Consumer Behaviour Challenges - Assignment Example

Buyer Behavior Name: Lecturer: Course: Date: Question 1 The integration of an ambient scent in the retail environment can demonstrate the working of the S-O-R model of environmental psychology. Foremost, the S-O-R model propagates that the environment acts as a stimulus(S) that comprises of elements that come together in order to affects an organisms internal evaluations (O) which results to an avoidance or approach response (R). When the S-O-R model is evaluated using the ambient scent, it can be stated that the existence of an ambient scent in a retail environment, acts as the stimulus (S) which has the ability to affect a buyer’s internal evaluation (O) in a variety of ways. For, instance when a retail store uses a pleasant scent, the buyers can gain a positive opinion of the store. In addition, the buyers may develop an inward feeling of wanting to remain in the store for a longer period. Such internal evaluation may result to a positive response (R) which is to purchase a variety of products or even more products than intended. One of the main ways to ensure that the use of scent will work to the retailers benefit is by using scents that are able to attract positive emotions on the customers. Scientific studies disclose that aroma has a great influence on consumer behavior. A retailer should therefore use scents that can draw the customer to the store and towards purchasing the products. For instance aromas such as; basil, lavender, citrus flavor and cinnamon are bound to arose a feeling of relaxation and thus prompting the customer to purchase the product (Chebat and Michon, 2003). Also, retailers should ensure that the good smelling stores should also be accompanied with quality products. If customer find a good scent in the store yet the products offered are substandard, they are bound to forgo their purchase. Question 2 The information-processing model is framework that highlights the manner in which consumer’s process information. Consumers have the tendency of processing information in a hierarchical manner that entails exposure, attention, comprehension, acceptance and retention. The first step, which is exposure is instigated by nearness to a stimulus that activates one or more senses. After exposure to the stimuli, the person’s attention is pulled to the stimuli. The transfer of attention to the stimuli is influenced by a number of factors, some of the factors include; size, colour, the nature of the spokesperson and position. A person then gives an interpretation of the stimuli in a meaningful way. The interpretation may be based on the knowledge, expectation and the motives of an individual. Comprehension then results to interpretation and organization of the acquired information in a meaningful way, which further leads to retention. The model takes an upside down triangle model. This is because not all the messages that consumers are exposed to are always retained, thus the upside down model represents the lack of retention of information, whereby the information gained can be discarded at any particular time instead of being retained . For instance when looking at the comprehension stage, when a person is exposed to information that does not meet their expectation, the individual will not interpret and organization the information in an effective way instead the information will be discarded without getting to the retention state. The information-processing model can be used to justify marketing experiences in variety of ways. Marketing expenses generally include the costs to acquire and to retain customers (Healy, 2007). If marketers understand the manner in which consumer’s process information then the company would spend more in ensuring that the products and services they expose their consumers to can attract them, making them comprehended the information and finally retain the information. Also, marketing expenses would be directed towards marketing strategies that can facilitate the retention of the information given to customers. Question 3 The concept of mere ownership is basically a trend or behavior where an owner cherishes a product they own more, as opposed to the manner in which a person who does not own the product would value the product. In most cases, people appreciate and value a product more after they have gained ownership. After gaining ownership the level of value towards the product increases. On the other hand, a person does not value products that are owned by other people. Acquisition of a product is therefore a significant aspect in promoting the value that a customer holds towards the product. The concept of mere ownership can also be used as part of the marketing strategy. One influence is in terms of communication. Marketers should communicate their products in a manner that makes the consumers feel that they already own the product. Also, marketers should use strategies such as product trials in order for customers to develop a feeling of ownership of the product before the purchase. This will influence their buying behavior. Question 4 The compensatory decision rule involves a consumer choosing a brand that has the maximum amount of positive benefits as opposed to the negative benefits. The rule involves a mental cost benefit analysis. Consumers can adopt compensatory decision rules such; additive difference decision rules and the Multi attribute decision rules. The noncompensatory decision rule on the other hand involves the negative evaluation of needs that results to immediate rejection of a brand. Some of the approaches used in making noncompensatory decision include ; elimination aspects , disjunctive, conjunctive and lexicographic decision rules (Batra and Kazmi , 2009). In making future decisions, I will use both decision models in different ways. As a consumer, I am usefully faced with the choice of selecting from a variety of similar products, which raises a state of confusion on which product I should select. The compensatory decision rule can be effective in selecting the best product. For instance, I will undertake a cost and benefit analysis of the products in terms of cost; a less costly product would be preferable. Also, I will consider other attributes such as the quality of the product and its effectiveness in serving my intended purpose. I will therefore make my choice on the basis of the product that has more benefits. I will use the noncompensatory decision rule in brand selection whereby when making a choice on the best product to choose from a variety of products, I would use the elimination approach to make my decision. I will evaluate the products on the basis of the negative experiences I have had with the product or the information received from other users. The product that has the most negative attributes will be eliminated. Question 5 Chapter seven of Cialdini book on ‘’Scarcity ; the Rule of the Few’’ provides an insight into the use of the scarcity principle. According to the principle , opportunities are usually more valuable to people when their availability is limited . This therefore influences the action or decisions that people make. Cialdini provides various examples of the application of the scarcity principle. A case in point is that of 81 Years old Mr. Gulban who was swindled $18,000 by a sales man who used the scarcity principle. The sales man convinced Mr. Gulban to buy quickly because the opportunity is scarce. Mr. Gulban made the purchase hastily and salesman swindled all money. Cialdini argues that the scarcity principle is evidently a powerful psychological tool. This is because the principle has a notable power in influencing human actions. This is because the principle trades our weakness for shortcuts. People are aware of the fact that things that are not easily to possess are better than those that can easily be possessed. As a result, people tend to make rush decisions to acquire the things they cannot possess. Power also exists in the scarcity principle in the sense that when an opportunity is less available, we tend to lose freedom. Based on the fact that we hate to lose freedom, we therefore rush to get the scarce opportunities. The scarcity principle can be applied in the strategies I have in my life. Based on the fact that I intended to open a business, I will definitely use the scarcity principle in order to attract more clients. I intended to use the principle in an honest way not to swindle or deceive clients. For instance, I would place notices such as ‘’ Better Buy now opportunities are limited’’. Question 6 The nature of the effect depicted in the unit pricing study supports the idea that the use of unit pricing is an effective way of providing consumers with an opportunity of comparing prices, in order to make a decision concerning the best price for buying a particular quantity or size of product sold. The findings of the study depict that the two brands, one with a fixed price and the other with a variable price can influence buying decision of the customers. For instance , If consumers can estimate that the unit price for a standard size of the brand with a fixed price is better than that of the variable prices , the customer will make their decision on the basis of the best price. Another implication of the study is that unit pricing can at times confuse the consumers on which product to buy. For example; in the context of the study, by offering two standard units, the results of the unit cost of the two brands can be quite similar to that of the regular piece . This may therefore confuse the buyers on which product to select. It is therefore essential for the seller to counter check the standards provided, in order to determine which unit is better to purchase. One factor to put into consideration is the fact that consumers want to get more for their money .Therefore the standard units used should provide an opportunity for the buyers to get more for their money. Question 7 The first step of consumer decision making is the needs recognition step. Needs recognition takes place when consumers are exposed to an internal or external stimuli that influences them to make a decision to fulfill their desire. The consumers experience an imbalance between the desired state and the actual state that ignites the consumer decision-making process. The second step is the information search stage whereby after recognizing the need, the consumers search for information concerning the various alternatives that can be used to satisfy the need. The third stage is the evaluation of alternatives step. At this particular point the customer examines the alternatives gathered from the information search in order to determine the best alternative to purchase. After evaluating the alternatives and selecting the best alternative, the customer then purchases the product. The fifth step entails consumption and post purchase. Here the consumer uses the purchased product and post purchase where the customer deliberates on whether the product was valuable or not. The sixth step entails divestment which takes place in the event that the product did not satisfy the needs of the consumer. One of the factors that influences the extent of problem solving is the concept of the level of involvement. The level of involvement is the personal significance that the consumer places in a particular stimuli. The level of involvement may be high or low depending on the perception of the consumer towards the product (Verma, 2007) Differences in alternatives is another key element of problem solving. The differences that exist in the alternative also affect the level of involvement. In the event that alternatives are perceived to be differentiated, the customer’s level of involvement is also bound to be high. When the alternative is viewed as similar, the level of involvement is bound to low (Verma, 2007) Time availability is another concept in problem solving. The level of involvement in a decision to purchase a certain product is influenced by the availability of time. When a consumer has no constraint of time she /he can take time to evaluate the product and then make the decision to purchase (Verma, 2007) The decision making model can be used by a manager to influence how consumers make their decision. Having knowledge concerning the manner in which consumers make their decisions, managers should ensure that the marketers engage in constant advertisement of the company’s products and services. This will ensure that customers have adequate information when need arises. Also, manager should ensure that their marketers design and package quality products that meet the needs of the consumers. This will enhance the post – purchase behavior whereby the customer buys the product again. References Batra, K and Kazmi H, 2009,Consumer Behaviour, Excel Books, p439. Cialdini, R, The Psychology Pursuation, Collins Business Essentials. Chebat, J and Michon, R, 2003, The impact of ambient odors on mall shoppers’ emotions, cognition,and spending A test of competitive causal theories, Journal of Business Research, 56 (2003) 529–539 Österberg, M , 2008, Exploring the effects of ambient scent on consumers in servicescapes, Swedish School of Economic and Business Administration. Healy, P, 2007, Business Analysis and Valuation: Cengage Learning EMEA. Verma, 2007, Services Marketing: Text And Cases, Pearson Education India, p181. Read More