Consumer Behavior - Postgraduate Education Choices - Research Paper Example

Consumer behaviour Postgraduate education choices Executive summary Consumer behaviour involves a process of decision making and physical activity for evaluating, acquiring, using and disposing goods as well as services. Study of the consumers helps the organisations and firms to improve their strategies in marketing through understanding of various issues such as the psychology of the consumers that is, how they reason, feel, think and make selection between various choices or alternatives, how the environment influence the consumers such as family and culture. This study involves evaluation of different postgraduate options for three respondents based on different evaluation criteria such as distance from home, entry requirements and others. Consumer choices have been calculated using compensatory decision rule where the calculated choices different with consumers, choices on the basis of evaluative criteria based on demographic and personality. It is recommended that the marketers should utilize segmentation, targeting as well as targeting tools effectively in order to reach everyone in terms of making choices. Table of content 1.Introduction 4 2. Decision Matrix creation 4 2.2 List of evaluative criteria 5 2.3 Decision matrix 7 3. Compensatory decision rule application 7 3.1 Respondent 1: Denzel 7 3.1.1 Evaluative criteria ranking 7 3.1. 2 Option rating against each criterion 8 3.1.4 Comparison of calculated results with real choices 9 3.2.2 Option rating against each criterion 10 3.2.4 Comparison of calculated results with real choice 11 3.3. Respondent 3: Jack 11 3.3.1 Evaluative criteria ranking 11 3.3.2 Option rating against each criterion 12 3.3.4 Comparison of calculated results with real choice 13 Analysis of choices 13 4.1Reasons for different evaluative criteria rankings 13 4.1.1 Demographic reasons 13 4.1.2 Personality reasons 15 4.2Reason for different choices 15 4.2.1 Demographic reasons 15 4.2.2 Personality reasons 16 4.2.3 Recommendations for marketers to these options. 17 5. Conclusion 18 References 18 INSEAD 2012, Admissions. Accessed on 24 April 2012 from: http://mba.insead.edu/admissions/ 20 USQ 2009, Programs and courses: Master of Business Administration (MBAD) – MBA.Accessed on 24 April 2012 from: http://www.usq.edu.au/handbook/2012/buslaw/MBAD.html 20 1. Introduction Everyone is a consumer and we consume a lot of things in our daily life in accordance to our preferences, needs and the power of buying (David & Albert 2002). What we buy and how we do it and when in addition to the quantity will depend on our self concept, perception, cultural and social background, our family cycle, age, beliefs, attitudes, personality, motivation, social class and other factors which are either internal or external to us (Del 2001). Consumer behaviour involves a process of decision making and physical activity for evaluating, acquiring, using and disposing goods as well as services. (Perner 2010). This report involves analysis of consumer behaviour through selection of different options of postgraduate studies in different universities and colleges. The study focuses on evaluation of different criteria against postgraduate options for three respondents using compensatory decision rule method. 2. Decision Matrix creation 2.1 List of Postgraduate options 1. CQU - Master of Business Administration specialising in human resource management by distance education. Entry requirements include a bachelor degree from a college or university in any discipline and a minimum of two years experience in work in the management capacity (CQU 2012). 2. USQ- Master of Business Administration specialising in Global Business Management by distance. Entry requirements include bachelor degree from any discipline with professional experience in relevant works (USQ 2009). 3. INSEAD - Master of Business Administration full time with no specialisation. The entry requirements include a bachelor’s degree in any discipline from a recognised university or college. Professional experience that is substantial is an added advantage (INSEAD 2012). 4. LBS - Master of Business Administration in Finance in a flexible 15 to 21 months program. The entry requirements include and a bachelor’s degree with an average of 5.7 years work experience in relevant field (London Business School 2012). 5. MIT – Executive Master of Business (EMBA), a rigorous part, time 20 month programme. Entry requirements include an equivalent bachelor’s degree with no professional work experience is required (MIT Sloan 2012). 6. Stanford -Master of Business Administration in management and cooperate leadership (MCL) full time, Entry requirements include an equivalent three year baccalaureate degrees from international universities. No professional work experience is required (Stanford GBS 2012). 2.2 List of evaluative criteria 1. Entry requirements 2. Tuition fees 3. Duration 4. Distance from work/home 5. Level of interest on the area of study 6. Program reputation 2.3 Decision matrix Consumer perceptions Evaluative criteria CQU- MBA (HRM) USQ- MBA (GBM) INSEAD- MBA LBS- MBA (Finance) MIT-EMBA Stanford- MBA (MCL) Entry requirements Tuition fees Duration Distance from work/home Level of interest on the area of study Program reputation 3. Compensatory decision rule application This rule states that the option that will rate highest on the total sum of the judgement of the consumer in relevant criteria for evaluation is the one to be chosen. 3.1 Respondent 1: Denzel 3.1.1 Evaluative criteria ranking Evaluative criteria Importance in points Entry requirements 20 Tuition fees 15 Duration 15 Distance from work/home 35 Level of interest on the area of study 10 Program reputation 5 Total 100   3.1. 2 Option rating against each criterion Consumer perceptions Evaluative criteria CQU- MBA (HRM) USQ- MBA (GBM) INSEAD- MBA LBS- MBA (Finance) MIT-EMBA Stanford- MBA (MCL) Entry requirements 5 4 5 2 3 2 Tuition fees 3 4 5 3 4 4 Duration 2 3 5 4 4 3 Distance from work/home 5 3 2 2 1 1 Level of interest on the area of study 1 3 4 4 4 4 Program reputation 1 3 4 3 5 5 1= Very poor, 5= Very good 3.1.3 Calculation using compensatory decision rule CQU= 20*5 + 15*3 + 15*2+ 35*5+ 10*1 + 5*1 = 100 + 45 + 30 + 175 + 10 + 5 = 355 USQ = 20*4 + 15*4 + 15*3 + 35*43+10*3 + 5*3 = 335 INSEAD = 20*5 + 15*5 + 15*5 + 35*2 + 10*4 + 5*4 = 380 LBS = 20*2 + 15*3 + 15*4 + 35*2 + 10*4 + 5*3 = 270 MIT = 20*3 +15*4 + 15*4 + 35*1 + 10*4 + 5*5 = 280 Stanford = 20*2 + 15*4 + 15*3 + 35*1 + 10*4 + 5*5 = 195 Using the compensatory rule, a Masters in Business Administration full time in INSEAD is chosen. 3.1.4 Comparison of calculated results with real choices From the calculations in the matrix, it suggests that Denzel have the likelihood of choosing an MBA full time in INSEAD, France but because he works in works in Australia, he chooses to study MBA in human resource management by distance in CQU. 3.2 Respondent 2: Janet 3.2.1 Evaluative criteria ranking Evaluative criteria Importance in points Entry requirements 10 Tuition fees 5 Duration 5 Distance from work/home 30 Level of interest on the area of study 40 Program reputation 10 Total 100   3.2.2 Option rating against each criterion Consumer perceptions Evaluative criteria CQU- MBA (HRM) USQ- MBA (GBM) INSEAD- MBA LBS- MBA (Finance) MIT-EMBA Stanford- MBA (MCL) Entry requirements 4 5 5 1 1 1 Tuition fees 4 5 2 1 4 4 Duration 3 2 3 1 5 4 Distance from work/home 1 3 1 5 2 2 Level of interest on the area of study 2 4 1 5 1 1 Program reputation 2 5 1 1 2 1 1= Very poor, 5= Very good 3.2.3 Calculation using compensatory decision rule USQ= 10*5 + 5*5 + 5*2 + 30*3 + 40*4 + 10* = 50 + 25 + 10 + 90 + 160 + 50 = 385 LBS = 10*1 + 5*1 + 5*1 + 30*5 + 40*5 +10*1 = 10 + 5 + 5 + 150 + 200 + 10 = 380 The calculated values of CQU, INSEAD, MIT and Stanford are less that the value of LBS meaning that by use of matrix, MBA in global management in USQ by distance is chosen 3.2.4 Comparison of calculated results with real choice By use of matrix, Janet is likely to choose MBA in global management in USQ by distance but since she likes to lives in London with her family and likes London universities with much interest in finance, she chooses MBA in finance in LBS. 3.3. Respondent 3: Jack 3.3.1 Evaluative criteria ranking Evaluative criteria Importance in points Entry requirements 10 Tuition fees 10 Duration 10 Distance from work/home 10 Level of interest on the area of study 30 Program reputation 30 Total 100   3.3.2 Option rating against each criterion Consumer perceptions Evaluative criteria CQU- MBA (HRM) USQ- MBA (GBM) INSEAD- MBA LBS- MBA (Finance) MIT-EMBA Stanford- MBA (MCL) Entry requirements 5 5 2 2 2 5 Tuition fees 2 1 2 1 1 5 Duration 1 1 3 3 1 5 Distance from work/home 3 3 2 2 1 5 Level of interest on the area of study 1 1 1 2 5 4 Program reputation 1 1 2 1 5 3 1= Very poor, 5= Very good 3.3.3 Calculation using compensatory decision rule Stanford = 10*5 + 10*5 + 10*5 + 10* 5 + 30*4 + 30*3 = 50+50+50+120+ 90 = 360 MIT = 10*2 +10*1 + 10*1 +10*1 + 30*5 + 30*5 = 20 + 10 + 10 + 10 + 150 + 150 = 350 Other calculated values of CQU, INSEAD, USQ and LBS are less than the value of Stanford which shows that by use of matrix, Stanford’s MBA part time is chosen. 3.3.4 Comparison of calculated results with real choice By use of matrix, Jack is likely to choose Stanford’s MBA part time but because he lives and works in USA thus he want to be a part timer in a special course like the executive one offered by MIT. Also he is interested in MIT due to its reputation in the region. Analysis of choices 4.1Reasons for different evaluative criteria rankings 4.1.1 Demographic reasons Different ranking on evaluative criteria are based on demographic factors such as ethnicity, level of income, race, social class, and family situation, education, occupation, nationality and generation. For the first respondent (Denzel), his selection on evaluative criteria is based on level of income, occupation, education and family situation. He puts more emphasis on the distance from work on the basis of occupation and the situation of the family. In order for him to study, he needs to be financially capable. This means that the job he is doing is very essential for the completion of his degree. This is the condition that makes him to put the distance from work as the first priority. In addition, it is also important for most of people to be close to their family and at the same time being involved in other activities for making bettering their future. This means that another reason for considering the distance from home is to be close to the family as he works and learns. Because his best option is studying in the nearest university, he also has to be concerned with the entry requirements for what he wishes to accomplish. He also considers the tuition fees on the basis of his level of income. This is also important to him because his choice must also agree with his level of income since he may have other responsibilities such as taking care of his family others other issues such as business. (Armstrong 1992). For the second respondent (Jane), her rating on evaluation is based on the following demographics; family situation, ethnicity and education. As she has a family in London, she wants to study in the nearest institution without compromising her relationship with her family. Thus, she takes the corrective family responsibility as well as doing her postgraduate studies. Her criteria evaluation may also be based on ethnicity. This is because her emphasis to study in a Britain university can be seen as ethnic since there are more options of studying the same program in universities within London or away through distant learning and still be close to her family. She also gives more priority on the level of interest of her area of study which is finance. This can be related in terms of education from the demographics. The evaluation can also be gender based in a way that, she observes her role as a woman in the family thus, giving the distance a priority in her evaluation criteria (. Areni & Kiecker 2001). The third respondent’s (Jack) different in criteria ranking is based on the following demographics; race, level of earning, occupation and generation. On basis of race, Jack is so much into an American university in a way that he does not realise that there are other ways of learning such as by distance without moving. Also since he is working in America, it is possible that the American university is the best for him as he can coordinate advancing through part time while maintaining his job. In another way his level of earning may not allow him to travel too much while there are other chances within where he can even be entitled to scholarships in his own country. His priority on program reputation an interest in the area of study may be attributed to generation. This is because MIT is offering not just an MBA but an executive MBA (EMBA) which according to time it earns him reputation as being a different title from other MBAs (Armstrong 1992). 4.1.2 Personality reasons Denzel personality trait can be related to an introvert in such a way that, from his evaluation he gives priority to the distance since he is not an outgoing person. Although his idea on distance is based distance can be based on his work, it is possible for him to enrol on part time basis or by distance learning. He may also have beliefs based on his place of work in such a way that, most of his colleagues may have advanced in the nearest university so why not him? So he develops an attitude that employees from his place of work usually studies in the nearest university (Eagley & Chaiken 1993). Jack’s personality traits in different ranking of criteria can be seen as an extrovert and openness to experience. This is because he can be said to be outgoing since he is able to point out special programs that may seem competitive in his work such as an executive MBA. He is also adventurous in a way that he realises this program may be through research or travelling and experience. His attitude towards exploring through competitive programs in his field of work is also a reason for different ranking on evaluation criteria (Allen et al 1992). 4.2 Reason for different choices 4.2.1 Demographic reasons Different choices for the three respondents are attributed to family situation, culture, ethnicity, occupation, and generation. For Denzel his choice is mainly based on occupation. This is because although there are many universities throughout the world offering his preferences, he opts to take an MBA in his nearest university due to his job attachments. Thus he realises that his occupation is very essential to his work as through his earnings, he can be able to support himself in studies and other natters in life. Thus, his choice is guided by his occupation. In Janet’s case, she may be mainly driven by family situation, gender and ethnicity. Given that she has a family, she opts to stay close to them and at the same time take an MBA program. This leaves her with no other chance rather than taking an MBA in LBS. In addition, she can also be said to be driven by ethnicity because she made her choice on the ground that she values universities in London which can be seen as being showing a sign of ethnicity in her selection of program. Her choice on programs can also be related to gender as she is driven by the sense of being a mother and a wife through living with her family while studying (Dietz & Stern 2002). Jack is driven by culture, generation and occupation making choices on his program. He is driven by culture in making choices in a way that he want to maintain the culture of his organisation where may be many of his employees have the tendency of studying in the nearest American universities. Also, given that he works and lives in America, he is likely to study in MIT because he want to cut off expenses as well as maintaining his job. Generation is also a main factor that led to making decision as he chooses a unique program EMBA in order to fit in the new generation through the modernisms and uniqueness of his program. This could also lead to better position in his work through promotion (Bosnjak 2007). 4.2.2 Personality reasons Traits that led to difference in making choices for respondents include attitude, conscientiousness, being open to experience, and introverts. For Denzel, he was driven by the belief and attitude that the only way to study at your working place is through the nearest university. This made him to eliminate the chance of studying by distance. He may also be an introvert which may be another reason that he did not prefer to study in France. For Janet, she made her choice on basis of conscientiousness such that she needed to show an act of dutifulness for her role as a woman as well as coordinating with her studies. She also has an attitude and a belief that women should be close to their family as a way of not jeopardising her relationship with her family (Hirsh & Dolderman 2007). For Jack he is open to experiences as he explores his way to very interesting courses that could lead to promotion in his workplace. His sense of giving priority on reputation and areas of study is much a way of being an extrovert through looking for institutions and courses that may grow attention and the need to know more about them (Moon 2002). 4.2.3 Recommendations for marketers to these options. From this report, the respondents have been made their choices on the grounds of being close to either families or place of work. As most of them give preference to their families or place of work, it means that there is need for dissemination of programs to reach the consumers in their workplace and home. This calls for development of institutions either physically or through distance learning to various regions for closeness to the learners. Also there is a quest for the same courses with more advanced names that are attracting more consumers. Thus, it is recommended that the marketers utilize segmentation, targeting as well as targeting tools effectively in order to reach everyone. This will involve three stages which include; Determination of the type or the kind of the consumers that are in existence Select the best consumers that are best for serving Implementation of the segmentation through communication in order to be distinguished 5. Conclusion The influence of the consumer and his or her lifestyle is through various factors that revolve around the consumer which includes values, culture, social status, demographic factors, household, reference groups and the consumers’ internal make up also known as personality. This report provides evidence of how various consumers have different choices based on demographics and personality. From the report, the three respondents have expressed their different views on making choices on postgraduate options in different universities in various regions based on factors such as entry points, distance from home or workplace, tuition, reputation of study and levels of areas of interests. Their differences have been calculated using the Compensatory decision rule which upon providing the possible choices, their importance on evaluative criteria has been very essential. References Allen, C. T., Machleit, K. A. & Kleine, S. 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Accessed on 24 April 2012 from: http://mitsloan.mit.edu/mba/admissions/faq-and-chat/?faq/index.php Moon, Y. 2002, Personalization and personality: Some effects of customizing message style based on consumer personality. Journal of Consumer Psychology, 12, 313–325. Perner, L. 2010, Consumer Behaviour: The Psychology of Marketing. Accessed on 24 April 2012 from: http://www.consumerpsychologist.com/. Stanford GBS 2012, Application Requirements for Class of 2014 (Entering Fall 2012). Accessed on 24 April 2012 from: http://www.gsb.stanford.edu/mba/admission/application_requirements.html USQ 2009, Programs and courses: Master of Business Administration (MBAD) – MBA.Accessed on 24 April 2012 from: http://www.usq.edu.au/handbook/2012/buslaw/MBAD.html Read More