Analysis Of Buying Decision And Consumer Behavior - Research Paper Example

Running Head: Marketing Choosing between Wants and Needs An Analysis of Buying Decision and Consumer Behavior Date of Submission Introduction Consumer decision making is influenced by diverse social factors. It is also rooted in a person’s character and value system. Hence, it is imperative for marketers to understand the way consumers resolve the conflict between their needs and wants. For instance, ordinary pants may function as affordable, useful clothing to skilled laborers, but as trendy, class symbol piece of clothing to wealthy people. Decisions stemming from standards of living are learned as an outcome of numerous factors like the family, social class, subculture, and culture (Chaudhuri, 2006). Ideas, concerns, and endeavors show how consumers face the difficulty of reaching an appropriate purchasing decision. This paper discusses the effect of self-perception and motives on the conflict between ‘wants’ and ‘needs’. The discussion seeks to identify the most effective marketing strategy in terms of consumers’ buying decision and behavior. Self-perception Views or perceptions serve as a primary component in the assumed risk of buying a product. Assumed risk embodies the uncertainties of the consumer, or the conflict between consumer wants and needs. Several distinct techniques may be employed to lessen risk (Michman, Mazze, & Greco, 2003). Primarily, assumed risk can be lessened by a search for product reviews prior to the purchase. Moreover, the consumer can transfer from one form of assumed risk to another form that is of less effect on the understanding of purposes if this technique is unsuccessful. Also, the buying transaction can be delayed, hence postponing a risk scenario. Lastly, the risk can be fully taken in by making the purchase. The way consumers make use of risk-mitigation or decision making techniques relies somewhat on lifestyle and character factors (Michman et al., 2003). The forms of assumed risk are monetary loss, status/prestige loss, and time loss. Outlooks are influenced by personality, learning, demographics, social forces, and perception (Holbrook, 1999). Marketers attempt to build favorable consumer outlooks toward their products/services. Outlooks embody sentiments toward a good originating from values, ideas, and beliefs. As a result consumers form beliefs and ideas about products/services and their features. Outlooks reveal the decision whether to purchase a want or a need. One of the most prominent models of linking outlooks to consumer behavior and decision making is employed by the University of Michigan’s Survey Research Center (Michman et al., 2003). The purposes of consumer spending for expensive goods are examined. For instance, buyers are interviewed if they have a certain desire to make a purchase, a possible desire to purchase, an uncertain choice to purchase, or a certain objective not to purchase a new house equipment or car over a specific time period. Outlooks are normally very hard to alter, yet marketers may be capable of attaining change in outlooks through open and effective communication, specifically if the perceptions of consumers about the product are inaccurate. The outlooks of consumers toward brands are relevant due to the fact that these outlooks do affect consumer choices and behavior. Change in outlooks requires transforming the motivational aspect linking the product/service to a specific class or occasion or altering perceptions about the products of competitors (Holbrook, 1999). Consumers nowadays formulate new techniques to confront the difficulty of deciding what to buy as environmental patterns, advanced technology, and the Internet transform or alter their outlooks and the value they assign to product features like user-friendliness and speed. Motives Marketers do not have the power to monitor or quantify motivation. A motive is a consumer decision’s internal status (Chaudhuri, 2006). Although consumer behavior and decision is visible, motives are mental components that can simply be assumed. Purchasing intentions for consumer goods may be categorized as emotional, psychological, economic, and product support (Chaudhuri, 2006). Several of the motives may be reasonable whereas others are sentimental. For instance, economic intentions involve product strength or cost-effectiveness. Psychological or emotional intentions may involve reputation, convenience, or pleasure. Product buying intentions may include simplicity of installation or repairs (Chaudhuri, 2006). Support motives concern diversity for options or delivery speed. Motives involve outlook. Motives originate from the consumer’s looking-glass self, perfect self, and actual self (Michman et al., 2003). The manner consumers see the condition to themselves assists in forming their reactions to marketing campaigns. Consumer need and objectives are continuously evolving in reaction to external situations, relationship with other people, and physical circumstances. As individual consumers understand their objectives, new goals may be created. New forms of objective may emerge. For instance, in my case, when I already got what I want I usually form another goal. For example, it was my goal to buy large appliances before and I successfully attained them because I kept reminding myself that those are my needs. Afterwards, I decided to aim for a new care. Furthermore, marketers have to be updated with evolving motives and needs. Car producers have acknowledged buyers’ need for reputation or prestige. This need could be less essential as several buyers look for security or family pleasure and convenience as bases for buying a new care. Because large numbers of families have at least two automobile (Holbrook, 1999), possession of an SUV and a cost-effective second-hand automobile may embody conflicting needs and wants. The explanation consumers prefer one product or service over another may be ambiguous and not known to them. For instance, the reason I choose an Apple laptop over a Dell may be rooted in my own knowledge or experience, a promotional campaign, a colleague’s suggestion, product demonstration, and several other variables or juxtapositions. Transferring to another brand may take place as an outcome of evolving needs, a discontentment with the present brand, or because a significant other, ads, or other factors convinced that consumer can gain more value or advantages by transferring to another brand. Transferring to another brand may take place as an outcome of evolving needs, a disgruntlement with the present brand, or persuasion by significant others. Marketers, by determining and drawing the attention of consumers’ perceptions and motives, can create a favorable context for the sale of their goods. A research on men showed their intentions for buying certain magazines (Michman et al., 2003, 59): 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%). The first kind, the traditionalists, has great value for family and spirituality and takes pleasure from reading about adventurous activities and automobiles. Searchers were prone either to be unmarried or separated and have a tendency to buy products or services related to science fiction. Achievers have substantial disposable income, showed high esteem in all facets of their lives, and have a tendency to read computer articles, news periodicals, and business ads (Michman et al., 2003). These three categories are commonly made up of middle aged and older adult individuals. The latter two types, the fast trackers and urban techies are young, ambitious, and assertive (Michman et al., 2003). This research gives explanation of the possible conflicts that may arise in the consumer decision making process of these different types of consumers. For example, I consider myself an achiever. Even though I have an exact knowledge of the things I want, that are, products beneficial to my business, I usually get confused whether to prioritize products that are beneficial to my family or those that are good for my income-generating enterprise. I grew up in a traditionalist family but I eventually transformed into an achiever. The conflict enters here. A Final Reflection A problem has been developing in the consumers’ thoughts as increasing debt and oil prices, and a crisis in the housing market keeps on generating economic instability. Consequently, consumers are ever more plunging into a new labyrinth of spending and monetary decisions. The enduring outcome may be structural changes in the demand and supply domain all over revenue and wage sectors as buyers reassess their consumption and choices. Doing nothing is not an alternative for marketers; the general economic patterns predict further recessions in spite of the present improvement of consumer confidence. Equal opportunities, in the past, have encouraged a feeling of security among consumers. At present, as prices increase, consumers are discovering and experiencing a cutback in equality. Consumers are realizing the implications of not focusing or reassessing their purchases, and trying to live beyond their means. The result is a change in buying decisions and consumer behavior as they reevaluate expenses on needs such as medical bills, mortgage, and utilities over expenses that are classified under the domain of ‘wants’ or rational spending. The greater the cost, the higher the rationalization required. This is important because a considerable level of spending is triggered by emotional or psychological needs, not physical ones. Marketers with products or services that are oriented on ‘wants’, like fashion, entertainment, travel, etc., will encounter the severest impacts in terms of consumer spending. As an outcome of these economic problems, there will be an obvious differentiation between losers and gainers as consumers decide or choose between their ‘wants’ and ‘needs’. For example, I think that casual food consumption, like eating in a restaurant, is a ‘want’ usually confused with ‘needs’. An average family perhaps spends hundreds of dollars a year in casual food consumption. Because they are buying food, a basic necessity, consumers think that eating out is a ‘need’, which then conflicts with the real nature of the activity. Eating has parameters, and eating out falls under ‘wants.’ Nevertheless, one thing is sure, that is, consumers are now making rational decisions about their ‘wants’ and ‘needs.’ Apparently, change is an insistent domain in consumer behavior and decision. The underlying cause of slow and fast tempos of change should be understood so as to formulate correct techniques. Several domains that are helpful as courses of action for marketers involve the following (Michman et al. 2003, 62): (1) rapid change rates; (2) drastic transformations in consumer lifestyles, buying behavior, and outlooks toward buying; (3) more inclusive and rigorous creation of new products and services, and reduced length of product life cycles to meet evolving consumer behavior and buying decisions; (4) less opposition to change due to the drastic technological advancements; (5) slow change rates; (6) marketers do not have the needed access or resources to take advantage of markets’ sub-segments; (7) enhanced economies of scale in industries resulting in higher entry barriers; and (8) more organizations or companies looking for joint contracts and strategic associations to meet evolving consumer buying decision and behavior trends. A study of consumer buying behavior and decision patterns can assist in determining consumer market sectors, which are, target markets for marketers. Information associated with consumers’ standard of living is then gathered to identify how to optimally gratify the most profitable market sectors. Therefore, market segmentation is beneficial in identifying potential markets. The procedure of researching market segmentation domains can assist in updating marketers of market changes, and environmental threats and opportunities. Marketing research has a more important function than analyzing the consumer decision and behavior pattern in the groove of profit. Marketers nowadays employ a variety of strategies to evaluate market and consumer behavior patterns and the effectiveness of marketing. From the above discussion and analysis it emerges that marketing research reveals only the wants and needs of consumers due to the fact that it comprises the study of consumer behavior and market’s risk management. It is argued in this paper that the problems or subject matters regarding the research of the conflict between consumer wants and needs, as well as effective marketing, have provided the groundwork for future theoretical and empirical work in the marketing discipline, and the satisfaction of consumers. The implications of the relationship between the investigations of consumer want and needs and effective marketing is a disturbing opportunity or development when we understand that the consumers’ insights and imagination has already linked marketing campaigns to subliminal components. References Chaudhuri, A. (2006). Emotion and Reason in Consumer Behavior. Boston: Butterworth-Heinemann. Holbrook, M.B. (1999). Consumer Value: A Framework for Analysis and Research. London: Routledge. Michman, R., Mazze, E. & Greco, A. (2003). Lifestyle Marketing: Reaching the New American Consumer. Westport, CT: Praeger. Read More