The theory of consumer behavior is based on a variety of different assumptions. One of the first basic assumptions is consumers act on rational behavior. Consumers are naturally drawn to what will lead them to the better sale. Each naturally want to spend their income and get the maximum satisfaction for their dollar. For example if Miller Lite was fifteen dollars for twenty-four cans and Busch Beer was twenty dollars for forty cans, the consumer may be drawn toward Busch alcohol. By buying the second brand the consumer will be following rational behavior theory by getting the maximum amount of utility for their dollars spent. This statement would hold true if it were not for consumer preferences. The next basic assumption for the theory of consumer behavior is consumer preferences when referring to a good or service. For instance, if a consumer has always bought Miller Lite he/she will always go into the store and purchase that without looking at its substitutes. If the opposite holds right, a consumer may be drawn to another brand of beer, such as Busch. When looking at other bran...
Consumer preference may be described as the subjective tastes, as measured by utility, of various bundles of goods. They permit the customers to rank these bundles of goods according to the levels of utility they give consumer. Outcome of the entire customer preference contains an optimal choice. However it is to be kept in mind that preference by the customer does not dependent on the customer earnings or cost of product it is because capability of consumer to buy does not indicate his likes or dislikes.
Shopping is a function of the nature of the product (Holton, 1958), the degree of perceived risk inherit to the product class (Cox, 1964) and level of knowledge about the alternatives (Bucklin, 1966)
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
Consumer behavior is the ways that consumers exhibit in searching for, purchasing, using, evaluating, and disposing of, products and services. The study of consumer behavior as a separate marketing discipline all started when marketers realized that consumers did not always react as marketing theory suggested they would (Ekström, 2003). Many consumers rebel at using the identical products that everyone else used, instead they prefer differentiated products that they feel reflect their own special needs, personality and lifestyles.
... of consumer behaviour, lays emphasis on the objectivity of science and the consumer as a reasonable and sensible decision maker. While, the interpretive point of view is in contrast to that of the positivist, in that it emphasises on the importance of the subjective meaning of the consumers individual experience, hence, it suggest that whichever behaviour a consumer performs is subject to diverse interpretations to a certain extent than just a single explanation to it.
It is important for developers to understand of what encourages the beginning of relationship before analysing loyalty. The marketing mix management plays an important role in developing marketing strategies that includes the concept of 4ps, which are price, product, place and promotion. The major marketing mix concepts that Starbucks’ applied to increase their market share are place and promotion. According to Allison (2010), Starbucks was experiencing a decline in its price share by 54% in the 2007/2008 time period, new marketing strategy and development are implied by the organisation and they managed to increased its shares from $4 a share to $24 by the end of the period. This includes one of the major concepts, consumer behaviour, which Starbucks utilised their amenities to attract customers in purchasing their products. Consumer behaviour is the study of the processes involved when people acquire or purchase certain products to satisfy their needs and desires (Solomon, Russell-Bennett & Previte 2013, p. 3). Fundamentally, Consumer behaviour is how consumers choose products by evaluating different competitive and alternative in the market and how consumers perceive brands and stores in terms of
Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
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.
From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
A feature of categorization theory is that the categories formed by consumers can be both stable and flexible. A consumer’s goal is one of the main factors that make the categorization flexible. Categories also do not take the same form across different contexts or situations (Loken, Barsalou, & Joiner. 2008). The “Categorization Theory and Research in Consumer Psychology” study uses the example that people will eat different snacks at a dinner party than they would whe...
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.
Shiffman, L.G. & Kanuk, L.L. 2010. Consumer behaviour. 10th ed. Upper Saddle River. NJ: Pearson Prentice Hall.
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.