Aspects Affecting Consumer Purchasing Conduct and Modern Consumer Purchasing Trends - Literature review Example

Table of contents Table of contents 1 Consumer behaviour is the study of choosing…. 2 Definition of consumer behaviour 3 Overview 4 Models of choice processes 4 High consumer involvement choice process 5 Emotion driven choice process 7 Low involvement choice process 8 Low emotion choice process 9 Other factors affecting consumer purchase decisions 10 Building identity perspective 11 Contradictory consumer perspective 12 Manipulative market perspective 12 Culture and globalization perspective 13 Diseases perspective 13 My research 14 Friend one: 14 Friend two: 14 Friend three: 15 Conclusion 16 Bibliography 18 Consumer behaviour is the study of choosing…. Many organizations today are investing resources towards studies meant to predict the consumer purchase behaviour. Studies on consumer purchase behavior provide analytical background for repositioning and re-strategizing marketing segmentation and effective marketing processes. The studies on consumer purchase choices of products and services provide valuable insights into why consumers prefer certain products and services. Studies on consumer purchasing behaviour provide knowledge on why ‘certain products are likely to dominate the market and why certain products enjoy ‘a high market share’. Consumer purchase behaviour on ‘choices of certain products’ have led into some ‘products becoming obsolete’. Advancement in technology like adoption of ‘e-business’ has played a great role in shifting consumer choices in certain products that are available online. For instance, with a shift into use of computers, products like ‘rubber erasers’ are becoming obsolete and are soon going to be off the counters. Products like ‘washing basins’ are being replaced by washing machines. Products like ‘monophonic mobile phones’ are being replaced by ‘polyphonic mobile phones’ that have GPRS settings, have inbuilt cameras and videos et al’. Consumer behaviour has become a matter of choice of products that add value to the consumer. Consumer needs have great impact on the consumer purchase choices for products and services. In many instances, a consumer needs only products that have a particular personal value or that which underline their cultural background, lifestyles, career, social class or products that make a fashion statement. This essay reports on different aspects that affect consumer purchasing behaviour and will explain current consumer purchasing trends. The essay illustrates convectional definition of consumer behaviour as a discipline in business studies and highlights four models of choice processes that contribute significantly to consumer purchase behaviour. The choice processes are backed up by my research on ‘factors affecting consumer purchase decisions’. Definition of consumer behaviour According to Korczak (2008) consumer behaviour is a discipline in business studies that looks into what consumers are buying and provides explanation on why the consumers are buying a particular product. Korczak (2008) adds that studies on consumer behaviour highlights factors that make consumers to shift to certain products. Korczak (2008) proposes that studies on consumer purchase behaviour provide insights on what consumers will be buying in future and factors that will drive consumers to make choices and decisions of what to buy. Uttley and Scott (2006) suggested that consumer behaviour is a study of how consumer’s purchasing power is changing following adoption of consumer choices on products and feedbacks from satisfied users on the products. Uttley and Scott (2006) and Korczak (2008) agree consumer’s tastes and preferences are likely to change in future and this will, greatly influence consumer choices for certain products. Mowen and minor (1997:5) argues that consumer behaviour is ‘the study of the buying units and the exchange processes involved in acquiring, consuming and disposing of products, services, ideas or experiences.’ Overview Eljala (2006), Mark (2007) and Rob (2007) agree that consumer purchase behaviour is a product of choice processes. Eljala (2006) suggested that the choice processes of a consumer vary depending on the consumers Loyalty and Beliefs on the product. The consumer’s needs, according Eljala (2006) are depended on the lifestyle trends of a consumer that are dictated by the social class of the consumer. Mark (2007) suggested that consumer choice processes are subject to promotions services that are characteristic of the product. Mark (2007) added that promotional services of products and services have a market segmentation and target a given particular age of the consumer market. Mark (2007) and Rob (2007) agree that consumer market segmentation evaluates spending potential of a consumer and satisfaction level that the consumer derives on the product. According to Rob (2007) young people are possessed with products that underline their status and products that are characteristic of celebrrities. Models of choice processes Consumer purchase behaviour is influenced by choice processes. Rob (2007) and Solomon, et al (2006:105) agree that a consumer’s choice process determines their purchase behaviour. There are four main choice processes according to Davies (2007) and Solomon et al (2006). Davies (2007) suggested that consumer choice processes are affected by two major factors namely level of consumer involvement and level of consumer emotions on the products. Each of the factors has an upper limit and a lower limit. This subsequently leads into four choice processes that are high consumer involvement choice process, emotion driven choice process, low involvement choice process and low emotion choice process. High consumer involvement choice process Solomon et al (2006:105) defines consumer involvement as ‘perceived relevance of the object based on their inherent needs, values and interests’. Solomon et al (2006) and Rob (2007) agree that consumer involvement is subset of price of the product and frequency the product is purchased. Solomon et al (2006) have suggested that consumer involvement on a product is also measured in terms of products potential of performance. If a product like a mobile phone does not have features that a consumer wants like internet connectivity via GPRS, or the mobile /phone does not support multi-media services, then its potential of performance is low. Rob (2007) suggested that consumers involvement helps to determine characteristics that consumers seek in a product. On the same note, Rob (2007) and Davies (2007) agree that consumer involvement in a product is evaluated in terms of symbolic meaning that is derived from the product. Davies (2007) proposed that Consumer’s involvement is a function of lifestyle association of the product that makes for symbolic satisfaction. Davies (2007) argues that a consumer may buy a product because ‘everybody has the product’ without regard to ‘quality of the product or price’. Davies (2007) suggested that consumer involvement is a derivative of cognitive effects. In this respect, a consumer purchase of a product may be driven by impulsive purchase trends where the consumer buys products without analyzing the value they will derive on the products. Davies (2007) and Solomon et al (2006) have argued that some consumer purchase behaviour is a product of emotional feelings. Consumer feelings affect rational consumer purchase behaviour and have contributed to the idea that was put forward by Korczak and Dieter (February 2008) that ‘the consumer is always right’. Similarly, Davies (2007) and Solomon et al (2006) have argued that consumer’s views and feelings are portrait of their expectations on products and could provide insights into what the products should provide for them. Solomon et al (2006) proposed that consumers purchase decisions is a cycle of five processes that are ‘Problem recognition, information search, evaluation of alternatives, Product choice and outcome’ respectively. According to Solomon et al (2006) a consumer purchase choice of a product is triggered by a need to have the product. The consumer then carries out a research on different brands of products and their efficacy. The consumer according to Neil and Borton (2007) may compare different prices, quality of similar products and feedback from other users of the products. When the consumer is satisfied that the products of her choice meet her or his specifications, the consumer then evaluates which brand to purchase depending on loyalty of the brand. This step leads the consumer into a particular specific choice of product and either the consumer may buy the product or fail to buy the product leading into an outcome. The cosnumer may then begin the cycle again. Neil and Borton (2007) and Solomon et al (2006) both agree that researchers go through the same processes in order to come up with a brand that is able to enjoy a higher market share value. The model of consumer decision purchase model that was proposed by Solomon et al (2006) is followed only when the price of the product is relatively high according to Davies (2007). These steps are not followed when the different brands have equivalent price value as observed by Neil and Borton (2007). Emotion driven choice process The emotion driven choice process is characterized by high involvement and consumer’s feelings for a particular product. This means that emotion driven consumer choice purchase process is independent of the Solomon et al (2006) consumer purchase decision cycle. According to Elliott (1998:101) emotion choice process is characterized by three crucial decision factors that are motivation to have the product, preference formation for the product and justification of the product value. Elliott (1998:101) argues that modern day consumers are driven by need to derive symbolic value as opposed to the need for quality and this tendency predisposes consumer purchase choices that are not a product of rational decision making process. As a result, Davies (2007), consumers do not carry out market surveys on different products of equivalent value of quality or have any alternative products in which to make opportunity cost on. This means, consumers do not employ cognitive abilities when they are making purchase choices (Davies 2007). According to Mark (2007) presence of disposable money, lifestyle and fashion trends of the consumer and latest technology on the product is partly responsible for many consumer purchase behaviour that are based on emotions. Mark (2007) suggested that most consumer purchase choices that are characteristic of consumer’s emotions are culturally based. For instance, religion could make a consumer to make a purchase of a product without following the Solomon et al (2006) purchase decision cycle. This is because the product qualifies to be a basic need that has no alternatives to choose from. For instance, the gowns that Muslims wear. Purchase of lipstick by many high class women is driven by emotional choice process. Similarly, purchase of bride maids clothing is a product of emotion driven choice process. Low involvement choice process Davies (2007) suggested that low involvement choice process is stimulated by promotional awareness of a product that trigger the consumer to try the product and the model is completed by repeat purchase by the consumer of the same product. Otherwise, it becomes a high consumer involvement choice process and consumer purchase choice follows the cycle that was proposed by Solomon et al (2006). The repeat purchase builds customer loyalty according to Uttley and Scott (2006). Uttley and Scott (2006) and Eljala et al (2006) have agreed that a products customer loyalty breeds a good will that leads into development of a purchase trail. This trend, according to Eljala et al (2006) makes products to command a high market share value. On the other hand, Davies (2007) argues that a consumer purchase choice is subject to presence of substitute goods and therefore consumer purchase choice process is still dependent on emotional choice process. Mark (2007) some proposed that some products are basic needs for life as compared to secondary needs for life. A consumer’s purchase choice therefore is depended on whether the product or service is a primary need or a secondary need. For instance, many diabetic patients are turning to herbal drugs to manage their illnesses and are more likely to make a repeat purchase if the herbal medicine is effectively able to manage their diabetic condition. Similarly, women on a particular weight management regime are likely to make repeat purchase of particular foods that are likely to reduce their weight and consequently minimize their chances of developing obesity. Davies (2007) proposed that consumers have a buying habit of trying new products with little regard to product functionality or quality of the product. This provision, according to Davies (2007), is responsible for consumers’ continuous search for more products that are likely to add value. Low emotion choice process Davies (2007) suggested that low emotion consumer choice process is a product of low involvement and consumer’s emotional feelings. Consumers purchase behaviour undergoes a shift when their emotional feelings on certain products are triggered by the sight of a product. This characteristic feature, according to Davies (2007) stimulates impulsive buying and is more depended on presence or availability of money to make the purchase. Such a purchase according to Korczak (2008) is subject to ‘craving’ for the product and not necessarily for any value based on quality association or social class or cultural factors. Korczak (2008) suggested that such a choice process is triggered by the need to have the product. In many instances, the low emotion choice process is stimulated by a consumer’s current needs. For instance, a consumer may see another with a matching dress and be stimulated to purchase the same to achieve a similar look. In many instances, consumer purchases that result from low emotion choice process lead into consumer purchase of products that they will not be using but the consumers are happy to have them. Korczak (2008) argues that it is the need to have the product that fulfils the consumer’s desire for the product. Other factors affecting consumer purchase decisions There are other factors that affect consumer purchase behaviour that are independent of the four choice process models discussed above. Korczak (2008) suggested that consumers are interested with products that make a lifestyle or fashion statement and have characteristic attitudes and values that are distinct and depend on many variables like spending power of the consumer, occupation of the consumer, special physical needs of the consumer and age. Korczak (2008) suggested that the choices of a modern day consumer are driven by many dimensions that include social, demographic and cultural. Social dimension affects attitudes and lifestyle that are dominant in a particular society and this affects choice of products and services bought and where they are bought. Demographic dimension affects choice of consumer because it is a function of age, gender, ethnicity and geographical distribution that affects consumers’ choices on tastes and preferences. Cultural dimension is build deep rooted value system that is associated with a given ethnic group, social class and defines consumer choices via lifestyle products and services that are associated with them. Korczak (2008) argues that consumers believe producing good products of high quality is not enough to satisfy their elevated satisfaction bar of the product. The characteristic of quality should be coupled with a lifestyle association and be in a position to make a clear statement about consumption patterns of the consumer. The modern day consumer is also concerned about conservation like the goal of minimizing global effect through competent steps to tackle green house gases and would be associated with products that are geared towards satisfying this universal objective of minimizing global warming. These factors revolve around the disciplines of sociology, psychology and marketing. Building identity perspective The modern day consumer is characterized by symbolic consumption and this segments consumer purchase choices into social classes. This is basis of marketing. Hogg (1998) suggested that brands and products differentiate consumers into social groups that have equivalent buying trends. Hogg (1998) pointed out that social and cultural identities are measured in terms of consumer consumption choices. Symbolic consumption breeds ‘anti-constellation’. High social class groups have limited choices among the top brands and products. For instance, the car that a person drives determines their social class. A Mercedes Benz or range rover is a reflection of the high social class personality. Hogg (1998:133) suggested that there are other consumers who exhibit a negative choice with regard to symbolic consumption. This trend is depended on the consumer’s professional career. If the consumer is a social researcher, the consumer may opt to purchase low profile cloths though they are able to afford expensive cloths. Korczak (2008) suggests such consumers want to fit in the societies that they are carrying out their research. Therefore, psychological and social factors play an important role in determining consumer purchase decision. Contradictory consumer perspective The current consumer market has been dominated by many products that have made consumer purchase choices to be limited to ‘no-choice’. Normally, a wide variety of products is assumed to mean the consumer is likely to have a variety of products to choose from. According to Chernev (2003) presence of wide variety of products delays consumer’s choice on products and may lead to no purchase by the consumer. Chernev (2003) argues that the availability of wide variety of products affects of ‘ideal point availability’ that consumers cannot keep pace of keeping track of new ideal point availability of new products. This greatly reduces consumer purchase choices due to cognitive overload. Manipulative market perspective Ray and Borton (2007) suggested that many companies are producing new brands that are prototypes of the former products. Belk, Ger and Askegaard (2003) argued that advertisements that help to promote and create awareness of the prototype brands lead into development of ‘passionate consumption’ among consumers. Belk, Ger and Askegaard (2003) suggested this shifts consumer’s purchase choices from a want to desire, and consequently stimulate the consumers to purchase the new products. Belk, Ger and Askegaard (2003) proposed tendency creates a sense of trust and contributes to consumers purchase choice for the products. Belk, Ger and Askegaard (2003) suggested that promotions have an effect of increasing sales volumes especially when they offer consumers a choice of two products for the price of one. This means that marketing of products stimulates consumer purchase behaviour. Culture and globalization perspective Solomon et al (2006: 500) has pointed out that culture and globalization has an effect of determining consumer purchase behaviour. For instance, Europeans have a tendency of sending Christmas cards to their mates. Solomon et al (2006: 500) suggested that globalization therefore leads into development of cultural hybrids that have potential to influence consumer purchase behaviour positively on products. Cultural factors also influence consumer purchase. For instance, Muslims do not eat pork and as a result, they are less likely to purchase pork products. Diseases perspective With increased efficiency in production process, many people have developed disabling diseases like diabetes, high blood pressure, high cholesterol levels, hypertension, coronary thrombosis and atherosclerosis. They therefore have dietary modifications in order to manage their medical conditions. This too has an effect in determining consumer purchase behaviour. My research I conducted a research on three of my friends on the factors that influence their purchasing behaviour, why they preferred the products that they bought and satisfaction levels they derived or utility they got from their purchase choices. The following illustrates their reply: Friend one: “My purchase decision for this Samsung mobile phone was stimulated by my friend, David, who not only is able to take pictures but also records videos using it. I am able to browse the internet at fast speeds than I did when I had my former phone. I am able take photographs wherever I am and that’s has prompted me to enroll for a journalism course. I managed to sell my first photograph to the publisher last week.” My friends agreed that the price of the Samsung phone is very high and prohibitive for students but the value derived from the phone far outweighs any cost disadvantage. Friend two: “My purchase decision for the Samsung mobile phone was independent of any advertisement. I was doing window shopping when I found the phone and I was attracted by its ability to have a tracker such that if a person stole it, it will be possible for me to get back my phone after reporting and tracking is initialized to determine where the bearer of the phone is currently at. I was also lured by availability of insurance option for the phone.” Friend three: “This phone is superb. It has memory card that is as large as ten megabytes. I am able to store all my pictures and photos before I transfer them to the laptop. Its data cable is also locally available and at a cheaper price. I fell in love with this mobile phone because it not only has a cable connection to the internet but also has options for blue tooth. It also supports synchronization features that are compatible with my laptop outlook. It is worth the value of my investment.” It is only my fourth friend who didn’t find any satisfaction on buying the phone. “This phone is huge and heavier. Although I bought it, I rarely carry it around. Its battery is not able to last for long and my busy schedule does not give me a chance to keep on charging it. I also realized its keys fade very fast and being on glasses, it was not the best option.” From the above research on my classmates, it follows that social factors create desire for symbolic consumption that determines direction of consumption. Consumers therefore choose products or services from specific top brands. Since mobile phones is a luxury product, they are very expensive, purchased infrequently, high visible, highly culturally symbolic and fall under conditions of high involvement. It is also evident that physiological factors influence dimension of feelings that leads into emotional purchase choice process. Hence my friends purchase behaviors are characteristic of emotion driven model. My friends purchase decisions are depended on their desires. It is worth to note that people obtain their purchase desires from socio-cultural system and express their identity by consuming products that are produced by socio-cultural system. Conclusion Consumer purchase behaviour is a product of a consumer’s choice process. Consumer purchase behaviour represents consumer’s choices on products that reflect different consumer tastes and preferences. In addition, consumer purchase behaviour qualifies to be an exchange process with environment because consumer choice processes for a product are guided by demographic factors and cultural factors. As an exchange process, consumer purchase behaviour is guided by consumer consumption characteristics, consumer disposition of products as well as ideas and experiences on a product. Consumer involvement plays a great role in determining consumer purchase behaviour like need to derive symbolic meaning, emotional feelings and cognitive effects associated with a product. Consumer purchase behaviour involves five steps that are problem recognition, information search, evaluation of possible alternatives for the product, determination of product choice and consumer outcome that is either a decision to buy the product or fail to buy the product. Consumer purchase behaviour that is characteristic of emotional factors is driven by motivation to have the product, preference formation for the product by the consumer and consumer’s justification of product value. Other factors that influence consumer purchase behaviour include presence of disposable income, consumer lifestyle and fashion trends and trends in latest technological development of the product. It is apparent that consumer purchase behaviour is a study of choice. Bibliography Belk, R. W., G. Ger and S. Askegaard (2003) The Fire of Desire: A multisited inquiry into consumer passion, Journal of Consumer Research, 30 (3) 326-351. Bringing the Customer into the heart of a Technology Business. Uttley,M. and Scott,J. 2006. 2006, Market Reseacrh Society. Chernev, A (2006). Decision focus and consumer choice among assortments, Journal Of Consumer Research, 33 (Sept), 50-59. Chernev, A. (2003), When More Is Less and Less Is More: The Role of Ideal Point Availability and Assortment in Consumer Choice, Journal of Consumer Research, 30 (Sept), 170-183. Connecting People Across Continets: Mobile communications in Africa. Eljala, Jokke and Gwillian, Jane. 2006. s.l. : Annual Conference, 2006, Market Research Society. Davies A.J. 2007, ‘Choice and decision-making’, lecture notes distributed in the topic MN7283 Consumer Behaviour. University of Leicester, school of management on 1st November Davies A.J., and R.Elliott (2006), Evolution of the Empowered Consumer, European Journal of Marketing, 40 (9/10), 1116-1121. Do i want to be beautiful: Consumer decision making for cosmetic surgery. Korczak, Dieter. february 2008. Rome : ESOMAR, february 2008. Health Conference. Elliott, R. (1998) A Model of Emotion-Driven Choice, Journal of Marketing Management, 14, 95-108. Hogg, M. K. (1998), Anti-Constellations: Exploring the Impact of Negation on Consumption. By: Journal of Marketing Management, 14 (1/3), 133-146. Low Prices Everywhere. Neil, Algar Ray and Borton. 2007. iss. 489, march 2007, Admap, pp. 37-40. Low prices everywhere. Ray, Algar and Borton,N. 2007. 489, dec. 2007, Admap, pp. 37-40. Mowen J and Minor. M (1998) Consumer Behaviour, fifth edition, London: Prentice-Hall Put a New Shine on your Brand. Rob, O'regan. 2007. Feb. 2007, The Advertiser, pp. 26-30. What the Twitter Fad Tells us About humans and Human Behaviour. Mark, Earls. 2007. issue 37, Summer 2007, Market Leader, pp. 56-57. Read More