Consumer Behaviour Online - Research Paper Example

 Analysis of Consumer Behaviour Online 1. Introduction In this cutting-edge era, marketing planning and strategies are directed towards creating an environment to influence consumer behaviour. The products and services are launched in the market focusing the tastes and the preferences of the consumer. Product quality and vigorous advertisement have changed the way the consumer behaves. However, it is significant to identify whether policies, strategies and plans adopted by firms do fit in the consumer’s demands and needs, and whether the methodologies adopted by companies goes in tandem with consumer’s ultimate needs. This paper focuses on consumer behaviour online, as the understanding of customer needs and wants is one of the major underpinning constructs of the marketing constructs (M Evans, A. Jamal & Gordon Foxall, 2006). It highlights how the theories and research methods help provide greater insight into the processes underlying consumer behaviour in online environments.1 The paper identifies two contrasting perspectives into consumer behaviour related to Internet marketing mechanisms: the social values and emotional approach. 2. Literature Review According to G. Zaltman (2002) “A great mismatch exists between the way consumers experience and think about their world and the methods marketers use to collect this information.” Though much research has been done on the effects of Internet, cell phones, specialised search engines, websites, etc., to gauge the consumer behaviour the significance of personal, social, national and cultural aspects have yet to get equal footing. In principle, there is a need for study in identifying attitudes and behaviours of online consumers, from the point of consumer style, as done in three European countries and the US, using data from the DDB Brand Capital Study showed that country differences are evident on consumption style.2 The Internet (Gerald Zoltnan, 2000) has revolutionised the way advertising research is conducted. From traditional research problems, such as ethics, to brand new issues, such as online advertising, every aspect of advertising research has changed to adjust to the advent of the Internet and its related technologies. Personal values research in marketing has recently received a substantial amount of attention from both academics and practitioners. This more in-depth profiling of the consumer and his or her relationship to products offers potential not only for understanding the “cognitive” positioning of current products but also permits the development of positioning strategies for new products.3 Addressing the psychological view of the marketplace (Sheth, 1983) put forward the suggestion that in order to be competitive in marketing products in the 1980s, both researchers and management are going to have to, if they have not already adopted this consumer-based orientation rather than one that merely focuses on product characteristics. Putting personal values perspective into the marketing of consumer products can be classified into two theoretically grounded perspectives: macro representing sociology; and micro representing psychology (Reynolds, 1985). Products and their positioning strategies are then directed to appeal to these general target groups, such as the Merrill Lynch solitary bull appealing to the “achiever” orientation whose desire is to stand out and “get ahead of the pack” (Plummer, 1985). Reynolds (1985) noted, although strong on face validity, these rather general classifications fail to provide an understanding, specifically, of how the concrete aspects of the product fit into the consumer's life. As having a hi-fi website for online business is not enough: important and focused main task begins after this that how to make a website well know among the people who are using Internet and have interest in that you have.   Experts say that 85-90 per cent consumer visit websites are via search engines that are the origin of Internet marketing. Some more ways are: blogs; articles; affiliate programmes; and PPC advertising; and banner advertising. In Internet marketing, the first concept speed, which states that managers must pay attention to how fast the product or service is produced or delivered vis-à-vis those of competing firms. In the management of software development, for example, this concept works. The question of delivery of products and services assumes greater significance, as how fast a business development manager is while reaching out to the consumers. Cost effectiveness of a product or service is another very important determining factor in online marketing. Quality works, come what may. If a firm delivers quality products, it is bound to gain benefits, even though quality and presentation of its advertisement are of less attractive compared to others, even the poorest of all men like high quality goods and services – poverty notwithstanding.4 3. Analysis of Research Findings A. Chaudhary (2005, pp, 2) has stated that consumer assign both emotional and rational values to products and services, and the study of this values is critical to the understanding of marketing and consumer behaviour. These two responses are governed by attributes like individual characteristics e.g. personality, perception, attitudes and needs, and which also include environment ingredients such as culture, family and friends. While Paul J. Albanese (2002) asked to think beyond theories of Freud and Trait and emphasises “expanded economic analysis of consumer behaviour”, there is need for cognitive personality factors to be taken into consideration. Drawing a distinction between values and their enactments is necessary because current research has not succeeded in establishing a relationship between values, attitudes, and behaviours (Lyn R. Kahle & Larry Chiagouris, Chap-7, 1997). Many food manufacturers offer different product variations for different regions. (Joel Garreau, 1981) proposed nine distinct regional subcultures that cut across state lines.5 Brian Mullen & Craig Johnsons (1990) stated that the constructs of culture, subculture, and social class can be considered one at a time in examining their effects on consumers. In a study 6, it is revealed that teenage children have influence over family purchases, particularly for products relevant to them (like cereal and vacations) and during the initiation stage. Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. Belch & Willis (2002) discussed the changing perceptions of individual members of families that impact the consumer behaviour. Nessim Hanna & Richard Wozniak (2000) elaborated twelve emerging trends that are expected to impact consumer’s lifestyles and consumption patterns, and results of these trends are discussed both from marketing strategy and consumer behaviour.  Money spent, at most of the times, on advertising can be less useful, if proper exploration of consumer needs is not accomplished. Maslow’s Hierarchy, in this regard, can be very useful in understanding different needs of consumers across various societies and cultures. It helps in developing motivation as well. The reality that consumers are frequently motivated by multiple motives suggests a possibility that motives may conflict. Three main types of conflict exist: 1. Approach-avoidance 2. Approach-approach 3. Avoidance-avoidance. Consumers often buy products not because of their attributes per se but rather because of the ultimate benefits that these attributes provide, in turn leading to the satisfaction of ultimate values. Consumers can have both positive and negative beliefs toward a product. And if different consumers can have different beliefs, it would be problematic to explore the "bottom line" whether a product from Barista is good or not. In consumer decision-making, the Multi-attribute or the Fishbein Model attempts to address consumer’s attitudes and behaviours. Consumer Decision Making How do consumers come to a decision is a question that needs concrete answer for a viable solution towards solving consumer problems. Michael Richarme (2004) has discussed three important theories: Utility Theory; Satisficing Theory; and Prospect Theory. These theories lead to the development and exploration of a series of useful consumer decision-making strategies, which firms can exploit. For each product or services, firms need to identify the focused decision-making strategy used by each consumer, who has consumed that product or service. After doing this, firms can launch or place their products in such a way that the decision-making strategy leads consumers to select their product. Antitrust law is an important, yet "thorny" area. Consumers may benefit, for example, as some less efficient firms are driven out of business, and may benefit from the efficiencies which may or may not materialise when large firms "gobble up" smaller ones--a defence used in the Microsoft trial (Del I., Roger J. Best, and Kenneth A. Coney, 1998). (Doc Searles, 2001) said that once a company learns how to express itself in a dialogue with customers, the need to be able to predict consumer behaviour is significantly reduced. In “real life context” because most conventional consumer research that is aimed at determining what consumers want and will do is seriously flawed because it presumes consumers will provide accurate answers to questions the researcher asks. That is why consumers so often act differently than research predicted.7 5. Conclusion and Recommendations The literature analysis provides an insight into the fact that focuses on Internet for company-consumer communications; hence, ignores other important aspects of consumer perspectives, such as social and emotional issues. In the process, the very basis of human approach is sent on the backfoot while realising many-to-many communications that have become the method with which consumers communicate with each other. . The paper explores the ever-rising proliferation of Internet discussion groups and chat rooms that should be market-orientated in their focus. It should include how the study of consumer behaviour can help provide rich insights into the real scenario whereby firms can have more benefits for their products and services. The paper attempts to suggest how research on emotional and social issues can assist the firms reaching deeper into the consumer world in online environments. Given the role for marketing research in this process, a pragmatic thinking about how different types of consumers could be influenced by varying information and quality products. A systematically researched approach together with the application of human ingredients could well be steppingstone in identifying consumer behaviour. By exploring and improving the social, cultural and emotional dimensions of marketing strategies, firms, companies and managers could better understand the underlying psyche of consumers, and hence marketers would gain share against the real competition—not just competing chains' milk shakes but bananas, boredom, and bagels.8 References 1. M. Evans, A. Jamal & Gordon Foxall. 2006.Consumer Behaviour, John Wiley and Sons, Inc 2. 1 .Curtis P. Haugtvedt, Karen A. Machleit, & Richard Yalch. 2005. Online Consumer Psychology: Understanding and Influencing Consumer Behaviour in the Virtual World (Advertising and Consumer Psychology Series: A series sponsored by the Society, , Lawrence Erlbaum Associates, January 2005. 3. .http://www.emarketer.com/Report.aspx?em_multitasking_feb07&src=report_head_info_%20newsltr 4. Zaltman. G. (2003). How Customers Think: Essential Insights into the Mind of the Market, Gerald Zaltman Harvard Business School Press. 5. John A. McCarty, Martin I. Horn , Mary Kate Szenasy,& Jocelyn Feintuch (2002). 6. An exploratory study of consumer style: country differences and international segments, School of Business, The College of New Jersey, US 7. J. Paul Peter & Jerry C. Wilson (2004). Consumer Behviour and Marketing Strategy, McGraw-Hill. 8. Thomas J. Reynolds & Jerry C. Olson (2001). Lawrence Erlbaum Assoc Inc. 9. G. Zaltman. (2002).How Customers Think. Harvard Business School Publishing 10. The Whole Theory of Internet Marketing by Adams Gill, 11. http://www.ezilon.com/articles/articles/2570/1/The-whole-theory-of-Internet-Marketing 12. Hawkins, Del I., Roger J. Best, & Kenneth A. Coney (1998), Consumer Behaviuor: Building Marketing Strategy, 7th ed., Boston: McGraw Hill. 13. C. Lock, Doc Searl & David Weinberger, (2001).The Cluetrain Manifesto: The End of Business as Usual. Perseus Books Group. 14. A. Chaudhary. 2006. Emotion and Reason in Consumer Behaviour. Butterworth-Heinemann, 15. Paul J. Albanese, 2002. The Personality Continuum and Consumer Behaviour, Quorum Books 16. Lynn R. Kahle, & Larry Chiagouris (1997). Values, Lifestyles, and Psychographics (Chap. 7 "Issues Involving the Relationship Between Personal Values and Consumer Behaviour: Theory, Methodology and Application 17. Aviv Shoham, Vassilis Dalakas. 2003. Family consumer decision making in Israel: the role of teens and parents Journal of Consumer Marketing, Volume: 20 Issue: 3 Page: 238 - 251 18. Belch, M. A. & Willis, L. A. 2002. Family Decision Making at the turn of the century: has the changing structure of households impacted the family decision-making process?, Journal of Consumer Behaviour, Vol 2; Part 2, pages 111-124 19. Nessim Hanna & Richard Wozniak (2000). Consumer Behaviour: An Applied Approach, 2000, Prentice Hall Read More