Consumer and Buying Behavior - Research Paper Example

?Consumer and buying behavior Table of Contents Consumer and buying behavior Table of Contents 2 Introduction 3 Literature Review 3 Research Methodology 7 Analysis and Discussion 8 Conclusion 10 Recommendations 10 References 12 Annexure 13 Appendix 1: Questionnaire for Interview 13 Introduction The age of competition has largely accentuated the need to ensure better branding and positioning in order to create a distinction in the minds of the target market audience. This is more important considering the fact that there are a large number of competing brands in the market and it is very important to create a distinction between brands so as to emerge competitive in the market. In this regard the role of consumer behaviour plays a critical role as it largely includes the thought process of the consumer while making the purchase decision for buying a new product. Marketers are using different means to analyse the factors that affect the consumer behaviour of the target market audience so as to ensure that their product mix is largely in tune with the needs and wants of the consumers. Marketers spend billions towards conducting surveys and reviews and also try to analyse the purchase behaviour in order to capture the mindset of the customers and underline the aspects that help analyse the consumer behaviour of the target market audience. The present study would also try to analyse the consumer behaviour of the customers for the online game ‘Dragon Nest’. The study would particularly try to analyse the factors that customers analyse while making the purchase decision for this type of a product. Literature Review Consumer behaviour is largely a psychological aspect that involves understanding the psychology and the thought process of the consumer undertaken in the minds of the consumer while making a purchase decision. Researchers often use the term determinants that are essentially independent variables that effect consumer behaviour. These factors include personality, income levels, level of education, lifestyle as well as peer groups and other social contacts. In addition to this situational aspects form the most important of the aspects that affect the consumer behaviour. Situational aspects include the physical surroundings as well as task definitions and the other physical aspects. These have a critical role in the thought process of the consumers and determine their needs and want and also determine the factors that are evaluated by consumers while making a purchase decision (Shaw, 2001, p.85-90). Figure 1: Determinants of Consumer Behaviour (Source: Shaw, 2001, p.89) The process of purchase decision largely involves the steps of recognising the problem that is succeeded by searching information on the available options, attitudes and lifestyles of the consumers, aligning the information with the aspects of personality and lifestyles and behaviours and finally evaluating the various available alternatives and options available before them and making a final purchase decision. The behaviour and attitude towards a brand or a product does not end with the final purchase but also includes a post purchase evaluation. This is very important in the present competitive environment where the success of a firm not only comes from its ability to attract new customers but to also retain the existing customers. This aspect also assumes considerable significance in the online social networking age where reviews and feedbacks of peer groups are very pivotal in affecting the psychology of the new and potential customers (Kardes et.al, 2010, p.189). In order to deeply analyse the purchase decisions and consumer behaviour, the Black Box Model of Consumer behaviour can be applied. The figure below shows the model in conceptual form. Figure 2: The Black Box Model of Consumer Behaviour (Source: Sandhusen, 2008, p.240) The Black Box Model as illustrated above in Figure 2 largely proposes the mindset of the consumer as a black box and includes the characteristics of the consumer as well as the underlying decision making process of the consumer. The name ‘Black Box’ has been deliberately kept so as to keep up with the mystical nature of the psychology of the consumers. The black box according to the model makes the final purchase decision. However the black box is largely affected by the environmental factor that also includes the products mix as well as environmental stimulus given by the marketers. The Black Box ultimately analyses these aspects and generates the final response with regards to a purchase decision. The key for marketers’ lies in taking advantage of the environmental stimulus aspects and formulating an optimum product mix in the form of a stimulus and help generate a positive response from the consumers (Sandhusen, 2008, p.240). The following sections would analyse these aspects in the context of the online game by using a consumer survey so as to analyse and help the organization to help generate a positive image in the minds of the target market audience. Research Methodology In order to analyse the consumer behaviour for the online game Dragon Nest a primary research would be conducted. The objective of the primary research would be to analyse the main determinants that affect the purchase decision of the consumers in purchasing the game with more importance to prior experience and peer reviews. A probability based simple random sampling technique would be used that would imply that any individual would have an equal possibility of being chosen as a respondent for the study (Babbie, 2010, p.210). The sample size for the study would be fixed at 20 and would be selected randomly from the total population of online gamers that have an experience with this game. The data would be collected through a questionnaire survey that would have open ended questions. Personal interviews would be used to collect data from the respondents. The data collected from the survey would be analysed using qualitative research techniques so as to undertake an in-depth cause and benefit analysis of the research question (Luton, 2010, p.13). Analysis and Discussion The data collected from the questionnaire survey reflects considerable information towards the determinants of the consumer behaviour of the target market respondents. Most of the respondents among the 20 interviewed stated that they indulged in purchasing new games very often as it was more of an addiction and were always on the lookout for new features and innovations. The nature of the product and the basic purpose for purchase made this more evident. The interview also revealed that the basic need of consumers with regards to purchase of games was more of entertainment and addiction rather than a basic necessity. It was also reflected that innovations are perhaps the most critical aspect that consumers take into account while segregating the products of different competitive brands in the market. Most of the respondents agreed to the fact that product features were very critical aspect as it defined the basic need of the consumers. Therefore the respondents stated that product features were very important in influencing consumer behaviour. Pricing was another important aspect but was considered important only by middle or lower income group consumers. The higher income group consumers were largely insensitive towards price of the product as the aspect of innovativeness was of utmost importance to them and they were willing to pay an extra price for a mind blowing product. However promotional aspects were considered very important by consumers in the aspect of their purchase decision. This was mainly because of the fact that it was the only channel that consumers came to know about a new innovation. The manner in which the message was communicated to the consumers was very important as it made an impression about the new game. The online channel including popular social networking sites were very important source for gathering information about new products and updates about games. The primary research also showed that peer reviews were another crucial aspect in the decision making process of the consumers. The respondents stated that peer reviews generally helped give an overall idea about a new product and that the aspect of receiving comments from past users also helped them understand and evaluate the products based on their specific needs. Online forums, blogs and other reviews on social networking sites were reported to be very popular sources of information for gathering information about new products and services. Brands also play a pivotal role in determining the purchase decision. Players with established and formidable brand names often scored an edge over new players as individuals relied on their past performance. Users reported that they were more comfortable in giving a first try at a new product launched by a big player rather than a new or a less established players. The aspect of trust and repeat purchases was the most important aspect that was determined by the brand image of an organization. Users also stated a link between past performance and brand image and stated that these two were linked together and most of the times reputed brands had good performance and good reviews. Almost all the respondents voted in favour of the fact that past performance had a very significant impact on the positioning and image of the brand in the minds of the target market segments. The respondents had an overall positive feedback for the game dragon nest. The respondents rated the game as high on player base in multi role playing with funny and easy story that can be easily understood by the users. The graphics were reported by a majority of the respondents as average but with good voice accent and easy navigation. However some of the respondents shared certain negative feedbacks about the product such as gender bias and limited ability with regards to multiplayer options. However, most of the respondents stated that they would be looking forward to buying a new product from the manufacturers as the response to the game was encouraging. Respondents stated that the game had created an overall positive image mainly due to its product features and good peer reviews. They stated that the company can however build up greater innovative aspects that can help the company to perform even better in the market. Conclusion The analysis of the aspect of consumer behaviour from both secondary and the primary research reveals considerable importance to this element in the purchase decision of a consumer. The analysis reveals that a marketer can largely influence a consumer by altering and formulating the marketing mix elements that can put considerable influence on the purchase decision of the consumer. The key for marketers’ lies in effectively understanding the needs and wants of the consumers and formulating marketing mix that addresses the demands of the consumers. This can largely help generate positive feedbacks and an overall positive image of the brand in the minds of the consumers. An ideal promotional strategy must also be in place so that the message is effectively transmitted to the target market audience. The aspect of gaming industry is also largely influenced by the online channels especially blogs, forums as well as online social networking sites that can largely influence the thought process of the consumers. The key for marketers therefore lies in effectively understanding the demands of the consumers and formulating a product mix that can largely help generate a formidable image of the product and brand in the minds of the target market audience. Recommendations The results of the primary survey indicate a fairly positive image of Dragon Nest game in the minds of the consumers. However in order to remain competitive in the market and to leverage upon the opportunities, the company must essentially focus on creating better innovation in its products. Advanced features and high end graphics with a simple storyline are some of the elements that can be used by the company to generate competitive advantage in the market. In addition to this the company can also use a good integrated marketing communication strategy to help in good spread of message to the target audience. Use of online social networking sites such as facebook as well as video streaming sites apart from other traditional sources of communication must also be used to communicate the intended message to the target market audience. The content should be also kept highly innovative so as to generate interests among the customers and to help build a strong reputation for the brand in the market. References Babbie, E.R. (2010). The Practice of Social Research. Cengage Learning. Kardes et.al. (2010). Consumer Behavior. Cengage Learning. Luton, L.S. (2010). Qualitative Research Approaches for Public Administration. M.E. Sharpe. Sandhusen, R.L. (2008). Marketing. Barron's Educational Series. Shaw, J. (2001). Telecommunications deregulation and the information economy. Artech House. Annexure Appendix 1: Questionnaire for Interview Name: Gender: Age: Education Level: 1. How often do you purchase new games (online)? 2. Comment on the importance of product features, pricing in you purchase decision? 3. Do promotions play a vital role in your selection of a new game? 4. Comment on the aspect of peer reviews in your choice of a new game? 5. Does brand image play any role in the decision making process. 6. Does past performance or prior experience makes any effect on the positioning of the new product. 7. Rate the game ‘Dragon Nest’ on the basis of the above attributes Read More