Project 1: Researching Consumer Buying Behavior

Learning Topic

Consumer Buying Behavior

Marketers should have a thorough

understanding of how their "consumers

think, feel, and act" and must offer a clear

value to each target consumer (Kotler &

Keller, 2015, p. 157). Consumer buying

behavior is the "the study of the process

involved when individuals or groups select,

purchase, use, or dispose of products,

services, ideas, or experiences to satisfy

needs and desires" (Solomon, 2017, p. 6).

Consumer buying behavior is strongly

influenced by personal, cultural, and social

factors. Of these, cultural factors have the

most profound influence. Accordingly,

marketers pay close attention to the cultural

values of consumers in their markets to

promote sales of their current products and

identify opportunities for the future (Kotler

& Keller, 2015).

Marketers should understand how their

consumers make buying decisions and who

is involved in such decisions. Consumer

buying behavior is a five-step process that

involves problem recognition, information

search, evaluating alternatives, purchase

decision, and post-purchase behavior. Each

step must be fully understood by the

marketer. The five-step process does not

necessarily occur in this sequence, and

consumers may skip or reverse stages as

they alternate between buying offline and

online (Kotler & Keller, 2015). Brands play

an important role in consumer buying

behavior, conveying information about the

product and reassuring the consumer's

buying decision (Marshall & Johnston,

2011).

The marketplace has been dramatically

changing in the past decade thanks to

advanced and cheaper communications

technologies, which enable consumers to

make better choices and share their buying

experiences with others worldwide. The

newly acquired consumer capabilities

include the following (Kotler & Keller, 2015,

pp. 16–17):

1. Consumers are increasingly dependent

on the internet to acquire information

and make informed decisions when

buying.

2. Consumers search, communicate, and

buy on the move.

3. Consumers tap into social media to

exchange opinions and express loyalty.

4. Consumers are increasingly interacting

with companies.

5. Consumers may reject marketing

efforts if they find them inappropriate.

6. Consumers can easily shift brands if

they believe that they have not been

treated fairly by a certain company.

Consumer behavior is also characterized by

the actions that individuals take in buying

and using products or services, including the

"mental and social processes that come

before and after these actions" (Kerin &

Hartley, 2017, p. 123). A study of consumer

buying behavior is important in helping

companies plan and execute better business

strategies (Khaniwale, 2015). Social norms

and situational factors often influence a

buyer's final decision. Where group

pressures to comply are strong, influence

from social norms is expected to override

multi-attributed evaluation. The force of

social norms involves two aspects: (1) social

forces, or pressures and normative

suggestions, and (2) motivation to comply,

or the willingness to listen to others

(Johansson, 2009).

The country-of-origin effect also plays a

role in the buying decision. This term refers

to the impact a branded product or service's

perceived country of origin has on

customers (for example, "made in" labels).

Products or services from countries with a

positive image tend to be favorably

evaluated, while those from countries of

lesser status tend to be downgraded. For

example, the entry of Japanese cars into the

United States in the 1970s was more a

product of positive associations with Japan

rather than with specific firms. American

drivers sought to buy a Japanese car, and

not necessarily a Datsun (now Nissan) or a

Toyota. Evidence suggests that this effect,

which influences sales, does not stop over

time (Johansson, 2009).

The growth of multinational production has

changed the importance consumers ascribe

to "made in" labels. The perception of Sony

is unlikely to change, regardless of where its

product is produced. The influence of the

country-of-origin effect also depends on

whether or not the country in question

produces at widely different quality levels.

For example, Germany, Japan, Sweden, and

Switzerland have very high quality standards

in general, which help to guarantee the

quality of their products, and Korea seem to

be working on joining this group. However,

products from the United States, Italy, and

China have widely varying quality levels,

which can make it harder to judge quality

based on the "made in" label alone

(Johansson, 2009).

References

Johansson, J. (2009). Global marketing (5th

ed.). New York, NY: McGraw-Hill.

Kerin, R., & Hartley, S. (2017). Marketing

(13th ed.). New York, NY: McGraw Hill.

Khaniwale, M. (2015). Consumer buying

behavior. International Journal of Innovation

and Scientific Research, 14(2), 278–286.

Kotler, P., & Keller, K. L. (2015). Marketing

management (15th ed.). Upper Saddle River,

NJ: Pearson.

Marshall, G. W., & Johnston, M. W. (2011).

Essentials of marketing management. New

York, NY: McGraw-Hill.

Solomon, M. (2017). Consumer behavior:

Buying, having, and being (12th ed.). Upper

Saddle River, NJ: Pearson.

Resources

Consumer Behavior: How People

Make Buying Decisions

(https://leocontent.umgc.edu/co

ntent/umuc/tgs/mba/mba640/2

212/learning-

resourcelist/consumer-

behaviorhowpeoplemakebuyingd

ecisions.html?ou=922430)

Reading: Generation Effects and

Consumer Behavior

(https://leocontent.umgc.edu/co

ntent/umuc/tgs/mba/mba640/2

212/learning-

resourcelist/generation-

effectsandconsumerbehavior.ht

ml?ou=922430)

Analysis of Consumer Buying

Behavior

(https://leocontent.umgc.edu/co

ntent/umuc/tgs/mba/mba640/2

212/learning-

resourcelist/analysis-of-

consumerbuyingbehavior.html?

ou=922430)

Social Networks and the Buying

Behavior of the Consumer

(https://leocontent.umgc.edu/co

ntent/umuc/tgs/mba/mba640/2

212/learning-resourcelist/social-

networks-

andthebuyingbehaviorofthecons

umer.html?ou=922430)

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