...of a product is the difference between the potential customer's assessment of all the benefits and all the costs of an offering compared to the perceived alternatives. Value is the function of consumer’s evaluation thus it is subjective where the cost and benefit must be positive values. We can express as the following equation: Value = Benefits / Cost The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their products, producers may pursue marketing strategies to create a higher perceived value for their products. For an example of a reputed brand Boost; customer may think it comes up with energy for the professional cricket player with commercials Sachin Tendulkar is doing impossible. Let's take an example of famous brand Adidas. It has come up with special category of shoes named Air Jordan for the professional NBA players with advertisement Michael Jordan doing extraordinary performance. On the other hand Air Jordan announces a limited edition with customized amount available for which Adidas charges more price compare to other products. At the end all the publicity about the line of Air Jordan and its limited edition are customer perceived value. In marketing, value can be defined...
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...CHAPTER 1 The importance of understanding consumer behaviour CHAPTER CONTENTS Introduction Defining Consumer Behaviour Consumer Behaviour in Context Consumer Behaviour and the Marketing Mix Consumers and Relationship Marketing Consumers and Marketing Planning Antecedents of Consumer Behaviour Neuroscience Psychology Sociology Summary Key points Review questions Case study revisited: Pizza Case study: Center Parcs Further reading References LEARNING OBJECTIVES After reading this chapter you should be able to: Explain how the study of consumer behaviour has evolved. Show how consumer behaviour relates to marketing decision-making. Explain why relationships are harder to establish in business-to-consumer situations than in business-to-business situations. Describe the scope and nature of psychology and sociology. Describe the scope and nature of anthropology. Describe the relationship of economics with the study of consumer behaviour. Explain the role of exchange in improving people’s welfare. Explain how the terms ‘luxury’ and ‘necessity’ relate to consumer behaviour. Introduction Customer Someone who makes the decision to buy a product 01-Blythe-Ch-01-Part-1.indd 3 Every day we buy things. We exchange our money for goods and services, for our own use and for the use of our families: we choose things we think will meet our needs on a day-to-day basis, and we occasionally make buying decisions which will affect our lives for ...
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...Research Report Consumer Behaviour Naveed Mohammed 300765975 Prof. James Quance Business Communications 2 BUSN 733 13 Nov ‘13 ------------------------------------------------- Executive Summary This report discusses consumer behaviour in detail. Consumer behaviour refers to the buying behaviour of individuals and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market. Consumers around the world vary tremendously in age, income, education level and tastes. They also buy an incredible variety of goods and services making both simple and complex purchase decisions every day. The Cultural, Social, Personal and Psychological factors that affect consumer behaviour are discussed in detail. The consumer decision process which consists of Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision and Post Purchase Behaviour are then studied. A Consumer Analysis follows where questions like “Who buys and uses the product?”, “What consumers buy and how they use it?” and “Why consumers prefer a product?” are answered. A brief conclusion wraps up the report which states how Marketers study consumer behaviour to find answer to most questions that help them design marketing strategies to reach consumers more effectively and build long lasting relationships. Table of Contents Introduction | | 1 | Factors influencing Consumer Behaviour | | 1 | | Cultural...
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...“Consumers behave irrational by keeping products they are dissatisfied with, instead of returning them to the company” Table of Contents Chapter 1 - Introduction and Thesis Statement.........................................4 Chapter 2 – Consumer purchase decision process………........................5 Chapter 3 – Theory of consistence…………………………………………….6 3.1 Experiment…………………….............................................6 3.2 Theory of consistence and consumer behaviour...…....…..6 Chapter 4 – Cognitive dissonance……………………………………….…….7 4.1 Cognitive dissonance and consumer behaviour…..............7 Chapter 5 – Further reasons for irrational consumer behaviour………....8 3.1 Sunk cost effect………………......……………………..........8 3.2 Endowment effect…….………………......……………..........9 Chapter 6- Reasons for rational consumer behaviour……….....................9 Chapter 7- Conclusion..................................................................................10 Bibliography...................................................................................................12 Affidavit..........................................................................................................13 2 Chapter 1 Introduction Economic behaviour has long been defined as a rational and cognitive process. This idea assumes that decisions made by humans are based up on functional arguments and information. But many researchers discovered that human behaviour and the process of decision-making...
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...object. As a consumer, we have a wide range of products and services to choose from and we tend to form attitudes towards each products while making decisions, for example when we are being questioned whether we like or dislike the specific product in a survey. At that moment, we are being asked to express our point of view on the certain product or service. As the way consumers feel about the brand reflects their attitudes towards that brand. Consumer’s attitudes towards a certain product is crucial for any marketers as it determines how well their products or services perform in the specific market. From that, marketers will know how to tailor their products to meet each individual’s unique requirement. There are two types of attitudes, positive attitude and negative attitude. When a consumer have a positive attitude towards a product, he or she will spread positive word of mouth to others, this can boost up the company’s image, however, negative attitudes towards the product may have a big impact on both reputation and sales of the company. This essay will outline how consumer attitudes are formed and affect the behavior of consumers. Next, the difference in behavior and attitudes on product choice and purchase when consumers are rational or irrational decision makers will be discussed, Lastly, the ways marketers used to change consumers ‘attitudes and behavior when they are rational or irrational will be included as well. Content Different types of consumers have different...
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...Understanding consumer behaviour before launching a product i.e. Tablet. Table of contents: * Understanding consumer behaviour * Advantages * Disadvantages * Conclusion * Appendix Understanding consumer behaviour Studying consumer behaviour helps a company to set up its goals and marketing strategies. To understand a consumer’s psychology in order to improve an organisation’s marketing tactics is essential; it helps firms and organisations to study the behaviours, choices and needs clients make to consume a product or service. Hawkins (2007, pg.22) stated, “The consumer decision process intervenes between the marketing strategy and the outcomes. That is, the outcomes of the firms marketing strategy is determined by its interaction with the consumer decision process. The firm can only succeed if consumers see a need that its product can solve, become aware of the product and its capabilities, decide that it is the best available solution, proceed to buy it and become satisfied with the result of the purchase.” Marketers use a number of ways to analyse consumer behaviour including behavioural, emotional and cognitive. Solomon (2013, pg. 3) concluded that various factors influence consumers to make choices to buy products including their friends, social media, society and culture. Kumar (2009, pg. 181) proposed that it is very important to keep the values, beliefs and morals of customers in mind. Especially, while introducing gadgets like mobile phones, laptops...
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...related to products, consumers seek sources that are not owned or sponsored by media such as ‘word of mouth’. Sources of word of mouth includes friends and family, clubs, online forums and neighbours. Online sources such as Facebook, Twitter and Instagram provide a platform for user to discuss, tag people and share their experiences and opinions about products. Such reference groups help marketers to manage feedback and address issues promptly. Though, social media feedback poses a lot of challenges for marketers since they have to be very vigilant and tactful in handling online feedback, if positive, it also has the potential to create a strong brand name. Customer concerns...
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...Consumer Behaviour Mini Case E-Commerce and Consumer Behaviour Submitted By: Aziz Ud Din Ahmed Jafri Stu ID: 1002010261 E-Commerce and Consumer Behaviour Introduction Electronic commerce involves buying and selling of products or services using electronic systems such as the Internet and other computer networks. It is also known by the names of e-commerce or e-business. The volume of buying and selling done by virtue of electronic means has increased tremendously with increasing Internet usage. Modern e-commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. The purpose of this case is to relate E-commerce with consumer behaviour and see how the elements of consumer behaviour link up with e-commerce how companies are using consumer behaviour to expand their online market. Also the paper discusses how e-commerce company’s strategies are related and dependent on consumer behaviour. Types of E-Commerce E-commerce can be divided in to three major categories: 1. B2B 2. B2C 3. C2C B2B e-commerce is business carried out over the internet between two businesses. For example businesses may sell to other businesses by means of their website. B2C e-commerce is selling of products and services over the internet to consumers. The difference between B2B and B2C is that B2B customers are other companies whereas B2C customers are individuals...
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...Introduction Consumer behaviour is the buying behaviour of the last consumers that buy goods or services for their personal consumption. As a marketer, in order to change customers’ think and act, understand consumer behaviour is really important. They have to know the ‘why’ to influence the remaining ‘WH’ in consumer behaviour (Kotler and Armstrong, 2014)1. In this assignment, I will be aiming the white-collar workers which also known as office workers, their ages are around 30 to 50 years old. I’ve chosen psychographic segmentation to target buyers in the market. This segmentation classify consumers based on social class, personality or lifestyles (Kotler and Armstrong, 2014)2. Office workers are the bunch that always work overtime and seldom have proper meal. This unhealthy lifestyle causes most of them having weak digestion system. Carbonated water is a plain water with sugar free, no calorie and contains carbon dioxide, it gives a bubbly mouthfeel and slightly sour taste. It also known as sparkling water, seltzer water or soda water (Collins, 2015). According to Greenfield (2014), consume carbonated water can help in curing the digestion problem like dyspepsia and constipation. Besides, with carbonated water that contained sodium, it can help in reduce the risk of getting heart diseases. Also, people will tend to drink more carbonated water because of its unique taste, it is good for those who are having dehydration. The Characteristics that Affect Consumer Behaviour There...
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...Theory This chapter presents the theories behind consumer behaviour. It will also discuss online consumer behaviour in order to continue with the identification of the influencing factors. The theories of consumer behaviour will be used in order to be able to find consumer segments that will show whom the identified factors affect. 3.1 Introduction This dissertation aims at finding factors that affect the online consumer’s buying behaviour. By reading literature concerning consumer characteristics and online consumer characteristics we believe to find implications for certain factors that are of importance for the online consumer. The Internet is a worldwide accessible series of computer networks that transmit data by packet switching using the standard Internet Protocol. It is a "network of networks" that consists of millions of smaller domestic, academic, business, and government networks, which together carry various information and services, such as electronic mail, file transfer, the interlinked Web pages and other documents of the World Wide Web. Originally the Internet was mainly used by academics, research scientists and students; however that scenario has changed as commercial organizations have moved to incorporate the World Wide Web into their promotional campaigns, and by offering the facility of online purchasing (Jobber & Fahy, 2003). The Internet has evolved into a worldwide accessible marketplace for information exchange and e-commerce. The strategic...
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...in explaining consumer behaviour. Consumer behaviour is the process, in which focuses on the way how individuals or groups make decisions in order to satisfy their needs and desires, included search, purchase, evaluate and disposal of products or services (Solomon, 2011). Moreover, operant learning (or instrumental learning) is presented by Skinner (1953), based on Thorndlike’s law of effect which emphasises that a pleasant outcome tends to encourage the repetitive responses in that similar situation again and vice versa. Whereas the involuntary and simple responses are elicited in classical conditioning, Skinner’s theory is useful to explain complex and conscious consumer behaviours because of consequences happening after the behaviour. Therefore, this paper is going to examine the role of operant learning in the produce of purchasing behaviour in case of contingences reinforcement. The role of positive reinforcement in operant learning can clarify the habitual purchasing consumer behaviour. As acknowledged, operant behaviour is influenced by the outcome of the behaviour itself. It is indicated that satisfaction is formed as hedonic reinforcement as a result of utilitarian consequence of buying and consuming economic goods (DiClemente and Hantula, 2003; Foxall). It means that consumers learn from the previous involvement with the product which creates the satisfaction. Thus, customers tend to perceive the feeling of contentment by the past purchase behaviour is a positive reinforcer...
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...Consumer Brand Behaviour Module introduction: a consumer society Consumption Ethic “Teach him to live rather than avoid death; life is not breath, but action, the use of our senses, our mind, our faculties, every part of ourselves which makes us conscious of our being. Life consists less in length of days than in the keen sense of living. A man may be buried at a hundred and may have never lived at all. He would have fared better had he died young.” (Rousseau 1762) Programme Book: Consumer Behaviour: a European Perspective (4th Ed) Solomon, M., Bamossy, G., Askegaard, S. and Hogg, M. Assessment: – Assignment (40%) – Exam (60%) Timetable Week 1 Theme Consumers Topic Introduction to the unit : What is Consumer Behaviour? A consumer society The self Motivation, values and lifestyle Learning and memory Groups and brand tribes Opinion leadership and WOM Family and age Culture and lifestyles Cultural change process Module review Reading Ch 1, 2 2 3 4 5 6 7 8 9 10 Consumers as individuals Consumers as individuals Consumers as individuals Behavioural influences Behavioural influences Behavioural influences Behavioural influences Behavioural influences Final thoughts Ch 5 Ch 6 Ch 7 Ch 9, 10 Ch 9, 10 Ch 11 Ch 13, 15 Ch 14 - What is consumer behaviour? ‘The study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires.’ Solomon et al Role...
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...Module tutor: Kandis Watson Course: MBA Word count: 2,854 I. According to Bloisi, W., Cook, C.W. and Hunsaker, P.L (2003), consumer market refers to the purchase of goods and services purely for personal consumption. Consumer market and consumer buying behaviour must be studies and understood before an appropriate marketing plan can be developed. In general, organisations and companies need to know and understand the behaviour not only for their own customers but also for all consumers. Multiple roles of Consumers As users of a product, consumers are concerned with product features, thus users define what is needed from a product. Payers are consumers who pay for the product and are primarily concerned with its price and other financial considerations (reasonable life cycle of the product, cost of maintenance, cost of consumables, etc). Buyers focus on the logistics of the products (online, by phone, mail or retail center).In a particular purchase situation, the roles may be filled by a signal individual or by multiple people, for example, a parent may decide on the type of baby food that they wish to purchase but their partner may also beinvolved in the decision making or transaction, while the baby is the ultimate user of the food. The stages of consumer buying process The consumer buying process: Irrespective of the particular role, consumers constantly face a number of choices: -Whether to purchase -What to purchase. -Where to purchase. -From which supplier or...
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...Designing policy to influence consumers Briefing note 3: consumer behaviour and electronics When designing policy to influence consumers, you must take into account the way in which people make choices. Consumer choice is strongly influenced by mental short-cuts and emotive factors – it is not just a rational assessment of information on quality and price. Often these short-cuts lead to biases, which mean consumers do not always buy the best product for them. Effective policy must work with these mental short-cuts and account for the many factors that influence consumer choice. When designing policies aimed at influencing the purchase and use of consumer electronics, remember that consumers… • … are strongly influenced by unusual prices and offers. The visibility of these prices is very important: a key factor in consumer choice is whether an individual believes they are getting some kind of reduction in price. If they believe this, they are more likely to buy it as they see themselves as making a ‘profit’ on the purchase. Something ‘half price’ or in particular ‘free’ (for example ‘tax free’) can be even more appealing. Work with retailers, for example through voluntary agreements and codes of conduct, to promote energy efficient products. • … are very averse to loss. People want to avoid loss even more than they value additional gains, so use policy that imposes visible losses – like extra tax - even if quite small relative to the price. This is more influential than...
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...self-expression. According to Kotler and Keller (2009) needs are the basic human requirements. People need foods, air, water clothing, shelter to survive and people also have strong needs for recreation, education and entertainment. 1.2 Wants Wants that defined as the human needs that shaped by culture, individual personality and the demand to have something, which are products and services. According to Boyd, Walker and Larreche (1998) wants reflect a person’s desires and preferences for specific ways of satisfying a basic needs. For example, a company needs office space and its top executives want an office at a prestigious address in midtown Manhattan (Boyd,Walker and Larreche 1998). 2.0 Decision-Making Process / Buyer Behaviour 2.1 Decision-Making Process Decision-making process is process that made by the consumer before the purchase of a product. The following is the five-stage model of decision-making processes made by the consumer: Source: (Brassington and Pettitt, 2007, Essentials of Marketing, 2nd edn, p.70)...
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