Final Project Paper
A consumer is an individual or group who identifies a
need, selects a product to purchase, and disposes of a product. In the 1960s
and 1970s marketers originally emphasized buyer behavior at the point of
purchase, however, today’s marketers realize that purchasing behavior is a complex
process that precedes and succeeds the moment of purchase (Solomon, 2017). Many
external and internal forces contribute to a consumer’s purchasing behavior and
those consumers’ purchasing decisions may shift rapidly due to the availability
of information available through various online platforms (Kumar et al., 2018).
Sometimes other people can influence a consumer through word-of-mouth
recommendations or unspoken pressures for social acceptance. Marketers can
successfully sell goods and services by understanding the consumer decision
making process and how consumers make adjustments due to external and internal
factors.
The Decision Making Process
Consumer
behavior consists of the selection, purchase, use, and disposal of a product or
service. Every consumer decision starts as a response to an acknowledged
problem (Solomon, 2017). Consumers can have complex motivations and emotions
behind purchasing decisions. According to Abraham Maslow’s Hierarchy of Needs,
the sough benefits depend on the motivation to resolve these problems. At the
base of Maslow’s Hierarchy of needs is physiological, followed by safety,
social, esteem, and at the top of the pyramid is self-actualization. Maslow
suggests that an individual will progress through the essential needs before
advancing to meet those on higher levels (Solomon, 2017). A consumer’s
motivation can range from meeting a basic physiological need for survival to
satiating a self- actualization need such as social recognition and acceptance.
Some solutions may require consumers to perform a lengthy evaluation of
alternatives and options or an impulsive decision. The three processes of
decision making are cognitive, habitual, and affective. The process a consumer
uses is determined by the importance the consumer places on the decision, the
emotion and motivation of the consumer, or if the perceived risk or product
differentiation is low enough to make a quick choice.
Cognitive Decision Making
Cognitive
decision making is deliberate, rational, and consecutive. There are five stages
of the cognitive decision making process: problem recognition, information search,
evaluation of alternatives, which leads to product choice and post purchase
evaluation (Solomon, 2017). Once a consumer recognizes a problem
or need, the consumer will conduct an information search for pricing, product
features, product availability, consumer ratings, and recommendations. Consumers
have several ways to locate information. Many consumers refer to the internet and
search engines for answers because it is a quick and easy search for product
information and recommendations (Awais et al., 2019). Others may check local
retail stores or seek advice from their peers.
The
next step is evaluating alternatives. At this point consumers search through
possibly hundreds of product alternatives and multiple features to narrow the
choices down to one that will satisfy the consumer’s needs (Solomon, 2017). The
evaluation process leads into the next step: the product choice. The final step
is the post-purchase evaluation in which consumer decides how satisfactory the
purchase is and how well it meets her expectations. A consumer is satisfied
when the product exceeds those expectations, disappointed when it falls short
of those set expectations, and less affected if the product performs as
expected (Solomon, 2017).
Affective Decision Making
Researchers
Minculete and Chisega-Negrila recommend, “Instead of treating people as mere
consumers, (marketers) treat them as human beings with mind, heart, and soul”
(2014, p. 343). This not only serves as an ethical reminder to marketers and
businesses, but an important consideration since many purchasing decisions are
driven by consumers’ emotions. The affective decision making process is driven
by consumers’ reactions to products. These reactions vary in intensity levels
from experiences with low arousal to strong emotions (Solomon, 2017). Consumers
make purchasing choices due to the way a product makes them feel. Marketers can
use nostalgia to create a yearning for the past or trigger good memories.
Colors, music, and images in advertisements can evoke positive emotions.
Marketers can use the same elements to create negative emotions such as fear,
guilt, and disgust. These negative emotions prompt consumers to make a choice
to avoid negative outcomes and feelings.
Habitual Decision Making
Not
all purchasing decisions involve a high level of thinking as the cognitive
process or emotionally-charged as the affective process. Habitual decision
making is mostly instinctive and automatic. The process involves little to no
conscious effort (Solomon, 2017). Consumers may repeatedly purchase the same
product because it is easier than exerting additional energy to choose another
option. Also if the product is satisfactory enough and there is little product
differentiation across brands, the choice is easier. Both habitual decision
making and brand loyalty may appear similar on the surface and produce
comparable results, brand loyalty involves a conscious product choice (Solomon,
2017). While loyalty is an optimum goal, it is more challenging for a company
to gain brand loyalty versus habitual purchases.
Influences
on Decision Making
Type of Decision
Consumer
involvement affects consumers’ purchasing decisions. Low-involvement decisions
are more habitual and involve a low-level of risk. Consumers consider a decision
with a high perceived risk as highly involving. Brand loyalty occurs when a
consumer chooses to be highly involved with a brand or product. For example, cult
products like Harley Davidson and Apple have a highly-involved consumer base (Solomon,
2017). An example of a purchase with a low level of involvement is choosing a
chewing gum brand from the gas station. The store probably has a dozen options
that are similarly priced with only a few product differentiations to choose
from.
One
product that I am brand loyal too is Dr. Bronner’s Lavender 18-in-One Magic Soap.
It is an organic liquid castile soap product that boasts of eighteen-in-one
different uses such as brushing one’s teeth and washing laundry (Dr. Bronner,
n.d.). I have sensitive skin and allergies. I love being outdoors, however, my
body hyper-reacts to everything it encounters. One day I unknowingly traipsed
through a field of poison ivy, so I washed with Dr. Bronner’s soap and I did
not experience any rash from contact with the plant. The next time I used the
product, I had a bad sunburn. I used the soap immediately and it calmed my
skin. I use it on bug bites too. I consider the product a cure-all for skin
irritations and recommend it to anyone suffering from such.
Motivation and Values
Consumers
can choose products according to their values and beliefs, but it is difficult
to understand purchasing patterns because these concepts hold personal meaning
to each consumer. Cultures can influence these values, but the level of
importance is not the same for each individual within a culture. Cultures and
individuals can even prioritize seemingly universal beliefs differently from
others (Solomon, 2017). Due to the array of values, some researchers categorize
these beliefs into broad-based cultural values and consumption-specific values
to better understand the purchasing behavior (Solomon, 2017). One purchase I
make according to my beliefs and values is a deep-fried Snicker’s. It is an
annual tradition now for my family. Every year after Thanksgiving we go to a
massive Christmas light display and purchase a deep-fried Snicker’s from a
small food truck. The tradition and association with happy memories makes the
purchase one I look forward to every year, however, the motivation behind that
purchase would be difficult to measure or predict because it is so personal.
Power of Attitudes
An
attitude is a “lasting, general evaluation of people (including oneself),
objects, advertisements, or issues” (Solomon, 2017, Section 8.1). People have
many attitudes that are formed through various channels of information. The components
of attitude are: affect (feelings), behavior (actions or intentions), and
cognition (beliefs) (Solomon, 2017). Consumers form attitudes based on the
order they process these elements. A consumer that follows the high-involvement
hierarchy first forms a belief about a product, then considers his feelings,
and then acts. When a consumer follows the low-involvement hierarchy the
consumer may have limited product information and no product preference so she
forms a belief, then acts, and then considers her feelings. The experimental
hierarchy leads with emotions as a consumer considers his feelings about a
product first, then acts, and then forms a belief. Marketers can change
consumers’ attitudes with persuasive tactics such as providing incentives, using
authoritative sources, and providing a consistent message (Solomon, 2017).
One-piece
jumpers and rompers are fashionable, however, when I tried on one from Old Navy
once, it did not fit correctly because I am too tall. However, I decided to
purchase another one from Target because I really like the style. My attitude
changed due to several marketing techniques. First, Target had the product on
sale from $49.99 to $20, so the perceived risk was not as large. Secondly, the
company allows everyday customers to attach their photos modeling the clothing
now so consumers can see how the product looks on multiple body shapes and
sizes. I liked the way the garment fit another consumer who is my size, so I
ordered it. It fits perfectly.
Purchase and Post-Purchase Activities
Consumers’
decisions are influenced by their environment and mood when shopping. Whether
or not the experience is positive or negative depends on the consumer’s mood
and mood is determined by arousal and pleasure encountered (Solomon, 2017).
Some consumers may respond favorably to a retail store with upbeat music, while
others may dread shopping in-store completely and make purchases online. In
either case, the experience needs to focus on creating a pleasant shopping experience
to encourage return business.
A
positive shopping experience may also increase unplanned purchases and more
sales. According to one study, 71
percent of retail shoppers spend fifty dollars or more, which is 20 percent
than online consumers (Petro, 2019). If a consumer has an abstract
shopping goal before entering the store, the consumer is more likely to
purchase unplanned products by at least 12 percent, especially when the
consumer perceives the store having low prices and appealing promotions (Bell,
Corsten, & Knox, 2011). And once a consumer makes one unplanned purchase
the likelihood that the subsequent purchase will also be unplanned increases
(Gilbride, Inman, & Stilley, 2015).
One
personal example of a positive shopping experience is grocery shopping at
Publix. The store is bright and all the “buy one get one free” promotions have
clear signage. The employees are friendly; several employees will ask if you
need assistance while shopping. The products are always fresh and well-stocked.
I normally dread shopping, but Publix makes it a pleasant experience. Some of
the prices are higher than its competitors, but the store excels at customer
service, so it is worth it to spend a little more for the experience.
Product
disposal is another concern for consumers. Consumers are becoming more
environmentally conscious and they want to feel good about their purchase even
when disposing of it. For example, Millennials in India associate the purchase
of environmentally-conscious products as a way to express their uniqueness
(Adnan, Ahmad, and Khan, 2017). Many
more consumers actively try to decrease their impact on the environment, and
many consumers prefer companies and brands with green and other corporate
social responsibility initiatives.
I
choose Method cleaning products because the company aligns with my values. The
company uses recycled plastic in its products, which are in turn recyclable.
The products are natural which is an important factor in my products because I
have asthma and synthetic ingredients often trigger attacks. Overall, I feel
like I am contributing to a greater social goal of reducing the amount of
landfill waste and environmental pollution.
Cultures and Marketing
A consumer’s culture helps define
one’s self-identity. Culture establishes social norms and influences many
behaviors and values. Each culture has its own traditions, stories, rituals,
holidays, and values. What is sacred to one culture may be offensive to another
(Solomon, 2017). Marketers must consider these differences before entering the
global market otherwise the product may fail to gain consumer acceptance.
As of 2007, Taco Bell, owned by Yum!
Brands, successfully operates 230 global restaurants. In Mexico alone, Yum!
Brands has 350 KFCs and 400 McDonald’s locations (Debczak, 2019). So why was
Taco Bell’s entry into Mexico in 1992 a failure? There are several reasons.
First, the company changed the menu and adapted products to imitate the
authentic Mexican food that was currently being consumed in the country. The
company locally-sourced ingredients for the sauces, but used meat from the
United States. Taco Bell’s classic hard-shelled taco was removed from the menu
and replaced with soft tortillas. One of the Mexican Taco Bell employees said
that consumers were offended that the company was trying to sell tacos in the
country known for tacos. The prices were affordable, but consumers could still
purchase authentic tacos for a cheaper price. Due to insufficient sales, Taco
Bell closed its locations 2 years after opening. In 2010, Taco Bell tried to
enter the Mexican market again. This time the company remained true to its
American heritage and promoted the idea of Americanized Mexican food (Debczak,
2019). The company failed again.
If Taco Bell considered Mexico’s
culture, the company would have avoided entering the fast food market
completely. Tacos are synonymous with Mexican culture. It is likely that many
residents would prefer their country’s authentic tacos to the American version
especially since the Mexican tacos were cheaper. Oscar Avila wrote in the
Chicago Tribune that “To scarf down a Fiesta Burrito in Mexico felt like
patronizing a Panda Express at the foot of the Great Wall” (Debczak, 2019,
para. 13). Taco Bell could have avoided two failed entries if the company had
thoroughly researched the Mexican consumers’ lifestyles, values, and
preferences. A focus group could have tasted some of the products and provided
feedback which would likely have deterred the company from expanding into
Mexico. Marketers could have studied the market more thoroughly and understood
the market pricing and adjusted the strategy competitively. Thorough research
and an understanding of the culture would have provided enough information for
Taco Bell to see that they would not be able to satisfy the consumers’ needs.
Consumer decision making and the
consumer purchasing process are complex. The purchasing decision spans all
aspects from problem recognition to post-purchase satisfaction and marketers
must know how to create a satisfying and pleasant experience throughout each
step. Consumers may experience different motivations, emotions, needs,
cultures, values, and expectations. Sometimes these values and preferences
change rapidly. For marketers to meet the needs of the consumer, they must
understand all external and internal influences that can impact purchasing
patterns and the differences that exist. The markets continue to grow and the
competition is large, so having an understanding of consumer behaviors is a
necessary market advantage.
References
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Awais,
M., Samin, T., Gulzar, M., Hwang, J., & Zubair, M. (2019). Unfolding the
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