Any individual in the consumption procedure can be defined as a consumer. Everyone around the globe is a consumer. In our daily lives, we are purchasing and using a variety of commodities and amenities. Nonetheless, we all possess varied tastes, likes, and dislikes and assume different behavioral patterns when making purchase choices. Consumers are the people who procure goods for personal consumption or to accomplish the general wants of the household and family requirements (Jisana, 2014). Users are typically impacted by numerous variables, and business managers in companies are always unsure about the variables that influence consumer behavior (Ladipo, Iyiegbuniwe, Ighomereho, & Ganiyu, 2014). Such variables may be known in some cases, but the precise nature and the range of their impact are unclear (Sahney, 2012). In such circumstances, it is imperative to confer to certain models of how clients behave so as to comprehend how to anticipate consumer purchase patterns in the market. Numerous factors impact how individuals live, buy, and consume. These may encompass external elements like ethnicity, culture, and social class. Understanding how persons buy and consume products and services can help define how consumer groups behave. Internal influences may include personal perceptions. The following essay seeks to analyze consumer behavior models. The essay also examines the effect of such models on efficient product development, marketing mix, and the marketing strategy.
Consumer behavior represents how people make choices to utilize available resources like cash, time, and effort to consume various services and products. Consumer behavior may further be defined as "actions of persons directly convoluted in accessing and using monetary goods and services together with the choice procedures that define the actions." The behavior encompasses what to purchase, reasons for procurement, when to buy, the degree of buying, and usage (Jisana, 2014).
Consumer behavior can also include the facts an individual assumes in buying and using products and amenities, encompassing the social and mental procedures that herald and accompany these activities. According to Schiffman and Kanuk (2008), consumer behavior includes the behaviors that users show in looking for, buying, using, assessing, and disposing of products, amenities, and notions which they anticipate gratifying their wants with. Understanding consumer behavior becomes essential since sellers should have access to information regarding consumer purchasing habits and their media preferences so as to create final communication plans (Jisana, 2014).
Consumer Behavior Theory Models
Commercial establishments provide commodities with the intention of giving clients gratification and maximum benefits (Ladipo et al., 2014). To accomplish this aim, it is, therefore, essential that managers comprehend how target customers react and behave, and the aspects that impact their purchasing patterns. Models for consumer behavior are necessary tools for this undertaking (Ladipo et al., 2014). A model offers an approximation to reality, and it assists choice makers in comprehending reality significantly. Consumer behavior theory models offer a deep awareness of consumer behavior paradigms, and they facilitate the growth of appropriate marketing outlines which are essential in creating a successful enterprise (Ladipo et al., 2014). Consumer behavior models can be traditional or contemporary.
Economic model. The economic model of consumer behavior focuses on the notion that a customer's purchasing pattern is founded on the aspect of acquiring the maximum benefits while reducing costs. Therefore, an individual can anticipate customer behavior based on commercial signs like the client's buying ability and the price of competitive or related commodities. Customers will procure related goods that cost less so as to maximize benefits. Additionally, an upsurge in client's purchasing ability will permit them to increase the quantity of products being purchased (Jisana, 2014).
Learning model. The model banks on the notion that customer behavior is ruled by the desire to gratify core and learned wants. The core wants encompass nourishment, clothing, and shelter, while learned needs include guilt and dread. Therefore, a customer will typically purchase things that will gratify their wants and offer satisfaction. A famished client can overlook buying a piece of jewelry to buy some nourishment but will return to procure the item once the hunger is satisfied (Jisana, 2014).
Psychoanalytic model. The model assumes that client behavior is impacted by both conscious and subconscious mind. The known consciousness levels are the ego, id, and superego which operate to influence an individual's purchasing choices and behaviors (Jisana, 2014).
Sociological model. The model accepts the notion that a customer buying pattern is centered on their role and influence in society. A client's behavior can further be impacted by individuals whom one relates to and the culture of the community (Jisana, 2014). For example, managers and their employees have different purchasing behaviors due to their distinct roles in host corporations, but if they reside in the same community, they can procure commodities from similar businesses or brands.
Contemporary models include the Howard-Sheth Model. The model represents one of the most comprehensive approaches to client purchasing behavior. It employs the concept of stimulus response to define customer's brand preference behavior over a time frame. The main constituents of the model are input and output variables, hypothetical and learning constructs, and exogenous variables (Jisana, 2014).
The Engel-Kollat-Blackwell Model is typically a problem solving and studying approach to consumer behavior and possesses an appropriate analysis of actual data seeking and assessment procedures of the customers. The model displays elements of choice making and the association and interactions among them (Jisana, 2014). Consumer behavior is viewed as an alternative procedure and various activities are identified.
The Nicosia model strives to define client behavior by establishing a relationship between the corporation and its prospective customer (Goodhope, 2013). According to this approach, communication from the marketer initially influences the predisposition of the client towards a commodity or amenity. Given the circumstances, the client shall have a distinct perception of the product (Jisana, 2014). Such perception influences the client in assessing product traits and. when satisfied, a desirable outcome is experienced.
The Stimulus-Response model mainly seeks to redefine the marketing mix and reactions of consumers to various forces and happenings. In the model, product, price, place, and promotion stimuli are a priority. In addition to the above models, there also exist other consumer behavior models that have been developed to explain why consumers make choices. One of these models is the black-box model that is founded on outside stimulus-reaction. According to this model, something triggers customers to undertake purchasing decisions that are impacted by various factors, including sampling, marketing messages, promotion, costs, and product availability. Another model includes the personal variable model where customers institute choices based on inside factors. The factors here can include belief systems, individual opinions, objectives, values, etc. Finally, there also exists the complex model which takes into account both external and internal variables (Goodhope, 2013).
Consumer Behavior Effects and Contribution to Effective Product Development
Consumer behavior has a great impact on the type of products developed and their quality. As seen, consumers will prefer goods of higher quality which costs less at the same time. Such consumer behavior enables marketers and producers to create goods that meet customer specifications. In some cases, the target market possesses distinct preferences. Due to the competition from related products, producers will strive to produce goods of high quality that meets customers’ desires (Goodhope, 2013). Efficient product development puts numerous aspects into consideration. They include price, quality, availability, and the desired outcome.
Therefore. consumer behavior impacts the types of goods produced and their nature. Marketers will always ensure that they retain a competitive advantage over related products. Understanding consumer behavior patterns will also ensure that the producer and the marketer realize their goals. Such a move is achieved by incorporating all rationales and choices present in the production of a good designed to satisfy the client's desires.
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Consumer Behavior Theory Models Effect on Marketing Mix
In a competitive and dynamic marketing environment, a company that understands consumer behavior the elements accountable for such behavior, as well as reacts accordingly by modifying its marketing mix, has an added advantage over its rivals (Ladipo et al., 2014). While it is essential to develop excellent products and amenities, having a definite awareness of how to target clients and of the elements affecting their purchasing patterns and behavior helps a company address their wants and institute more lucrative deals (Paine, 2012). Marketing mix represents one of the most popular marketing terms and tactical segments of marketing plans, which act as a means of translating marketing planning into practice (Goi, 2009). Usually, consumers have different tastes in products and services. Understanding consumer preferences and behaviors ensures that commodities and amenities are in line with prices, products, places, and promotions preferred by consumers. It may also include processes, people, and physical evidence.
Consumer behavior affects price in various dimensions. The price here represents what the client should give in exchange for a product or service. Clients usually react well to low-priced commodities. Understanding such behavior is essential for an institution as it assists in reducing costs through enhancing efficiency and manufacturing. Most significantly, the sellers are in a position to improve the perceived worth of products and services to the client or consumer. Consumer behavior models offer a precise analysis of consumer purchasing patterns that include where the client prefers to go for commodities and services. It is also essential that a seller provides products and services at a location convenient to customers.
The models offer the seller necessary information for active trade. Additionally, it is imperative for marketers to provide the exact product desired by customers. Understanding consumer behavior models offers marketers the right information to provide a goods-and-service combination that satisfies the target market (Goodhope, 2013). Finally, the behavior models give marketers the opportunity to undertake the right activities to inform clients about their goods and inspire prospective customers to purchase the product.
Consumer Behavior Effect on Marketing Strategy
Marketing strategy represents an enterprise plan that allocates wealth in ways to create profits by positioning commodities and services and targeting distinct user groups. Such approach concentrates on lasting company aims and entails creating selling programs so that they may assist corporations in achieving their goals. Most businesses count on marketing strategies for critical product lines or services as well as for new services and products. Typically, the task of marketing strategies and studying consumer behavior is founded on adaptation, an approach that is usually challenging to comprehend within a varied, competitive environment as companies try to strategically manage wealth and lessen corporate surplus (Goodhope, 2013).
Consumer behavior is related to the development of marketing strategies. Marketing tactics and strategies are founded on distinct and implicit beliefs regarding consumer behavior. Such tactics include on-line marketing. Usually, behavioral choices centered on sound theory and explicit perceptions are more prone to being fruitful than the choices founded merely on implicit intuition. Awareness and understanding of consumer behavior offers marketers an added competitive advantage and may significantly lessen the likelihoods of market failures and inappropriate choices. With consumer behavior models comes the Consumer Behavior Regulatory Policy that is intended to create, interpret, and implement decrees fashioned to safeguard and help clients. Appropriate regulation of various marketing practices requires a profound understanding of consumer behavior. Application of consumer behavior can be seen in social marketing which represents the usage of marketing approaches and tactics to modify or form behaviors that impact the target population positively. A successful social marketing strategy relies on good comprehension of consumer behavior.
Consumer value represents the difference between the returns acquired from total commodity and whole costs associated with the acquisition of such benefits (Goodhope, 2013). Offering excellent client value requires companies to undertake the complicated task of forestalling and responding to consumer wants better than the competition. The world is changing to become more homogenized even though various cultures still exist. Consumer behavior models facilitate the application of marketing strategies that embrace the opportunities and expenditures of operating in different states.
The customer rules the market. All marketing choices are centered on the expectations about consumer behavior. In creating value for clients and revenues for companies, sellers need to comprehend why consumers react in particular ways to the range of products and services offered. Customer behavior entails the tasks and similar accomplishments of people distinctively involved in purchasing and using commercial products and services. An awareness of consumer behavior helps in appreciating diverse market segments and advancing strategies to further infiltration in these markets. In comprehending client behavior arrangements, numerous behavioral approaches are used. These approaches include the customary and modern models. The traditional approaches are the Psychoanalytic, learning, sociological, and the economic ones. The contemporary models include the Engel-Kollat-Blackwell, the Howard-Sheth, the Nicosia, and the stimulus-response models. Other models include the black-box, the personal variable, and complex models. All the models seek to explain different approaches regarding consumer purchasing behavior.