Review of Subject
There is no persistence behavior of human being. Over time, human behavior changes to align with their needs, values and the influences from the surrounding environment. Consumer behavior shift accordingly. Corporations that relenting in current customer orientation could dissipate the competitive advantages. Therefore, the endeavor of comprehending consumer behavior has never stopped. These efforts are essential to illuminate decision makers in formulating strategies from many aspects.
People may buy, use and dispose of a product, but diverse characters have different practices while making a purchase decision. As an example, in the car showroom, a consumer would buy a truck for his heavy-duty profession needs, while another consumer considers safety as the preference feature. On the other hand, a nature lover decided to procrastinate the purchase of an environment-friendly car due to supply limit. This situation is opposite to a parent who disregards preference but only conducting the business transaction for his kid. In the above cases, each consumer is playing vary roles showing the different product needs (Natalia, 2018). Consequently, it is vital to organizations in understanding the importance of consumer behaviors.
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Chuang and Tai (2016) claims there is no business if no customer. Oana (2018) defines consumer behavior a discipline of individuals, groups or organizations and they use to select, use, and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and society. In other hands, Gilal, Zhang and Gilal (2018) claims consumer behavior is a development and combination of the disciplines of psychology (Bell, Vogt, Willemse, Routledge, Butler, & Michiko, 2018), sociology, economics, social psychology and anthropology. Despite definitions, consumer behavior summaries the usage, purchase, and perception that influence consumers on their purchase decision. Therefore, competition strategies have the necessity to accommodate the consumer’s needs and want in micro and the societal perspectives
Traditionally, marketers are focused on the transactions and analyzing products that consumers purchase. The contemporary consumer behavior emphasizes the consumption process whereas the forces the influences buyer before, during and after a purchase. The discussion in these contexts endorses consumer behavior perception is an ongoing process. Recognition of the consumption tread is essential to marketing decision making particularly in the modern business environment. Regularly, the thread of consumer behavior affects the deployment, regulation, and effects of marketing strategy. The outcome of consumer behavior studies manifests an organization in segmenting and identifying the fitting consumer segment in the market (Thongpapanl, Ashraf, Lapa & Venkatesh, 2018). The shift of consumer behavior drives organizations to enhance corporate strategies to obtains its competitive advantages.
The application of consumer behavior does not limit to applying marketing strategy. Moreover, governments leverage consumer behavior in decision making on policies and legislation, to serve better to the needs and wants of its constituencies (Phillip Baker, Alexandra Jones, & Thow, 2018). Nevertheless, profit and non-profit organizations utilize the consumer behavior backing the market-related decision or participation in the process of demarketing. For instance, the City Council in a venture in promoting awareness of being the responsible use of water or reduce consumer’s consumption of a product or services. According to discuss above, it demonstrated the implication and importance concerning consumer behaviors.
There are many perspectives contribute to the understanding of consumer behavior. However, neither is the uniquely ‘exact’ perspective that impacting consumer behavior. According to Nielsen, Escalas and Hoeffler (2018), consumer behavior is often shifting due to internal and external influences. On the other hand, the influences are divided into the positivist perspective and the interpretive perspective. The positivist emphasizes the science and the consumer as a rational decision-maker. In contrast, the interpretive perspective accentuates on the consumer’s experiences. The interpretive supports that consumer behavior is subject to multiple interpretations rather than to one single reason. Despite arguments, the cultural influence is apparent to distinguish as discuss next.
Culture defines the value of a society in varies contexts. It is a comprehensive concept and powerful in influence an individual thought process while making a decision. The values derived from society constitute norm that could affect the behavior of an individual (Huang, 2018). Moreover, a personal belief, education background, and moral values are factors that influence an individual’s purchasing decision making. People often obey the norm as rules, subsequently turn into habits in order to adapt to their culture. Furthermore, the demographic, languages and non-verbal communications of a society are significant effects on marketing strategy.
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Observations show the American culture shifted from family-center to individual-center culture among the younger generation. Additionally, this observed shift of culture has continuous stimulation is due to the popularity of electronic devices among the population (Dabija, Bejan & Grant, 2018). The rise of high technologies usages and the internet have barraged the consumer to compare and purchase the least cost produces (Grewal, Ahlbom, Beitelspacher, Noble & Nordfält, 2018). Also, Chuang & Tai (2016) state consumer behavior affects great impacts on retailers like BestBuy, Wal-Marts, and a worse situation like the downsize of Blockbuster and Circuit City. Nevertheless, a worldwide consumer behavior thread is towards environmentally conscious that influences marketing strategy to concerns greener and healthier products (Cardoso & Schoor, 2017).
Consumer behavior explains the significance of the study of consumers to both the marketing discipline and society. The studies are reviews into rational and experiential aspects in the discussion of consumer behavior. Although arguments from different contexts, consumer behavior summaries the usage, purchase, and perception that influence consumers on their purchase decision.
The consequence of consumer behavior studies displays an organization in segmenting and identifying the fitting consumer segment in the market. Sensitive in consumer behavior transformation allows corporates to respond the market thread to obtains its competitive advantages strategies. The application of consumer behavior does not limit to applying marketing strategy but also in the constitution by influence supporters and customers.
Culture is one of the external principles that influence consumer behaviors. A value of society has a significant impact on an individual purchase decision making process. Nevertheless, demographic, languages and non-verbal communications of society also significant effects on marketing strategy. A shred of evidence in the shift of American culture has impacted organization without proactive cooperation strategy. Additionally, environmental concerns and the rise of the internet shared information allows consumers to compare and research products as part of the decision process.
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