Muhammed services. Therefore, most companies study Consumer
MuhammedAhmed20170624Master’sin Business AdministrationManagerialEconomics Consumerpurchasing ability Abstract Studying consumer behavior is a very difficult task. If athe company wants to survive, be able to compete well. The main purpose of thisresearch is to measure the impact of pricing strategies on consumers’Psychology and their buying behavior accordingly. Introduction There is high competition among companies to obtain and maintain customer loyalty.
But this is not the case the task is easy for marketers, because many companies and brands compete simultaneously to keep customers and gain abundant profits. The study of consumer buying behavior has a vital role in understanding which factors purchasing decisions affect consumers. Customers are the main focus of the marketing process and the benchmark to measure the success or failure of goods and services. Therefore, most companies study Consumer behavior to increase the probability of success. Consumers make many decisions in their daily lives and one of these decisions is the purchase decision.
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They decide to buy some products because of several reasons: in need of these products, want to try them, the products are strongly recommended by others or products will be given as a gift. Pricing is one of 4 P of the marketing mix that is product, price, place and promotion. Pricing is the only obvious factor that produces money and provides a clear indication of the success or failure of the products Services. Who is a consumer?ØA consumer need not to be just only an individual; aconsumer can also be an organization, A consumer can be someone who buys goodsor services or you can also identify the goods and services economic service orproducts, or goods, or commodities.
A consumer is the end user or a target towhom the goods and services are sold. ØIn simple words consumer can be described as a person oran organization that is specifically targeted to sell a product or a service ofa company. The consumer isthe decision maker here in the economic system. He can take the followingdecisions1. The decision of buying or not a productin a store or at a shop2.
The consumer will decide if he wouldwant to be influencedby the marketing strategies and the advertisements of the organization for a product or aservice.3. Many consumers are influenced by marketing andadvertisements4. The consumer decides what they want tobuy and when they want to buy it5. The consumer chooses between competitorsand their products. Decision making is the power given toconsumer Everyone hasbeen a consumer and participated in the consumer market.
The consumer market iswhere the consumer has the right and the ability to make a decision of spendingtheir money. Even buying a packet of chips from a store is being part of theconsumer market as you are involved in purchasing a packet of purchased chipsto pay for the purchase. Here you also make a decision. This is a decision tobuy goods and spend your money. You decide where to spend your money and whatyou should spend your money on. You are deciding amongst competitors. The more activethe consumers of the nation the more active will be the nation’s consumermarket.
Consumer behaviorNowadays companies are more concerned about individualconsumer behavior. They help them achieve information on how consumers think,feel and choose their products. Everyone is consumer. Consumer behavior is thestudy of the processes involved when selecting individuals or groups, purchase,use, or dispose of the product, service, ideas or experiences to meet the needsand desires. Expanding consumer embrace offer is much more than astudy why and what consumer buying, but also focuses on how the marketeraffects consumers and how consumers use products and services. Customers are in tough spot.
Individuals are exposed to adifferent window of information and varieties of products; many options andoptions available in the market to impulse their Purchase decision. However,the interpretation and decision-making is different among individuals and alsoinfluenced by internal consumer behavior (perception, height, motivation) andexternal factors (family roles, peer influence and collective influence). Factorsaffecting consumer buying decision Consumer behavior studies individuals and groups whenthey select, purchase, use and dispose products, ideas, services or experiences,there is a huge variety of consumers from a small child asking mum to buy a newgame to an international corporation executive making a huge investment deal.Consumers seek items to satisfy their basic needs and desires.
Consumerbehavior is much more than studying what consumers buy. It attempts tounderstand how the decision making process goes and how it affects consumersbuying behavior. A consumer buying behavior is influenced by cultural,social, personal and psychological factors. Consumer behavior is a part ofhuman behavior and by studying previous buying behavior; marketers can estimatehow consumers might behave in the future when making purchasing decision. Social factors Social factorsaffect consumer behavior significantly.
Everyone has someone around influencingtheir purchasing decisions. The Important social factors are: reference groups,family, role, and status. Every consumer is an individual, but still belongs to agroup. The group which a consumer belongs to is called a membership group. Thisis a direct and simple classification. The second group type is a referencegroup.
The reference groupInfluences the self-image of consumers and consumerbehavior. Family members can influenceindividual consumers buying behavior. A family forms the environment for anindividual to acquire values, develop and shape personality. PersonalfactorsAn individual’s decisions are influenced by personalfactors such as a buyer’s age and life cycle state, occupation, economic situation,lifestyle, and personality and self-concept.Consumers change during their life and buying of productsalter depending on age and stage of life. Age related factors such as taste infood, clothing, recreation and furniture. Psychological factors A buyer’s choices are alsoinfluenced by four psychological factors, i.
e. motivation, perception,learning, and beliefs and attitudes. A consumer is an individual who has differentkind of needs.
These needs can be biological like thirst or psychologicalarising from the need of recognition or belonging. A need can be aroused to asufficient level of intensity when it alters a motive. A motive is basically aneed that drives a person to seek satisfaction. Conclusion Consumer behavior is awidely studied field. Understanding it completely is impossible, because it isrelated so closely to human mind.
However, forecasting how a human behaves inpurchasing situations can be estimated through previous purchasing decisions.Consumers make buying decisions every day and many people do not even know thefactors that derive them to this decision. There are characteristics behindevery buying decision that can come from cultural, social, personal orpsychological factors. Each of these factors includes dimensions that can beused in marketing.