Studying Consumer Behavior - Coursework Example

Introduction Consumer behavior, in simple terms, is the study of what a consumer buys, why a consumer buys, when a consumer buys and how a consumer buys. If we are to probe deeper, then consumer behavior is the sum total of anthropology, sociology, economics and socio psychology. The basic aim of consumer behavior is to fathom the decision making process of a buyer and hence the study of consumer behavior is applicable to both groups as well as individuals. While studying consumer behavior, we need to understand that influences, may it be from family, friends, social groups and peers, play an important role in determining the decision making process of an individual. Consumer behavior has been perfectly defined by Blythe. He says, “The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.” (Blythe, 2006) Consumer Behavior The basic model of consumer behavior, as compiled by Engel, Kollat and Blackwell and known as the EKB model, clearly states that there are five stages through which a consumer recognizes a particular problem before reacting to it in an appropriate manner (Blythe, 2006). The first stage is the problem recognition stage, wherein a consumer perceives a need and feels the urge to resolve the problem. We can say that he is self motivated while doing so. The second stage according to the consumer model, relates to information search, wherein a consumer searches for the relevant information which is imperative to make a purchase decision. Out here, the consumer makes use of his perception skills. The third stage in the EKB model is the information evaluation, wherein the consumer does a comparative analysis by viewing more than just a single brand or product. Out here, the consumer is forming an attitude towards a particular product. The decision making stage is considered as the fourth stage in the decision making model, wherein the consumer takes a final decision on the purchase. Out here, the consumer is said to be forming integration towards the product of his/her choice. The last stage is the post-purchase evaluation, wherein the consumer analyses his purchase decision. In this stage, the consumer is said to be learning from his past decisions. (East, Vanhuele, & Wright, 2008) If we take a closer look at this so called ‘perfect consumer based model’, we would realize that the consumer, who also happens to hold the center stage in this discussion, is influenced to a great extent by both the internal as well as external sources. If we throw some light on the internal references then we would realize that a consumer is primarily influenced by a consumer’s lifestyle, his/her demographics, his/her persona, his/her level of motivation, his/her knowledge, his/her attitude towards life, his/her beliefs and last but not the least, his/her feelings. (East, Vanhuele, & Wright, 2008) Likewise, we are to study a consumer’s external influences, we would come to a conclusion that the consumer based model considers the culture and ethnicity as the major governing factors. Similarly, the family, the social class, the reference groups and the market mix are other external factors which may or may not influence a consumer’s decision to power. (Blythe, 2006) The Evoked Set According to several studies, a consumers reaction towards a particular brand is influenced due to his/her neurological reactions. This is in relation to the self-referential memory structures which get triggered owing to an emotional attachment towards a particular brand (Assael, 2003). Likewise, according to a key study by Dr. Braun in 1999 (Howard & Sheth, 1969), consumers recall a particular brand thorough the means of its advertising campaign. This procedure, which involves the use of the emotional angle in a human brain, is often referred to as an evoked set. In a recent study by Daimler-Chrysler, to ascertain a consumer’s reaction to various cars, the use of MRI was taken into consideration and a conclusion drawn which stated that a consumer’s brain reward circuit, which is composed of ventral striatum and orbitofrontal cortex and the anterior cingulated, worked in different ways while the consumer looked at a sports car, a sedan and a small car (East, Vanhuele, & Wright, 2008). Few other companies which aped this technique to study human behavior included Delta Airlines, Procter & Gamble, Hallmark, Home Depot and General Motors. They all came to the same conclusion, although some variations involving the evoked set did arise owing to the purchasing power of the consumer. The best explanation of the evoked set could be witnessed through the means of the Coke and Pepsi campaigns. When initially the tests were conducted without any external aid, it was found that majority of the consumers preferred the taste of Pepsi to Coke. Hence, possibly owing to the added sweetness, Pepsi scored over Coke. Sometime later, when both the products had been advertised in a different manner, it was found that Coke had suddenly overtaken Pepsi in terms of sales and customer satisfaction. While a consumer’s ventromedial prefrontal cortex increased by tasting Pepsi, it took a major hit when the brands names were formally assigned and the advertising campaign run on a separate basis. Hence, Coke, which had earlier failed to evoke the emotional area of the brain through the means of taste, had suddenly accelerated the ventromedial prefrontal cortex of a consumer. The consumer was affected on seeing the brand name and its presentation through the means of an ad and he knowingly pushed the Coke brand a level higher than his/her previous preference, the Pepsi brand. Product perceptions can therefore be stated to have been based on the brand name information and its presentation. (Howard & Sheth, 1969) The Consideration Set If you are out to purchase a pair of jeans, you as a consumer, often wonder whether you ought to buy a single pair or more than just a single pair. Well, this pondering, which is often a common site and is stated to be experienced by all regardless of whether openly admitted or not, is termed as ‘the consideration set’ in consumer behavior. Over here, our personal motives play an important role in deciding whether we need to purchase a single pair or more than just a single pair of jeans. Likewise, our attitudes, peer pressure and ads seen on the television set stimulate our mental instincts to either go in for a single product or more. The inability to take a decision for the sake of ‘getting it wrong’ is often a major concern for most shoppers regardless of their age and maturity levels. (Howard & Sheth, 1969) In the absence of a standard operating explanation, the consideration set, though intuitively appealing, is by and large interdependent on the inter-product differences and is therefore said to effect diverse consumers in varying forms. For example, if two individuals are out shopping and they decide to enter a showroom which is stacked with clothes and footwear, the first consumer may feel inclined to pick a footwear and ignore the tee shirt, while the other may be compelled to select the tee shirt while ignoring to pick a suitable footwear for his/her personal use. Hence, a consumer is always influenced by his internal as well as external factors and this in turn decides whether the consumer is actually inclined to choose a particular product or not. (Assael, 2003) The Heuristics Approach It is interesting to note that besides the ordinary behavioral patterns, the heuristic play a major role in the process of decision making. Heuristics are often referred to as the rule of thumb imprints which people use as a means of taking a consumer centric decision. Consumers are driven by certain fixations which they feel are perfect to be executed and hence they pay attention towards attaining a commercial good while remaining in the confines of their avid fixations. These fixations, which are also known as heuristics, are essentially passed on through generations and can also be attributed to group influences or a resultant of generalized behavioral pattern. For example, people often prefer to avoid purchasing a car which is barely a year old, or, if they feel the need to purchase a soft drink, they would only opt for Coke, while conveniently avoiding other soft drink companies. Well, this is definitely a fixation of sorts but has evolved through repeated recommendations by friends and family or by viewing a particular ad on the television set, which in turn, has successfully stimulated the otherwise dormant ventromedial prefrontal cortex. (Blythe, 2006) Conclusion It would not be incorrect to state that the decision making functionality of a consumer is always plagued by mysterious fixations which are both realistic as well as fictitious in nature. While a consumer is always influenced by internal factors, in reality, it is the external factors which control the internal mechanism of a consumer thereby affecting his/her decision making capability. Likewise, while most decisions are left on instincts, with special regards to heuristics, others are simply postponed, as the consumer is always petrified of ‘getting it wrong.’ Works Cited Assael, H. (2003). Consumer Behavior: A Strategic Approach. New York: Houghton Mifflin. Blythe, J. (2006). Marketing. London: SAGE. East, R., Vanhuele, M., & Wright, M. (2008). Consumer Behaviour: Applications in Marketing. London: SAGE Publications. Howard, J. A., & Sheth, J. N. (1969). The Theory of Buyer Behavior. Chicago: Wiley. Read More