Role of Consumer Perception in Customer Behavior - Coursework Example

Role of consumer perception in customer behavior Name Course Lecturer Date i Perception Self perception Approximation of what is real entails our perception on different subjects. An individual’s brain, gets exposed to different stimuli and tries to make sense out of it. Our perception is influenced by several factors that are sequential in nature. For it to impact an individual, exposure alone does not qualify to significantly influence an individual, at least not on a single trial basis. When stimulus is made sense out of, interpretation results. Self perception theory tries to illustrate how individual get an understanding of the driving force behind their buying behavior. (Schiffman, O'Cass, Paladino & Carlson, 2013) Price perception Potential customers are appealed differently by different merchandisers. Some apply low product prices as a bait whereas upscale firms dictate value for money and quality. Price difference among different traders offering similar services or services and the quality perceived of the service or merchandise in question are the main factors which shape price perception (Krishna, 2012). Price perception highly determine customer satisfaction with their merchandises and if future purchases would be made. Benefit perception Enhanced, general, unsupported nutrition claims tend to be rejected by consumers, mostly for traditional foods viewed as being unhealthy although have high value of nutrients. Consumers are said to develop a tread towards a higher scrutiny of the claims thus demanding detailed information on food purchases they make. (Troye & Supphellen, 2012) ii How the customer perceive As an essential element of firms’ objectives and mission statements, value addition has been broadly illustrated in many practitioner literatures. Long-term success is greatly dependent on it and customer value delivery in the modern business world of quality is just what matters. However, even in retail market where product evaluation is done before purchase is made minimal research has sorted the value construct issue. Moreover, there lacks a well-accepted technique to measure value. Consumer value involves, in a broad perspective, understanding current users, identifying arising opportunities for buyers, and wisely making payer’s innovation. Consumer perception entails how people make opinions towards firms and the products they deal in by the purchases they order (Krishna, 2012). To find out how buyers perceive them, traders use consumer perception theory. So as to attract new customers and retain existing ones, merchants also apply this theory. Systemic buyer value is a reflection of the value received by the customer and is dependent not only on a number of firms but also on different attributes. (Pynnonen,Ritala & Hallikas, 2011). Products have an array of extrinsic and intrinsic attributes which buyers apply to identify to product quality. Those that cannot be separated from the physical product as integral part of the product are referred to as intrinsic attributes. Extrinsic attributes (e.g., brand name, warranty, price, country of origin) when changed have no physical effect on the product, but influence buyers’ quality perceptions. Intrinsic cues data mainly dominates extrinsic attributes in formulating views since it is regarded more important than extrinsic attributes (Schiffman, O'Cass, Paladino & Carlson, 2013). When intrinsic information is rendered not useful and is rare, extrinsic cues are however highly applied to determine product quality. iii Status Consumption Status consumption is a motivational process whereby people struggle through conspicuous consumption of products that symbolize and confer status not only for the significant surrounding others but also for the individual. Products have uses symbolically. Consumers buy, possess, utilize and display various goods and services enhancing their sense of self identity and status which presents an image of who and type of people they really are, presenting what they think and feel, and to bring into attention the social relationship types they intend to acquire (Eastman & Eastman, 2011) Status value has in it some of products meaning resulting from other peoples’ approximation of the range to which the status of their owners is expressed. As a result some purchases are referred to as “status symbols.” To demonstrate an elevated status level not only to themselves bit also to their friends, people buy and utilize products. By definition, “status seekers” are individuals who although they continually strain, maintain clear evidence of the high rank they insist on. It is not only satisfying to humans to have a sense of belonging especially to a group or groups. Thus, individuals copy members of the group for them to be part of the group too. Status consumption is proposed to have one dimension, a quench towards consumption of status, that entails an interest towards status products and status. In conspicuous consumption fulfillment is derived not to the essential and worthwhile attributes of the service or the good in question but to the reaction of audience and to the investment capital displayed by the buyer to secure the consumer product. Thus conspicuous consumption entails purchasing a highly price-tagged product inflating one’s ego as a result, an urge for status which involves buying a merchandise that represents status also to the surrounding significant others besides the individual. For struggle towards social approval and self respect, status consumption may help people henceforth. A study, involving five items, was carried out to purify on aggregate scale, putting to test validity that puts into focus discriminant and criterion validity. The extent of a measure relating to outcomes of real life and actual behaviors is criterion validity. An analysis involving confirmatory factors and a scale, unidimensional,(Status Consumption Scale or SCS) resulted and every item significantly loaded on the construct which was single latent. Measurement model fit was good, having on 5 degrees of freedom, a chi-square of 2.42. Finally .999 was the fit index having a p-value of .79 as demonstrated in the table below. (Schiffman, O'Cass, Paladino & Carlson, 2013) In describing ways of developing and validating the Status Consumption Scale (SCS), the concept of status consumption was presented showing extent to which buyers purchase and utilize products for the status in which they identify with. The research aided in finding out the consumer motivation consuming for status distinct from social class or income. The measure is figured to relate to, although distinguishable from constructs that are similar such as materialism, social class and income. Therefore, it offers a valid, reliable and easy to attend to measure that is able to aid marketers in better predicting and understanding status consumption. iv Explaining how consumer perception, “status consumption” in particular being utilised by marketers towards influencing consumers’ decision to purchase their product or service Classes endowed with purchasing and spending power and in participating effectively in consumer culture i.e. the middle classes in the less developed nations make it difficult to understand the operation of status consumption there. Bourdieu’s status consumption model, western research based, provides inadequate explanation as suggested by globalization research. Comprehending social consumption consequences and mechanics used in expressing position of social class, which under known convention, is called status consumption , and has for a long period of time been the core of strong theoretical debate (Ordabayeva & Chandon, 2011) As consumer culture theory illustrates, when theory development is approached contextually, simpler and powerful explanations result (Krishna, 2012). In less industrialized countries, understanding the way status consumption works, is in particular consequential currently given the high emergence of new consumer class –approximately 1.2 billion consumers larger than the developed countries such as Australia, and increasing very rapidly. This emerging global class, having high purchasing power tending towards the Western nations’ levels can pursue a lifestyle which is consumption focused. These emergent and increasing customers have become multinational companies’ highly prized target, since they are potential growth opportunities over the highly saturated markets of the West. The arising consumers also pose an important challenge in the world wide struggle towards managing climate change. This is because the new markets seek to copy and identify with the carbon-intensive lifestyle of the West thus the challenge of solving global warming results to being much harder. (Brodie, Hollebeek, Juric & Ilic, 2011) One would most probably think of beer in Australian life if he thought of alcohol. However, a dramatic change is taking place on the drinking taste of the nation. Not only is the overall drinking less, but also beer no longer dominates the national glass’ contents. Consumption treads clearly show that wine may soon be the drink of choice with regard to the consumed type of alcohol consumed. 20 times less wine than beer was drank in Australia 5 decades ago and the comparison has decreased to only three times less wine by volume. In alcohol beer is less in amount and thus if pure alcohol is examined rather than the total consumed fluid, there is little difference between the two. The graph below, of 1961 to 2011, the overall consumption of alcohol drops drastically from 76% to 42% whereas there is a significant rise of wine consumption from 12% to 37%. Spirits consumption rose from 12% to 20%. (Krishna, 2012) The gap closing between beer and wine clearly illustrates something intriguing about national identity expressions. The great change in national taste within the 50 years could result from post-war migration from western European countries that produce wine, increased women power as consumers, increased prosperity of the nation, and a more technologically industrial wine with customer preference matching its products. Whereas alcohol is rooted in the Australian culture, beer, wine or spirit drinking is not only an inherent social activity but also an individual’s daily life activity. Social oriented research identifies a strong relationship between consumption choices and identity. Consumer culture theory weighs meaning systems which tend to convey, reproducing consumers’ mind and actions so as to protect societal dominate perceptions – consumer ideology (Claiborne & Sirgy, 2015). Consumers are seen as agents of interpreting whose activities create meaning and vary within those that strongly hold on to dominant consumer identity representations and ideals of lifestyle seen in mass media and adverts and those which are different in that they deviate consciously from ideological requirements. The choice of consumption is not just an issue of individual choice, but is also dependent on cultural taste. What one consumes shows something important about an individuals’ self-identity towards cultural values, lifestyles and social groups in particular besides focusing on how much people drink as a concern over risky drinking behaviors (Schivinski & Dabrowski, 2014). The theory strives to link systematically the idiographic meanings to diverse levels of structure and culture processes and finally situating the relationships within the marketplace and historical contexts. It is a presentation of unfading reminder that social-cultural practices which arise within the ideological imperatives and structures of marketplace dynamics, historically shapes consumption. The theory also that for any buyer generally, that the said real world situation, it is neither monolithic, nor unified nor rationally transparent. (Grayson, Kent and Radan Martinec, 2004) Status seeking theory relates to the fact that individuals identify with social norms in relation to their status and that involvement in high culture links them to high status. In this perspective, status is communicated more effectively in cultural endeavors highly exclusive than in the less exclusive ones. The same applies to public cultural consummation than in the private ones (Gambetti, Graffigna & Biraghi, 2012). So, reading a novel denotes status less strongly than visiting the theatre. For the ‘information processing’ theory complex information is out-sourced from cultural stimuli. Individuals on the other hand have different capability levels by which they process information and varying familiarity levels whatsoever cultural field. One’s ability to understand the culture determines his enjoyment in its participation. The high level of interaction between cultural participation and cultural knowledge and skill is an evidence for the positive perception and allows individuals to enjoy and understand cultural stimuli’ thus enhancing cultural participation (Bevan-Dye, Garnett & Klerk, 2012). Participation in culture promotes cultural knowledge development, consequently allowing diverse cultural appreciation, and cultural participation is further made more likely. Influencing customers’ decision to demand our services in a beauty firm A lot of research has been carried out on the effect of adverts in the industry of beauty and fashion especially to women. Images showing beauty that are unrealistic are created day in day out and has negatively impacted many women, some developing low self-esteem and reduced self-acceptance and anxiety. The negative influence develops from sadness among appearance and body. However, cosmetics can be used by these women manipulating their appearance and positively impacting them. (Koert Ittersum & Brian, 2012) Nowadays, ladies are common cosmetics users, and are highly informed about a vast variety of cosmetics and thus a woman’s differences has an impact on the cosmetic of her choice (Bloom, Hoeffler, Keller & Meza, 2012). With the constant reminder of what beauty is, by the countless adverts displaying women of diverse sizes, shapes and ages, in their elusive image of beauty. With an aim to positively influence consumer perception in this industry of beauty and any other industry in general, there are some factors one should consider. In the beauty firm, where I intend to work, so as to influence consumer demand for our services, I would employ some of these factors too. There are four major factors that influence consumer behavior; psychological factors, personal factors, social factors and cultural factors. (Üstüner & Holt, 2010) Cultural environment, family and friends always have an influence to an individual, teaching him values. For a beauty and fashion centre, some factors will be necessary to put into consideration as there exists a mixture of cultures between the different communities and immigrants such as South Sudanese. Understanding the tastes and needs of consumers in our culture would be a priority so as to scoop the consumers’ positive perception. Understanding for instance, how native Australians take modern and level of fashion they regard as worthwhile for their engagement (Arnould & Thompson, 2005). The same should be done in other regions where other communities are established having different lifestyles in general. Research should be well carried out. Different sub-cultures would be of consideration for a market due to market segmentation so as to adapt a communication stategy or product to the unique needs and values of the segment. For instance, recently, ‘ethnic’ cosmetics segment has broadly expanded. Some products are more suited to a population of non-Caucasia and to skin types pigmentation for Indian or Arab or African population. (Mullen & Johnson, 2013) Social classes refer to groups which are more or less uniform forming a social hierarchy on ranking against one another. Same values, interests, behaviors and lifestyles are usually found in individuals in a similar social class. Disparity consumption patterns and different desires exist in people of diverse social classes. The same applies to beauty and fashion industry. Thus what is suitable for each will have to be identified prior to the establishment of the business. Personal factors will be of consideration in the firm to be so as to evaluate on what each and every individual prioritizes in terms of beauty and fashion. (East, Wright & Vanhuele, 2013). Through interviews and personal interaction, identifying the way of life and age, this will be an endeavor which will help identify consumer perception and expectations which will be taken into consideration and implemented. Psychological factors are sub-divided as; perception, motivation, attitudes and learning as well. Identifying these values will be of great importance so as to identify ways of changing what can be changed. For instance perception is organized in three dimensions i.e, self-attention, self-distortion and self-retention (Schiffman, O'Cass, Paladino & Carlson, 2013). Stimuli or information type may be the object of focus when an individual is subjected to such, so in advertising, the consumer attention to stimuli will have to be need oriented in relation to what the consumer have desired and would appreciate if provided or the existing product or service was improved. References Arnould, E. J., & Thompson, C. J.(2005). Consumer culture theory (CCT): Twenty years of research. Journal of consumer research, 31(4), 868-882. Bevan-Dye, A. L., Garnett, A., & de Klerk, N. (2012). Materialism, status consumption and consumer ethnocentrism amongst black generation Y students in South Africa. African Journal ofBusinessManagement, 6(16),5578-5586. Schiffman, L., O'Cass, A., Paladino, A., & Carlson, J. (2013). Consumer behaviour. Pearson Higher Education AU. Bloom, P. N., Hoeffler, S., Keller, K. L., & Meza, C. E. B. (2012). How social-cause marketing affects consumer perceptions. Image. Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). 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