Consumer behavior is defined as the behavior that consumers display in seeking. buying. utilizing. measuring and disposing of merchandises and services that they expect will fulfill their personal demands. Consumer behavior includes how consumers think ( their mental determinations ) and experience. and the physical actions that result from these determinations ( the purchase ) . [ 7 ]
Abraham Maslow’s “hierarchy of needs” theory identifies the higher-order demands ( self-importance demands and self-actualisation ) and lower-order demands which are physiological. safety. and societal demands [ 10 ] . Both low and high engagement purchases are fundamentally aimed to fulfill these demands. Normally nevertheless. low engagement purchases normally act to fulfill the lower-order demands while high engagement purchases act to fulfill the higher-order demands.
Assorted researches have been used to analyze attitudes for a broad assortment of strategic selling inquiries. For illustration. attitude research is often undertaken to find whether consumers will accept a proposed new merchandise thought. to estimate why a firm’s mark audience has non reacted more favorably to its new promotional subject. or to larn how mark clients are likely to respond to a proposed alteration in the firm’s packaging. [ 7 ]
Past research has demonstrated clearly the importance of pre-purchase information studies within the purchasing procedure. [ 5 ] It is a critical measure for consumers. particularly in the instance of extremely affecting merchandises and services. Information received by the human head is processed as a critical input. The information procedure relates to both the consumer’s cognitive ability and the complexness of the information to be processed. Consumers about unwittingly are continually treating merchandise information by properties. trade names. and comparing between trade names. difference between services or merchandises. While the properties included in the brand’s message and the figure of available options influence the strength of information processing.
Apart from pre-purchase information hunts. sellers are concerned with how consumers learn. chiefly because they are interested in learning consumers. For illustration. ordering their functions as consumers. remunerators and purchasers. about merchandises and services. properties and benefit. location. how to purchase the good or utilize the services and how the consumer approaches decision-making.
Other than pre-purchase information searching by the consumer and how consumers learn. the following thing to understand is how consumers make determinations based on the four positions of consumer decision-making. This is the economic theoretical account which portrays a universe of perfect competition where consumer is frequently characterised as an economic individual ; that is. an person who makes rational determinations. The 2nd theoretical account is the inactive theoretical account. which is opposite to the economic position. This theoretical account assumes that consumers are inactive and self-seeking persons who simply lookout for their ain involvements. The 3rd theoretical account is the cognitive theoretical account. which assumes that consumers are subjective job convergent thinkers and actively seek merchandises they might necessitate. The forth theoretical account is the emotional theoretical account. which assumes consumers’ feelings or emotions are associated with purchases and ownerships are likely to increase personal engagement. [ 5 ]
Understanding some of the relevant consumer behavior theory
While it is clear that we have to be interested in analyzing consumer behavior. there have been many different theories sing larning aims. engagement. reasoned action. cognitive disagreement. ascription theory. etc. We all know that consumers go through different procedures in doing their determinations in buying goods and services. The followers shows some of the theories which may be important for consumers in doing determinations.
Motivation can be positive or negative in way but can by and large be described as the drive force within persons that impels them to action. This driving force is produced by a province of tenseness. which exists as the consequences of an unrealized demand.
The term ‘need’ refers to any human demand. Innate demands are physiological ; or it is a basic demand such as the demand for nutrient and H2O. Acquired demands are needs that we learn in response to our civilization or environment such as self-pride and power.
Three watercourses of research and theoretical development have contributed much to our apprehension of personality and its utility in selling. First is Sigmund Freud’s psychoanalytic theory of personality which is the basis of modern psychological science. This theory was built on the premiss that unconscious demands or thrusts. particularly sexual and other biological thrusts. are at the bosom of human motive and personality. Second is the neo-Freudian personality theory which believed that societal relationships are cardinal to the formation and development of personality. Third is the trait theory which is chiefly quantitative or empirical: focussing on the designation and measuring of personality in footings of specific psychological features [ 7 ] .
Percept is non needfully the same as world [ 5 ] . Percept is defined as how we select. organise. interpret and recover information for the environment.
Consumer acquisition is the procedure by which persons acquired the purchase and ingestion cognition and the experience they apply to future related behavior.
6. Engagement theory
Involvement theory focused on the inclination of persons to do personal connexions between their ain life and the stimuli object. The focal point was on the personal relevancy. value of goods and the sum of cognitive resources used in treating information about the stimulation. Engagement can split into high and low engagement goods and services. High engagement. which is a good or service necessitating a long clip to seek for information. usually an expensive good such as a luxury auto while low-involvement is frailty versa.
Attitudes reflect whether a individual is favorably or unfavorably predisposed to some object in a peculiar trade name or services. Harmonizing to the psychological procedure. attitude are non straight discernible. but can be inferred from what people say or what they do.
8. Attribution theory
Attribution theory efforts to explicate how we assign causality to events on the footing of either our ain behavior or the behavior of others. In the other words. for illustration. an insurance gross revenues representative persuades me to pay for the insurance yearly alternatively of a monthly part because he can acquire the immediate high committee rate and income.
High engagement determinations and how it relates to the theory
United States of America. Canada. United Kingdom. Australia and New Zealand still remain as the five major states that parents see directing their kid to analyze.
Before pupils decided to go on analyzing abroad. they needed to travel through the pre-purchase information hunts. which is a critical measure in the purchasing procedure of consumers. particularly in the instance of high engagement merchandises and services.
It is non easy for pupils to do determinations in taking where they should travel for their farther instruction. as abroad instruction is rather expensive. However. because there are many new houses ( bureaus ) come ining into this market ; hence. it is non hard for pupils to happen school information from those instruction bureaus and pupils need to seek for more information in order to make up one’s mind which state or province they should travel to. In the other words. they are more likely to be involved in extended job work outing for those who are wholly new or limited job work outing for those who have already decided which county they want to travel to. The lone job for them is which province or state they are more willing to travel within the state. which high school or which university they would wish to come in and the class they want to set about.
It is really obvious. high involvement goods or services besides means consumers are anticipating to have high-perceived hazards. Perceived hazard pertains chiefly to pre-decision consumer pick and information seeking [ 2 ] . The major types of hazard are as follows.
1. Financial hazard – the likeliness of enduring a fiscal loss or abnormality such as parents going unemployed all of a sudden.
2. Performance hazard – what is the opportunity of the instruction supplier neglecting to make parent and pupil outlooks.
3. Physical hazard – the chance of the purchase ensuing in injury. Such as. is it truly safe to analyze in the US or UK due to the menace of terrorist onslaughts.
4. Psychological hazard – the opportunity of the specific purchase being inconsistent with the personal.
5. Social hazard – the likeliness of the purchase ensuing in others believing of the consumer less favorably.
6. Time hazard – the hazard that the clip spent in merchandise searching may be wasted if the merchandise does non execute as expected.
7. Overall hazard – the likeliness that purchase of the point will ensue in general dissatisfaction of the consumer.
As a consequence. it is non easy to do immediate determinations when high engagement merchandises or services are involved. Apart from the degree of hazard they need to confront and the clip spent in seeking for information. before doing a determination they can seek advice from the sentiment leader. An sentiment leader is a individual or an administration informally act uponing the actions or attitudes of others. Here is an illustration:
Statisticss released by the Australian Consulate General’s Education Department in Hong Kong in April. 2005 indicated a recorded of more than 20 per centum growing for pupils from Hong Kong taking Adelaide as a location for their future instruction. Research showed that parents would wish to take a metropolis such as Adelaide. the capital of South Australia because of the high criterion of instruction at a comparatively low cost compared to Sydney. Adelaide. named by Queen Victoria more than 100 old ages ago is besides known as the’ Southern Boston’ . which is celebrated for its outstanding academic public presentation.
Beginnings: Annual study and research addressed before the gap of The Australian High Schools Exhibition held on Saturday. 9th April. 2005 at Conrad Hotel. Hong Kong.
Students may non even cognize where it is located if you are non familiar with Australian geographics. The Education Department of the consulate general merely acts as an sentiment leader to give pupils advice and the advantage to analyze in Adelaide. This does non intend other provinces are in any manner inferior.
Student may besides seek sentiments and advice from an instruction consultancy or inquire friends who have experienced analyzing abroad. Percept of the state and personality may besides impact the pupils determination where he or she choose to travel. but whichever state that the pupil decides to take. they still need to confront the perceived hazard since it is a high engagement service. They can besides measure the other options. apart from traveling to another state. if the pupil is looking for third instruction. he or she may besides take to set about distance acquisition classs in Hong Kong. obtain the same grade and be granted the same acknowledgment as a local pupil. Again. perceived hazard is high but at least a local lasting occupant can use for a non-means tried loan to pay for the schooling fees. which at least lowers the fiscal hazard.
After a determination has been reached. carry on a post-purchase rating to see whether the merchandise or services are satisfactory. if they met with predicted outlooks. [ 5 ] In this high engagement analysis. if you go to analyze in Sydney and happen it exciting every bit good as making really good in your institute. the experience is tantamount to your outlooks. There are three types of outlook:
1. Equitable public presentation outlook – what the merchandise or service public presentation ought to be
2. Ideal public presentation outlook – the best possible merchandise or service public presentation
3. Expected public presentation – the expected degree of merchandise or service public presentation
If the public presentation met point one or exceeds it this means that consumer is satisfied. Indicate two agencies highly satisfied and point three agencies there was no surprise. but may non needfully supply any satisfaction.
Low engagement determinations and how it relates to the theory
As instant noodles do non necessitate extended attempt and noodles are everyday. consumers diets will be given to be humdrum and will supply small pleasance or freshness. Buying noodles is an illustration of set-pattern response behavior. which is. consumers have some experience with the merchandise class and a well-established set of standards with which to measure the trade names targeted. They may merely buy it out of wont or reexamine what they already know. For illustration. Nissin noodles. is what most normally comes to mind for people in Hong Kong if they want to purchase a cup of three proceedingss noodles because of successful advertisement runs.
When make up one’s minding to purchase a low engagement merchandise. usually it will non be an expensive merchandise and therefore consumers will utilize less clip in doing a determination. One of the chief factors is that even if they find out the merchandise ( s ) is non suited or can non run into their outlooks. they can afford to lose the money.
Consumers are rather easy influenced by their households or friends. [ 1 ] In this instance. make up one’s minding which trade name of noodle is the best. The sensed hazard in purchasing noodles is highly low. However. as more and more nutrient contains unhealthy ingredients. such as fertilizers or detrimental chemicals. due to hapless fabrication processing in China ensuing in people avoiding purchasing noodles which are imported from the mainland ( this is a really utmost instance ) . Due to inordinate media exaggerations the general populace may be ill influenced into losing assurance in mainland manufactured goods.
In taking a low engagement merchandise. consumers are ever attracted by the packaging or the usage of some celebrated famous persons to make advertisement in order to act upon possible purchasers by demoing that even a dad vocalist besides eats such common trade name of noodle because of its assorted culinary gustatory sensations. [ 6 ] For illustration. Nissin instant noodles used TWINS. a two immature misss pop group. in their advertizement. This can pull immature adolescents to purchase the merchandise merely because they like TWINS. Buying Nissin noodles can be seen as a mark of support for TWINS every bit good.
We may besides happen that noodle advertizements ever appear in amusement magazines. which ever use cunning sketch characters to pull attending. Research shows that because it’s a low engagement purchase the perceived hazard is low and therefore the clip consumers take to travel through the inside informations is well less or even non-existent. [ 8 ] Hence. advertisement is of import to pull the readers’ attending with the usage of a amusing sketch to form memories into people about a peculiar merchandise or trade name name so that when they go to a supermarket or convenience shop they will hold on the noodle that sticks out most in their heads. The place of the merchandise on the store’s shelf besides helps consumers in taking the low involvement merchandise such as noodles due to convenience. [ 3 ] It is highly effectual on busy people or for those populating entirely as it helps them salvage clip. If packaging is non attractive enough it becomes really hard to pull attending and advertizers frequently need to reiterate advertizements through different media Stationss in order to aim their possible clients more efficaciously.
Noodles can besides bring forth different gustatory sensations such as poulet spirit. beef and spicy. etc. Supplying assorted spirits is a simple and effectual scheme designed at appealing to a whole mass of possible clients. Customers may non enjoy a peculiar gustatory sensation but bearing in head there are many to take from. the consumer will already hold decided to seek another sort. hence already procuring another purchase of the trade name merchandise. On the other manus. consumer word-of oral cavity can besides easy act upon other consumers in doing low engagement purchases.
Similarities and differences between high and low engagement purchases
After traveling through some of the decision-making theories in buying high and low engagement goods and services. allow us compare some of the similarities and differences. Whether the merchandise is a high or low engagement. advancing the merchandise is a must. However. it is a affair for sellers to take which distribution channel should be used. Want. is an indispensable property of human nature. both high and low engagement are sorts of privation and have variable values for different people. Consumers will usually make post purchase ratings in make up one’s minding whether they are doing the right determinations in footings of value for money and carry throughing their demands and demands. For illustration. people may experience Pepsi is excessively sweet compared with Coca-Cola. These persons prefer to hold Coca-Cola instead than Pepsi even though Pepsi is comparatively inexpensive and used David Beckham as a publicity. Brand trueness is another similarity in decision-making. Based apparently on personality as consumers will hold their ain penchant of trade name. such as Coca-Cola and Toyota.
However. we can see there are some major differences between high and low engagement merchandise and services. Harmonizing to the Elaboration Likelihood Model. while high engagement takes the cardinal path. which chiefly uses extrinsic cues such as the trade name image and statements for persuasion. the opposite takes the peripheral path. which chiefly uses intrinsic cues such as colorss and spirits for persuasion.
The perceived hazard for low engagement is comparatively low. On the other manus. perceived hazard is high for high involvement purchase ; hence. in doing high engagement determinations. consumers will necessitate to seek advice from an sentiment leader. It may do a great loss if they make the incorrect determination. [ 9 ] High engagement merchandises besides can reflect the societal category position of a individual. Peoples may already hold a certain trade name type in head but such a merchandise may still necessitate to be exhaustively researched in order to determine whether the merchandise suits their demands. [ 4 ] An illustration of this might be a new theoretical account of auto manufactured by Honda. Even though consumers may be loyal to Toyota when sing purchasing a new auto. they may besides necessitate to make some research sing auto security ( Informational ) .
New research shows that compensatory determinations ( which a consumer evaluates each trade name in footings of each relevant property and so selects the trade name with the highest leaden mark ) and non-compensatory determinations ( which positive rating of a trade name property does non counterbalance for a negative rating of the same trade name on some other property ) in consumer decision-making are widely accepted as one of the chief regulations in consumer behavior. [ 9 ] For consumers doing high engagement determinations. a consumer evaluates trade name options in footings of each relevant property and computes a leaden or summated mark for each trade name. Consumers can besides equilibrate positive ratings of a trade name. one property at a clip against any negative rating. This is why consumers frequently spend tonss of clip making merchandise research. seeking to acquire every bit much information as they want in order to avoid doing a incorrect determination.
We have now gone through many different theories sing consumer behavior every bit good as trying a brief analysis about merchandises of high and low engagement. We have besides assessed comparative similarities and differences for consumers in doing determinations based on the theories we have studied. It is really of import for markets to to the full understand and do usage of differences between people in this society who have their ain demands depending on their cultural. societal background and the degree of influence imposed on them by household and friends. It is besides of import to set up a mark group ; in other words this is precisely the type of cleavage they will utilize in advancing their good or services. Why do sellers necessitate to set such a batch of resources into understanding their consumers? Ultimately because consumer behavior is wholly predictable and easy to pull strings.
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