Consumer Behavior
BUS 360 Electronic Commerce (Section XX)
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The ability to discern and anticipate consumer behavior and motivation is a primary component of a successful business. This essay will assess the decision making process and the elements that include branding communities, reference groups and consumer tribes. Examining the theory that rests behind modern consumer predictive models will enable the creation of credible future decision making models.
This study will evaluate four individuals buying habits: Terry’s purchase of electronics, Opie’s purchase of home entertainment equipment, Stacy’s penchant for gadgets and the Steve’s buying of tools and building equipment. In the end, this study will have examined base data, modern implementation and future potential with the stated goal of gaining an understanding of consumer behavior in the world of business.
Consumer Behavior
In order to best understand the decision making process this study follows Terry while she purchased modern electronics in order to keep up with modern trends. She approaches this decision from the direction of someone that doesn’t have a need, but a desire. Her habits include purchases that do not reflect any driving need but only the desire to keep up with the rest of society.
Based largely on advertising and fads, Terry’s decision making and problem solving skills seem to be aimed at her own enjoyment.
Opie’s determination to have the very best and latest gaming equipment, serves to keep him firmly in the stores crosshairs. He has to have every new concept and add on to make sure that his every gaming ability is met. In comparison to Stacy, this decision making process is founded on a very competitive standing. While this approach can keep a person up on modern innovation, this can also lead to several bad purchase choices that will keep the money flowing out of his wallet.
Stacy’s search for labor saving devices is the driving factor resting behind her continued pattern of purchases. Her decision making patterns indicate that she is concerned with every tool that has the ability to save her time in her everyday life. This behavior is different from the previous two in that there is a quality of need as well as the presence of base desire. These purchases were not only dictated by her wanting to improve herself, but somewhat needing the product.
Steve, as a building contractor has a vested interest in making sure that every tool is up to date in his work belt. With the ability to increase his revenue stream by using these tools to make money, makes the purchases of tools a vital necessity. Over the course of this study, his purchases did very little in the way of personal choice, but reflected his strict need to build a better product. Advertising while, playing a vital role in his decision making process does not make the final choice, it is the ability of the tool to be used in an effective manner, in keeping with the jobs requirements.
In many cases the decision making process overlap for many of these subjects. Terry, Stacy and Opie each included elements of popular adverting, often making the decision to purchase based on the same elements of identification and clarification stage. Each of the subjects employed slightly different criteria when approaching the purchasing moment. Terry and Stacy each depend on popular advertising and peer reviews in order to identify their possible choices, whereas both Opie and Steve rely on the performance factors in order to choose the correct product.
While gathering information, the decision making process is varied as well. Terry and Stacy use word of mouth and branding to assist in the choosing while Opie and Steve each use experience and time tested qualities to ensure that they get the correct product. In each case, the implementation stage was similar in that every one of them identified their purchases and stuck with their decision; in this area each subject was similar.
In Conclusion
The decisions made by these four individuals were different in many areas yet, similar. It was the need factor that drove the main differences between the decisions made. Both Steve and Opie exhibited a stronger degree of satisfaction, while Terry and Stacy often grew bored with their purchases. The transitory aspect of the purchases that were focused on a quick fix to a desire, were very often the purchases that were returned or set aside quickly. This pattern of decision making provides a quick burst of feeling and then provides very little as regards long term enjoyment.
The advertising served to draw in the buyers that were concerned with keeping up with the latest trends. With the first three subjects heavily influenced by the advertising concepts, it was easier to provide a purpose to draw them in the store. However, in the case of Steve it takes a real issue, or a genuine innovation that can make money to draw him into a purchase. In the end, each of these subjects demonstrated behavior consistent with expectations, yet providing a firm understanding of the habits of consumers in this modern age.
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Bibliography
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Schau, H., Muniz, A. and Arnould, E. 2009. How Brand Communiyt Practices Create Value. Journal of Marketing, 73 (5), pp. 30-51.
