Consumer Behaviour and Research - Essay Example

Consumer Behavior and Research Question The need to satisfy human wants has been present ever since the origin of man. While the desire to fulfill a certain need could be rife, the process of obtaining the necessary product or service is normally complex, owing to the existence of a variety products and services that can fulfill the need, or the shortage of the resources that an individual has at his/her disposal. Thus, consumer behavior depicts the processes by which individuals or groups of people secure, utilize and dispose products or services, in a bid to satisfy their needs (Philip, 1988 p67). There are various theories that have been put across to explain the consumer behavior. Notably, theories of consumer behavior have been widely developed since 1800 to present day, with subsequent theories improving and expanding the previous ones. The development in the theories of buyer behavior took an upward trend starting 1950, with many researchers keenly engaging in the evaluation of the factors that influences the consumption behavior in individuals (Hansen, 1972 p13). The consumer behavior theories that have been subsequently developed include: Herbert Simon's satisficing life theory While the legendary utility theory had presented man as a rational being, capable of making informed and accurate decisions to maximize, his utility whenever possible, a different theory was developed by Herbert Simon in 1956, known as the satisficing life theory (Engel, Kollat & Blackwell, 1968 p7). In his theory, Herbert Simon observed that man cannot fully optimize the utility of products and services, owing to their inability to evaluate all the possible outcomes, with ultimate precision. Therefore, the realistic approach to satisfying human wants is the combination of satisfaction and sacrifice, where an individual can opt for a product and service that fulfills his needs, despite providing him with less than optimal utility, depending on the prevailing situations (Frances & Stephen, 2003 p44). Theory of Buyer Behavior This is the other theory that was developed in 1969 by Howard and Sheth, which outlined various social, psychological and marketing influences that plays a great role in influencing the decision of the buyer (Howard & Sheth, 1968 p56). The theory presents a model that states the factors stimulating individual, group or corporate purchases, the intervening variables that may influence the purchase decisions, and the likely outcome of such purchase decisions. The factors influencing the purchase decision, according to this theory, is the sensitivity to information, perception bias and the active search for information, which ends-up indicating the favorable purchases to be done, based on the buyer preferences (Howard, 1965 p84). This is a progressive development from the earlier utility and Herbert Simon's satisficing life theories, which based the consumer behavior solely on the needs of the individual, ignoring all the intervening factors that could alter the purchase decision (Loudon, 1988 p 48). Theory of Reasoned Action (TRA) This theory was developed in 1975, postulating that the buyer decision is fully influenced by beliefs and attitudes (Foxall, 2005 p16). Thus, the process of buyer behavior is preceded by attitude formation, where the buyer evaluates the alternative products and services that are available to satisfy their needs, while gauging each product and services upon its effectiveness and attractiveness. The theory further advanced, to not only look at the attitudes, but also interrogate the behavior depicted by the buyer throughout the purchase decision and execution process (Engel, Kollat & Blackwell, 1968 p10). This advanced the development of the consumer behavior theories further, from a mere focus on the needs and satisfaction process, to the actual involvement of the buyer, in information evaluation and arriving at informed decisions (Massy, Montgomery, & Morrison 1970 p16). The Theory of Planned Behavior This is a buyer intention and prediction analysis theory, which addresses the concerns over the buyers’ overreliance on the intentions, at the expense of the predictable behavior (Foxall, 2005 p20). This theory is a further development to the previous theories which focused on the consumer needs, to encompass the whole process of the buyer going against the predictable behavior and engaging in different purchase behavior altogether, based on various external influences (Schiffman,1993 p60). For example, while the utility and the satisficing life theories would postulate that an individual would go for the relatively cheaper product, which offers the same level of satisfaction and utility as another expensive product, the Theory of Planned Behavior provides that an individual can go for the expensive product, oblivious of the existence of a cheaper product that offers equal satisfaction and utility, based on certain external factors, such as time limits (Philip, 1988 p61). In conclusion therefore, the development in the consumer behavior theories from 1800 to present day has indicated a departure from the overreliance on utility and satisfaction as the core determinants of the buyer decision process, to include other external factors that are equally important in determining how a buyer will arrive at a purchase decision. Question 4 The online buyer behavior has changed over time, mostly influenced by the ever changing and dynamic technological advancements that gives rise to new online products, service and markets. Therefore, for any business to succeed in online marketing and provision of its goods and services, the development of an attractive, interactive and easy to use website is vital. However, this is highly dependent on whether the buyer finds and purchases the product online, or he/she does research online and purchases the product in a store (Frances & Stephen, 2003 p40). Therefore, to enhance the buyer behavior stimulation and ensure the success of an online company, the company’s Director of IT should have the following in mind, while designing the website: Price and feature information Most buyers visit the internet to compare the products and services offered online, with a keen interest on the disparity in their prices and features (Howard, 1969 p84). Therefore, it is vital that the website be developed in a manner that clearly indicates the prices and features of all the products offered by the company, giving the finer details that are likely to differentiate the company’s products from its competitors’ products. Attractive and easy-to-use interface Most of the online buyers visit three to four websites on average, before finally settling on the product that they are going to purchase, and the supplier or the company from which they will purchase (Market Report, 2010 p12). Therefore, it is essential that the website is developed in a manner that is attractive, capturing the attention of the prospective buyers and enticing them to look through the content of the website. In this respect, the use of bright and attractive color combination is fundamental towards attracting the buyers to the website. Additionally, it is essential to develop a website that is easy to operate, allowing the prospective buyer to easily peruse through the site and identify the products, their features and prices easily, since most buyers do not solely rely on a single site (Howard, 1965 p70). Clear display and brief content Online buying has become a norm for many people, owing to the recent technological developments that allow individuals to purchase products and have them delivered, in the comfort of the houses. While traditionally people used to visit stores and premises to inspect the products on sale, they are currently viewing the products online, while assessing their features and usability from the seller’s website (Frances & Stephen, 2003 p35). This calls for a need to make clear display of all the products that a company is offering, accompanied by brief and straight-to-the-point description of the products, offered in form of summarized notes. This allows the prospective buyers to catch a glimpse of the product and its likelihood of serving the intended purpose (Perloff, 1968 p19). Question 5 The chocolate market is one of the market segments that have grown immensely over the years, departing from the initial single cocoa and milk content, to the current fruit and flavors chocolate products (Twedt, 1965 p269). The potential trends in buyer behavior in the chocolate market, over the next ten years, points to a high inclusion of ingredients and touches that will completely revolutionize the chocolate product from its ethnic flavors to a range of nutrients and energy content. Globally, the chocolate markets have risen to drive some of the major world economies, with countries such as Singapore having its chocolate market rise to $153.12 million in the year 2010. This industry is predicted to expand in the next decade, to hit over $170 million by 2015 (Market Report, 2010 p33). Cornetto is one such company that occupied 20.6% share of the chocolate market in Singapore by 2009 (Market Report, 2010 p27). This expansion and gigantic securing of market share has been prompted by the diversification into Ice-cream production, which, when combined with the chocolate sales, boosts the performance of the company. In the UK, Thorntons Plc is a company that has proved worthy in the chocolate market, by trying to target a niche market both in the UK and even globally. Thorntons Plc achieves this through specializing in the production and sale of Boxed continental chocolates (Ruth, 2003 p14). Its special emphasis lies in the provision of chocolate product for important occasions such as Christmas gifts, wedding gifts, and birthday gifts among other occasions. With such marketing strategy, it is predicted that its market share will continue to grow, although there are other formidable competitors in the UK chocolate market, such as Ferroro UK ltd (David, 2004 p28). Therefore, the recommendation for achieving more growth for this company is vigorous advertising which will attract more customers, the creation of customer loyalty through matching the advertisement message with the products in offer, and strict adherence to legal policies regulating the industry, to enhance continuity and uninterrupted business. References Engel, J. F., Kollat, D. T., & Blackwell, R. D. (1968). Consumer Behavior, New York: Holt, Rinehart s Winston, 1968. David, J. (2004), Principles and practice of marketing, Fourth Edition, UK: McGraw-Hill. Frances B. & Stephen, P. (2003), Principles of Marketing, third edition, UK: Prentice Hall Financial Times Foxall, G. (2005.) Understanding Consumer Choice. Baingstoke. Palgrave Macmillian. Guest, L. (1962). Consumer analysis, Annual Review of Psychology, 13, 315-344. Hansen, F. (1972).Consumer Choice Behavior, New York, Free Press. Howard, J., Sheth, J.N. (1968), Theory of Buyer Behavior, J. 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