Analysis of the Purchase Behavior - Coursework Example

Consumer Behavior Table of contents p.3 2. Introduction p.4 3. Analysis of the purchase of LED TV p.5 4. Analysis ofthe purchase of smartphone : p.5 5. Analysis of the purchase of computer : p.6 6. Analysis of the purchase of iPad : p.7 7. Analysis of the purchase of Handicam : p.7 8. Analysis of the purchase of camera : p.8 9. Analysis of the purchase of printer : p.8 10. Analysis of the purchase of car : p.9 11. Analysis of the purchase of monitor : p.10 12. Analysis of the purchase of washing machine : p.10 13. Conclusions : p.11 14. References : p.12 Abstract Consumer behaviors are changing day by day because of the huge developments in science and technology and the subsequent advancements in living standards. Yesterday’s popular products are outdated today and today’s popular products will be outdated tomorrow. Moreover, competition in the market is getting stiffer as time goes on because of globalization and liberalization. Along with quality, modern consumers are looking for cheaper price also while they take any purchasing decision. The recent financial crisis forced the consumers to take extreme care while purchasing certain items from the market. Brand value and after sales service alone may not help companies to sell their products. Corporate social responsibility and sustainable development are some of the other factors influencing the consumers while they purchase certain products. This report is prepared based on my personal consumption journal (For the last four weeks) and my own analysis of my purchasing behavior using various consumer behavior theories and principles. Introduction Current society is no more a society of producers, but a society of consumers. It should be noted that until the end of twentieth century, people were interested in increasing the production as much as possible. However, current generation is more interested in consumption rather than production. The huge developments in science and technology helped the people to reduce the necessities of hard labor considerably. In other words, the efforts needed to perform certain tasks at present are minimal considering the efforts required for the same tasks in the past. For example, the introduction of computers helped people to reduce the paper works considerably. Same way, advanced production technologies helped people to produce more with minimal effort. In short, current world is producing more than what is actually required for the present generation and hence consumerism is increasing all over the world. Globalization, liberalization, and privatization like modern principles are giving momentum to the spreading of consumerism. Globalization and advancements in technologies helped the current consumers to purchase products from any parts of the world. In other words, consumer behavior is changing day by day. According to Solomon, et al. (20060, “Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires” (p6). Current consumers have more choices than the consumers in the past and hence the bargaining power of the consumers has been increased a lot in the recent past. Moreover, current consumers are giving importance only to socially committed companies, even though brand value and reputation are still important. The purchases I involved in the last four weeks (Refer my personal consumption journal) clearly suggests that personality, family, peer, culture, lifestyle, situational, environmental and demographic characteristics were the influencing factors while taking purchasing decisions. Analysis of the purchase of LED TV “Utility Theory’ of consumerism proposes that consumers make choices based on the expected outcomes of their decisions. Consumers are viewed as rational decision makers who are only concerned with self-interest” (Bray, n.d., p.2). Utility is the primary driving force behind any purchasing decisions. While purchasing the Samsung 8 series LED TV, I have given more importance to the utility it provides compared to other TV models such as LCD. At present LED Televisions are providing better viewing experiences than any other models. It gives less fatigue to eyes compared to other television models. Moreover, it gives clear and sharp pictures from all viewing angles. It should be noted that LCD TV’s are not giving clear viewing from particular angles. Another reason for my purchase of this LED TV is the internet facility it provides. It helps me to communicate with my social network friends instantly. Since I am using many other Samsung electronics products, this TV helps me to network all those products easily so that I can transfer the file from one equipment to the other. For example, the photos and videos taken on my Samsung galaxy S3 phone can be easily viewed on this TV with the help of “allshare play” facility provided by Samsung. In short, the utility this provides to me is immense compared to other models. In short, the utility of Samsung LED TV encouraged me to select this brand. Analysis of the purchase of Smartphone The psychodynamic theory of consumerism says that consumer behaviour is subject to biological influence through ‘instinctive forces’ or ‘drives’ which act outside of conscious thought interest (Bray, n.d., p.4). The technology war between Apple and Samsung is currently going on aggressively in the smartphone market. In response to Samsung’s Galaxy S3, Apple has recently introduced iPhone 5. There are plenty of debates currently going on about the quality and performances of these two products. Some people, especially the Americans believe that iPhone 5 is superior to Galaxy S3 whereas others, especially Asians believe that Galaxy S3 outscores iPhone 5. My instincts say that Samsung products are far more reliable than Apple products, especially after the demise of Steve Jobs. The utility theory of consumerism also motivated me to purchase Galaxy S3 instead of iPhone. It should be noted that since I have Samsung LED TV, it is easy for me to network these things together and enjoy the file sharing options. Analysis of the purchase of computer “The cognitive approaches to consumerism ascribe observed action (behaviour) to intrapersonal cognition. The individual is viewed as an ‘information processor” (Bray, n. d., p.6). Even though, Samsung products are attractive to me, I am not much interested in buying Samsung computers. After a comprehensive research on internet and other media, I came to know that Dell is the leader in computer manufacturing at present. They are providing better after sales services compared to other computer manufacturers. Moreover, the reviews of Dell computers on internet say that these products are extremely reliable. The online prices of Dell computers are much lesser than the offline prices. In short, after processing the information, I received from various sources; I decided to purchase the Dell computer from an online store even though I am passionate towards Samsung products. Another factor which attracted me towards Dell is its social and environmental commitments. Dell computers are taking back the damaged or defective computers for recycling purposes. They have comprehensive recycling arrangements in different parts of the world so that Dell users may not struggle with the used up or defective products. Analysis of the purchase of iPad The purchase of an iPad by my friend happened after an intense debate between us. I asked my friend to go for Galaxy Note whereas my friend was in favor of iPad. My friend had more belief on Apple products than on Samsung products. Moreover, he had discussed this matter with many of his social network friends. Majority of them supported the purchase of iPad. I asked my friend to compare the performances of iPad with Galaxy note before the purchase. We went to a hypermarket and asked the sales man to demonstrate the performances of galaxy note and iPad. After the demonstration, I argued for Galaxy Note; but my friend was still fascinated by iPad. Finally, I decided to give up. I realized that the purchaser’s intimacy towards a product should be respected more. Analysis of the purchase of Handicam Another purchase in which I involved recently is the purchase of a Sony handicam by one of my friends. Both I and my friend were unanimous in going for Sony brand instead of any other brands. Both of us had immense faith in Sony’s abilities in making superior handicams. We had some friends who were already using Sony handicams. All of them gave us positive feedbacks about Sony handicams. However, we decided to see the performances of Canon and Samsung handicams before going for the Sony brand. As in the case of iPad purchase, we went to a hypermarket to see the performances of handicams from different brands. After an hour of demonstrations by the salesman, we decided to go for Sony. As in the case of Dell, Sony is also a socially committed company. It gives something in return to the communities in which it operates as part of their corporate social responsibility. Analysis of the purchase of camera “Most modern theorists now, however, acknowledge that information processing is conducted by an active organism whose past experience will influence not only the processing of such information but even what information is sought and received. Information processing will be both stimulus driven and concept drive” (Bray, n. d., p.7). I had a Fuji camera until recent times. It created lot of problems to me. The performance of this camera was extremely poor. After a year of purchase, this camera was burned at the time of charging. In short, my faith in Fuji brand was lost completely after this purchase. My bitter experience with Fuji forced me to take more care while purchasing another camera. I searched internet for the product reviews and collected information from many of my online friends. Majority of my friends asked me to go for Canon when it comes to the purchasing of camera. Since, my technical skills in photography are not so good, I decided to believe the words of my friends and the product reviews on internet. Analysis of the purchase of printer The theories with respect to consumer behaviourism states that behaviour is explained by external events, and that all things that organisms do, including actions, thoughts and feelings can be regarded as behaviours. The causation of behaviour is attributed to factors external to the individual” (Bray, n.d., p.5). One of my friends was using an Epson inkjet printer until recent times. This printer was given as a complement while he purchased his computer. However, after few months, he realized that this complement is another marketing strategy by the Epson. He was forced to purchase new color cartridges even though he was taking only black and white printouts. This printer works only when all the four cartridges have the required ink levels. He spent lots of money for purchasing cartridges together. Refilling of ink was also not possible. So, he decided to go for an HP inkjet printer with dual cartridge. This printer helped him to refill the cartridges many times. However, continuous refills caused problems to its circuit board and it became useless after a year. All these experiences forced him to go for an expensive laser printer instead of the cheap inkjet printer. The bitter experiences with Epson and HP forced him to go for Canon even though, I asked him to go for HP again. He was frustrated by the services of HP and Epson and finally decided to purchase Canon laser printer from an online store. Analysis of the purchase of Car The consumer theory with respect to cognitivism argues that consumer attitudes, wants, needs and motives influence consumer purchasing decisions (Foxall, 1990, p.18). I involved in the purchase of a Volkswagen Passat car by one of my friends recently. Toyota and Volkswagen were the other two brands considered by my friend. I asked my friend to go for Toyota Camry whereas another friend asked him to go for Volkswagen’s Passat. The main reasons for my friend’s choice were the recall problems faced by Toyota and Honda in recent times. It should be noted that both Toyota and Honda faced so many technical problems such as accelerator brake pedal problems, airbag problems etc. Millions of vehicles were recalled from all over the world be these famous automakers to correct the problems. Consumer confidence on these brands was damaged considerably in recent times because of the recall problems. On the other hand, Volkswagen faced not much problems in recently. Moreover, Volkswagen has incorporated parking assistance to its Passat model cars. Parking assistance help Passat consumers to park the vehicle automatically even in difficult places. In short, brand value or reputation of Honda or Toyota companies never affected my friend while he opted for Passat. Consumer theories of social status also motivated my friend to go for the purchase of Passat. It should be noted that the ownership of an expensive car like Passat would definitely increase the social status of my friend. Otherwise he could have gone for any other cheap models of vehicles. The following example explains the social status theory of consumerism clearly. A consumer orders an expensive brand of vodka at a bar even though she can’t tell the difference between that brand and the house pour. Deriving satisfaction, even physiological pleasure, from being perceived as a person belonging to an admired social class is powerful. Appeal to folks of discriminating taste and unlimited access to money, and you’ll reach more folks on the other end of the continuum with your brand message (Cohen, 2013). Analysis of the purchase of monitor The purchase of a dell LED monitor by another friend few days before clearly shows the consumer attitudes towards new technologies. Dell’s new 20’ LED screens give not only clearer views, but also bigger views. Even after spending lengthy hours, users may not feel any eye fatigue while using this screen. My friend is a computer professional and needs to spend more than 8 hours daily in front of computers as part of his profession. Even though, he considered Apple vision screens as an option, its prices were extremely high. Moreover, he had some doubts about the compatibility problems of Apple screens with IBM PC’s. Analysis of the purchase of washing machine Another purchase recently made in my home was a Samsung washing machine. Of course, my passion for Samsung brands affected this purchasing decision by my dad, the final word came from my mother. It should be noted that females know better than males about the qualities of washing machines since they are usually handling such machines. In my family we discussed about IFB and Samsung brands of washing machines. Final vote went to Samsung because of the emergence of Samsung as a superior consumer electronics brand in recent times. Since Samsung has better after sales service centers nearer to my home, final decision went in favor of it. Conclusions Brand value, brand loyalty, after sales services, superior performances, cheaper price, use of better technologies, etc are some of the factors which motivate current consumers to go for certain products and services. Reputations in the past of a particular brand may not affect a consumer of the present era. It is impossible for companies to work on past reputations at present. Socially and environmentally committed companies are getting more votes from the current consumers. References Bray, J. (n.d.). Consumer Behaviour Theory: Approaches and Models. Retrieved from http://eprints.bournemouth.ac.uk/10107/1/Consumer_Behaviour_Theory_- _Approaches_%26_Models.pdf Cohen G. (2013). Relevant Marketing Consumer Behavior Theories. Retrieved from http://smallbusiness.chron.com/relevant-marketing-consumer-behavior-theories- 20800.html Foxall, G., (1990). Consumer Psychology in Behavioural Perspective. London: Routledge Solomon, M., Bamossi G., Askegaard S & Hogg M.K. (2006). Consumer Behaviour: A European Perspective. 3rd ed. Harlow: Prentice Hall. Read More