Buyer Behavior - Theoretical and Empirical Foundations - Essay Example

The theory of buyer behavior is made up of several variables, this include exogenous variables, input variables, and output variables. Exogenous variables involve the importance of purchase, personality, social class, culture, organization, financial status and time pressure. Input variables involve, brand and symbolic quality, price, availability, distinctive, and services. Lastly, output variables involve purchase behavior, intention, attitudes, comprehension, and attention. The behavior of a consumer is determined by the level of involvement in buying decision and consumer degree of involvement determines why he/she is motivated to look for information about certain goods and leave others. Consumer buying behavior is determined by what the consumers buy, how they do it, the time they purchase and why they purchase it (John & Jagdish, 1969). The study brings together psychology, sociology, and economics in order to understand the consumer decision making process as an individual or as a group of people (John & Jagdish, 1969). The theory also explains characteristics such as demographics, and behavioral variables of every buyer. It also tries to find out the influences the consumer might get from the family members, society, and peer groups when they want to buy. Buyers are not aware of many products and their usage in the market but they keep on choosing from different products. In many occasion, consumers buy new products without having knowledge on the product. When new products are introduced into the market, it is hard for the consumers to understand about the product and it is always hard for the consumers to access the information. If a new product is introduced, the consumers will respond depending on the product reliability and quality. In UK and US, Taste and preferences, culture, psychology of the consumers, social, personality and mode of communication is different. In US, internet has become the main source of marketing; many consumers go to social websites such as Face book and yahoo to find new products and compare the prices with similar products. The cream manufacturer should adopt the UK mode of marketing that is normally done through TV and radio, display, and poster advertisement. This will reach many people very fast unlike the social website which is not trusted b y many people. More advertisement and product promotion should be directed towards women since over 70% of household purchasing is influenced by women unlike in US where the household purchases are influenced by every family member including children, the SkinProtec lies within the household products. Another factor is a social factor, in US; people surrounding a person does not influence the purchasing behavior so much like the people in UK. Primary groups such as family members, friends and relatives and secondary groups such as political and religious association affects an individual purchasing decision in UK, if one member of the group purchase a SkinGuard and SkinProtec, it will be an advantage since other members of the group will start purchasing the same product, so the company marketing should target groups rather than individuals. The economy of US is bigger than the UK economy, this has made the Americans like buying new products, if a product is new in US, the consumers can easily buy without knowing its value and they will take and try to find its value later. In UK, its economy does not allow free spending hence before a consumer buys a product he/she must know the exact value of the product, this means the manufacture should put more emphasis on education the people about the SkinGuard and SkinProtec and also offering free products for the consumers to go and test if they are of the required quality. Unlike in US, UK has 6 different social classes namely upper middle, middle, lower middle, skilled working, working, and lowest level of subsistence (John & Jagdish, 1969). The difference in social class has created consumers groups. The company will use the classes to profile and predict the consumers’ behaviors. During purchasing there are six stages of consumer purchasing process. The first one is problem recognition; this is where the buyer recognizes the product he/she wants to buy. This can be stimulated by the seller through product promotion, the people who are doing manual work such as decorators and painters when they look at the Skin Guard in the market they will remember that they need protection. Secondly is information search, this is where the buyer recognizes what he wants and move forward to find a solution. More information about the product can be obtained from the friends, public sources or window shopping. The cream manufacturer should profile a lot of information because it will leave the consumer wanting to get the product. The third one is evaluation, once the consumer has enough information of what he wants, he will start evaluating it with similar products, evaluation will involve features and brands. For the brand to succeed, the marketing department should frame alternatives. The fourth stage is purchase decision, this is where the buyer will process information obtained from the information search and decide on the right product and mode of payment (John & Lyman, 1973). The second last stage is purchase, this is where the transaction takes place and any problem that arises before will be dealt with. And the last stage is post-purchase evaluation; this is where the buyer will determine if he is satisfied or not satisfied with the product. This uncertainty is reduced by the warranties and communication after the product is sold. Branding is a significant concept in company marketing; it will make the business move forward and give a competitive edge advantage. Strong marketing for the two products will improve sales, establish consumer loyalty, and catalyst the growth of the company (John & Lyman, 1973). The two products should be branded in such a way that the consumers will differentiate between them. Branding is a way of communication with the consumers. It will deliver the message clearly without involving a lot of cost that could have been incurred in advertisement. The brand should be customized according to the consumers’ requirements, the business will move forward towards success. Secondly, branding create business credibility. If the brand is associated with quality products, it will be the only one in consumers’ minds. This credibility will have to be built over time by ensuring that the products are dependable. Thirdly, it will connect the customer to the product. Customers like being connected to their favorite brands since it will make them successful in their life. Successful brands are recognized by consumers and the company will be trusted which is a trait for creating successful business. It will also motivate the consumers. If the product manages to provide a strong connection with the consumers, it will become a motivator for them to purchase it even if they have never used it before. Once a consumer put trust in a product, it will always buy similar product from the same company believing that it will deliver the same satisfaction. Lastly, it is one way of attracting new consumers (Rita, 2010). This will make them buy the product because of what they have heard about it and you will get serious buyers. The importance of loyalty towards the two products is that it increases life time value of consumers (Rita, 2010). When a consumer holds on a product for long, its value and investment goes up. Consumers who will be loyal to the products will cover the initial acquisition cost. Since the cost of getting a customer can be high in some markets, buyers who will stay loyal to the products will pay for themselves after every additional sale they make, if the loyalty will go on for long, the business will end up being successful. Secondly, the consumers will become buzz agents. If a customer becomes loyal to the product, it will promote it every time and if somebody talks against the brand they will defend it to the last minute. Another important thing is that it will increase the total sales per consumer. If a consumer dedicates himself to the products, it will invest more money on the company. The loyal consumers will tell their friends and relatives about the experience with the brand hence this will bring them into to the buyers channel and once they join the channel they will buy more frequently unlike those who jump randomly. The loyal customers will propel the business into higher levels and help the business expand into new areas. Lastly, it will discover powerful market research. Consumers who know the product will stand with the manufacturer. Competition for the market in UK is high. The stiff competition is as a result of well established similar products such as sunscreen lotion, Nivea and others. To manage this competition, the company should fix the best price for the product, carry out advertisement campaign vigorously and ensure that the supply is constant. References John A. H & Jagdish N. S, (1969), the theory of buyer behavior: Wiley marketing series, new York: Wiley John A. H & Lyman E. O, (1973), Buyer behavior: theoretical and empirical foundations, Michigan: Knopf Rita C, (2010), Brands and Branding: Economist series, Chicago; Profile Books Hannah S, (2010), Strategic Branding - The Difficulty of the Term and Trademark "Fu Ball Wm 2006", London: GRIN Verlag Capon, N & Hulbert, J, M, (2007), Managing Marketing in the 21st Century, London: Wessex Publishing Read More