives are at the heart of human motivation.” Neo Freudian personality theory suggests that “social relationships are fundamental to the formation and development of personality.” and Trait theory maintains a “quantitative approach to personality as a set of psychological traits” (Schiffman, and Kanuk 2004 p. 4). Based on the parent-child relationships, individual can be classified into three personality groups ie.Complaint, aggressive and detached. ‘The complaint’ desires to be loved and want to be appreciated. Aggressive personalities desire to excel and win admiration whereas the detached always desires independence and self sufficiency. This theory is known as Horney’s CAD theory (Schiffman, and Kanuk 2004 p. 124). Since the buying character of consumer reflects the consumer’s own personality, the marketers have to design promotional techniques according to their segments. A marketing company can not implement the same marketing criterion to promote all its consumers. Thus, well planned market segmentation is necessary for the effective promotion of goods and services. Dogmatic consumers Consumers with a certain personality trait who are reluctant to change their orthodox convictions are often referred as Dogmatic Consumers. Dogmatism is defined as “a personality trait that measures the degree of rigidity that individuals display toward the unfamiliar and toward information that is contrary to their own established beliefs” (Schiffman, and Kanuk 2004 p. 127). From a marketing point of view, a person who is highly dogmatic approaches the unfamiliar products with great discomfort and uncertainty. Meanwhile non dogmatic person is more likely to accept innovative products. Yet considerable number of research has proven that dogmatic consumers positively respond to the commercial advertisements for its appropriateness. For example highly dogmatic consumers are sometimes more receptive to advertisements of new products that contain an appeal from an authoritative figure or celebrities (Schiffman, and Kanuk 2004 p. 127). Therefore the best promotional method of targeting the highly dogmatic consumers is getting the authoritative assistance of celebrities. Moreover testimonials from a reliable personality also would persuade the consumers. For instance the testimonial of a well known physician can certainly invite good responses while marketing any medical equipment or drugs. Inner directed consumers The second category of consumers is called inner directed consumers. They are driven by their own convictions and inner values and are tend to be more of innovators. This group of consumers usually insists upon the quality, features and other benefits of products. Many researchers believe that “changes in values, beliefs, and lifestyles have had a significant impact on consumer behavior”; the inner directed social behavior of consumers prompt them to “follow an internalized set of goals” early in their lives (Michman, Mazze and Greco 2003 p. 18). As per the survey of American life style program (VALS) inner directed consumers represents twenty percent of consumers in the US who buy to meet their own inner needs rather than in response to social norms. The inner directed customers can be motivated by advertisement or persuasions to a certain limit. Their buying behavior is strongly influenced by their requirements. Advertisements meant to motivate this group must be more life related as well as something that would create a feeling of necessity. This category might be influenced by the interaction of an excellent agent or salesman. Their product knowledge and salesmanship would promote such customers to a great extent. The inner directed consumers are more self esteemed; therefore if they are better informed by a marketer that would accelerate the purchase. To close a deal with inter directed consumer a sales representative must be professional. Accuracy, genuine approach and pleasing behavior are the essential qualities of a marketing professionals who want to promote inner directed consumers. Consumers with High Optimum Stimulation Levels Consumer segment with High Optimum Stimulation Level yields positive response to the unfamiliar products and tend to be more innovative. As the optimum stimulation level theory states, “each individual seeks optimum stimulation. Environmental stimulation may include novelty, excitement or new experiences” (Kwon and Workman 1996). This group, though advanced in their buying attitude, needs to be highly considered for the after sale services. In order to retain them, marketers have to pay their sincere concern. Consumer acquisition is the initial step of every company. Consumers with high optimum stimulation levels are also high demanding customers. They focus more on the accessibility of product and service in market. For instance, the intermittent network service would easily dissatisfy such customers of any mobile phone or internet companies. Hence, up to date service and up dated products ought to be the priority of a marketing company while targeting the consumers with high optimum stimulation levels. Consumers with a high need for cognition Majority of consumers come under this category that can be influenced by the advertisements that can complete with high levels of cognition. The theoretical aspect of the advertisement has long term effect on this segment of people. Studies have proven that advertisements have more effect on the consumers with high need for cognition as compared to the consumers with low need for cognition (Haugtvedt and Petty 1989). Certain business areas like banking and insurance seems to be ambiguous and therefore cognition is an essential part of its marketing. Advertisements and persuasions can easily communicate the intended message to the particular customers. Esoteric ideas can be conveyed to the ordinary consumers only through ads, demonstrations, and campaigns. Visualizers versus verbalizers How people respond to the two cognitive styles is referred as ‘visualizing’ and ‘verbalizing’. Researchers are deeply at odds regarding the results of both styles. News paper practitioners usually believe that news photos would enhance the news reading process. Still there are examples when high visualizing did not enhance recall of stories or story interest. In contrast, high verbalizers found all stories more interesting and recalled both stories and photos better than low verbalizers. There are certain products and services that people hardly approach for. Insurance policies can be a best example because it is stated that “insurance is not bought; it is sold.” In that case verbalizing cognition might be the better method. Inter personal relationship between consumer and a company representative has its own significance. Thus verbalizing cognition sometimes becomes more effective. However the final analysis shows that consumers who are visualizers are more promoted than consumers who are verbalizers. Though it varies according to the areas of business, in most of the cases consumers often make a positive and immediate response to the visualizing cognitive style. Electronic media like TV and internet can communicate to thousands of consumers in a short time. Visual advertisements and other film strips usually convey the message of a better standard of living. This must be another reason why consumers are greatly influenced by the visualizing cognitive style. Virtual experience could be considered as more effective promotional method for the consumers. To illustrate, promotion of the tourism industry would be more successful by using visualizing style of cognition rather than verbalizing style. Most of the leading companies and marketing agencies today maintain both cognition techniques simultaneously. Conclusion A consumer in his daily life confronts hundreds of new products and offers. The age of cut throat competition compels the marketers to innovate techniques to initiate their products and services. Consumer behavior is highly important aspect in marketing affairs. Each purchaser is unique and his/her needs also might vary from others. The new concept ‘consumer is the king’ has great importance in today’s marketing scenario. It is hard for the companies to sustain in the field by providing adequate service to the customers in time. It happens because of two reasons; competition is at its peak; customers are highly informed as well as more demanding. Hence further research on consumer behavior has great significance in the modern era. Understanding the consumers according to their traits, approaching them through the proper channel, introducing appropriate cognition strategies and using the advanced technological possibilities are some of the unavoidable initiatives for successful companies and marketing agencies. Bibliography Consumer Buying Behavior. [online]. Learn Marketing.net. Last Accessed 19 February 2009 at: http://www.learnmarketing.net/consumer.htm Schiffman, Leon G, and Kanuk, Leslie Lazar. 2004. Consumer Behavior. 8th ed: Pearson Prentice – Hall. Michman, Ronald D, Mazze, Edward M. and Greco, Alan James. 2003. Lifestyle Marketing: Reaching the New American Consumer. Greenwood Publishing Group. Kwon, Yoon-Hee and Workman, Jane E. 1996. [online]. Abstract. “Relationship of Optimum Stimulation Level to Fashion Behavior”. SAGE, ITAA. Last Accessed 19 February 2009 at: http://ctr.sagepub.com/cgi/content/abstract/14/4/249 Haugtvedt, Curtis P and Petty, Richard E. 1989. [online]. "NEED FOR COGNITION AND ATTITUDE PERSISTENCE", in Advances in Consumer Research Volume 16, eds. Thomas K. Srull, Provo, UT : Association for Consumer Research, Pages: 33-36. Last Accessed 19 February 2009 at: http://www.acrwebsite.org/volumes/display.asp?id=6876 Read More