Consumer Behavior Theory and Consumer Behavior and Motivation - Coursework Example

Consumer behavior theory Since inception of the business and exchange of goods and items, theories and models have been presented that aim at providing an insight of the consumer behavior. The basic concept of consumer behavior theory presents the idea that the consumer takes into account the capacity of his purchase power in the light of his overall affording capacity. Based on the overall scenario in front of the consumer, there are two broad line consumer behavior theory choices in front of the consumer. The Cardinal theory: Also termed as Marginal utility approach, this aspect looks into the desires and the needs that drive the consumer towards a particular item or service. The purchaser buys a product in the light of his needs and wise calls. This aspect of the theory draws a comparative analysis and gives an insight into the reasons upon which decision is made. Research has been invested into the areas of determining the actual level of desire expressed by a consumer in comparison of two products or services in front of him. The overall satisfaction is attained through the services acquired makes up for the basic postulate of the cardinal theory aspect of consumer behavioral theory (Dwivedi, 2002, 111). Numerical and quantitative analysis of the level of desire fulfillment can be gauged through the cardinal aspect of the consumer behavior theory. The cardinal theory has a realistic touch to it given the fact that the overall level of satisfaction or discomfort can be gauged through the mathematical expression and derivation of the fact. The overall understanding and study of cardinal theory is helpful in knowing the reasons behind the consumers’ decisions that are being made. This if taken into account allows the investors and producers knowing the pulse of the consumers and in turn allow for satisfied consumers as well as improved services deliverance and performance. The utility theory: The utility theory of consumer behavior takes into account limited number of variables as compared to the other models and theory labels oriented against same research that focus on other variables such as the purchase capacity, the possible availability of the alternatives and the promotional force that has been used prior to the introduction of product or item in market. Two variables that are made to use in the utility model are the total utility and marginal utility respectively. Economic man approach: The proponents of this theory/model who have invested study and time into research include (Richarme 2007) and (Persky 1995, Bray 2008). As the name would imply, the consumer looks into all the economic factors that are associated with the purchase of a product or a service. In contrast to the utility theory, the economic man approach gives an insight of large number of variables being taken into account before a decision is being made. The Ordinal Theory: Ordinal theory, unlike the cardinal approach does not give the quantitative figure and value of the customer’s level of satisfaction, instead allows the consumers to be able to differentiate between the multiple options available to them, based on which they fulfill their requirements and satisfy their needs. The psychological satisfaction and comfort achieved from this form of purchase and acquisition cannot be measured in numerical values (Maddala, 2004, 91). The Ordinal theory is attributed to the indifference curve that is plotted in terms of the actual scenario. Comparative analysis is possible in this scenario and for the better judgment sake, the two of the same kind must be presented to enable the consumer determine the actual worth of the product and determine and chose for the good quality amongst the two presented. The pioneer of this theory model was Pareto who introduced this concept of micro economics in 1906 (Bruni, 2009, 31). Apart from this, Pareto has large number of contributions towards the field of economic science which are aimed at determining the actual level of satisfaction and the actual yield enactment from a given scenario and given product or service. As a substitute to the numerical level of satisfaction, the ordinal theory provides an alternative in order to assess and evaluate the product or service ability to impact an individual client’s level of satisfaction. This may be done so through their priority, ranking and interest shown towards a given offer presented against them. Their approval or subsequent dismissal of the product or service would reflect their liking or dislike against a given service. Indifference curve or indifference map is a collection of points over a graph that compares the number of options and products available. The graph is plotted against the two set of values, value X and value Y. Consumer behavior and motivational part Consumer is considered as the god and all the major decisions of an organization should be subject to the consumers’ demands and inclination. The importance of consumer has been always in place, but with the ever so growing technological advancements and progress, the consumer is more aware than ever. The global competitive markets that are around and the online resources available to them, makes up the competition ever so tough and makes the organizations task more daunting. In such scenarios, the organizations need to adopt policies and actions that are consumer oriented and fulfill the demands of the clients in the due manner. Motivation may be seen from two aspects and two perspectives; one of them is that of marketers and the promoters, other angle is that of the consumers who are forced into buying a product based on valid reason and logic that is behind their entire action. Consumer behavior considerations and specialization: Marketing is all about characterization and segregation of the clients into groups. This characterization allows for targeting the right kind of client set for a particular product or service. The targeting of a particular client bench is done through surveys and other forms of research. This enables satisfaction both at the ends client as well as the organizational output yield. Target Audience: It has been estimated and evaluated that the market performance increases by twice the original performance provided target audience is identified. This can be done so through the following possible options: Primary research of the target audience: The primary research means entail the direct interaction with the clients, determining their views about the products and broadly dividing the clients into number of segments. Secondary research of the target audience: In the secondary mode of research towards determination of the audience and targeted segment, the interpretation of the market indexes, the trends towards a particular product and indirect means of knowing their responses against a newly introduced product or service makes up for the secondary research methods undertaken. Quantitative market Segmentation vs. Qualitative Market Segmentation: The set of qualitative and quantitative marketing techniques come in the form of tools which enable understanding the overall dynamics in a more comprehensive manner. Other variables and tools that are often taken into account with regard to consumer motivation and behavior include the following: Demographic factors: Demographics play an important role with regard to the promotion of the product as well as the product or service delivered in its own. Consumer producer relationship is largely subject to such factors undertaking that enable making decisions according to the demographics. The people in the climate parts of the world may adopt things relatively easily and quickly as compared to the people who may belong to regions that are less moderate in their climate and other facilities. Other variables: Income: Understanding the and knowing the income on average scale of a middle class or any other consumer who makes up for the client bench is an important factor that needs to be taken into account while making decisions. Educational level: Educational level is another variable taken into account with regard to the consumer behavior and consumer orientation towards a product. A more educated consumer would require less understanding and even if the terms are used in a technical way, it may serve the purpose. In the rural parts of the promotional and marketing area, the promotional campaign may be kept simple. Use of animations and other tools that reduce the dependency upon reading and other comprehensive tools make it easier for the lay man to understand and adhere to the product or service. This in turn may produce positive outcomes from the overall product and service delivered. Psychological factors and variables : Psychological factor plays an important role towards the consumer targeting and gaining their trust. This allows for understanding the pulse of the consumers and in turn allows for the investment in the right zones. On the quantitative index the factors such as social outlook, beliefs, the individual orientation and per capita income of the region and the country make up for the important factors that can be used towards attracting the clients towards a given product or service. Motivation is an important element of the overall process of product and marketing. Motivation is the process of inclining the individuals into the products or services delivered. This can be done through number of ways. Formal methods of promotion, reaching out to the consumer, enacting a standardized quality brand and being available to the clients without any constraint makes up for the customer care part of the overall process of purchase and consumer interaction. The unannounced methods of motivation also come in the form of maintaining good quality and minimizing the percentage and number of defective items or low quality services delivery to the consumer as a whole (Pride et.al, 2012). The process of motivation is based upon co relating and establishing a link between the needs of the consumers and the company’s services or products delivered. Numbers of factors have been associated with the motivational force; the few of these basic forces include the likes of latent need, want, goal and the behavior that leads towards it. Broadly the motivation of an individual comes in the light of the desire and need to protect itself, and fulfill the desires that come from within. Large amount of research and study has been invested in this domain of the consumer relationship as well. Maslow is one of the proponents who have undertaken the task of assessing the actual scenario in which the consumers are motivated towards an item or product. Maslow (Charnov & Montana, 2008, 238)has identified five types of needs that drag a consumer to be motivated and forced into buying and using the product or service respectively. These needs and forces are broadly characterized as basic need of food and shelter, followed by the need and element of the desire and want towards the other human beings, in the same context the desire of being valued for their presence. Consumer behavior can be largely influenced through the presence of the various elements in the surrounding environment. Such as the use of promotional campaigns over the television, other digital means of promotion and publication and finally the billboard and other forms of publication and advertising that have long been in use since the concepts of buy and sell is in practice. The overall idea is to influence and capture the attention of the consumer through effective means of promotion and communication used for it. Motivation may also take up the positive or negative trend of promotion and publication. The positive motivation has the element of encouragement and acknowledgement and people find satisfaction through its usage. The sub categories of motivation may also include the element of psyche consideration, emotion handling or simply motivating through rational, logical and realistic views of the facts and scenario that are at hand. Agents of motivation may be psychological, environmental, physical or practical which are presented in the view of the needs of the individuals. Numbers of schools of thoughts prevail with regard to the influence on the kind of motivational force and method that may be used. Some advocate the psychological use of motivation; others advocate the use of cognitive means towards motivation. Through a flow chart, the overall process of motivation may well be explained. The flow chart is a closed loop cyclic process that in the end returns the process and overall activity to Point A where the same product or service is being promoted. The advantage of the close cycle concept is the fact that corrective measures can be taken through this process and this in turn would allow for an improved consumer producer relationship. Source: (D’ Souza, 2008) References: Bray, J. (2008). Consumer Behaviour Theory: Approaches and Models . Journal of Advertising Bruni, L. (2009). New Essays on Pareto’s Economic Theory. Routledge Charnov, B. H., & Montana, P. J. (2008). Management. Barrons Educational Series DSouza, W. (2009, March 1). Motivation. Retrieved from ConsumerBehavior: http://consumerbehaviour4vtu.blogspot.com/2009/03/motivation.html Dwivedi, D. N. (2002). Microeconomics: Theory And Applications. Pearson Education Maddala. (2004). Microeconomics: Theory And Applications. Tata McGraw-Hill Education PERSKY, J., 1995. The Ethology of Homo Economicus. The Journal of Economic Perspectives, 9, (2) 221- 231 Pride, W., Kapoor, J., & Hughes, R. (2012). Foundations of Business. Cengage Learning Read More