Why Consumers Choose One Product over Another - Research Proposal Example

 CONSUMER PSYCHOLOGY Why consumers choose one product over another? Table of Contents Introduction……………………………………………………………………………………….3 Introduction Over the past twenty years, there has been a significant amount of research work on consumer psychology. However, most of the literature on this subject has been subjected toward Western countries (Jason-Boyd 2009, p. 55). Little interest has been paid to consumers’ in other parts of the world. Specifically about the Kingdom of Saudi Arabia, very little work has been done on the factors influencing the Saudi consumer’s choice of one a product. Consumer psychology is a subdivision of public psychology science concerned with how human thoughts manipulate how they make purchase decisions (Mazanec 1999, p.29). It focuses on how buyers make decisions to spend their existing capital on one product instead of another. This selection is triggered by internal mental processes based on the totality of information held by an individual (Foxall, Goldsmith & Brown 1988, p. 103). Some work has been done on this field. The psychological factors influence one’s choice of one product over another. The experience gained through evaluation of alternatives products affects a consumer’s existing psychological attributes (Haugtvedt, Herr & Kardes 2008, p.255). Different consumers have variable knowledge levels. In this research work, I outline my proposal and focus on its conceptual and psychological implications in understanding the consumer psychology. I first bring in the research subject matter, followed appropriate literature. This will consist of both the conceptual and psychological perspective. This will contain my choice in relation to the relevant debates. Then I outline the research question, its potential objective plus a justification of the research subject. A research design methodology design will then follow. I will also give a sample study and the research significance. I then will draw a project timetable to highlight the project activities as per the timeframe. Finally, I will conclude my research on consumer psychology. Literature review There has been mounting curiosity on how consumer psychology affected consumer’s choice of one product over another. This debate proposed the thought of consumer psychology as the key subject of consideration to consumer psychologists (Mazanec 1999, p.210). The research on consumer psychology focused on how cognitive capacity develops and how it affects the product choice course of action. Traditionally, it has been understood that consumer product choice is post cognitive. Recently, it was anticipated that two distinct systems in one’s brain agree on the product for consumption. They challenge for the basic decision on choice of one product over another. This simply states that product choice can affect from causes other than cognitive dispensation. The separate systems view is contrasting to habitual one (Mazanec 1999, p.243). These issues have surfaced in this debate and should be of interest to consumer psychology researchers. Several studies have been conducted on Consumer psychology. However, researchers have come up with different views. According to Olson (1983), a consumer’s product choice of a product is only triggered by one’s financial situation. He argues that a consumer’s feelings on how much one has to spend on two related products lies mainly one’s financial status. For example, when financially stable, it is easier for him to buy an expensive over a cheaper one. This is due to the notion that, a cheap product is expensive. He goes ahead to stating that; when a consumer is not financially stable he would always prefer cutting down costs by choosing to buy a cheaper product over the expensive one. From the perspective of Waonkem (2009), he found out that a consumer’s choice of one product over another is as a result of his or her social ties. These are factors such as family influence and the social class one belongs. He says; a consumer’s family members are the key influence on one’s product choice. For example, when at a supermarket, it has been proved that most married couples influence one another on the choice of one product over another. One’s social class also plays a vital part in product choice. It is the pecking order in which persons are classified on the basis of one’s esteem. Consumers who are in a low social class will likely prefer a cheaper product while those in a high one will prefer the most expensive ones. However, according to Mazanec (1999) consumers’ product choices are triggered by a combination of one’s motivation and socio-environment he or she dwells. That is, when one is influenced by those close to him, the next thing is determining factors like financial and the general attitude towards that product. Comparing the first two studies with Mazanec (1999) in relation to the importance of my research, I consider his theory more composed and can add a lot to my subject. He has principally divided those factors into two; the socio-environmental effect and motivational. However, it would be better if he included the effect of perceptual cognitive on this subject. This is because; one’s brain is the basis for all decisions or choices made. From this perspective, consumer researchers have so far botched to create a considerable input to the tackling of issues related to consumer’s choice of one product over another (Jason-Boyd 2009, p.100). For this to ensue, it is essential to come up with apparent theories on consumer’s psychology. That is, to clarify what motivates consumers, the thought process and emotions behind product choice in contrast with the aforesaid theories. Therefore, my research on consumer psychology will employ conceptual and psychological approaches to understanding consumers. Focus will be on the motivation factors, the thought process and emotions behind consumer decisions. I will employ the use social psychology to ensure that my psychological model is coherent from the viewpoint of how decision-making is conducted (Foxall, Goldsmith & Brown 1988, p. 39) Positioning of the research: Clearly, every consumer’s brain undergoes a unique process when making a product or service choice. To thrive in any business in today’s swiftly growing market, there is a need to know the whole logic behind a consumer’s choice of one product over another (Foxall, Goldsmith & Brown 1988, p. 68). That is; one has to value a consumer’s psychology towards product choice. To comprehend consumer psychology, this research looks at why and how consumers make choices. It also outlines what motivates consumer choice making, the thought process and the emotions behind consumer purchase decisions. These factors form the basis of consumer psychology (Haugtvedt, Herr & Kardes 2008, p. 87). A consumer’s choice of a certain product or service is triggered by three distinct factors; perceptual cognitive, motivational factors behind product choice and the socio-environmental. Perceptual cognitive refers to the rational course of action involved in gaining and evaluating product information. In perceiving the product data, a consumer selects, organizes and evaluates the information (Jason-Boyd 2009, 69). This involves a variable utility that filters the data to help make a decision on which product to select over the other. It involves one’s knowledge, that is, the totality of information apprehended by a shopper. This information is stored in a one’s memory and influences understanding of the stimuli to which they bare ensuing to a unique choice by a consumer. Products with coupled information being held in a consumer’s brain make decision making simpler and easier for consumers to process. Although consumer decision-making process represents a relatively consistent pattern of cognitive response, consumer motivation factors have been proved to impact notably on choices made by consumers. This motivation entails internal brain state that drives consumers. The immediate consumer environmental scenery developed by humans in relation to consumer products significantly contributes to product choice. This is referred to as the socio-environmental effect on a consumer’s psychology. It includes factors like consumer social ties, culture and age differences (Waonkem 2009, p. 151). Culture has been proved to impact significantly in influencing a consumer’s decision making process. Culture is the distinct beliefs for product choices in which consumers existing in various parts of the world are classified. Different age groups have different interests and wants. Almost all product choices are subject to some sort of societal influence (Haugtvedt, Herr & Kardes 2008, p. 87). Research objective: To understand consumers in order to develop and promote products and services that match consumers’ needs and expectations, consumer psychology study aims to identify the main drivers on consumer choice of one product over another (Mazanec 1999, p.143). It involves the study of human responses to product and service related information and experiences. Therefore, my main focus of interest in this research is to emphasize consumer’s decision making process and the factors triggering the psychology of product choice. I have employed well-built psychological views on the nature of consumer product choice reality. It is based on a conceptual public certainty on the type of information I believe it will be more useful to academics and practitioners. Research justification As mentioned in the introduction, in the last two decades, there have been few studies documenting the psychology of the Saudi consumer. As a result, I found that it was essential to conduct this study. This section aims to analyse Saudi society’s culture consumption, financial, situation and consumer daily expenditure. From the item of oil discovery; that is, in the early thirties, the Saudi Market became extremely prominent. This has provided a massive spending potential that offers tremendous marketing opportunities. In Saudi Arabia, the consumer market is the most important within the whole Saudi market (Abbior 1993, p. 222). Therefore, the consumer is an essential component. The Saudi consumer’s has high income gives him more purchasing power. This factor reflects the enormous want for research on this topic and specifically the Saudi consumer. It is also evidential that Saudi consumer’s choice is highly based on the Islamic religion (Abbior 1993, p. 225). The religion acts as the main guidance for the consumer’s product choice. Though the financial status of the Saudi gives him a high purchasing power, extravagant spending is against the teachings of the religion hence the purchase decision has to be as per the Islamic teachings (Haugtvedt, Herr & Kardes 2008, p. 87). Research design After a thorough analysis of the factors that make a consumer decides choose one product over another, I chose to employ conceptual approach in project design. However, in my specific case a theoretical approach represents a better methodological fit in relation to the obtainable literature and the level of development of the field. In data collection, I chose to use personal interviews, that is, one to one interview with consumers. I propose that this technique will make available best opportunity to examine the factors behind product choice for the consumer sampled in my justification (Saudi Consumer). The research questions include; i. How does your social ties influence affect your choice of one product over another? ii. What are the main factors that influence your choice of one product over the other? iii. How can your financial status influence product choice? iv. Does your religion play any part in product choice? v. What goes on your mind when selecting a product? Sample The Saudi society influences by factors such as religion, culture and a stable economy. Generally, this study will employ one outstanding sampling method; probability sampling. In probability sampling, focus will be purely on random sampling. Since there is very little research work done on the Saudi consumer, this sampling method will be of immense value. This method is always useful where the sampling frame is not clearly known as is the case with the Saudi society. Choice of this sampling method is particularly influenced by the absence of current sample frame and the need to be selective in terms of conducting the personal interviews. It is pertinent to note that the sample units will be done on the major cities. That is Riyadh, Jeddah and Dammam. Much concentration will be on these three major cities which form the largest part of the country’s population. Personal interviews will be conducted to people between the age of 21years and 51years. This age group forms the largest part of the population. In Jeddah, majority of the educated people are those below 50 years old hence necessitating the need to concentrate on them. In these cities, most consumers are influenced by the Islamic religion (Mazanec 1999, p.93). Hence, in conducting the interviews the effect of their belief on product choice will be a subject of much interest. Significance of the research The importance of consumer psychology should not be understated. Understanding the way in which other people behave, their cognitive differences, the internal motivations that influence consumer choices will play a vital role in widening the academic research on consumer psychology. Further more, this research will be of immense value to both consumers and marketers. It will provide consumers with a more strategic approach to consumers’ choice over a product (Haugtvedt, Herr & Kardes 2008, p. 87). A seller will have a comprehensive understanding of a consumer’s psychology prior to making of product choice (Batra, Keller & Stretcher 2011, p.49). Hence, business goals can easily be met through a thorough satisfaction of the customer’s requirements. To the academic community this research will provide them with better research methods to be employed studying in consumer psychology and also open up their interests in the study of consumer psychology (Olson1983, p.65). Project Timetable ACTIVITIES DURATION YEAR 1 YEAR2 YEAR 3 PROJECT PREPARATION DATA COLLECTION DATA ANALYSIS RECOMMENDATION WRITING Conclusion This research has attempted to investigate the consumer choice of one product over another. I have sampled some specific on major areas of the Saudi Kingdom. What may need to be well thought-out, but is beyond the scope of this paper is; whether it is sufficient to assess the above mentioned factors that make a consumer to choose one product over another. It is thus vital for the consumer psychology to be addressed in schools and colleges. (Abbior 1998, p58). References Abbior, M (1993). Saudi Arabia: government, society and the Gulf. London u.a, Routledge. Batra, R., Keller, P.A., Stretcher, V.J. (2011). Leveraging consumer psychology for effective health communications. Foxall, G.R., Goldsmith, R.E., & Brown, S.W. (1988). Consumer psychology for marketing. London, International Thompson Business. Haugtvedt, C.P., Herr, P., & Kardes, F.R (2008). Handbook of consumer psychology. New York, Lawrence Erlbaum Associates. Jason-Boyd, C. V. (2009). Consumer psychology. Maidenhead, Berkshire, Open University Press. Mazanec, J.A. (1999). Consumer psychology of tourism, hospitality and leisure. Wallingford, Oxon, UK, CABI. Olson, J.C. (1983). Advertising and consumer psychology [1].New York u.a, Praeger. Waonkem. (2009). Social psychology of consumer behavior. New York, Psychology Press. http://site.ebrary.com/id/10285317 Read More