Characteristics Affecting Consumer Behaviour Marketing Essay

Consumer ‘s purchasing behavior has been comprehensively researched by sellers in order to understand how, what and why clients buy merchandises and on what are the footing of their determinations. The cardinal basic attack into analyzing consumer purchaser behavior is considered the Stimulus – Response theoretical account developed by Pavlov shown in Figure. In this theoretical account consumers are capable to marketing stimulations every bit good as other stimulations such as economic, technological, political and cultural events. These are so evaluated by the client ‘s “ black box ” which is based on personal purchaser features and determination procedures, and therefore different purchaser responses are observed ( Kotler & A ; Armstrong, 2001 ) .

Figure: Model of Buyer Behaviour

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Kotler & A ; Armstrong ( 2001 ) specify the traditional purchasing determination procedure in five attendant stairss which consist of:

Problem designation

Information hunt

Evaluation of Options

Buying determination

Post purchase behavior

The above theoretical account implies that the purchasing procedure initiates rather before the existent purchase and continues after. The procedure starts with the demand acknowledgment where the consumer recognizes a job or a demand, which could be caused by internal or external stimulations. The consumer will hence start to hunt and gather information in order to fulfill their demands. Information can be obtained from a assortment of beginnings such as personal beginnings, commercial beginnings, public beginnings, and experiential beginnings. Once the consumer is armed with the needed information, the consumer uses this information to measure options in selected the trade name. Following the rating of the options available, the consumer is required to do the purchase determination and select which trade name to buy. The cringle does n’t shut with the purchase of the merchandise, but instead post buy behavior recognises whether the merchandise meets the consumer ‘s outlooks. Customer satisfaction is cardinal because it will ensue in repetition clients and positive word of oral cavity.

Features impacting consumer behavior

Consumer behavior is extremely influenced by external and internal factors. The external factors are divided into five sectors: Demographics, socio-economics, engineering and public policy ; civilization ; subculture ; mention groups ; and selling. The internal factors include a assortment of psychological factors, such as beliefs and attitudes, motive, perceptual experience, larning and self-image ( Malcolm, 2001 ) . Surveies have shown that these factors and others that fall beyond the seller ‘s control have a important impact on consumer ‘s behavior and buying determinations ( Dibb, et al. , 2001 ; Solomon & A ; Stuart, 2003 ) .

Shah ( 2010 ) refers to traditional consumer behavior in buying goods and services as the procedure of selecting, buying and consuming of goods and services that satisfies consumer wants. Consumers select the merchandise they would wish to devour by placing the good or merchandise that provides them with the greatest value in return. Hence the consumer will concentrate on the available disbursement power to obtain the trade good. Following the analysis of cost and monetary value of the trade good, a concluding determination is taken to choose the best option that satisfies the consumer needs. This procedure does non happen in vacuity, and is extremely influenced by assorted factors such as societal, cultural, personal and psychological factors.

Although sellers have small or no influence on the mentioned factors, they still have some really of import tools which may impact the purchasing determination procedure. The selling mix, besides known as the 4Ps – merchandise, monetary value, topographic point and publicity, is the set of governable selling tools that the house uses to act upon consumers ‘ behavior in order to obtain a coveted response from the mark market ( McCarthy, 1960 ) .

Online Buying Behaviour

Since the enlargement of the World Wide Web in the mid-1990s, the Internet has grown to go one of the most powerful distribution channels with a rapid addition in ecommerce minutess. This raised the demand for sellers to detect the clients ‘ on-line behavior and understand their determination devising procedure when doing purchases online. There are significant differences between offline and on-line consumer behavior. In his survey, Vijayasarathy ( 2001 ) tried to clear up consumer online shopping behavior by incorporating web specific factors into the Theory of Reasoned Action ( TRA ) . Furthermore Song and Zahedi ( 2001 ) examined the effects of website design on the acceptance of cyberspace shopping by developing on the theoretical account of the Theory of Planned Behaviour ( TPB ) .

Oppenheim and Ward ( 2006 ) argue that consumers are motivated to purchase on-line because of the convenience provided. The cyberspace provides limitless chances for possible clients to buy merchandises at any given clip and topographic point. The cyberspace besides provides illimitable information about merchandises and services which is easy accessible to on-line visitants. Furthermore when comparing online shopping to traditional shopping, there are no waiting lines for shoppers on the cyberspace and no force per unit area coming from gross revenues people ( Smith & A ; Rupp, 2003 ) . However surveies show that the cyberspace has become a utile tool for comparative shopping, where users browse the web to hunt and comparison merchandises, whilst doing it easy to abandon the buying procedure ( Degeratu, et al. , 2000 ) . Furthermore Anfuso ‘s research ( 2004 ) shows that the on-line hunt for information about merchandises drive offline gross revenues. Consumers prefer to seek for merchandise information online since it is much more convenient, and therefore buy the merchandise from a brick and howitzer shop.

Different writers have identified assorted divergent character depicting what the on-line purchasers look like. Marker ( 2011 ) suggests that on-line purchasers tend to exhibit the undermentioned psychological features: egoist, impatient, unprompted, educated, informed, thrifty, private, cautious, indecisive and pleasure-driven. In their survey Donthu and Garcia ( 1999 ) propose that online shoppers tend to be convenience searchers and tare easy influenced by marketing runs. Furthermore they besides put frontward that cyberspace users are less monetary value and trade name witting, whilst besides proposing that these have a higher buying power. Other surveies show that online clients are more likely to be of a immature age with a high disposable income. It is besides propose that they have a solid degree of instruction particularly in computing machine literacy, every bit good as being large retail Spenders ( Allred, et al. , 2006 ) .

As mentioned earlier there are assorted factors which impact the traditional consumer behavior. Liang and Lai ( 2000 ) suggest that on-line consumer behavior has similarities with the traditional consumer behavior, where consumers recognize a demand for a merchandise or service, use the cyberspace to seek for information, evaluate options to take the best solution and eventually buy the merchandise followed by station purchase rating.

However other surveies indicate that there exist assorted factors that differ from the traditional consumer markets to the online environment. Refernce groups set uping consumer behavior online have taken the signifier of practical communities, dwelling of web logs, forums and other signifiers of treatment groups ( Huarng & A ; Christopher, 2003 ) . Social influences, such as experiences, recommendations and gustatory sensations of online bloggers have an consequence on on-line consumer purchasing behavior and have a important impact on the concluding determination the consumer makes. In their survey Hasslinger, et al. , ( 2007 ) highlight the fact that cultural differences besides extremely influece on-line consumer behavior, particularly the difference in societal category the consumer belongs to. Consumers who form portion of a higher societal category have a higher chance of having a computing machine with internet entree, and therefore they are more likely to buy online than consumers from lower societal categories.

Personal influences set uping on-line behavior besides relates to the income the consumers earn, since there exists a positive correlativity between families with higher income and computing machine ownership, internet entree and advanced degree of instruction ( Monsuwe, et al. , 2004 ) . Age was besides recognised as being another determiner for set uping on-line shopping behavior ( Smith & A ; Rupp, 2003 ) . Younger people are more pertinent in utilizing the cyberspace as a shopping medium compared to the older coevals, since the latter tend to hold less proficient know-how and are far less inclined to perpetrate and swear on-line sellers. Furthermore Smith and Rupp ( 2003 ) sort motive, perceptual experience, personality, attitude and emotions as the set of psychological features act uponing on-line consumer behavior.

With the launch of Web 2.0 in 2004, the interaction between on-line consumers and sellers has become a world, which became possible due to development of high-velocity broadband connexions. Web 2.0 consists of a aggregation of synergistic tools and societal communicating techniques which are aimed to increase user engagement and engagement online through its practical word of oral cavity ( Chaffey, 2011 ) . In their survey, Wirtz, et al. , ( 2010 ) , place societal networking and interaction factors as the two most of import factors impacting on-line consumer behavior from the Web 2.0 epoch. Furthermore societal networking provides on-line consumers with enhanced trust factors and helps retain on-line clients, which is cardinal for on-line retail merchants ( Jarvenpaa, et al. , 2000 ) .

In their research, Cheung, et al. , ( 2003 ) , analysed 351 publications and classified the theories used to understand on-line consumer behavior. They conclude that the chief theoretical accounts in measuring this country are the Theory of Reasoned Action ( TRA ) together with the Technology Acceptance Model ( TAM ) and the Theory of Planned Behaviour ( TPB ) . Other theories which have been tested include The Expectation Confirmation Theory ( ECT ) and Innovation Diffusion Theory ( IDT ) . Table provides the list of the most often tried theories in the country on-line consumer behavior together with their mentions.

Cheung, et al. , ( 2003 ) take a holistic position of the on-line consumer purchase procedure, where they investigate the connexion between the purpose, acceptance and continuation of purchase from on-line consumers. Their Model of Intention, Adoption and Continuance ( MIAC ) recognised that concerns chiefly focused their attempts in pulling online clients. However due to stiff competition, administrations changed their attending from initial purchase to retaining clients and constructing client trueness.

Table: Mentions of Online Consumer Behaviour Research

Online seller ‘s persuasion tools

Consumers are capable to influences from sellers which might impact their buying behavior. Sellers provide stimulations to the consumer ‘s black box in order to seek and act upon the consumers ‘ determination prior to doing their purchase determination ( Kotler & A ; Armstrong, 2001 ) . The set of governable ( i.e. , traditional selling ) and unmanageable ( i.e. , environmental factors and personal features of the consumer ) factors between online and traditional markets do non change basically, where both markets have factors which are within the influence of sellers and some factors which fall beyond their range.

As discussed above, most unmanageable factors are rather similar for both the traditional and on-line markets ( Dibb, et al. , 2001 ; Solomon & A ; Stuart, 2003 ) . However a thorough analysis of the on-line consumer buying determination indicates that the governable factors act uponing the traditional markets are distinguishable from those act uponing the online market. Although most of the traditional selling activities, such as mass advertisement and gross revenues publicities, can be applied to the online market in order to seek and act upon the on-line consumer behavior, they are likely to be ineffectual due to the altering nature of the on-line consumer ( Urban & A ; Hauser, 2003 ) . Furthermore, Constantinides and Geurts ( 2005 ) suggest that traditional selling tools are uneffective when aiming possible planetary online clients dispersed across different geographical parts.

Since most of the interactions between online clients and on-line sellers occur on the web, a logical premise is that the chief selling influences produced from the on-line sellers are experienced by clients online. On-line sellers can act upon the on-line consumer behaviors chiefly by presenting the proper online experience, more known as the Web Experience. The practical selling elements building the on-line consumers ‘ Web Experience are under the e-marketer ‘s control and can determine or act upon the consumer ‘s behavior during an on-line interaction ( Constantinides, 2004 ; Constantinides & A ; Geurts, 2005 ) .

Forces act uponing client ‘s purchase purpose ( Model )

The Web experience is a combination of on-line functionality, information, cues, stimulations and products/services ( Constantinides, 2004 ) . The company web site is primary medium of presenting the Web experience, which is the gateway between the administration and the online clients. Constantinides ( 2004 ) explores the thought of presenting the Web experience as one of the governable selling factors act uponing the on-line consumer ‘s behavior. Figure illustrates the governable and unmanageable elements act uponing the on-line consumer behavior.

Figure: Forces act uponing the on-line consumer ‘s behavior

Beginning: Based on Constantinides ‘ model ( 2004 )

Web Experience

Web Experience Elementss

Contented Class

Aestheticss

Marketing Mix

Psychological Class

Trust and Commitment

Functionality Category

Serviceability

Interactivity

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