CONSUMER BEHAVIOUR
The study of consumer behavior is the study of how individuals make decisions to spend of what they buy, why they buy it, when they buy it, where they buy it, where they buy it, how often they buy it, and how often they use it. “The decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods & services”” (Solomon,Bamossy et al. 2006). The study of Consumer Behaviour has become a vital research in today’s environment. Consumers are seen as rational decision makers that are only concerned about their self interest (Schiffman ANDKanuk 2007, Zinkhan 1992).
After years of research there are several consumer behavior models that have been developed by different authors such as the black box model, stimulus response model, the personal variable model, and the comprehensive model. Each model is different in its own way and concentrates on a specific focal point. For example the black box model concentrates on external stimuli, the personal variable model focuses on internal stimuli within the consumer, and the comprehensive model studies a combination of external and internal stimuli whilst each model has their own advantages and disadvantages.
Overall the consumer models that have been developed soo far has their own sets of critiques. One biggest problem with the model is the fact that the variables chosen aren’t practical to measure as the variables chosen are narrowed down. It’s a must that the variables have to be variable and must not remain constant as in reality everything is constantly changing therefore even in the study the variables chosen must be proper variables if not the accuracy of the study will not be accurate. Another problem with the models is that Buyer behavior is studied instead of consumer behavior. There is a big difference between both as studying the buyer behavior will help implement marketing tools to attract the awareness of the buyer. Studying the consumer behavior will help to study the satisfaction levels of the consumer and also will help to further develop the product/service for a better consumer satisfaction.
Therefore understanding and studying the consumer behavior is very important and the consumer behavior models lack this. Another problem with the model is that emphasis is placed on micro theories and no importance is given to that of macro theories, therefore the accuracy of the model is not accurate. Another key element that needs to be identified is the study is generalized according to population, society, economy etc… People from the same community or region are not the same and their buying behavior will be different therefore generalizing this will make the study inaccurate.
ANALYSIS
Consumer behaviour focuses on the ideas and behaviour of customers when they make a purchasing decision. There are two types of purchasers: those, who buy for themselves or their relatives expenditure, and industrial buyers that buy for companies. In both states, the marketing expert has to cope with the convenient requirements of a purchaser or organization and his/her sentimental and individual requirements.
The importance of motivation in consumer behaviour is known around the world. In recent years, there was a large and rapid progress in consumer behaviour research. Consumer behaviour is an activity, which is aimed primarily at the use and disposal of products and services, including the decision-making processes that precede these actions and follow them.
Nowadays, the range of goods and services for consumption is exceedingly large, and the consumer’s choice depends primarily on the needs, tastes, habits, traditions, and preferences.
Consumer preferences are recognition that some goods are better than the others. Consumer preferences are, of course, subjective. The assessment of the usefulness and benefits of each selected product is also subjective. However, the choice of the consumer is not determined only by his or her preferences, it is also limited by the price of alternative products and the income of the consumer. Unlimited customer’s needs and limited resources make the consumer choice necessary.
When we consume different amounts of the same benefits, we notice that the more benefits we consume, the less satisfaction we get from consuming an additional unit of these goods. In theory, this pattern is called the law of diminishing marginal utility. It is the amount of added value of one additional unit of the good. This law involves the relation between the increase in the amount of goods consumed and additional useful unit of that good.
Thus, it is possible to state some principles of consumer behaviour in the market, as there is a certain model of their behaviour. Consumer behaviour is rational, as it proposes certain objectives and is guided by self-interest. When the customer is selecting the goods, he or she is also limited by the budget constraint.
Model of consumer behaviour is unrelated to general principles of consumer behaviour in the market, including, above all, maximization of the total utility, the law of diminishing marginal utility and budget constraint. The above model of consumer behaviour is the simplest model. However, it is also useful as it explains the buyer’s behaviour on the market and the factors that influence the demand for goods.
