Consumer Behaviour Analysis Essay

In this rivalrous food trade, high quality of fruits may non be sufficient for companies to bring in competitive edges in market (Palmer, 2004). In addition, according to M prohibitedinho et al (1996), it seems that the nature of market is to satisfy the needfully and requirements of w bers rather than convergence oriented. Thus, consumers play a prominent graphic symbol in market as coetaneous market is customer-oriented. However, it should be mentiond that consumer conduct is unstable beca habit mental accompanimentors gain impacts on consumer doings. Moreover, Evans et al (2006) indicate that well-dis baffled factors too affect consumer demeanour. Although umteen companies let pinched attention to the status of consumers in market, they insufficiency of the knowledge of consumer conduct and guidelines to analysis their consumers. Therefore, the require of consumer doings is necessary for aiding companies all the way understand consumer demeanor.The purpose of this piece is to go a retentive the effectuate of consumer behaviour on realized and unsanded companies. Factors affecting consumer behavior bequeath archetypal be presented. The discussion of consumer behaviours effect on cardinal types of companies result then be displayed, with a focus on patsy unwaveringty, changing demands, and online shop channels. Furthermore, for incoming discoverment, utile approaches will be given to reduce the controvert effect of customer behavior. Indeed, this paper briefly discusses some main effect of consumer behaviour on constituted and raw companies, and it aims to help companies clearly understand consumer behaviour and hike up development.1. Consumer Behaviour1.1 Psychological influencesA keep party has spent amounts of while developing a modern product however, after the play along launches the product to markets, it could realize its efforts is wasted because customers eliminate its product in a some mi nutes. The reason is the participation fails or neglects to discerp the psychological factors of consumers. Understanding psychological factors is ingrained for imageing and worldizing a product, as these factors slant to influence consumer behaviour. According to Hollensen (2003122), psychological factors include needs, perception, memory, and spot.With regards to the needs of consumers, marketers very much distinguish the needs by employ Maslows famous assortment (1970). The pathification divides the needs of mickle into five grades found on hierarchy. The higher train needs rump non be realized unless lower level needs are genial. For sheath, most Afri arse countries suffer from starvation. If a marketer sells high life goods to Afri sack consumers, the marketer lams to fail because the marketer rousenot understand what Afri tooshie people desperately need.Baker (2006204) says Sensation occurs when a sense datum organ gulls a stimulus, while perception i s the interpretation of that stimulus. From the marketers mootpoint, it is essential to rip attention of consumers, and consumers can respond the way marketers in execute to. For example, if a marketer necessitates red colour to packet boat products, the consumer likes all commodities with red promotion by chance then, perception a jump offs as this packaging draws the consumer attention.In term of memory, when consumers make end among kinds of greases, they pick forth to select the marque that they look upon. Hollensen (2003) observes consumers bloodline tuition that is frequently seen or heard. Therefore, marketers strain their best to publicize their leaf blade account as much as feasible with a view to making consumers weigh their filth name when consumers select a product.Attitude can be expound as consumers have positive and invalidating feelings when they see a object that can be a snitch, an action, or a person. For this reason, marketers formulate ma rketing dodging base on using the knowledge of consume place in order to mate with consumers tastes and preferences.This subsection focuses on psychological factors that influence consumer behavior. In the latter subsection, it concerns fond factors that would influence consumer behaviour.1.2 Social influences Baker (2006) points out that affable influences can be dual-lane into ternary categories including culture, cordial class, and life-style.In equipment casualty of culture, Bennett and Kassarjian (1972) define culture as a consecutive form that can be passed on from unmatched generation to another(prenominal) mainly including habits, beliefs, values, and attitudes. However, culture tends to be relatively unstable, and it is in the influence of changing and incentive sore ideas because of environmental kind and expert compound. In addition, Evans et al (2006) note that marketing is a contributory factor in changing of culture. For example, in China, before agi le food restaurants of McDonald opened, Chinese people prefer to eat their own food much(prenominal) as porridge, rice, and noodles nevertheless, after the US modus vivendi has transmitted to China through McDonald, the consume habits of Chinese has changed as most of them, in particular the young people, would choose hamburgers or chips so integrityr of rice and noodles.With regard to social classes, this classes are groups who have similar characteristics usually including education, income, occupation, and social status (Baker, 2006). Consumers behaviour tends to be influenced by the values of social classes, when consumers are divided into adept of social classes (Palmer, 2004). In general, social classes consist of three groups including upper class, center field class, and lower class. For example, if individuals identify with the upper class, they prefer to purchase products that differ from habitual goods such as luxury necklaces, and innovational cars.Another aspec t of social influences is lifestyle that is a way of living of people or families. For example, how people plan blank time, which interesting products people prefer to purchase. In consumption activities, through analyzing peoples lifestyles, marketers probably know which groups of people tend to be their targets, hence they can design a suitable marketing compound for their targets. 1.3 The get determination processThe to a higher place paragraphs introduce influential factors that affect consumers decisiveness making. For better understanding consumer behaviour, the process of purchase finis is divided into five step (Hollensen, 2003).The first step tends to be fuss identification. According to Hollensen (2003), the differences between original pip and desired situation motivate consumers to strain and purchase products that probably bring triumph in order to balance the current condition with the desire.The second step is knowledge chase. Consumers gain informatio n from past experiences and long memories stored in mind. In addition, Hollensen (2003) states that memory seeks information from three root words including personal sources, commercial sources, and public sources. The commercial sources are information disseminated by marketers and dealers. Thus, marketers tend to dispense use of this source in order to make consumer remember and store their put up name in long memory.The third step is rating of alternative. In this step, Hollensen (2003) points out that consumers tend to valuate products from four attributes including cost attributes, performance attributes, social attributes, and availability attributes.Fourthly, Palmer (2004) points out that the purchase decision is made by DMU (Decision Making Unit). This DMU consists of influencers, gatekeepers, buyers, users, and decision makers.Finally, the post-purchase evaluation pose tends to result in gratification and dissatisfaction. Also, in this stage, Palmer (2004) states that consumers tend to develop brand loyalty if they obtain satisfaction about their decision-making. Thus, marketers play an active federal agency in developing customers brand loyalty. For example, marketers can provide all-weather after-sales buy the farm for customers with a view to chink ulterior usage with satisfaction.2. The Effects of terce Forms of Consumer Behaviour on Established and in the raw Companies2.1 Brand loyalty It seems that attitudes of consumers tend to strain customer loyalty on the definite brand. Evans et al (2006) seem to support this view and point out that consumers attitude of one product is squarely diverse from their attitude of another product, and this attitude can fetch towards loyalty. Indeed, brand loyalty is a competitive marketing strategy for companies especially for realised companies. According to Evans et al (2006), loyalty can result in a majuscule number of advantages such as diminution in marketing budgets, expanding market sh are, and addition of subsisting brands.For example, in the UK, Tesco is an outstanding retailer. Relying on the victor in the UK, Tesco not whole extents its career from the retailer to the food fictionalization and the clothing manufacture, but likewise expands its market to China, Korea, and besides Thailand. Reichheld (1996) similarly reports that the longer time a customer is loyal to a accompany, the much more benefits the company obtains as consumers tend to purchase more products in that company. Furthermore, customers tend to neglect hurts of the product in original industries, so companies can doubled their shekelss. For example, the advent of orchard apple tree products has retracted many customers to purchase, and many customers has built their brand loyalty to apple products no matter how high values Apple products set. However, the brand loyalty of consumers tends not to be advantageous for impudent companies.Firstly, the new company should pay a consid erable monetary fund of marketing costs to publicize its product and brand name. Secondly, realized companies already look at large amounts of market share. Boush and Jones (2006) note that at that place are few appropriate positions for later entrants. Thus, it tends to be difficult to suck up customers that have brand loyalty to a certain brand from competitors. For example, In spite of the fact that Carrefour is famous for its low price and high quality products, it exited from the South Korea last because it is a new company for Korea, failed to allow consumers from competitors.2.2 Dynamic demands In terms of the projectile demands of consumers, companies need update their products or services constantly because of the change of consumer demands, although Boush and Jones (2006) indicate that open up companies already occupy large amounts of market share. Palmer (2004) proposes that established companies should tilt or credit their brand establish on their maturation strengths in order to meet the chatoyant needs of targets. From established companies aspects, Murphy (1998) concludes that the mention of brand will has risks on diluting the existing brand.Then, Murphy (1998) provides a related example of Cadbury, a chocolate manufacture in Britain. The managers of Cadbury extended the Cadbury name to embrace non-chocolate products to attract new consumers with a view to reduce investments on developing a new brand such as mashed potatoes, modify milk, and beverages. Over the years, the managers of Cadbury realized this action not solitary(prenominal) diluted Cadburys theme but in addition weakened its powerfulness in the chocolate area (ibid). Moreover, Andrew (1998) also observes that chances are limited to extent brands if the brand maintains its current product attributes. However, from new companies aspects, propulsive demands of consumers create opportunities for them. Joel and Michael (2010) cite a support example that Apples succ ess due to the change in the smooth phone pains.Moreover, Hartman and Beck-Dudley (1999) provide empirical induction to support that high-power demands create opportunities for new companies. With the remediatement of environmental awareness, current customers tend to purchase ecofriendly goods that have no destructive effects on environment. The CEO of the personify shop, Anita Roddick, realized this demand of consumers therefore, in 1976, the first body shop opened and launched its brand with minimal package, natural products that have not been tested on animals. Based on these initiatives, the body shop became most made company and remained one of the global brands money box today in cosmetic industry (ibid).2.3 New shop channel online With the rise of online shopping, net income has become a fashionable shopping syllabus. Today, shopping online tend to be a major shopping channel, compared with tralatitiousistic shopping channel such as stores or shopping Hall. Fro m established and new companies aspects, this condition has positive effects on them. Palmer (2004) gives supporting ideas that online marketing is not unaccompanied less expensive to use, but also less time to communicate with consumerscompared with traditional marketing such as memorial tablet-to- show marketing, and personal selling. The Oxford Associations astutely observes, that most companies receive over 50% reduction in feat costs through the internet (ibid).Furthermore, internet help marketers improve preservation rate, and update rapidly after reviewing consumers feedback such as respond to demand change (ibid). Moreover, Baker (2006) seems to support this view and points out that online marketing can collect different requirements about products, and marketers can use these data to make customization for consumers. However, not provided established companies, but also new companies should notice that the internet is not as a perfect platform for marketing. Palmer (2 004) argues that challenges for companies are how to attract consumers when they face information overload because Millen (1994303) reports that individuals can process about seven chunks of information at most.Chang and Wildt (1996) also indicate that price is becoming an important factor to choose products when consumer face large amounts of information. Thus, companies tend to use low-price strategy with a view to attracting consumers attention. The results of using this strategy lead to s light(a)going profit and enter in a malevolent competition. Palmer (2004) also provides a related furrow that the security of financial transaction and clandestine information of consumers should be taken into consideration. umpteen consumers resist shopping online because they tend to have concerns over the safety of their transaction and individual(a) information.Thus, companies will probably lose these authorization consumers. Additionally, Palmer (2004) also argues that consumers ten d to lose positive to shopping online because they are unable to fierce goods physically before purchase. For example, when shopping onlineone consumer is attracted by a product with light red packaging nevertheless, after receiving the product, the consumer is frustrating about the product because the colour is not same as showing online. later this shopping experience, this consumer tends not to purchase products in that brand. Thus, it seems that the company tend to lose this latent consumer because of the terrible experience by chance.This subsection discusses the effect of three forms of consumer behaviour on established and new companies. In the adjacent subsection, the paper will focus on the future development of both types of companies.3. time to come DevelopmentConsumer behavior has become an essential factor to influence marketing strategies. To a certain extent, companies can derive benefits from consumer behaviour however, it should be notice that consumer behavi or also tend to threaten companies. Thus, companies should adopt effective measures to avoid negative effects of consumer behavior with a view to future development.3.1 Aspects of brand loyalty In terms of brand loyalty, new companies occupy an inferior position, compared with established companies. However, they can take advantage of marketing strategies to reserve this position. Firstly, they can fluctuate brand loyalty of consumers through changing consumers attitude because loyalty builds on the soil of attitudes. Evans, et al (200676) state, Attitudes are essentially stable structures and are not easily modified. However, Hovland and Weiss (1951) argue that attitude can be changed if consumers deliberate what experts say, as expert effects or star effects.For example, if Ming Yao, who is a popular basketball game player in the world especially in China, endorse a nutrition brand, his opinion tends to be a strongly persuasive force that can change consumer attitude and make consumers establish a trust relationship with the brand. Moreover, if consumers are loyal to a certain brand, it shows that they are satisfied with it, and this brand loyalty is not easy to change. Thus, Murphy (1998) proposes that brand differentiation strategy is significant for new companies in terms of brand loyalty.Finally, low-price strategy plays a significant government agency in entering market for new companies, because Chang and Wildt (1996) indicate that price is one of important factors for consumers to choose product. After successfully attract consumers through low-price strategy, new companies can use other marketing fuse such as promotion, and packaging to prune customer loyalty. However, With regard to price, it should be noticed that there should be a balance between the prices of a product and positioning.3.2 Aspects of dynamic demands With regard to dynamic demands of consumers, established companies face a complex and multifaceted occupation of reposition or extension with a view to retaining loyal customers and attracting new customers. Firstly, Andrew (1998) states that the heart value of a brand is a significant basis for reposition or extension a brand. It seems that the reposition or extension of a brand tends to pose risks on diluting the existing brand if the company ignore the core value of the brand. The company of Cadbury mentioned in the second section is a good example. Furthermore, the message/offering should be perceived and understood in the intend way (Evans et al, 199651) by consumers. Thus, it is essential to communicating with current and potential customers when companies need reposition or extension of their brands. Finally, Gerstman (1998) indicates that packaging is an thin starting point for established companies indirect request to reposition or extension of their brands.3.3 Aspects of online shopping channel With regards to disadvantages of shopping online, firstly, not only established companies, but also new companies should strengthen the security of finance transaction and privacy information and use of third-party platform of payment transaction that can improve the safety of online shopping such as paypal, alertpay in order to make consumers believe that their information is security when they shopping online. Secondly, in terms of information overload, Palmer (2004513) proposes Getting a high ranking in search engines has become a critical readiness. Finally, it seems that no practical approach tend to solve the problem that consumers cannot examine goods physically before purchase. However, the company can take pre-action in order to reduce dissatisfaction. For example, save samples can provide for potential customers to attempt. decisionUnderstanding consumer behavior is not only a necessary in the stage of attracting consumers, but also a process of sustainable development for companies. This paper supports consumer behavior having a significant effect on established and new companies, and this paper has presented three forms of consumer behavior. These included brand loyalty, dynamic demands, and online shopping channel. The discussion of consumer behaviour effects on two types companies have been highlighted. Moreover, factors affecting consumer behaviour are mentioned, including psychological factors, social factors, and buying process. Similarly, for future development, effective approaches have also been given in terms of aspects of brand loyalty, aspects of dynamic demands, and aspects of online shopping channel.In discussing effects of consumer behavior on companies, it may be concluded that established companies occupy ascendant position in terms of brand loyalty, compared with new companies from dynamic demands perspective, new companies come up the inferior position, and get opportunities to develop and attract consumers from competitors with regard to online shopping channel, established and new companies face same opportunities and thr eats. The future role of consumer behaviour has also been taken into consideration, based on research by Evans, et al (1996), and this suggests that consumer behaviour has become a basis to analysis market issues or future trend in market.It should be storied that this paper briefly discussed some effects of consumer behavior on companies and other effects is beyond of this paper and further work could be done in this area. This paper would be of particular interest to those companies who face a problem about consumer behavior.