Buyer Behaviour and How Products and Brands Have Become Part of Consumer Lives - Literature review Example

Buyer Behaviour and How Products and Brands Have Become Part of Consumer’s Lives The Importance of Understanding Motives Consumer behaviour refers to the choices that are made by customers about what commodities and services to procure. Marketing serves as a function that recognises the needs and requirements of customers; and then caters to them. In order for marketing objectives to be realised, manufacturers have to ensure that they do not only find out what their consumers need but also why they need it. When manufacturers and advertisers develop a broad understanding of the behaviour of customers, their advertising objectives will then be realised. A comprehension of the reasons why the purchasing behaviour of consumers is important because it works for both the manufacturers as well as customers, permitting the marketer to be better equipped in meeting the needs of customers in an efficient manner. A better understanding of the needs of customers will result in loyal customers who have had positive experiences with the goods or services produced by the business firm. The fundamental concepts of consumer behaviour create a system in which the customer is the main focus, and is encircled by a wider environment that helps in determining his or her objectives. These objectives are finally satisfied after being channelled through different problem-solving phases that result in purchase decisions. The basic operations of marketing use numerous sources that supply information, theory, advice, and inspiration. Psychology has in the past theoretically contributed in the studies conducted on consumer behaviour. Types of Buyer Behaviour There are four recognised kinds of purchasing behaviour that are usually based on the variety of goods that are available. These are: 1. Complex purchasing behaviours: where the customer procures a high value brand only after conducting a research on the available products and coming to a conclusion about the best products for him or herself 2. Habitual purchasing behaviours: where the customer purchases a commodity simply as a result of habit. This may apply where daily newspaper or household groceries are concerned 3. Variety seeking purchasing behaviours: where the consumer prefers to travel to many shops and purchase different goods in order to fulfil a need that may not necessarily be connected with their purchase. For example, if a person wishes to experience some sense of spontaneity at lunch time, he or she may purchase different kinds of foods to sample. 4. Dissonance reducing purchasing behaviour: where purchasers are deeply or emotionally involved in the procurement of the product, as it is pricey. A good example of this is the procurement of a diamond ring for a future spouse. The Five-Stage structure that depicts the buying process consists of: -Problem/Need Identification - Information search -Assessment of purchases -The decision to buy -The consumer’s behaviour after engaging in procurement This model fairly caters for how consumers come to the decision to buy goods and services (Chan, Hui, Lo, Tse, Tso and Wu 2003). Social and cultural influences Culture is a behaviour that is usually learned over some period of time and then emphasised on by the endorsement of family unit, as well as through religious and educational establishments (Feinberg 1996). Cultural influences hence affect the behaviour of consumers. If business establishments do not consider the perspectives of their consumers, they cannot be successful in creating products that will be acceptable to the societies in which they operate. It is also vital to remember that culture, even though it is enormously powerful, does not remain constant forever (Zhaohua, Yaobin, Kwok, and Jinlong 2010). Transformations in different cultures are usually very slow affairs, and may only be completely absorbed after more than a generation has passed. A good example of this is the acceptance of the use of birth control. Just a few decades ago, women who took birth control were condemned by the general society as well as all of society’s recognised authoritative establishments such as the church. These women were also viewed as being immoral. In today’s society, birth control is accepted in almost all nations except those that still revere retrogressive attitudes towards women and the subject of reproduction (Zineldin 2006). The twentieth century has seen many cultural changes take place, for instance, the development of different attitudes towards pleasure and work (McColl-Kennedy and Sparks 2003). Workers no longer believe that work has to be difficult and harmful if a person is to get a good wage. Many employers in today’s workplace try to make sure that their workers enjoy their vocations. They have realised that if employees enjoy their work, then they will want to work for longer hours without necessarily being prodded into it. Today’s workers view their jobs as something that gives them the money to buy the things that they wish to acquire for their own enjoyment. They do not have harsh views concerning how one should use a salary; neither do they believe that only the necessities of life should be catered to. The employers of the present era have also absorbed this credo. This is obvious in the number of paid holidays, and fewer work days that are a standard practice in many firms today. All these realities, as well as the labour-saving appliances that are used in most homes give people more freedom than was experienced in past eras. It also means that people have more time to consider their leisure activities as well as what they wish to purchase (Gustafsson, Johnson and Roos 2005). Another serious cultural change that was witnessed in the past twentieth century concerns the place of women in society. In the past, women were deprived of the power of being considered as a serious consumer group because they did not have much money. Society frowned on women working outside the home, and so it is mainly men that occupied offices. When women went to the workplace, they experienced increased independence and began handling money that they previously did not have. This not only completely altered the lives of women, but it also affected how marketers viewed the female demographic as potential consumers (Karjaluoto, Karvonen, Kesti, Koivumaki, Pakola, Ristola, and Salo 2005). Advertisers in Western economies consider sub cultures along with cultures when thinking of marketing plans (Park and Kim 2003). Immigrant communities in Western economies have grown big enough to constitute a major proportion of the inhabitants of these nations. Marketers are compelled to view them as a serious consumer demographic due to their interactive capacities on society. Immigrant populations also make up the individual market sections for specific product areas. Subcultures can also be found in racial groups that possess the same nationality (Chiu, Hsieh, Li and Lee 2005). The bases of potential consumers might be religious, geographical, or linguistic, and marketers have to identify these disparities and view them as potential sources of opportunity and not problems (Zeithaml and Bitner 2003). Social Influences such as social class Social class has the most social influence where consumers are concerned. In the past, a person’s income dictated the social group in which he or members of his family would belong. In recent years, however, pay structures have changed a lot and so the categorisation of customers based on ‘life style’ has grown more meaningful. Social class has a strong effect on individual customers as well as their behaviour (Neal 2006). Past researches have proved that consumers’ social classes affect their preferences as well as social attitudes. A person’s education or income can allow him or her to disregard his or her parent’s social class barriers and assume a different life style (Hair, Babin, Money, and Samouel 2003). Each new generation of consumers will spun the social preferences of parents as well as the older generation and embrace new trends that are viewed as contemporary. It can therefore be stated that a consumer’s profession is a strong determinant towards his or her behavioural patterns, which also include purchasing behaviour (Hellier, Geursen, Carr, and Rickard 2003). When considering the importance of social class in planning advertising campaigns, marketers make decisions based on independently designed researches. These marketing campaigns usually have no preconceptions or connections with superiority or inferiority in ‘higher’ or ‘lower’ social groups. This is the way through which marketers recognise changes in consumer purchasing behaviour. Reference groups This refers to the people whose conduct affects different people’s values, dispositions, and beliefs (McColl-Kennedy, Daus, and Sparks 2003). This particular people can be many or few. Reference groups can comprise of coworkers or even one’s immediate family. A normal person is not likely to move too far from the accepted behavioural conduct that is endorsed by the members of a hobby group or club (Bennett and Rundle-Thiele 2004). The reference group hypothesis does not affirm that groups cannot contain individualism, but it does imply that even radically independent thinkers will at least be conscious of what is viewed as being ‘normal’ in a group. In a group with few people such as the family unit, the opinions as well as advice of those who are perceived as being well-informed is highly regarded. Such people are accepted as ‘opinion leaders’. Opinion leaders do not only exist within groups but also outside them (King 2010). Their views on different subjects are eagerly accepted ‘opinion followers’. Where different products are concerned, a calculated appeal is made to the ‘snob appeal’ that is so effectively used by opinion leaders. This is accomplished by making use of a marketing policy that targets famous personalities or opinion leaders with products that will be acceptable to them. The marketers presume that such products will then be immediately be adopted by the besotted followers of the opinion leaders (Yavas, Benkenstein, and Stuhldreier 2004). The family unit is probably the most influential reference group for most consumers due to its relative permanence as well as intimacy (Verhoef 2003). Groups that have such strong connections are usually the perfect place for different people to affect each other’s views on different products. The family life sequence usually has six stages. These are: 1. The unmarried phase: Here, monetary commitments as well as family responsibilities are usually low, and the disposable incomes are high. The younger consumers that are unmarried are usually more fashion-conscious as well as leisure-orientated (Beerli, Martin and Quintana 2004). This section is therefore a vital market for introducing new products. 2. Newly married couples with no children: This grouping tends to concentrate on purchasing the goods that are necessary for starting a new home. 3. Married couples that have began having children: In this group, the parents’ spending is focused on the needs of the children. The parents do not allocate a lot of money to the procurement of luxury items. Even though they are amenable to new product ideas, the couples in this group view the economy as being the main factor to be considered when buying products. 4. Older couples that have teenage or young adult children still in the home: At this stage, the disposable income of the couple has increased due to both parents being free to work long hours because the children have their own lives and do not require constant supervision (Lauren and Lin 2003). If the children are in their twenties, they may even have jobs and so the couple can afford holidays and other such expenses. (Blackwell, Engel and Miniard 2006). The purchases that are made at this stage are usually the result of different motivations from the ones that the couple had in their early years. 5. Old married couples with married children: In this stage, the couple has a large disposable income. However, their tastes are still probably rooted in rigid purchasing patterns (Aydin and Ozer 2005). Most of the time, marketers are not successful in convincing the members of this group to alter their tastes for products. The marketers therefore try to improve the goods that the consumers in this demographic are used to. 6. Single Older People as well as Retired couples: In this stage, the purchasing behaviour of consumers is low and purchasing patterns are predictable (Hurley 2005). This group, though, has recently began to show interest in travelling, and thus are susceptible to procurements made in this particular industry (Jamal and Kamal 2004). In the past, marketers had clear demarcations for who had the purchasing responsibility in the family unit (Joines, Scherer, and Sheufele 2003). In the present day, however, this distinction is no longer clear because women have taken on traditionally masculine roles and vice versa. Marketers should, consequently, closely study the trends in particular communities before seeking to promote their products. Individual Buyer Behaviour Individual beliefs are additional factors that affect how consumers make purchases (Ball, Coelho and Machas 2004). People are different from others in a variety of ways such as due to educational background, ethnicity, religious affiliation, emotional sentiments and in their reactions to marketing efforts (Schiffman and Kanuk 2004). Some consumers will be predictable while others are not so predictable. The individual customer absorbs facts and acquires perceptions and attitudes based on what has been absorbed. In terms of marketing, such realities will influence a person’s desires and also inform the paths taken to cater to those desires (Roos, Gustafsson, and Edvardsson 2005). The duty of marketing is to recognise behavioural patterns that are predictable in certain conditions, thus increasing the marketer’s capacity to meet the needs of the customer (Lam, Shankar, and Murthy 2004). There are five psychological facts that are viewed as being crucial in understanding consumer purchasing behaviours. These are: -personality and self concept This concerns how consumers view themselves and believe that others view them as. Consumers have the desire to form a picture of them that reflects the values of their reference groups (Taylor, Celuch, and Goodwin 2004). This information is conveyed to the outside world by a consumer’s individual conduct. Marketers will study such behaviour because it has a connection with the buying decisions that consumers make as well as their consumption of manufactured goods (Srinivasan, Anderson, and Ponnavolu 2007). This behaviour is also evident in non-verbal communications. This image of the self is expressed through a method that connects with others’ unspoken realities and thus inspires acceptance in a group (Bansal, Irving and Taylor 2004). In many cases, direct advertising caters to the self image. The consumer’s perception of his or her ‘self’ is affected by social interactions. Consumers buy things in a way that is consistent with their unique understanding of their self in order to safeguard and improve it (Keller 2003). The continuous procedure of re-evaluating and adjusting the self concept comes from a shifting personal circumstances as well as altering environments. A consumer’s personality is the key factor in his or her self concept. It has a strong influence on the consumer’s purchasing behaviour (Andaleeb and Conway 2006). Many procurement decisions usually reflect the consumer’s personality. The psychological theory states that all people are born with inborn desires that cannot be realised in a socially acceptable ways and are therefore repressed. What marketers do is that they appeal to these unfulfilled inner needs while concurrently offering commodities that allow consumers to be satisfied in ways that are socially acceptable. Motivation Sigmund Freud recognised the importance of the subconscious in influencing decisions that people make. His theories are of deep value in identifying how consumers can be affected by their own selves (Arora and Malcolm 2005). He was recognised the existence of three levels of consciousness: The conscious that comprises of all experiences as well as sensations of which the consumer is cognisant The pre-conscious, which is comprised of the thoughts and memories that consumers have stored from past experiences which can be summoned to the present at will The unconscious- which is the main power that affects consumer behaviour. The unconscious is made up of the desires as well as wishes that people may be unaware of (Armstrong and Kotler 2007). In these different consciousness levels, there are intellectual forces that strive to reunite people’s instincts with their social environment. These efforts do not always bear fruit-and so result in emotional difficulties. Freud separated the mental forces into three: The ‘Id’ which acts as the source of all our sensual as well as physiological instincts. The ‘Id’ is self-seeking and prefers to have instant gratification in spite of the existence of any social consequences; The ‘superego’ increases as a person develops and begins to absorb information from teachers as well as family members (Rowley 2005). It acts as the internal representation of the morals and values of a person’s society. It is a powerful force that frequently combats the ‘Id’- which is constantly seeking to fulfil its desires. The ‘ego’ is constantly acting as a referee between superego and the id. It also tries to change the urges of the ‘Id’ into activities that are socially suitable (Ryals 2005). For a motivation to be present there must be a related want or desire (Alam and Khokhar 2006). Motives such as thirst, hunger, shelter, and warmth are physical. Others, such as the desire to succeed, and the desire to be respected and approved of are psychological. The majority of procurement decisions are a combination of such motives. Usually, the factor that finally convinces the consumer to purchase a product or not is the price, which is a financial limitation and not a motive (Aaker 2007). When a consumer has contradicting motives, the purchasing decision is usually an appeasement solution. Conclusion Even though factors have been discussed that are a part of consumer purchasing behaviour, there are consumers that still change their minds about decisions that they had earlier made. The human mind cannot be understood by its owner, much less an outsider such as a marketer. Marketers simply endeavour to address all paths that might be taken by a consumer that is considering making procurement. Marketers should not fail to see the importance of unaddressed psychological factors in influencing the decisions of customers. References Aaker, D. (2007) Market strategic management, Poyesh Publications, Tehran. Alam, M. & Khokhar, R. (2006) ‘Impact of internet on customer loyalty in Swedish banks’, J. Econ. 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