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Consumer behaviour

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Consumer behaviour

  1. 1. MAN4251M UB: 15014022 1 In order to survive the high competition in business term, it is crucial to understand how to attract consumer. When consumers make decision for purchasing products, they can be influenced by many factors. Understanding those factors, in other words, consumer behavior leads to better business decision. Consumer behavior is defined in the following way: “It 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. 2006 cited in Jeff, 2008 p3). To achieve the deeply understanding consumer behaviour, this paper will analyse case study, Mr and Mrs Bradford visit IKEA LEEDS, from theoretical perspective. In terms of involvement, it seems to be relatively high. The reason is discussed in following sentences. Firstly, as Bradfords who are a professional couple and whose age are both in mid-thirties, they can be in Upper-Middle Class (Table1). Although they are in Upper-Middle Class, they spent a great deal of money for moving from previous place to new one, which can lead them to be more sensitive for price tag and research beforehand. This is supposed by the fact that they plan to visit IKEA,
  2. 2. MAN4251M UB: 15014022 2 where reasonable products are sold. Also, it seems that they have already been knowledgeable in terms of purchasing furniture since they had experienced movement before. Moreover, furniture and accessories tend be high-priced product even in IKEA. Considering of these facts, the level of involvement can be identified as limited problem solving. In the family decision making, According to research conducted in 1974 by Davis and Rigaux, traditionally each members plays an important role and as for Bradford’s case, three types of group purchase decision might be found depending on which types of product they would buy (Figure1). First type of group purchase decision is Husband-dominant decision making, where the purchase decision is made by husband such as Electronics. Second is Wife-dominant decision making, in which wife makes a final purchase decision such as kitchenware. Final category is Joint decision making (Autonomic), where both husband and wife contribute to decision-making such as dining table and sofa. As for the Bradfords’ case, living furniture is on the category of syncratic, which means both spouses may jointly make a purchase decision. This Figure 1 also provides a brief view of who plays a strong role in family purchase decision among a couple.
  3. 3. MAN4251M UB: 15014022 3 Also, children can strongly influence on family decision-making. According to family life cycle (FLC, Figure2), Bradfords can be categorised into Young couples more specifically in Married Couples with Children. In this stage, the ages of the children influence critically on the pattern of the family (Mediamark research, 1990). As a matter of fact, children in the US, who are under twelve year, affected $500 billion
  4. 4. MAN4251M UB: 15014022 4 in terms of family consumption, which implies that children can have potential influence over family purchase decision-making. In Bradford’s case, it could be possible that Bradford’s child, Ted, also influence on the decision making of family purchase indirectly. In other words, Bradfords might purchase living room furniture with taking into future perspective toward Ted into consideration. For instance, purchasing bigger table and large sofa. Another critical viewpoint can be applied for examining the individual roles of Bradford family members at each stage of consumer decision making process (Figure3), which is consisted of five stages: Need recognition, Information search, Alternative evaluation, Purchase decision, Post-purchase behaviour. In the each stage, different family members could have different roles in influencing on decision-making. In this decision-making, an individual could be regarded as five roles at the same time, or more than two family members could get involved at each stage.
  5. 5. MAN4251M UB: 15014022 5 In this stage, one or more family members can be the role of the initiator and they recognise their needs for products. In Bradford’s case, Bradfords both admitted need of products for living room in order to entertain their friends (social need, which refers to Maslow’s hierarchy). At the same time they recognized the problem that they had not much money to purchase products to decorate the new room even thought it is lager than previous one (need change).
  6. 6. MAN4251M UB: 15014022 6 In the information search stage, consumers start to look information for solving the problem (purchasing living room furniture in tight budget as for this case). It can be said that since Bradfords have experienced moving before, Bradfords already have known about the price of furniture and accessories in some extent (internal information). Therefore, it is possible to regard Bradfords both as a search influencer. Also, the fact that they consider living room as important place for entertaining friends shows that they might get information from their friend as well (external information). In this stage, customers evaluate the most suitable choice with information that is collected in the previous stage. IKEA is the well-know supermarket for furniture and accessories with reasonable price (positive perception). In addition IKEA has various products not only for adults but also for kids (positive perception). According to the research conducted by Hopper in 2000 (Table2), wives are more dominant position when deciding where, what colour and style, and which brand to buy so in this case, wife of Bradford can be decider. As Bradfords spent great amount of money for moving, they do not have a choice of other supermarkets that have high-priced products (inept set). Since consumers have evaluated different alternatives, they can make a decision. When considering alternatives, Bradfords might decide IKEA through taking into consideration with allowed budget, well-known brand, and previous experience. In this stage, table 2 shows that decision about how and how much to pay is regarded as husband dominant. Therefore, husband of Bradford can be buyers. As for post purchase behaviour, customers can identify whether they has chose the right
  7. 7. MAN4251M UB: 15014022 7 way in purchasing this product or not by evaluating sufficiency with their original desires (caused the punching behaviour). Bradfords may satisfy with their purchase of furniture and accessories (positive review). However, it can be assumed that they would waste money since they decided to visit IKEA instead of online shopping that would give them more chance to compare with similar products in terms of price. It is revealed that women tend to be gatekeeper and they do more research than men to upgrade the information about items (Ziene and Deirdre, 2004). It implies that wife of Bradford can make a negative feedback about IKEA when she recognises price difference through online comparison after purchase. In conclusion, it is recommended that retailers need to figure out the families purchase decision habit and arrange the interior of shops depending on segments where husbands or wives are dominant. For example, cleaning products should be located closed to Kichen-ware, which both are considered as wife dominating product (Figure1). This can reduce the conflict between husbands and wives in terms of making decision, and they therefore purchase smoothly while perceiving positive review, which might be affect on future purchase decision. Although there are many factors influencing on consumer behavior, in Bradfords’ case, wife may be main decision maker about which products to buy.
  8. 8. MAN4251M UB: 15014022 8 Andy Schmitz. (2012) “Exploring Business” 2nd ed. [Online] Available <https://saylordotorg.github.io/text_exploring-business-v2.0/s13-08-the-marketi ng-environment.html> [Accessed 5 Apr 2016] Center for a New American Dream (2002), “Just the Facts about Advertising and Marketing to Children,” Newdream.org [Online] Available at<http://www.newdream.org/programs/beyond-consumerism/kids-and-commer cialism> [Accessed 5 Apr 2016] Davis, H. L. and Rigaux, B. P. (June 1974), “Perception of Marital Roles in Decision Processes,” Journal of Consumer Research, 1, 57. JoAnne S. Hopper. (2001). “Academy of Marketing Studies Journal”. [Online] Available < http://www.freepatentsonline.com/article/Academy-Marketing-Studies-Journal/2 08890537.html> [Accessed 5 Apr 2016] John, F, T, Jr. and Mary, A, R. (2015) “Principle of Marketing”. 20th ed. [Online] Available <http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=fwk-133234-c h03_s01_s02#fwk-133234-ch03_s01_s02> [Accessed 5 Apr 2016] Mediamark Research (1990), Lifestage Marketing. Mediamark Research: New York. Sirgy, M, J., Don R, R, and Laura P, D. (2016) “Consumer Behavior Today”. [Online] Available < http://catalog.flatworldknowledge.com/bookhub/reader/8111?e=sirgy_1_0-ch12 _s03 > [Accessed 5 Apr 2016]
  9. 9. MAN4251M UB: 15014022 9 SOLOMON, M., et al., (2006). Consumer Behaviour: A European Perspective. 3rd ed. Harlow: Prentice Hall cited in Bray, J. P., (2008). Consumer Behaviour Theory: Approaches and Models pp3. Ziene, M. and Deirdre, Q. (2004) “Couple Dynamics in Household Tourism Decision Making: Women as the Gatekeepers?” Journal of Vacation Marketing, 10(2), 149–60.