Marketing


 


Customer Behavior


 


            Customer behavior differs from person to person. Every person has different preferences. The most visible is that they differ in their demographic and not only that but also by human nature also, customers can be spontaneous, unpredictable, and selfish. By human nature, customers would want what would best suit their preferences.  


            As according to  (1954), by human nature, man is motivated to satisfy his unsatisfied needs. Maslow formulated a model that has five fundamental needs and their hierarchical nature. The lower the need in the more fundamental is the need. The five needs include physiological needs, safety needs, belonging needs, esteem needs and the self-actualization needs.


            Physiological needs are the need for surviving like as air, warmth, food, sleep, stimulation and activity. This need concerns biological balance and stable equilibrium. These needs can be very strong because if deprived over time, the person will die. Safety needs are about putting a roof over our heads and keeping us from harm such as living in a safe area away from threats. Belonging needs such as the love of family and friends. Esteem needs such as healthy pride, self-respect, and respect from others.  Self-actualization are to ‘become what we are capable of becoming’, which would our greatest achievement such as purpose, personal growth and realization of potentials. This is the point where people become fully functional, acting purely on their own volition and having a healthy personality ( 1998).



Figure 1. Maslow Hierarchy of Needs


            In business, customer and management expectation must be closely monitored to maintain the balance between the relationships. If there is a need of change, the management should be willing to adopt the need of change especially in service-oriented businesses. Most importantly, customers seek on to good service. The management should also recognize the needs of the customers. Through recognition, there would be a more effective delivery of goods and services. The need of change would also be known.


            As we know the marketplace is characterized by continuous changes in market composition, business practices and structure. According to the Consumer Psychology in Behavioral perspective, “The most widely-accepted and influential models of consumer behavior derive in large part from cognitive psychology. As a result, consumer choice is usually understood as a problem-solving and decision-making sequence of activities, the outcome of which is determined principally by the buyer’s intellectual functioning and rational, goal-directed processing of information.” (1990). Customer behavior consists of different attributes and preferences that should be predicted by marketing managers. Understanding customer behavior is important in developing of marketing strategies especially in pricing, product design, segmentation, targeting, positioning and promotion.


            Even in a simple purchase, customers unconsciously go through a series of buying decision process before a customer can decide on buying the product or the service or not.


            An example is when I bought Colgate toothpaste. Unconsciously, I had gone through the decision making process.


 


Roles in the Buying Process     


            In purchasing, there are different people which can influence the decision making process. There are roles that each individual play in making the decision of buying the product or service. These would include the initiator, the influencer, the decider, the buyer and the end user of the product (). You may be two or more of the following roles in the decision making.


            The initiator usually is the first to suggest the purchase. For example, when you are hungry and you suggest that to purchase food you become the initiator.


            The influencer is the one in the group that has the knowledge and personal authority who influence the outcome. For example, you know about somewhere to eat, you become the influencer because you have the knowledge.


            The decider decides whether to buy, what to buy, where and how. In the family, usually the decider in purchasing is the parents. They have the money thus they have the power to decide.


            The buyer makes the purchase. After deciding on whether to buy, what, where, and how, you can now purchase/ buy.


            The end user of the product is the one actually using or consuming the product.


            In the case of my purchase of toothpaste, I play the role as the initiator as when I feel the need of toothpaste. My parents were my influencer as I have observed that they have been using particular brand which is Colgate. Eventually, I was the one who decides to buy so I was also the decider. After deciding, I became the buyer and the end user.


 


Decision Making Process


            Consumer decision making process and behavior relates to four different views ( 2004). These are economic view, passive view, emotional view and cognitive view.


            In the economic view, consumers are primarily facing imperfect competition and they are always expected to make rational decision on the basis of assumptions that they are aware of all product alternatives, they can rank benefits and limitation of each alternative and are able to identify one best alternative (2004).  


            The second is Passive View which is absolutely opposite to economic view and suggests that consumers are irrational and impulsive as they are submissive to self-centered interests of marketers and got influenced by marketing tools (2004).


            Similarly, the third which is Emotional View is related to perceive consumer’s decision making based on their emotional association or feeling about some products and services (2004).            


            Fourth which is the most acknowledged and arguable view is Cognitive View where consumers are considered as thinking problem solver which are receptive as well as actively searching for the products and services that can fulfill their need. Consumer’s behavior under this view is based on information seeking and processing attributes usually directed by a goal (2004)


            In cognitive view, as asserted by (2004), there are broader stages of a consumer’s decision making process. This includes problem identification, information search, evaluation of alternatives, outlet selection and purchase, and post-purchase action.


 



Figure 2. Decision Making Process


 


Problem Recognition


            By the time I perceive that my toothpaste tube is already empty, that was the time when problem has been recognized.


            Problem Recognition is perceiving a difference between a person’s ideal and actual situations. It is also defined as the difference between the desired state and the actual condition.  It is simply perceiving a need or being aware of a need. It can also be stimulated through seen advertisement on new ideas or styles. For example you seen in the commercial a new style of jeans, this would stimulate you to perceive a need to have those new jeans.  


Information Search


            Information search involves internal and external search. Internal search is scanning one’s memory to recall previous experiences with goods and services and also the brand. External search includes personal sources (family, friends, neighbors, etc.), commercial sources (advertising, salespeople, retailers, dealers, packaging, point-of-sale displays), public sources (newspapers, radio, television, consumer organizations, specialist magazines), and experiential sources (handling, examining, using the product).


            In the case of buying the toothpaste, information was acquired through personal sources which was the parents that influence me of buying the particular brand and also through previous experiences of the product. It also involves experiential sources by actually using the product.


Evaluation of Alternatives


            From the information search, the customer has already clarified the problem. The criteria to be use for the purchase is already known by the consumer, brand names had already been yield that might meet the criteria, and the consumer has already developed a value perception.


            In evaluation stage, the customer must choose between the alternative brands, products and services and even the prices. In this stage, criteria for evaluation are in need to be established that should features the buyer wants or does not want. Then rank/weight alternatives or resume search.


            In the case of buying the toothpaste, evaluation is not already applicable in the situation because I already have the perception of buying the brand Colgate because I have already been using this for a while and I have been used to using the brand.


Outlet Selection and Purchase


            When you have already evaluated all the aspects that you want from the product or service you want to buy now is the time to decide if you would purchase or not.


            But before purchasing, consider also when to buy and from whom to buy. When to buy can be influenced by store atmosphere, time pressure, a sale, and pleasantness of shopping experience. From whom to buy depends on some considerations such as terms of sale, past experience of buying from the seller and return policy (www-rohan.sdsu.edu).


            Purchasing of my toothpaste does not really consider where to buy or when to buy because the need of toothpaste is immediate and it does not need really a longer time to choose from where or from whom.             


Post –purchase evaluation


            The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. But if a customer would be satisfied with the product or services bought, the customer would likely to buy the product again.


            In my case, the toothpaste that I have bought has satisfied me so I have bought he product again.


Criteria of Choice


            Criteria are used when you are evaluating on the product you would like to buy. These criteria will be your guide in choosing the right product or service or brand that would satisfy your needs or want.


            In choosing the toothpaste to buy, the criteria that to used are cleaning ability. Toothpaste role is cleaning the teeth thus the cleaning ability is the most important in toothpaste. The toothpaste should have the high amount of baking soda because this ingredient is abrasive that helps in cleaning the teeth. It should also have the capability of fighting plaque. Right amount of fluoride is another consideration. Fluoride is found in toothpaste that helps in fighting cavities. Another criteria that should also be considered is the ability of the toothpaste to prevent tartar. Moreover, the toothpaste should have the capability to prevent gum disease and reduce plaque.


            For personal preference, the taste of the toothpaste was also considered and feels best. Today we can choose toothpaste in gel or paste. There are also flavors in toothpaste like wintergreen, spearmint, eucalyptus and others.


            Quality of the product is the most important criteria when you purchase a product. It is the effect in you that matters. It’s the satisfaction of the consumer that can drive out to repeated purchase of the product.


            Availability also in the market matters. When the product is not available, usually customer would switch to alternative brands that are more accessible and easy to seek.  Like for example, you are using that particular brand but when you go to the grocery store you will find that there are no stocks. Most likely you should another brand that still has the same effect. 


            Suitability of the product also is to be considered. The toothpaste that should be bought should suit the dental problem of the customer. For example you have a tartar problem you should choose a brand of toothpaste that have tartar control.


            Implications of the toothpaste should be considered. The amount of each ingredient should suit what your preferences or what your teeth needs.


            The price also of the product is to be considered especially on the price conscious customers. In choosing the suitable toothpaste, consideration in the price is also important.


 


Change in the Decision Making Process


            Buying decision making has five processes. These include problem recognition, information search, evaluation of alternatives, purchase and finally post purchase evaluation. But in some aspects these process also change with some products or services.


            In customer with very specific brand to purchase, information search about the product and evaluation will not be in the process of purchasing anymore. Customer knew already the brand he wants so no need to evaluate the product.


            Change in decision making process also happens when the customer has already purchase the product and is satisfy with the product thus when problem is recognized purchase will go immediately after purchase.  


            For example with the toothpaste which has the Colgate brand. Because the family has been used with the brand and has been satisfied, it is purchased even without thinking twice.


 


 


 



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