The Effect of Age Culture and Brand Name on Consumer Buying Behavior - Literature review Example

The Effect of Age, Culture and Brand Name on Consumer Buying Behaviour Introduction The purpose of this literature review is to examine the effect that factors such as the age of consumers, the culture to which the consumers belong to and the name of the brand affect the behaviour that consumers exhibit when buying products. Consumer buying behaviour is a complex phenomenon that is expressed in terms of different processes and activities. For example, consumers may search for information about a product, make decisions about the specific product they would want to buy and form an opinion about a particular brand. All these activities and processes are influenced by their age, the culture to which they belong and the name of the brand in question. The different ways in which these relationships occur are examined in this literature review. Effect of age on consumer behaviour The age of individuals is one of the factors that affect the behaviour of consumers. Furaiji, Latuszyriska and Wawrzyniak (2012, p. 79) note that in general, the consumption and purchasing patterns of individuals change over the course of time. These changes in the type of goods that individuals consume as their ages change and the manner in which they decide what they want to purchase is as a result of changes that individuals undergo as they age. Durmaz (2012, p. 192) observes that psychological changes that individuals undergo determine the changes in needs, tastes and preferences. Therefore, it is because of the changed in tastes and preferences and consumption patterns that occur in individuals as they age that make it necessary for different brands of goods to be marketed to specific market segments. Apart from affecting the types of products that individuals need, the age of individuals also affects the overall manner in which individuals go through the process of purchasing products. In general, individuals go through several distinctive steps when purchasing products (Rani 2014, p. 53). The steps include the following: recognising the problem, searching for information about the products that exist in the market, evaluating the alternatives and making the purchase decision (Rani 2014, p. 53). Age, like many other factors, affects the manner in which individuals go through the purchase process. For example, Herve and Mullet (2009, p. 303) found out that elderly individuals tend to avoid going through complex decision making processes that entail integrating different types of information when evaluating options and making decisions about the products that they want to buy. Therefore, age, like many other factors, affects the behaviour of consumers by influencing their needs, preferences and manner in which they go through the steps of the purchasing process. Effect of culture on consumer behaviour Culture is one of one of the main factors that affect the behaviour of consumers. In general, culture is defined as the collective features and aspects of a society that differentiates it from the others (Durmaz 2014, p. 38). The culture of any given society is made up the norms, values, practices and laws that its members are expected to adhere to. Rani (2014, p. 54) notes that the culture of any given society is characterized by the fact that its inherent values, practices and norms are passed down among the members of the society over the course of time. It is through learning that individuals master the features that define their culture. This takes place through the process of socialization which occurs when individuals interact with the other members of their culture in different institutions. Institutions such as families, religious groups and educational institutions provide individuals with a platform to learn about the values that define their culture. As much as cultures can be divided in terms of regions or even countries, all cultures are made up of much smaller groups of individuals who share specific values, norms and practices (Durmaz 2014, p. 39).This small subgroups of cultures are referred to as subcultures and they are also important because they can be distinguished from each other. The behaviours and actions of individuals are largely shaped by the cultures to which they belong (Leo, Bennett & Cierpicki 2005, p. 3). This is the case because through what is generally regarded as acceptable behaviour; individuals manifest the underlying values, norms and practices of the cultures to which they belong. Similarly, the behaviour that individuals exhibit when they are buying goods and services is a reflection of the cultural values of the wider culture and specific sub-cultural groups to which they belong. The role of culture in influencing consumer buying behaviour has been clearly identified in the theory of consumer behaviour. According to Louden et al (1993, cited in Zitkus and Puskoriute 2013, p. 225), the manner in which consumers behave when they are buying goods and services is largely shaped by two groups of factors: inputs and exogenous variables. Inputs are composed of factors such as the price quality, features and availability of a product. On the other hand, exogenous variables include factors such as individual personality attributes, social class of the individuals and most importantly, the culture to which the buyers belong. Therefore, the behaviours that individuals exhibit when they are buying goods and services are shaped by the values of their cultures and specific subcultures. One of the ways that culture affects the behaviour of consumers is seen in the manner in which consumers make their choices and preferences for goods and services. Consumer choice and preference is largely a reflection of the norms, values and practices that are considered as acceptable behaviour within a specific culture (Zitkus & Puskoriute 2013, p. 226). Interestingly, there are different cultural groups in different regions of the world. This means that values that may be considered in one region of the world may not be acceptable in a different culture of another region of the world. More so, the choices and preferences that individuals make are a reflection of the specific practices in their subcultures. And since there are many cultural groups in the world as well as many more subcultures, this means that the choices and preferences for different goods and services that consumers exhibit vary widely. Differences in choices and preferences among consumers, as a result of cultural differences, make it possible for marketers to segment markets according to specific attributes, target consumers who show specific preferences and position products to address their needs (Yakup, Mucahit & Reyhan 2011, p. 110). Studies indicate that there are clear differences in consumer behaviour with reference to different regions in the world. For example, Leo, Bennett and Cierpicki (2005, p. 4) examine differences in the consumer decision making styles between two countries: Australia and Singapore. The two countries represent two different cultures. Singapore, which is dominated by individuals of Chinese origin, represents eastern culture while Australia represents western culture. In the study, it is found that there are significant differences in the manner in which consumers from the cultures make their purchase decisions (Leo, Bennett & Cierpicki 2005, p. 25). The differences between the consumer decision making styles used in the two cultures are seen in terms of the extent to which individuals are conscious of brands and how they process information during the decision making process. For example, it is found that Australians are more brand-conscious than Singaporeans and that their decision making process is often based on the need to acquire a particular brand (Leo, Bennett & Cierpicki 2005, p. 26). On the other hand, it is observed that Singaporeans are less likely to be confused as a result of having to process a huge number of choices of products that they would want to purchase as it is the case with Australian or western consumers in general (Leo, Bennett & Cierpicki 2005, p. 27). These differences in the manner in which consumers from different cultures behave can be explained in terms of cultural differences between different regions as first conceptualised under Hofstede’s model of cultural dimensions. In this model, cultures were characterised based on their score in different aspects which include masculinity versus femininity, individualism versus collectivism, power distance and uncertainty avoidance. In general, there are fundamental differences in terms of these aspects between the cultures of western countries and those of eastern countries in the world (Nayeem 2012, p. 80; Mooij & Hofstede 2011, p. 183). It is these general differences between the cultures of the two regions of the world that affect the manner in which consumers from the two regions behave when making purchases. Effect of brand name on consumer behaviour Together with a symbol and a design, a name forms the mark that is used to identify a particular brand. Therefore, the brand name is used to help consumers identify a particular brand in the market and distinguish it from the others that are available in the market as well. There are several ways in which brand name influences consumer behaviour. In the first place, name awareness plays an important role in influencing the decisions that buyers make when they are buying products. What is important to note is that the manner in which the brand name influences the decisions that consumers make with regard to purchasing products varies with the consumer decision making model that is in use. In theory, the manner in which consumers make decisions to purchase specific goods and services can be categorised into four key views: utility, economic, cognitive and emotional (Donmez 2011, p. 18). Under the emotional view of consumer decision making, it is observed that consumers choose which products to buy basing on their emotional state at the time of making the purchase. This is in contradiction to the approach that consumers take when making purchase decisions under the cognitive model. Under this model, consumers are said to decide the products that they buy by actively searching for information about them and evaluating how well specific brands meet their needs (Donmez 2011, p. 19). Similarly, under the economic view of consumer decision making, it is observed that consumers are interested in getting utility form the purchases that they make. Lastly, under the passive view, it is observed that the decisions that consumers make are in response to the manner in which the products have been marketed and promoted to them (Nykiel 2007, p. 223). Under all these views, the name of the brand plays an important role in influencing the decisions of the consumers. For example, under the cognitive view of consumer decision making, it can be seen that the name or identity of a brand plays an important role in shaping the manner in which consumers search for information prior to making purchasing decisions. Similarly, Shehzad et al. (2014, p. 75) point out that the manner in which the name of a brand influences the decisions and choices that consumers make when they are buying products is related to how consumers associate the name or identity of a brand with certain attributes such as price and quality. Quality and price are some of the most important attributes that consumers use to make choices and decisions in the course of the purchasing process. Therefore, since the name of the brand is used to create an image of the product in terms of price and quality, it also influences the choices that consumers make when buying products. There is a close relationship between brand name and brand equity and how brand equity influences consumer behaviour in turn. In general, brand equity is defined as the sum total of all the positive and negative attributes that are linked to a particular brand (Nykiel 2007, p. 222). Further, brand equity is made up of different components such as brand loyalty, brand awareness, perceived brand quality and others. It is the manner in which these components add or remove value to a particular brand that the equity of the brand is increased or reduced. Importantly, the name of the brand is linked to all these components that build up the value of the equity of a brand. First, brand name is directly linked to brand awareness. Brand awareness is an aspect of brand equity that refers to the extent to which individuals can recall a particular brand. In practice, brand awareness is measured in terms of a scale, with the highest scale being represented by the ease with which individuals can immediately remember a particular brand without any form prodding and the lowest score being represented by the tendency of individuals only to recognise a particular brand among others. For individuals to easily recognise a brand, the name of the brand must be easily remembered at first. Therefore, the name of the product, which forms of the overall identity of the product to the consumers, is an important aspect of the manner in which consumers are show awareness of a particular brand. Similarly, the name of a brand is usually associated with the manner in which consumers perceive the brand and associate it with specific quality attributes (Shehzad et al. 2014, p. 76). The name, logo and symbols that form the identity of the brand determine how consumers link the brand to particular qualities. This, in turn, determines the extent to which consumers are willing to repurchase the particular brand in question when they are faced with alternative brands, an attribute that is referred to as brand loyalty. The manner in which the name of a brand can affect the behaviour that consumers show when going through the process of purchasing a product with reference to luxury goods has also been examined (Han, Nunes & Dreze 2011, p. 15; Vigneron & Johnson 1999, p. 3). According to Han, Nunes and Dreze (2010, p. 15), marketers can appeal to different types of consumers by simply changing the manner in which they brand specific products. For example, it is noted that making a brand quite conspicuous works to appeal to the social needs of self-expression and prestige that some consumers in the market may have (Han, Nunes & Dreze 2010, p. 16). This makes such consumers to buy goods that well branded at high prices as a way of showing their social status. What is important to note is that the name of the brand, its logo and other marks serve important function of determining how conspicuous a brand can be made in the market. Similarly, Vigneron and Johnson (1999, p. 3) argue that there is a relationship between prestige consumption and the manner in which consumers identify particular brand names. It is noted that in the case of goods whose demand tend to increase when their prices increase, consumers buy them as a way of achieving a particular level of prestige (Vigneron & Johnson 1999, p. 4). Therefore, for such goods, consumers associate the brand names with prestige, exclusivity and social status. It is this association that drives the behaviour of the consumers who buy such luxury goods. Conclusion In conclusion, age, culture and brand name affect the behaviour of consumers in different ways. Age shapes the needs and tastes of consumers and this, in turn, makes it possible for markets to be segmented. Similarly, age affects the way individuals go through the purchasing process. Second, different types of culture shape the manner in which individuals behave. Cultures and subcultures determine the behaviours that individuals exhibit when they are purchasing products. Since different regions are characterised by different cultures, consumers from different regions behave differently when going through the purchasing process. Lastly, brand name affects the behaviour that is exhibited by consumers. Brand name is linked to the overall equity and value of a brand. Therefore, the brand name determines consumer loyalty, attitude and perceptions towards specific products. This determines the overall performance of the brand in the market. Lastly, it is based on the name and overall identity of a brand that consumers are willing to engage in conspicuous consumption. Such type of consumption, which involves the purchase of Veblen goods, is shaped by the perception that particular brand names represent prestige and social status. References Donmez, DO 2011, Consumer information search and decision making process in the video gaming market, Master’s thesis, Aarhus University, Aarhus, viewed 17 February 2016, via http://pure.au.dk/portal-asb-student/files/40645780/Thesis.pdf Durmaz, Y 2014, ‘The influence of cultural factors on consumer buying behaviour and an application in Turkey,’ Global Journal of Management and Business Research: E-Marketing, vol. 14, no. 1, pp. 36-44. Furaiji, F, Latuszyriska, M & Wawrzyniak, A 2012, ‘An empirical study of the factors influencing consumer behaviour in the electrical appliances market,’ Contemporary Economics, vol. 6, no. 3, pp. 76-87. Han, YJ, Nunes, JC & Dreze, X 2010, ‘Signalling status with luxury goods: the role of brand prominence,’ Journal of Marketing, vol. 4, pp. 15-30. Herve, C & Mullet, E 2009, ‘Age and factors influencing consumer behavior,’ International Journal of Consumer Studies, vol. 33, pp. 302-308. Leo, C, Bennett, R & Cierpicki, S 2005, ‘A comparison of Australian and Singaporean consumer decision making styles,’ Journal of Customer Behaviour, vol. 4, no. 1, pp. 17-45. Mooij, M & Hofstede, G 2011, ‘Cross-cultural consumer behaviour: a review of research findings,’ Journal of International Consumer Marketing, no. 23, pp. 181-192. Nayeem, T 2012, ‘Cultural influences on consumer behaviour,’ International Journal of Business and Management, vol. 7, no. 21, pp. 78-91. Nykiel, RA 2007, Handbook of marketing research methodologies for hospitality and tourism, Psychology Press, New York. Rani, P 2014, ‘Factors influencing consumer behaviour,’ International Journal of Current Research in Academic Review, vol. 2, no. 9, pp. 52-61. Shehzad, U, Ahmad, S, Iqbal, K, Nawaz, M & Usman, S 2014, ‘Influence of brand name on consumer choice & decision,’ IOSR Journal of Business and Management, vol. 16, no. 6, pp. 72-76. Vigneron, F & Johnson, LW 1999, ‘A review and a conceptual framework of prestige-seeking consumer behaviour,’ Academy of Marketing Science, vol. 1999, pp. 1-15. Yakup, D, Mucahit, C & Reyhan, O 2011, ‘The impact of cultural factors on the consumer buying behaviours examined through an empirical study,’ International Journal of Business and Social Science, vol. 2, no. 5, pp. 109-114. Zitkus, L & Puskoriute, N 2013, ‘Consumer behaviour and its influence on consumer rights violations,’ European Integration Studies, no. 7, pp. 222-229. Read More