About Understanding Consumer Behavior Theories And Concepts 3g212h

VALUE TO MARKETERS ABOUT UNDERSTANDING CONSUMER BEHAVIOR THEORIES AND CONCEPTS Modern day’s business is controlled by Consumers. Large variations in consumer needs and strong competition demands market driven business and marketing plans. It’s the response of Consumers that decides the success of Marketing. Most of the marketers not only avoid theories but also consider them to be irrelevant. They believe that huge experience of Managerial facts and direct observation of consumer’s behavior is enough to succeed. What marketers fail to understand is that experience and observation on one hand and theories on the other hand are inter-linked. By understanding consumer behavior, marketers will be able to investigate and learn consumer’s purchase mannerism and make marketing decisions. 1. INTERNAL INFLUENCES: These are the factors that happen within the consumers.

1.1. LEARNING: Learning is the behavioral change occurring due to the outcome of past experience. Based on Consumers gained experience on purchased and consumed product, they learn about the brands they like and dislike and the qualities they prefer the most. With this experience consumers adjust their behavior for the future. For marketers to understand the learning behavior better, two thoughts are developed – The behaviorist and the cognitive.

1.1.1. Behaviorist Learning Theory: This Theory is concerned with observing changes in an individual’s responses as a result of exposure to stimuli. (Henry Assael, 1992). Two type of learning theories comes under this: 

Classical Conditioning: Marketers can apply classical conditioning to their marketing effort to link a product with a positive stimulus. For Example, celebrities with social success can be used as brand ambassador to a product to create a positive link. The interest created by the celebrity may carry over to the product eventually because of the frequent pairing of the product with the celebrity. Like Bollywood celebrity Shah Rukh Khan brand ambassador of Dish Tv and Nicole Kidman endorsing Chanel in 2003.

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Instrumental Conditioning: This theory requires the establishment of a link between a response and stimulus. It focuses on reinforcement i.e. re-purchasing happens when a consumer is satisfied or

rewarded. The target of all marketing is to communicate the product benefits and to convince consumers to buy the product and get satisfied or rewarded. Free coupon or discount vouchers can be the reward for the consumers on every purchase. Once the consumers find the product is satisfactory, they will continue to purchase even if the rewards are withdrawn.

1.1.2. Cognitive Learning Theory Cognitive Learning Theory focuses on prioritizing the internal mental process. The theory looks at consumers as problem solvers who use information around them to control their environments. Marketing implementation of the cognitive learning approach enables in making the consumers develop a comprehensive and honest understanding of the product or brand. In cognitive learning, the approach is not only to aim at prospect consumers but also merging the relationship between the consumers and the product by informing and providing the knowledge to utilize the product’s benefits. For marketing, cognitive learning theory is a better produced means of communication with their products market audience particularly when there is an innovation. The introduction of Cellular Mobiles is an example.

1.2. PERCEPTION: Perception is the apparatus our brain provides us as a way to make sense of it and it does this via three processes that happen instantaneously and practically simultaneously: selection, organization and interpretation (Michael Bokeno, 2011). Consumers form a total perception of brands, stores and companies depending on the information they receive from marketing stimuli. The purpose of marketing is to encourage consumers to identify the brand from others and not viewed as other alternatives. Understanding perception helps marketers to develop the promotion mix such as retail plan, brand name, Media, ment and package design and lastly advertising evaluation. 1.3. MOTIVATION - Maslow’s Hierarchy of Needs Consumers buy products to satisfy their motive. Therefore, marketers should market their product’s motives that can be satisfied and develop marketing mix accordingly.Most of the time consumers are highly influenced by unsatisfied emotional needs. Marketers should try, solve and satisfy these needs in an order. Maslow’s Hierarchy theory has listed out these needs in an order.

Self-actualization Self-Esteem Social Needs

Safety needs

Physiological needs

It’s not only a concrete product sold at each sale but also an image or prestige about the product that the customer achieves. Marketers learning this theory will then realize that a product satisfying more levels of the hierarchy will be more successful for marketing. They can easily market about the product to the consumer, if they realize out which level of the hierarchy the product need would fit in. The best part of such marketing is that it assures the consumer that this will resolve their needs. If a product or service meets the basic need, the marketer should incline more on communicating to the consumer the extra advantages over their other choices such as better quality, lower prices, comfortable environment or faster service than the competitors. Products like life insurance, retirement plans are focused on the feeling of safety in each consumer’s lives. These are placed on the safety and security stage of the hierarchy. If there have been a number of robberies in an area in recent months, marketers should market the product keeping in mind the immediate need of safety. The most vital thing for the marketers is to make sure that their consumer knows how their life changes with the use of the particular product or service.

1.4. PERSONALITY: Personality means distinctive character of a consumer.

1.4.1. Social Learning Theory: Every consumer has a number of personality traits that describe how he/she respond to a particular situation. Social Learning in short means learning by imitation. It focuses on

the environment as the major factor of behaviour. It’s highly influenced by observing role models or representatives. Imitating a particular behaviour often rewards a consumer. This theory is very useful for Marketers using TV ment as their media. Celebrities or sport personalities are made brand ambassadors based on this theory, as consumers consider them as role models and will be interested to imitate them. Marketers being aware of this theory can easily find the link in marketing context to find strong brand personalities to market their product. One strong example is in sports industry- Reebok India used this theory by making the successful Indian Cricket team Captain Mahinder Singh Dhoni as the brand ambassador. He used Reebok products on ground and shown in ment. Through this Reebok delivered a strong message of sportsmanship and leadership to youth who are their major customers.

1.4.2. Self Concept Theory: This is another personality theory used for marketing. This theory states that consumers have the actual self concept and the ideal self concept. Consumers act according to their concepts of actual self. Products like Car, Mobile Phones etc needs marketing focusing on this theory. Consumers buy Rolls Royce or Iphone to show off their image and to create a positive self image.

1.5. ATTITUDE - Social Judgment Theory: In marketing context, attitude towards a product is learned tendencies of consumers to judge brands in a frequently favourable or unfavourable way. Social Judgment Theory, also known as Sherif’s Theory teaches that high involved consumers would find limited brands acceptable and would vigorously process information. While at the same time low involved consumers would find numerous brands acceptable and would participate very less in process information. For example, consumers interested to purchase a car would have immediately narrowed down their choices to few brands and will use many attributes like service dependability, performance, style, economy etc to evaluate each brand. It he is not interested or involved with the purchase, he would have considered numerous brands and would have evaluated with very few attributes. Marketers can increase the involvement by linking the product to an involving issue, personal situation or by introducing an important product benefits thus achieving consumer loyalty.

2. CONSUMERS AS DECISIONS MAKERS: This part discusses the effects others have on consumer decision process.

2.1. DECISION MAKING: Marketers need to find those factors that influence consumer decisions and the process of gathering information required for purchase and to make choice. Consumer decision process is a regular succession process – problem recognition, information search, brand evaluation, product choice and outcomes.

2.2. GROUPS: Consumers belong to various groups but they would use only one group for reference. When consumer is highly involved with one group then it’s called Reference Group. Consumers are persuaded by groups. The types of influence involved are informational influence, normative influence & identification influence. Marketers should use these influences for advertising and personal selling.

2.3. WORD OF MOUTH COMMUNICATION: This is the ancient and most effective source of marketing as this influence the consumer’s behaviors tremendously. Marketers need to stimulate positive word of mouth communication by approaching leaders and to pursue them to buy. They can also market by creating ads with old consumers saying positive about the product.

2.4. HOUSEHOLD DECISION MAKING: To define a market strategy for a product, understanding the household decision making process for each define market is important. The marketer has to find out which are involved in which level of decision making process and their motives and needs. Once this is done, the marketer is in a state to make decisions on product design, ment, media selection, pricing etc.

3. EXTERNAL INFLUENCES: This part focuses on consumers outside environment:

3.1. SOCIAL CLASS AND INCOME: Social class is ranking the consumers by the society into higher or lower positions to create a level of respect or prestige. For product categories like automobiles, education, fashion wear requires this concept. Income directly affects the purchase of some products such as cars. Marketers need to analyze and define which level consumers they should target their product. For eg: Louis Vuitton handbags for ladies are targeted to higher social class consumers. It’s a style and self expressive brand.

3.2. CULTURE: Culture is another important influence that decides if consumers are willing to buy the product. Lack of considering the national, local, political and business cultures while marketing will not only fails the promotion but also effect the brand image. For example, GCC culture doesn’t allow Pork consumption. In this case, trying to sell pork products at restaurants or meat shop will not be effective as consumers of this culture will not consider purchasing anything from these shops or restaurants. More and more concepts discussed, conclude that marketers should focus on two words – CONSUMER BEHAVIOUR. Through effective advertising and communication, marketers can change consumer behavior in a favorable manner. If a marker doesn’t understand and deploy in the correct way, it may work against him. Therefore, understanding the concepts is really important in order to succeed for a longer term in the business.

REFERENCES: Henry Assael., 1992. Consumer Behavior & Marketing Action. 4th ed. Boston: PWS-KENT Micheal Bokeno, R., 2011. Learning in conflict: revisiting the role of perception. Development and Learning in Organizations [e-journal] 25 (2), pp.15-17. Available Through: Emerald [Accessed 26 November 2011]