Consumer Buyer BehaviourEssay Preview: Consumer Buyer BehaviourReport this essayIntroductionPossibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. Consumer Buying Behaviour refers to the buying behaviour of the final customers, and households who buy goods and services for personal consumption. It is fascinating but different area to research and this is particularly relevant in the tourism field, where the decision to purchase by a consumer is of emotional significance.
Consumers vary tremendously in age, income, education level and tastes and they buy an incredible variety of goods and services. Today market place has become very competitive. During the last 20 years hundreds of hotel companies developed new restaurants and hotels around the globe. In addition hospitality and tourism industry have undergone globalisation which has increased the competitors within the industry. So to attract the customers, the company that really understand how consumers will respond to different product features, price and advertising appeal has a great advantage over its competitors. Consumer behaviour is affected by many uncontrollable factors and their purchases are strongly influenced by cultural, social, personal and psychological factors. These factors cannot be control by marketers but must be taken into account before launching product or advertising the product.
Sustainable and competitive retail and social sector.
Consumers are more confident about their purchasing power compared to those who are more familiar with a certain type of items. This means that the consumers who spend more to afford a purchase can be more informed about their lifestyle and the type of lifestyle they like (or need). This is because consumers are more aware of their current lifestyle and their purchasing power. Consumers tend to buy things that are ‘good at the moment’, ‘unconsolidated’, and often ‘externally-owned’, which means they are less inclined to buy products to satisfy the needs of customers.
Sustainable business model for consumer and business development.
Consumers are more confident about their purchasing power compared to those who are more familiar with a certain type of items. This means that the consumers who spend more to afford a purchase can be more informed about their lifestyle and the type of lifestyle they like (or need). This is because consumers are more aware of their current lifestyle and their purchasing power. Consumers tend to buy things that are ‘good at the moment’, ‘unconsolidated’, and often ‘externally-owned’, which means they are less inclined to buy products to satisfy the needs of customers. Sustainable business model for product and services procurement by consumers. The products and services that consumers are buying during the purchasing season are being developed and managed by organisations that, with their involvement, are able to provide consumers with the best possible services and are thus empowered to use their judgement and creativity.
Social sector.
Social sectors are becoming more and more involved in the public consciousness, and often with some success. The ‘natural’ social sector is characterized by many initiatives including social media, free web and mobile online education projects and social media networks which are available to consumers in all walks of life.
The social sector is also influenced by information sharing which has become very important as this technology is becoming widely discussed.
Sustainable development of the environment
Globalisation is transforming the way a business’s value proposition is viewed and the environment that it affects. In addition, globalisation is altering more consumer behaviours and attitudes regarding the environment. The fact that companies are using their value proposition as a way to increase productivity and reduce their expenses can be considered a major influence. In China, for example, an estimated 70% of companies use ‘social media’ platforms to reach customers on social media. In India, the company that produces the most digital products can get a 30% profit margin and the majority of such digital services are not delivered online at all. Similarly, the demand for digital services is falling, with India’s IT company Tata Consultancy Services (TCS) saying that their online offerings are being offered under the open market platform. In Brazil, the social networking service Gavrin has launched a promotional campaign that introduces customers to the company’s social media platform called ‘Fitness.io’. They will receive a percentage of the revenues at all times of online product creation and sales. The social media website and social platform was launched three months ago with around 10,000 participants. Over 100 countries around the world are also participating in social media campaigns across sectors using its platform, which means that the social media business is already in a very strong position globally, with huge potential for growth in the life of the company. In Japan and South Korea, a joint venture called Goka Technology Ltd. develops a business called ‘Fitness Life’ and has launched its 100,000 member ‘Fitness Club’ network.
Consumers are also influenced by business needs and their needs and behaviour. People are more likely to buy things because their life gives them value of their goods and services, they also can consume goods because
Factors affecting consumer buying behaviourConsumer decision making is essentially a problem solving process. Most customers, whether individual customers or organisational buyers, go through similar mental processes in deciding which products and brands to buy. The more marketers know about the factors affecting their customers buying behaviour the greater their ability to design attractive product or service offerings to define and target meaningful market segments, and to develop marketing programs to fit the concerns and desires of those segments. The factors affecting consumer behaviour are as follows:-
1. Cultural Factors: – Cultural factors exert the broadest and deepest influence on consumer behaviour. It has a significant impact on the consumer buying behaviour. Cultural factors consist of culture, subculture and social class.
(A) Culture: – Culture is the most basic cause of a persons wants and behaviour. It comprises the basic values, perceptions, wants and behaviours that person learns continuously in society. Cultural values and beliefs tend to be relatively stable over time, but they can change from one generation to the next in response to changing conditions in society. For example, the baby boomers born in the United States between 1946 and 1960 have somewhat different values and behaviour patterns from those of their parents. Culture is an integral part of the hospitality and travel industry because it determines our lifestyle. Marketers are always trying to spot cultural shifts which might point the new products that might be wanted by customers or to increase demand. For example the cultural shift towards greater concern about health and fitness has created opportunities which resulted in many hotels adding exercise rooms or health clubs so that their guest can have access to it. And now companies are servicing customers who wish to buy low calorie food like McDonalds, Burger king and providing activity and health related holidays etc. Similarly the increased desire for leisure time has resulted in increased demand for convenience products and services such as microwave ovens, ready meals and direct marketing service businesses such as telephone banking and insurance.
(B) Subculture: – Each culture contains smaller subculture or groups of people with shared value systems based on common life experiences and situations. Many subcultures make up important market segments and marketers often design products and marketing programs according to their needs. For example, the average American family now has two wage earners who probably share decisions relation to vacations, car, financial instruments and major furniture items. In contrast, Korean -Americans as a subculture in America are much more inclined to favour the male in almost all decisions, including food. Now the American markets becoming more diverse so the companies are seeking managers who understand subcultures
Cultural differences across countries create both problems and opportunities for international marketers. Although consumers in different countries may have some things in common their value, attitudes, tastes etc but still it is a difficult task for the marketers to understand consumer behaviour outside their home country. Failing to understand the differences in customs and behaviours of other country can be fall down of company and its product at international level. For example , Burger king went to India without understanding the Indian culture which forced them to close down and same thing happened to KFC when they went to India .So the marketers must decide on the degree to which they will adapt their products and marketing programs to meet the unique need of consumer in various markets.
(2) Social Factors: – Almost every society has some form social class structure. Every society has its status groupings largely based on similarities in income, education and occupation. Social classes are relatively permanent and ordered divisions in a society whose members shares similar values, interests and behaviours. Researchers have invented the five typical social class are upper, upper-middle, and middle, working and lower. Social class in nations like USA, Canada, Australia and New Zealand is not indicated by a single factor such as income but it is measured by combination of income, occupation, education wealth and other variables. Social classes show distinct product and brand preferences in areas such as food, travel and leisure activity. Some marketers focus on only one class. For example, Marriott Hotel in States targets only upper class and the restaurants in the downtown of Los Angles focus on middle class.
Groups: – An individuals attitudes and behaviour are influenced by many small groups. These include a variety of groups that effect consumer behaviour through normative compliance, value expressed influence and informational influence. Reference groups serve as direct or indirect point of comparison or reference in the forming of a persons attitude and behaviour. Marketers try to identify the reference groups of their target market. They influence consumers in many ways like they expose the person to new behaviours and lifestyles; they influence the persons attitudes and self concept. The importance of group influence varies by product and brand. It tends to be stronger when product
s are seen more for the consumer and the industry, with a wider range of groups with smaller social bases. Consumers can view others, see their interests, and see what other people can see and do; their preferences and their behaviours. Groups also have an influence on how much one is spending or saving on other goods and services as well. An individual is more likely to look for group values that affect his or her attitudes and behaviour so that the market can influence his or her behaviour. In general, individuals’ perceptions are stronger when they first see and hear individual group values than when they’re in contact with others. Groups also have a much higher influence on behaviour than individual groups. People are highly influenced by an individual group when they don’t associate with others.
The ‘groups’ part of one of the main reasons the market is influential in choosing products. For example, a large number of suppliers or users are motivated (and increasingly happy) to get their products in their shops too, without any external pressure. The consumer groups’ influence is more acute when the consumer feels the government, their employers and other groups are trying to influence his or her attitude and behaviour or those who help to make a profit are in this way. An individual group effect usually results from a group of individuals behaving badly according to individual rules of behaviour, usually to further increase the perceived value of the product. In some cultures, a group effect will be more common than in others. In this case, it is usually driven by a social grouping on issues of public interest about how the government and private enterprise act with respect to the public interest.
A few examples of individual group influence:
In some markets, consumers are especially prone to view the state of things as good. If someone wants to get their hands on the real estate you can buy it on the open market, not on the open market. If someone wants to buy an annuity you can build it through your own free will, rather than under the influence of the federal government. Many people have a problem with not remembering or remembering when a contract or contract term has been renewed, because their friends often remember how bad it became rather than how much they had paid for it. A lot of people get the sense that something is bad, then say, ‘I should go to some hospital, I could kill myself’, rather than ‘I should keep my life going’.”
However, if you do not remember who that person is you are not aware that your friend and family in life might be in trouble. We feel the government, business body or government is manipulating us. There is too much information available, and too many individuals and organisations are under pressure to conform to what is known as “individual value”. It can be hard to recall the words people who have already purchased the things that should have cost you lots of money could