Consumer Behavior and Consumer Behavior Models - Literature review Example

Consumer Behaviour: Red Bull Introduction Traditional economics only focuses on the subsequent outcomes of economic behaviour of supply, price and demand whereas the behavioural influence has been avoided and considered to be as complex (Loudon and Bitta, 2002). In this regard, Naik and Reddy (1999) highlight that analysis and understanding of buyer behaviour is important as well. Within this background, it is important to understand certain parameters relating to consumer behaviour. For understanding the involvement identification of consumers, it is highly relevant to comprehend the ultimate objective of purchase which highlights his involvement (Bolfing, 1988). Moreover, rewards and expressive values of products are also included in the involvement (Holbrook and Hirschman, 1982). Also, Wu (2002) mentions that stimulus causes involvement. While concluding the subsequent ramifications of involvement encompasses searching information which is essential for the consumers for making appropriate economic decision pertaining to their involvement and prdocuts as well (Kapferer and Laurent, 1986). Similarly, loyalty intention (Lee et al., 2009), absence or presence of subject norms (Ajzen, 1991) are also certain signs of involvement. However, concerns exist for healthy life and this concern is mainly cared by the soft drinks firms (Divine and Lepisto, 2005; Holay, 1999). Product information In 1987, Dietrich Mateschitz formally established the foundations of Red Bull Energy Drink in Austria (Red Bull History, n.d). Since then, the company has been a successful history in the soft drinks industry and it success can be gauged from the fact that it is now currently being sold in more than 166 countries of the world. At the same time, the company has been revitalising its marketing strategies in which it has mainly focused on the sporting activities throughout the world by sponsoring the major car sporting and motorbike events in the world of sports. Moreover, the company only uses recyclable cans that can be recycled for any other material. Based on this story, it can be clearly highlighted that the brand logo and brand perception of Red Bull have remained strong and influential besides successful for creating a positive and sustainable image in the minds of consumers. At the same time, this also validates the fact that the company enables its consumers to continue using its brands which have a higher level of utility when their products and brands are compared with the brands of the competitors in the soft drinks industry. Consumer behaviour Consumer behaviour is a broad concept. Consumer behaviour has been defined as a process of decision-making along with the use of physical activity carried out for acquiring, evaluating, consuming and disposing of products (goods and services) (Khan, 2007; Sarangapani, 2008). In addition, consumer is defined as a person who consumes and enjoys the advantage of a product (Blythe, 2013). Both definitions are different and unique and require further exposition as well. the first definition is comprehensive one as it considers the consumer behaviour as a systemic approach in which a certain steps are followed in a proper sequence. For example, the consumer behaviour is a combination of two activities: decision making process and the physical activity. In other words, without having the physical activity, any decision making process will not be termed as a consumer behaviour. In this regard, it is important to understand that the nature of decision making process is psychological which requires that the consumer must use some sort of personal or subjective judgement before going to start the decision making process essential in the consumer behaviour. However, it is also necessary to consider that the consumer behaviour is not restricted to the psychological understanding and decision making activity but it also expects that the consumer also takes into account the other activities involved in the entire process of decision making. After completing the physical activity step, it is necessary for the consumer to acquire something. In other words, at this stage of the decision making, the consumer physically buys some product and this actions completes the step of acquisition. Subsequently, the consumer will be required to evaluate the product. This step is very important for decision making for various reasons. First, in the evaluation process, there are certain consumer standards and requirements and expectations from the product. And it is common trend that before buying any product, the consumer comes with a prepared mind for purchasing products. Moreover, in the evaluation stage, the consumer takes into account the different features of product and compares it with the expectations. For example, if a consumer wants to buy a car in a few days, then he predetermines certain factors and takes into account look, engine quality, car price, car delivery, car insurance, type of car, family requirements and expectations from the car and other all those dimensions that are essential before purchasing the car. Here, it is important to mention that these factors are not considered after seeing or buying the car but they are being contemplated before going to car showroom dealer. Subsequently, if the expected standards and requirements of the car buyer are met while visiting the car showroom and he has also evaluated those expectations and standards from the real features and real knowledge obtained from the car dealer, this concludes that the car buyer has used the evaluation process, which is essential part of the decision making process in the consumer behaviour. After that step, if the car buyer takes a test drive of the car before purchasing the car, this step concludes that the subsequent step of the consumer behaviour decision making process and that is using or consuming product. Overall, it can be deduced that the consumer behaviour is more contemplative process in which internal and external factors are involved and they are used for reaching certain economic decisions. Consumer behaviour models The Cognitive Model The cognitive model is based on the pillars of rationality; beliefs about alternatives are used for making decisions in which investigation and comparison is carried out (East et al. 2013). By providing the relevant information, the marketers can influence the cognitive decision-making process of consumer for rejecting or preferring alternatives (East et al., 2013). For example, if a person has a belief that a particular shop owner does not lie with his customer and always give true and reasonable product price and he does not overcharge as well. And this belief has been consistently receiving the same response from the shop owner. Under this condition, the person will not go to another shop but will always prefer to buy products from the same shop owner because his belief, which is the basic pillar of rationality, has become so strong and solid on that shop owner that he finds it irrational to try new shop for purchasing the goods. Instead of going to purchase the goods, the person’s belief has become so strong that the person may prefer postponing the purchase of goods if the shop owner has no stock of the asked goods The Reinforcement Model Environmental factors control the decision of the consumers (East et al., 2013). In other words, the consumer has no personal expectations or requirements from the product and only wants to buy goods because certain environmental factors are compelling and convincing him to buy the product. For example, a trend of a particular fashion can also convince and influence the decision making dimension of some consumers. If a teenager finds that a trend of blue colour jeans is emerging in his college and almost every student is wearing the blue colour jeans in the college; the impact of this external factor has been so intense that the teenager finds that the blue colour jeans has become fashion and trend commonly found in the college students. As a result, the teenager decides and finally purchases the blue colour jeans. In this regard, it is important to highlight that the teenager did not use his rationality for buying jeans and was also not influenced by the other internal factors but the external or environmental factors led him to buy the jeans. As a result, it can be concluded that the environmental factors were behind the purchase of the jeans. The Habit Model Buying decision is influenced by appropriately controlling the consumer stimuli, which is consisted of logo, brand name and packaging features and so on (East et al., 2013). For example, brand quality and brand satisfaction. The habit model is based on the strength of product and its attractive features which mould the decision making process of consumers. For example, some consumers prefer quality products and they do not attach a considerable significance with price. And with consumer tendency, they become habitual of quality and prefer to use quality products. However, in this regard, it is important to mention that even in this habit model, the construction of habit is mainly done by the factors such as logo and brand name. For example, it is globally considered Nokia handsets and smart phones and its other products are considered to be reliable and many consumers have developed a strong trust on the logo and brand name of Nokia and they do not prefer to further inquire about the Nokia products when they buy the Nokia products. And this is mainly contributed by the fact that the packaging and outlook and presentation, marketing and other health and safety standards are those factors that are also considered by Nokia Company while selling the cell phones. In other words, Nokia Company has already safeguarded the interests and concerns of consumers. As a result, consumers do not take much time before purchasing the Nokia products. Application of Models on the product Red Bull is very strong brand in the soft drink industry and has a very strong marketing policy and strategy capable enough to influence different aspects of consumer behaviour. Aquino (2011) highlights the findings of the study carried out by the Journal of Consumer Psychology and that reveal that even if a person has not drunk a drop of Red Bull, its logo alone can “give you wings.” This research clearly highlights that the marketing strategy of Red Bull is so strong that it directly influences on the decision making process of consumers and this effect is not provided by the consumption of Red Bull drink but it is mainly driven by the brand image and the brand logo of Red Bull. In other words, this marketing strategy and the method and type of content used in it is the most influential on the psychology of consumers who find it hard to resist or avoid the impact of the marketing strategy of the company. Graph 01: Red Bull Brand Image and Marketing Source: (Boston Content, 2013) The evaluation of this image reflects that the habit model of consumer behaviour is directly applicable and relevant to this image. The habit model is based on the assumption that the strong marketing of companies in which the logo and brand names are used for spreading the message of company and brand is given to the current and potential consumers. Moreover, the analysis of Red Bull logo (Gives You Wings) clearly demonstrates that the marketing strategy is purely trying to portray an image which has distinctive feature and impact on the minds of current and potential consumers. For example, it has been seen that human has always tried to fly and wished to have wings as this would enable him to fly. With this image in mind, the logo of Red Bull has been developed. Similarly, within that context, the figure 01 is reflecting that after drinking Red Bull soft drink, the consumer starts to feel the sense of flying. Figure 02: Red Bull Product Source: (Red Bull Drink, n.d). This figure also portrays the application of the habit model. In the habit model of consumer behaviour, the marketing company does not take into account the rationality or any other external or environmental factors but purely and mainly relies on those issues and features through which it can create a specific type of brand image in the minds of the current and potential consumers. Within this context, the figure 02 also reflects certain special features which are the attributes of any international and recognized brand. For example, the tin colour is predominantly blue. In other words, this feature is mainly chosen to convince the consumers that this special brand of Red Bull can be and should be identified through the blue colour. Moreover, in this brand image, two bulls are shown in a fighting spirit. In other words, if consumer consumes a tin of Red Bull, he would feel energetic and strong enough and it is this image that has been portrayed through this brand of Red Bull. Figure 03: Marketing and Effect of Red Bull Source: (Boston Content, 2013) Due to the strong and effective marketing of its products and brand, Red Bull management has been successful in establishing some sort of image with their products and brands as well. In this regard, the figure 03 is clearly highlighting that the energy and music are two aspects that can be enjoyed through consuming Red Bull products and brands as well. While applying different consumer models on the brands of Red Bull, it can be contended that the cognitive model is irrelevant for understanding the consumer behaviour pertaining to Red Bull because this model is primarily based on the concept of rationality. On the other hand, it has been seen that in the soft drinks industry, the concept of rationality is rarely used because the companies primarily use their marketing tools and strategies for spreading their image. Although they do not compromise on the question of quality and other parameters, but their fundamental consideration is to create certain environmental factors and the habit model as well for increasing the sale of their products and brands. For example, in their advertisement, they try to portray that it is a norm in a gathering of students to consume soft drinks particularly Red Bull products; and this norm is so spread through marketing that any gathering would look dull without using Red Bull products. Based on this application, it can be contended that the companies use the consumer behaviour models for introducing different norms and trends particularly in the youth and through this perception creating process, they solidify an image in which their brands become part and parcel of any social activity. Conclusion Consumer behaviour is a complex and broad concept. However, it has three distinctive models: the cognitive model, the reinforcement model and the habit model. Each has its own different features and applications as well. However, Red Bull has been primarily relying on the use of the habit model in which it has availed its brand logo and brand image for attracting the maximum number of consumers. For this purpose, Red Bull’s logo is very important as it has been successful in creating the distinctive market image which is highly essential for a successful market perception of brands. References Ajzen, I. 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