Four theories stand out as influential for marketers. The crux of this point is that while you should be aware of which channels you’re pushing your product through, don’t get scared off by new, exciting prospects on the horizon. Derived from psychological models of general human behaviour and a plethora of other disciplines, consumer behaviour emerged shortly after the Second World War as marketing shifted away from its reliance on economic theory and began to forge its own path. They were less focused on customer satisfaction with goods and services. The best example comes from the internet’s most significant retailer Amazon. In this analysis, consumers are rational actors who choose to act in their best interests. In contrast, human behaviour is rooted in an evolutionary process that has taken millions of years to develop. Nope, in 2007 Blockbuster reported that they had 40% market share in the USA.Â, Blockbuster later tried to change tack and go online, but the problem was too far gone by this stage, and too much of their business was tied up in physical stores. Competitions are an excellent way to do this and mitigate costs, but ultimately the feeling of reciprocity will be diminished if consumers are only given a chance of winning a prize.Â, The fact that each brand is different is what truly separates consumer behaviour from the other strands of psychology. The best example comes from the internet’s most significant retailer Amazon. Can I really afford this? — have you made your decision for Christ?!! However, If a person is in a bad mood, the inverse will be true, and this can be tough to predict. Social norms are often more of a factor when purchasing with other people present (i.e. If only there were a way we could medicate the masses to be in a 100% predictable mood. Risk perception and risk reduction activities. And this is no different when it comes to buying things.Â, Unfortunately for marketers, risk perception can bleed into a multitude of areas. If you’re advertising fast food, rather than covering the risks (of which there are many), the best way to sell your product is to present it as something beneficial in spite of the risks. The ad is intrinsically linked to a brand, meaning that even if there is a strong brand perception in the mind of the consumer, an inferior ad may quash any thoughts of making a purchase.Â. Consumer behaviour is an analysis of the behaviour of individuals and households who buy goods and services for personal consumption”. For example, an email campaign from a news service could attempt to highlight issues of poverty for young people by providing details of an offline support network. Jeff Bray Consumer Behaviour Theory: Approaches and Models “consumer behaviour…… is 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,Bamossy et al. This identifies five basic levels of human need which rank in order of importance from lower level needs to higher level needs. Not our fault mate, consu…you get the idea. From a psychological perspective, loyalty is defined as “helping the group while harming oneself”, which makes for a tricky realisation that we aren’t really talking about loyalty in the same way as you would otherwise use the term. Understanding your demographics can put your brand in a fantastic position, but one thing that cannot be predicted about someone is how they are feeling at any given time. Academia.edu is a platform for academics to share research papers. The job for marketers is thus twofold: Both options are tricky, and depending on your product, one may be a more appealing option than the other. *Sometimes they just do this for the hell of it without any real academic or practical foundation to do so, but as long as you keep these and other similar reasons from other resources in mind, you’ll be fine. Decision — have you made your decision for Christ?!! Alec Baldwin in Glengarry Glen Ross (1992). Economic theories 2. QVC registered. For example, if it has been determined that time constraints played a significant role in the purchase, those factors must be clearly viewable to the consumer.Â, One of the most important phases then comes after the purchase, and this is one phase fatally ignored by the sales funnel. The mode of initiation is essential, as self-initiation before a purchase will have a different effect to initiation from an advertisement. Some of the most popular examples include psychoanalytic theory and Pavlovian theory. For this reason, marketers must be aware of how social norms influence purchase decisions. The consumer's perceptions of risk are a major … A consumer may like a product, and all other factors could align; however, it is deemed to be undesirable by their social circle, they may choose not to purchase. What’s more, it reminds us that pricing is a part of the marketing process, and deciding how a product is priced shouldn’t be in the hands of the product development team alone. The fully online program takes just one to two years to complete, giving students a fast track to achieving their career goals. Home → Blog → Top Consumer Behavior Theories. Originally I’d planned to use some ABBA lyrics here rather than in the previous section, but fittingly, I changed my mind. Having a schtick or hook is all-important for a brand, but simply being different isn’t enough, as the majority of consumers won’t notice a vague sense of differentiation. While much of this decision may lie with the performance of the product itself, the role of the brand must not be underestimated.Â, Providing support on how to use a product and following up to confirm that it was received in good condition may seem like housekeeping, but considering that the consumer has already gone through many stages to arrive at this juncture, it is a waste to assume that they will buy again moving forward. Consumer Behaviour Theories Explained Introduction. in a physical location). The issue for marketers is that it can take just one thing to go awry, and the whole transaction falls apart. When establishing or reinventing a brand, marketers can use this knowledge to help create or change consumer habits, or reinforce brand elements that are associated with positive customer experiences. please help It is an interesting question. When there is a product and substitute of that product, sales of the substitute will be greater if its price is lower than the price of the original product. “If you change your mind, I’m the first in line.” ABBA, 1978. It suggests that marketers should understand the social influences that impact consumers in order to better comprehend product demand. Behaviour - a consumers actions with regard to an attitude object. Having this understanding can help you get into the habit of breaking down purchase journeys into greater detail and give you the tools to understand not only who your customers are but why they act as they do. This theory comes from the work of Russian psychologist Ivan Pavlov. Brand switching will happen when the factors by which a consumer evaluates their purchases become outweighed by another. Looking at their social posts, you can see that consumers regularly question the actions of brands they are using and even declare they will stop using their services altogether. This may be a reasonably straightforward process, either by thinking of instances in which they’ve seen a solution advertised or by asking other people.Â. Will eating this entire XXL pizza by myself have an adverse effect on my ability to get into my jeans? But alas, people can often feel good or bad for no determinable reason.Â. DEFINING A MODEL OF CONSUMER BEHAVIOR --- it is an attempt to structure the internal and external factors that affect the decision making process • Predicting consumers behavior • Sales of new products • Choosing the optimal location • Selection of the media … They may be content with their brand of supermarket, but after getting a pay rise and noticing a few ads showcasing superior alternatives, they may decide to change brands.Â. He believed that people’s individual needs and desires are created and influenced by group membership. Bastards. The main problem for brands that comes with this Colonel Kurtz-ification of their brand is that while continuing this practice may increase loyalty to existing followers, it may create a grotesquely unattractive prospect for non-consumers.Â, An oft-cited example comes from the PC vs Mac adverts featured around the world in which Apple reservedly showed the differences between their product and others. (And it's not socks). These tactics ultimately proved ineffective. a plane ticket may be considered more valuable to someone who loves to travel), Price of the item is compared to the costs of other similar products to determine “perceived price”, This can be done with prior knowledge of different prices or by making comparisons there and then (e.g. But what can’t be ignored is that consumers have preferred channels, and if your product isn’t on there, you’re history.Â. Less malevolent marketing tactics are regularly employed by digital marketers to take advantage of this factor. Furthermore, while you should always have these topics in mind when trying to get into the head of your customers, not all of them will be relevant all of the time. Imagine that KFC wants to run a new promotion. The point is that their delivery and usability are so effective and universally understood that people will use them in spite of their issues. 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