Influencing Oil and Petrol Consumption - Consumers Behavior - Coursework Example

Running head: MARKETING          Research analysis                Name Grade Course Tutor’s Name 21/ 08/ 2010     Context and Problem/Opportunity   Corporate social responsibility is becoming critical part of every organization. Environment offers interactivity space to every organization. They obtain raw materials from the environment and they give back to the environment through sale of finish products. So there must be a healthy relationship between the organization and the environment. General public are becoming sensitive on the role organization play in safeguarding the environment. Undesired impact in the environment cause by an organization can lead to negative publicity about that organization. Consumer would likely develop a negative attitude toward the organization which they do not respect environment (Engel, kollat & Blackwell, 1978). A good relationship between the public and the organization boost the throughput to the organization while a negative relationship reduces the throughput. A good relationship is guaranteed when an organization actively participate in giving product and services that do not harm the environment in any way (Benbasat, &Zmud, 2003).   Literature Review   Consumers’ behavior is given great attention in marketing strategic plans. It is considered to be a ground which marketing policies are laid. There are large and diverse bodies of research dating back to 1960s. These researches have made huge contribution in explaining what consumer behavior is in relation to marketing. Their efforts have shaped the understanding of consumers’ decision making process. The discussion has led to development of many theories and models that elaborate on the process (Fishbein, 1975). Over a long span of time there have been continuous additions of knowledge on the topic. However, a quite number of critics have also made their say but their arguments are not comprehensively supported evidence. Among the famous theories and models which form the main stream of marketing and education are; model of Nicosia (1966), Engel, kollat and Blackwell (1978). Their argument was base on cognitive orientation. They believed that consumers’ behavior is a process that begin by problem recognition and end with post purchase behavior. According to them the core concept of marketing are; need, wants and demand. They define wants as a desire for specific satisfier of deeper needs and while people are fewer their need are many. They define need as state of felt deprivation of some basic satisfaction. On the other hand demand is a want for specific products that are back up with the ability and willingness to buy the goods. In there contribution they clarify that marketer do not create need instead they influence wants along with other society influencers. They influence demand by making product more attractive, affordable and easily available (Engel, kollat &Blackwell, 1978). The contribution for EKB is what forms today marketing subject. Despite widely being accepted there are quite number critics that have argue against EKB. Among them are notably Follax (2005). He questions the validity of cognitive orientation of EKB and made a different argument on the subject. He instead supported Bettmans theory of consumer choice processes.. According to Bettman (1998) he argues that decision process is dynamic and interactive with contextual and environmental influence. Other scholars who argue differently are Polanyi (1957) and Gronovetter (1985). According to them consumer behavior is conceptualized and embodies social- cultural structure that affect economy decision making, albeit of context of industrialized inter-firms network. The concept was extended to immigrants’ enterprise by porter and Sensenbrenner (1993). EKB is the early and most cited in the literature although there is little evidence that support its predictability. The theory breaks up decision making into five discrete but link stages (Rau, 1980). The discrete are problem recognition, information search, and evaluation of alternatives, purchase decision and post purchase behavior. The most recent version of theories clarifies the need of contextual influence in decision making and identifies a number of relevant exogenous variables (Fishbein, 1973). However, it falls short of providing comprehensive explanation on influence of social interaction on decision making. It does not clearly place the decision making to where it belongs. Culturally IT consists of pattern of beliefs, value and attitude which tend to establish pattern of buyer behavior consistent with established cultural group (Limayem, 2004).   Theory/Model/Framework       Scholars’ have come up with elaborative models that support their argument. EKB came up with a model that demonstrates cognitive orientation discrete structure and how the stages in the process are link. On the other hand Bettman present a different model on consumer constructive choice. The model is base on contextual and social- cultural influence. Informal social network, social cultural influence and perceive level of risk and uncertainty are identify as conceptual building blocks that influence decision making process (Engel, kollat & Blackwell, 1978). The model captures the poor families and close nit communities in emerging markets. The model comprises of six stages of social network in decision- making. It illustrates how decision making process occurs. It begins with problem recognition which is followed by information search, cultural and emotional laden tradeoff, problem evaluation, multifaceted decision outcome and finally post purchase decision behavior (Limayem, 2004). Buying process starts when the buyer recognizes problem or need. The need is triggered by stimuli. The marketers need to identify circumstances that trigger a particular need. Once the need arose consumer seeks information about the desired product. The key interest to marketer is to avail this required information to consumer. Information will assist the consumer to evaluate on the alternative (Fishbein, 1975). There is no single evaluation process use by all consumers in all buying situation. Marketer should study the buyer to find out how they actually brand alternative. Purchase decision is determine by attitude of others and unexpected situation factors. The marketer should understand the factors that provoke the feelings of risk in consumer and must respond with information and support that perceive risk. Marketer job does not end when the product are purchased. After the purchase consumer will either be satisfy or dissatisfy. The post purchase behavior is therefore important to marketer (Weber, 2003). Evaluation of alternatives       There is no single evaluation process used by consumers or one consumer in all buying situation. There are several evaluation processes. The current method sees the process as cognitive oriented. For example it see consumer on forming judgment largely on conscious and notional basis. The management team for BP should study buyer to find out how the buyer evaluate brand alternative. To offer the best alternative in the market the BP ought to build reputation for quality of product and service (Limayem, 2004). Consistency in the quality of the product is also a major factor that BP should offer over time without compromise. BP should also consider competitive edge on the quality of their product and services. Market has become more dynamic and to be the best in the market product should reflect the customer diversity. This is done through constant improvement on the product and service to reinforce market reception to deliver quality. The design and features of the product and service influence the consumer perception. The design may be reflection of status, class, achievement or success (Benbasat, &Zmud, 2003). The user friendly create an enjoyable experience in the customer without significant change in the behavior. BP should endow their product with a personality. Personality is a human likeness or form. To achieve this celebrity endorsement are used. The perception of customers is therefore inclined to reflect the personality of endorser (Fishbein, 1973). Post purchase behavior       There is close relationship between customer perceptions and customer satisfaction. The more positive the perception of the customer with regards to a company product or service the higher the degree of their satisfaction. BP manager need to strategize on how to positively influence their customers’ perception. Reliability, responsiveness, assurance, empathy and tangible are combination of variable that collectively determine extend of a positive perception which can give a customer a higher level of satisfaction. BP should appreciate the fact that positive perception significantly influences the level of customer satisfaction and satisfaction influence on the loyalty of the customer (Engel, kollat & Blackwell, 1978). The perception like satisfaction is build begin by single service encounter which cumulate over a period of time determine individual as well as market perception. BP should also appreciate the fact that satisfaction varies from one individual to the other, and level of satisfaction varies from time to time. Post purchase behavior is also determined by information availability on the product and services. If the consumer purchases a product only to realize later of a more superior product customer would likely to be dissatisfy. It is therefore important for BP to avail more information about the product more than the competitor (Limayem, 2004).       Customers arrived at good decision when they acquire precise information on the product and services offered by the marketer. The BP can avail the information to customer through communication channels, physical distributions of product and services closer to the customer. -distribution Place means where and when the customer buys and consumes the product or service (Weber, 2003). Purchase decision       In the evaluation stage the consumer learn new brand and form purchase intention. The consumer purchase intention would be to purchase the most preferred brand but two factors come between purchase intention and purchase decision. These factors are attitude of others and unexpected situation factors. BP must understand the factors that provoke the feeling of risk in consumer and must respond with information and support perceived risk. Promotion mix or communication mix are the most powerful and widely used form of influencing customer perception reason being achieved drastic results within a limited time. It is a powerful expression and association tool (Fishbein, 1973).  Continuous and consistent communication creates powerful perception among customer’s groupings. Promotion mix includes Sale promotion, advisements, publicity, exhibition, direct mails, display, selling, packaging and word of mouth. Sale promotion involves offering product or services activity at lower prices to capture the attention of the customer on the new product. Sale promotion can also be carried out through personal selling. BP can take the product to the customer physically and engage them to buy the product. Publicity is also one of promotion mix that boosts the introduction of new product in the market. Publicity can be carried out through networking with the customers or through endorsement of the celebrity (Fishbein, 1975). Corporate social responsibility has been use by many organizations to build their publicity. Direct mail to the customers is also one of the communication mix which BP ought to use win the customers attention. Technology has made it possible for BP to reach many customers cheaply and effectively (Weber, 2003). Exhibition display of the product or services in market places help to capture the attention of the customers. The BP should therefore avail their products to focal places that capture the attention potential customers.BP should also package their products to reflect the wide diversity of customers. Word of mouth also has been considered to play a major role in marketing. Customers who first appreciate the products can convince other customers to buy the product through the word of mouth (Limayem, 2004).   Recommendations There must be a healthy relationship between the organization and the environment. General public are becoming sensitive on the role organization play in safeguarding the environment; thus, undesired impact in the environment cause by an organization can lead to negative publicity about that organization. On the issue of diversity, market has become more dynamic and to be the best in the market product should reflect the customer diversity. This is done through constant improvement on the product and service to reinforce market reception to deliver quality. The management team for BP should study the customers to find out how they evaluate brand alternative. To offer the best alternative in the market the BP ought to build reputation for quality of product and service (Limayem, 2004). Consistency in the quality of the product is also a major factor that BP should offer over time without compromise. The company should also consider competitive edge on the quality of their product and services. Purchase decision is determined by the attitude of others and unexpected situation factors. The marketer should therefore understand the factors that provoke the feelings of risk in consumer and must respond with information and support that perceive risk.       Read More