MKT7001 Consumer Behaviour
MKT7001 Consumer Behaviour
1. The Demonstration regarding the Analysis and Evaluation of the Key Consumer Behaviour, its conceptual framework and Potential Drivers
The Analysis and Evaluation of Key Consumer Behavior
In light of the significant assessment, the chief concentration of the “Consumption Journal” revolves around the key theme of critically assessing the different aspects associated with “Consumer Behaviour”. The main motive for the composition of the consumption journal is to reflect upon the idea of consumer behaviour in a manner so that a detailed idea can be developed which can help in knowing the customers. The idea of “Consumer Behaviour” resembles the study of different organizations, groups and individuals and their overall activities that are connected with the purchase, disposal, and use of a variety of services and goods (Sheth, 2021). The “Consumer Behaviour” and the idea associated with it mainly reflect the possible ways through which, the preferences, attitudes and emotions of the customers influence, purchase intention, buying behaviour and purchase intention. In the sphere of marketing, the concept of “Consumer Behaviour” refers to the possible decisions and actions, which people tend to make whenever they use or purchase any products.
The behaviour of the customer towards a product or service involves every aspect, right from the beginning of a customer’s initial decision to purchase a specific product, the way the consumer trends to use the product or service and the decision of the consumer regarding whether or not they will purchase the same service or product after using them. Hence, based on these basic concepts it can be easily interpreted that, “Consumer Behaviour” basically deals with the behavioural change regarding the selection and purchase of any goods and materials in accordance with the preferences, which can change on a timely basis depending on their needs, trends, moods, and attitudes (Floren et al. 2020). A key “Consumer Behaviour” can be identified as the motivators and influential factors that drive customers to select certain services and products for their consumption.
The analysis of “Consumer Behaviour” also helps in examining different factors such as buying habits and patterns of the people. Therefore, observing the fact that customers are the central focus for a business and market, the changing behaviour of the customs towards the market or a specific business can influence market growth and failure. Hence, due to these reasons, “Consumer Behaviour” holds an area of great prioritization for businesses and marketers. It is also an important area of interest for businesspersons and marketers so that after studying the behaviour of the customers minutely, the marketers can devise strategies to manipulate their behaviour for their own business or market success. The understanding of “Consumer Behaviour” emphasizes the idea of how customers tend to buy, purchase, and use goods, products, materials, ideas, experiences and services (Chu and Chen, 2019). The knowledge of customer behaviour is deemed as highly essential because it assists businesses to comprehend their costumes, desires, wants and needs based on their consumption patterns and helps them to effectively develop, modify and customize their services and products accordingly.
In addition, the “Consumer Behaviour” and different elements associated with it are deeply rooted in the buses and marketing operations. For instance, based on the evaluation of the frequency of “Consumer Behaviour” towards any individual product and service can help in determining the volume of the present demand for that specific service or product and also assists in forecasting the demand that is going to be migrated in the upcoming future. On the other hand, having adequate knowledge about the behaviour of the customer can help in managing the inventory regarding preferred products and helps in reducing the chances of keeping excessive stock and decreasing the possibility of waste (Basalamah et al. 2020). According to the leading experts in the sphere of “Consumer Behaviour”, the context of consumer behaviour can be categorized into four segments, which can be noted as “dissonance-reducing buying behaviour, complex-buying behaviour, variety-seeking buying behaviour, and habitual buying behaviour”. There are approximately five significant phases in the area of consumer decision-making procedures and consumer behaviour and these stages can be recognised as “The Recognition of problem, searching of information, alternative evaluation, purchase decision and post-purchase analysis” (Qazzafi, 2019). Through undertaking an accurate evaluation, it has been noted that there are various factors that deeply affect the flow of consumer behaviour and these factors are “culture family, personal factors, marketing factors, and environmental factors, psychological and situational factors”. Hence, these possible aspects tend to influence the consumers to act or make decisions in specific circumstances that are related to their purchase and consumption of goods and products.
The Assessment of the potential drivers of Consumer Behaviour
In consideration of the importance associated with “Consumer Behaviour”, for the growth and progression of different kinds of industries, markets and businesses, there are some key drivers that control the flow of “Consumer Behaviour” in an effective way. In recent times, it has been observed that the emergence of the latest trends and different changes in the price, consumption volume, pattern and materials, quality and quantity has enabled frequent changes in the sector of “Consumer Behaviour” (Paço et al. 2021). Therefore, monitoring these trends with the use of business analytics for predicting the positioning and emergence of trends and acting in accordance with it can ensure market success. The idea of “Consumer Behaviour” is used by the marketing and business teams for directing their efforts to specific groups based on their buying intention and decision regarding environmental, personal and social influences. The key drivers, which have been identified in this regard, are the “Societal Influence, Personal Influence and Frequency of Spending”.
Societal Influence: Social or societal influence is a major driver of “Consumer Behaviour”, where the different beliefs and behaviours of the society tend to act as a driver for a customer to purchase something. To be precise, these influential factors or drivers can be considered as the ideas generated by observing a specific style or habit in society, as well as asking friends or their opinions about the consumption or purchasing of a specific category of product (Thøgersen, 2021). Thus, the societal drivers are the factors involved in society such as fashion sense, eating habits, style, trends, user experiences, and feedback that manipulates the behaviour of the consumers. The factors related to cultural shifts and religious influences can be core drivers towards the behaviour of customers.
Personal Influence: Personal influences are another effective driver that strongly motivates the behaviour of consumers. The study of this driver has helped in understanding that these drivers are less related to the ongoing trends and play a great role in diverting the behaviour of people towards buying or consuming anything. For Example, the age of a customer has a specific impact on the buying habit of that customer regarding some items. Similarly, the culture, gender and social status of individual people play a key role in allowing them to buy products and services according to their individual preferences (Rotuauli et al. 2020). On the other hand, the involvement of income level and geography also helps customers to form their purchasing choices. Hence, keeping this important driver in mind, global marketers have developed the strategy of market segmentation, which benefits the consumer and helps the marketers to segment the consumer based on their consumption patterns, preferences and drivers.
Frequency of Spending: The frequency of spending is another essential driver; there the behaviour of the people is diverted based on their interests and likes towards the goods, materials or services. For instance, a specific segment of customers could be interested in fashion products, in another place, the same segment of people could be interested in purchasing food items. To be precise, focusing on the young generations, the preferences of youngsters towards fashion ware could enable their frequency of spending on fashion items; on the other hand, the preferences of that same generation could be into electronic gadgets (Ali and Anwar, 2021). Hence, this particular driver is all about the preferences and individual choices that drive the consumption volume and choice of people.
Aside from these three major drivers of “Consumer Behaviour”, there are some other key drivers in this domain as well, which can be considered as “Environmental Drivers” that allow the customer to buy sustainable products (Han, 2021). Along with that the cultural and psychological drivers are two other important factors which teens to channelize the preferences of the customer influenced by these drivers in their purchase intention.
The Conceptual Framework of consumer behavior
The idea about conceptual framework regarding the notion of “Consumer Behaviour”, involves the different factors, themes and aspects of the behaviour of customers that by connecting with each other forms a meaningful understanding of the overall concept. The assessment regarding the concept of “Consumer Behaviour”, has disclosed the essentiality and effectiveness of “Consumer Behaviour”, in the realm of marketing and business. The core findings acquired from the assessment have been revealed and reflected below:
Saving From Disaster: The clear comprehension of “Consumer Behaviour”, can save marketers and different businesses from facing absolute market disaster. It is because the volume of failure regarding new products is exceptionally high in most of the nations (Donthu and Gustafsson, 2020). Thus, if the marketers properly test the overall market before launching or introducing any new product, then it can help in the minimisation of such risks.
The Assistance in Developing the Appropriate Marketing Strategy: According to this essential factor and context of “Consumer Behaviour”, having the right knowledge about the factors that tend to influence the demand for a product, then it can help in devising an appropriate marketing strategy which can drive exceptional sales by attracting customers.
Helps in offering a Competitive Advantage: The in-depth understanding of the fluctuations and changes in the behaviour of the consumers can assist the different marketing and business industries to gain a competitive advantage by manufacturing their services and goods based on those changing preferences (Kang and Na, 2020). In this manner, by addressing the needs and demands of customers, high-volume customer loyalty and satisfaction can be generated which can result in the attainment of a competitive edge.
2. Identification and critical analysis of the consumption habits with the theoretical implications
The Recognition and Critical Evaluation of the consumption Habit
In view of the perception concerning “Consumption Habits”, it has been noticed that the different habits of customers that controls and guides the volume and type of their consumption can be defined as “Consumption Habits”. It generally involves the processes, behavioural, mental response and aspects of the customer that shapes their habituation about consumption. The possession of an adequate level of knowledge about individual consumer habits and consumer behaviour can assist individual marketers to identify the desires, demands and requirements of individual customers. As per the perception of a consumer, while purchasing any goods I choose the products that are generally cost-effective and of moderate quality (Sharma and Foropon, 2019). I understand that, to some customers, the quality of the product has utmost priority, however to me; the goods that are low-cost are mostly preferable for me. On the other hand, the quantity of the products is another factor that falls under my consumption habit, where before anything I always check the volume or quantity in which the product is available and then compare it with the price.
In this process, if I find that the high-price products are offered low in quantity, then I automatically switch to the cost-effective products that offer high quality. Thus, based on this purchasing nature, I feel that I possess a “Habitual Buying Behaviour”. For instance, another habit that I tend to focus on while purchasing or shopping for any product is comfort and once I feel comfortable with any material or products I tend to continue that purchase on and on, irrespective of other alternative products (Katrodia, 2021). For example, if I am habituated with any specific kind of toothbrush that is smooth in nature, then I will continue to buy it until the product reaches the declining stage of its “Product life Cycle”, no matter how better an alternative comes in the market of the toothbrush. In this regard, it is essential to reflect that the nature of mine is thoroughly influenced by my habit, as my purchasing behaviour is influenced by the habituation of using that specific kind of toothbrush. Therefore, based on the analysis I have illustrated above regarding my “Consumption Habits”, it can help in developing a vivid understanding of the “Habitual Buying Behaviour” of the consumers which characterizes the customer that tends to have little involvement in the barn or product category (Chenarides et al. 2021). For example, while going to a grocery store for shopping, an individual customer tends to buy the type of bread they prefer throughout the year. In this concern, this certain “Consumer Behaviour”, is influenced by a habitual pattern instead of a powerful brand loyalty.
Theoretical Integration in connection to individual consumption habits
The adoption of relevant and suitable theories within a study of critical assessment always helps in developing a profound and concretised understanding of the topic that is being assessed. Similarly, while decoding many promising facts associated with the conceptualisation of “Consumer Behavior”, the theoretical application can help in constructing a productive view of “Consumer Behavior”, and their consumption pattern. In consideration of this idea, some important theories are outlined below.
“Psychoanalytic Theory”: According to this important theory, customers make their decision regarding purchasing any item based on different emotional elements that are likely to be fears, aspirations, hopes and feelings. For instance, if any customer aspires to become a cook or chef as a part of their future career goals, then they can indulge in purchasing cooking materials, equipment, and other goods and materials related to cooking (Skokov, 2022). Similarly, the person involved in singing will be influenced to buy music recording software and voice lessons.
“Veblenian Social-Psychological Theory”: The critical theoretical model tends to assert that the customer as individual humans are considered social creatures and while purchasing or buying any product they make the decision based on different cultural and societal norms. For instance, as vegan, vegetarian, and gluten-free food products are becoming more prevalent and demanding in society, thus custom from every segment are preferring to purchase these options from the markets (Dibie and Kalu, 2019). Another example of this theory is, as an influence to increase Istanbul approaches in the developed countries, the rate of purchasing electric vehicles has become a massive trend for consumers that seek to buy cars.
“Reasoned Action Theory”: The significant theory of “Reasoned Action” reveals that the purchasing decision of the customer is influenced by the idea when they want a certain result. This is the main reason why marketers and business people need to connect a positive result with the purchase of their goods. For instance, marketers for individual trainers connect overall weight loss and health benefits with workout programs.
“Maslow’s Motivation-Need Theory”: The theory regarding “Maslow’s Motivation Needs” is one of the significant and major theories that deeply relates to the concept of “Consumer Behavior”. In the year 1950, the globally renowned psychologist Maslow developed a hierarchy based on needs, which tends to define the possible reasons and means for which a customer makes a purchase (Simamora, 2021). The effective hierarchy formed by Maslow accepts that customers tend to purchase different materials and services in order to fulfil their needs, and these ends can be considered as survival, psychological, self-actualisation, esteem and love, and safety-related needs. As an example, it can be reckoned that many customers have the habit of purchasing alarm systems because these people need safety and value the importance of safety in their houses.
“Hawkin’s Stern Impulse Buying Theory”: The final theory of “Stern Impulse Buying Theory” devised by Hawkins is another effective theory, which is convenient for this study. The theory reveals that, although there are various reasons for which people buy their likeable goods, however, at times there are very few thoughts associated with it. The condition of impulse purchase happens when the customer purchases goods based on external stimuli. For instance, if any customer finds a candy stall around the checkout line, they will buy it because it is positioned in a manner that seems to attract the external stimuli of the customer.
3. Recommendations to the Advertising Agency
In light of recommending the advertising agency to effectively use the aforementioned key information for future marketing advantage, some effective suggestions have been provided. The advertising agency needs to develop an active website where they can grab the attention of the customers with catchy and attractive content and visuals about products that can allure the customer. The involvement of mobile applications and visualizing the offers and discounts associated with the products can also be beneficial in grabbing the attention of consumers. In fact, mobile application and websites can provide information about the wish lists and how many times a customer has viewed a product can help them in understanding consumer preferences (Chopra et al. 2021). The involvement of social media can also help in observing the likes, dislikes and consumer feedback regarding a product and can assist them to customize their products in an effective manner.
In order to make improvement in marketing approach it firms are highly need to focus on improving conversation rate with customers and maximise traffic in its platform. The investigation finds that for generating sales and for increasing revenue the organisation needs to understand customers’ requirements. As per the views of Paço et al. (2021), it is the responsibility of project manager to build effective strategy and ideation that support to make connection with targeted audiences by making a positive working culture.
Along with this, it can be recommended that to increase RIO project managers need to focus on annual goals, suppliers’ channels, operations that used to make adjustment. Most advertising agencies suggested to improve its online platform by making active websites that can grab the attention of their customers with entertaining and attractive content and images about products or service (Thøgersen, 2021). Beside this, the integration of mobile applications and product visualisation offers discounts related to the product also used to capture consumer’s attention.
4. Consumption Journals
| Serial Number of Articles | The list of Purchased Products | The quantity of Products | The Categorisation of Products | The Method of Purchase | Cost Every Unit | Frequency of Purchase |
| 1. | ● Equipments
● Cleaning materials and chemicals ● Kitchenware tools ● Wooden and Steel Furniture ● House Building Materials ● House Paints |
646 pieces | Household Goods | Online Method | $200 | High |
| 2. | ● Fruits and vegetables
● Grocery items ● Ready to cook meal ● Instant-cook foods ● Crops ● Food Seeds |
545 pieces | Food items and Grocery Products | Offline Mode and Online Mode | $380 | Moderate |
| 3. | ● Vehicle Batteries
● Charging cables ● Transportation equipments and tools ● The materials for vehicle maintenance ● Fuel ● Tyres and seat covers |
268 pieces | Transportation | Online Method | $440 | Low |
| 4. | ● Shoes
● Accessories ● Watches ● Jeans ● Socks ● Casual wear shorts and t-shirts |
541 pieces | Fashion ware Products | Online Method and Offline Method | $276 | High |
| 5. | ● Induction Cooker
● Television ● Smart phone ● Radio ● Laptop ● Pager ● Air Conditioner ● Vacuum Cleaner |
254 pieces | Electronics | Offline Method /Online Method | $480 | Moderate |
Table 1: Consumption Journals (Source: Self-Created)
The table depicted above reveals the consumption journal where the number, volume types and frequency of consumption have been recorded in an appropriate manner. It is very essential to meet customer requirements for maintaining good relationships with them in this changing market. As per the views of Sharma, A. and Foropon (2019), customers are the main parameter of an organisation who brings profits to workplace structure. After analysing behavioural function, it has been seeming that based on market requirements organisations need to manufacture products or service to generate large revenue in this global world. There are some specific factors that influence firm to meet their goals in this global market including shape emerging habits with new offerings, sustain new habits, along messages with customer thoughts, use contextual themes, analyse customer beliefs, reinforce positive new beliefs, and more.
The investigation finds that, the COVID-19 crisis has forced many customers to make changes in their behaviour. According to Rotuauli et al. (2020), people seem that with new experiences they can easily change their beliefs about regular activities ranging from grocery shopping to exercise and socialising. After the pandemic it seems that customers prefer to make online delivery compare to offline shopping, for this reason firms makes changes in their platform to work with customer buying behaviour (Sheth, 2021). Moreover, it seems that, even long-held beliefs change when consumers get attracted, valued and excited by new experiences or services. It makes them more willing to reproduce the behaviour.
References
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