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The consumer decision making process
The consumer decision making process
Importance of Consumer Decision Making
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For companies to be able to market products or services effectively, an understanding of how consumers behave and make decisions is necessary (Poon and Joseph, 2001). There are several theories that relate to this area, including economic theories as well as psychological theories. Earlier studies in theories concerning consumer behavior were developed through economic theory, for example the conception where consumers advance rationally to make best use of their satisfaction in the process of buying. More recent research shows that consumers are influenced by different types of reference groups, such as family, friends, advertisers and role models. Terms like impetuous purchase, mood, situation and emotion are applied more commonly in concerns concerning the behavior of consumers. All of these factors together form a complete model of consumer behavior that portrays both the cognitive and emotional aspects of consumer decision-making (Solomon et al., 2009). Assael (1994) explains consumer behavior as the process of recognizing and assessing various components of a purchase and further explains that there are two wide influences that decide consumer’s preferred choice. Firstly, the individual consumer’s wants, awareness of brand distinctiveness and consciousness to alternatives are of significance in consumer decision-making. Other factors which affect the brand choice are the consumer’s demographics, peer pressure, lifestyle and personal characteristics. Secondly, the environment has importance in consumer behavior, which consists of culture, social class and various groups. Assael (1994) also describes the reason why information about consumer behavior is imperative for a company like ZARA to be aware of, which can thereby imp... ... middle of paper ... ...tomers’ queries in time. Being responsive implies a company should be accessible and willing to look into clients needs within the shortest time possible. ZARA has achieved this since its products were shipped directly from the central distribution center to well-situated, good-looking stores twice a week, doing away with the requirement for warehouse and keeping inventories low (Christopher et al., 2004). Companies and business ought to always put themselves in their customers’ shoes and endeavor to get their perceptions and their thoughts about the products provided the ‘given company. This quality of being compassionate is very imperative and helps in motivating customers. It involves listening keenly and asking the pertinent questions, speaking customers’ language, and tailoring products to satisfy or meet the customer the best way possible (Niinimäki, 2010).
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
Seeking to establish whether there were differences in Zara products purchase intention between the respondents of different genders, Student’s t – Test was carried out and the results are presented in tables 4.9 & 4.10.
Fast fashion is merely more than a one hit wonder. The fast fashion industry has grown and has ultimately proven itself to be profitable industry in the clothing market. The retailer most distinguished for a fast fashion approach is Zara (Hayes & Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (“Case 3-4. Continued Growth for Zara and Inditex”, 2013). Their marketing approach has helped them become extremely successful in terms of providing the customer with. International marketing strategies and its efficiency assists in the expansion of Zara. Cultural understanding is virtuously essential for an organization expecting to be effective in operating in a host country and even their own nation. Research indicates that Zara has done their homework in this area. However, in order to keep ahead of the competition marketing strategies need to be constantly rationalized.
The second step is very crucial because the consumer’s decision can come from their past experience or memories and also from their friend or family members. Therefore Zara has to focus to every factor and perform well in all fields. Zara has to focus on delivering outstanding customer service because it will help in increasing the number of repeat customers and if the customer’s experience is good then they will speak well about Zara to their friends and family members which will help in increasing the number of new customers. Zara also need to make sure that its other factors of outside environment such as fashion blogs, advertisements, magaz...
How Consumer.ology Has Changed The Way I View Market Research & Made Me Skeptical Of It’s Findings Philip Graves’ Consumer.ology: The Market Research Myth, The Truth About Consumers, and the Psychology of Shopping serves as an excellent guide for understanding how to determine what decisions consumers will and won’t make. The book focuses on the market research industry and it’s accuracy and usefulness, or lack their of, in the process of studying consumer behavior. Graves, a consumer behavioral consultant, spent twenty years observing consumers as a market research manager—leading him to question traditional market research methods and identify discrepancies between the results produced by market research and the decisions consumers actually
In today’s business brand image plays an important role to market the brand. Now whenever a consumer buy a brand he always observe its image. The brand image is force which is at top of the mind and then consumer likes to buy that brand. Before buying any brand consumer are countered by many psychological situation than they select the brand according to that situation, every brand has different image in consumer mind. Brand A has good image in one consumer mind but on other hand the brand A does not create well image on other consumer it effect the behavior of every individual. The purpose of the study is to inspect the effect of brand image on consumer behavior among the people of Karachi. We will find out that the brand image has
Segmentation: Some of the important bases for segmenting consumer markets are Demographic, Geographic, benefits, Psychographic and Usage rate segmentation. Geographic segmentation is the priority of Zara. It is a global brand and its supply chain management is very much perfect. It helps Zara in getting the latest trends into stores in three weeks’ time based on consumer preferences. It’s a Spanish brand, so it would a better option for Zara to open more store in European countries. Consumers would be more interested in making their decision towards preferring Zara. It has dived its segment on the basis of gender where more preference is for women and less preference for men. It can be seen that in any Zara store there are two floor for women and 1 floor or a part of a floor for men products. For example, the store in Leeds. It focuses on women age group up to 35 years who is more concerned about having a fashionable life style. As per the psychographic segmentation, Zara consumers are more ambitious and are attracted towards fancy and trendy products. It makes products that give...
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
2. Today marketers can collect and analyze data about consumer behavior, one person at a time; this is the relationship approach to marketing.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
In order to understand the relationship between a consumer’s attitude and their behaviour, psychologist constructed a few attitude models to help marketers to understand the consumer’s attitude and behaviour (Shiffman & Kanuk, 2010:249). Some of the attitude models that are considered as important are the following: the single-component attitude model, the tri-component, the multi-attribute attitude model (Rousseau, 2007:195), the theory of trying-to-consume model and the attitude-toward-the-ad models (Shiffman & Kanuk, 2010:255).
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
Task 1: Critically evaluate the key concepts/theories on the topic of the effectiveness of loyalty programmes on customer loyalty
Even with commodities, there are quite a few parameters which brands can use to position themselves to capture a place in the consumer’s memory and consequently in their shopping basket. A few of the more widely accepted of them are: Consistency of Product Quality, Customization of the product to the extent possible, Providing a wider range of products, Identifying the most profit generating segments of the market and modifying or adding an offering to cater to their specific needs, Unique packaging, Emotional Branding and even basing branding on building a unique image to the extent of professing to have a brand personality. In fact focusing on getting consumers to build an emotional identification with the brand and its personality has a far longer lasting effect and builds far greater loyalty than focusing on just functional and utility attributes which a competitor would also able to easily match if not surpass.