Consumer Behaviour Models: A Theoretical and Practical Approach
Consumer Behaviour Models: A Theoretical and Practical Approach
1 Introduction
Consumer decision-making is defined as the behaviour patterns of consumers that precede, determine and follow the decision making process for the acquisition of need satisfying products, ideas or services (Du Plessis & Rousseau, 1999). During the consumer decision-making process, not only do consumers make decisions regarding which brand options to choose but they also decide what quantity of the good to purchase. Consumers make decisions in order to reach their goals, which include making the best choice among alternative possibilities, reducing the effort in making the decision, minimizing negative emotions, and maximizing the ability to justify the decision. In summary, consumer decision-making is a constructive process (Mowen & Minor, 2006).
With the above stated definition of consumer decision-making in mind, this report will investigate the consumer behaviour construct for the purposes of articulating a consumer decision-making model. In so doing, the report will critically discuss the influence of internal factors, such as perception and motivation, on consumer behaviour and, importantly, discuss the ways and means by which consumer behaviour principles can be used as a conceptual framework to help managers understand and solve marketing problems. Following a review of the scholarly literature on the aforementioned issues, the report will report on the results of a survey which focused on consumer buying behaviour in relation to remedial massage therapy. Four respondents were involved in this study.
2 The Consumer Behaviour Construct
This section of the report focuses on the review of the literature on consumer behaviour. Consumer decision making models, consumer decision-making styles and consumer perceptions are explored in this section.
2.1 Consumer Decision Making Models
Some of the best-known consumer decision-making models were developed in the 1960s and 1970s. Howard developed the first consumer decision-making model in 1963 (Howard, 2005). Others included the 1969 Howard model (Howard, 2005) and the 1990, Blackwell, and Miniard model (Engel, Blackwell, and Miniard, 2007). Those consumer decision-making models that are still used today reflect consumer decision process in terms of the interrelationship of concepts and the flow of activities. The most widely used consumer decision-making theory includes these five steps as defined by Mowen and Minor (2006): recognizing problems, searching for solutions, evaluating alternatives, choosing among options, and evaluating the outcomes of the choice.
In addition to the five steps in the consumer decision-making process, some researchers prefer to add one or more stages to place importance on certain activities. Take as an example, Engel, Blackwell, and Miniard (2007) who discussed a different model for the consumer decision-making process, the Consumer Decision Process (CDP) model. The CDP model represents a roadmap of consumers' minds that marketers can use to help guide product mix, communication, and sales strategies. The seven stages in the consumers' decision-making process according to the CDP model include: need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation, and divestment. The model places more emphasis on the cognitive aspects of buying behavior than before. The CDP model shows how people solve the everyday problems in life that cause them to buy and use products of all kinds.
Later, the Engel, Blackwell, and Miniard (2007) CDP model was renamed the (EBM) model to acknowledge the work of Professor Paul Miniard. The EBM Model was one of the most important consumer decision-making process models. The EBM model was an attempt to show that consumers will make a purchase decision based upon seven steps. These steps were need recognition, information searching, pre-purchase alternative evaluation, purchase, consumption, post-purchase alternative evaluation, and divestment. Today, consumer behavior and consumer decision-making have become prominent research topics in various fields of consumer science. The advantages offered by decision-making models include the possibility to grasp visually what happens as variables and circumstances change. Moreover, consumer decision-making models also provide conceptual frames of reference that logically indicate the interrelationship of variables for research purposes and the possibility to understand different consumer decision processes and marketing strategies (Engel, Blackwell, & Miniard, 2007).
2.2 Consumer Decision-Making Styles
Consumer decision-making styles are clearly important in order for marketers to understand consumer purchasing behavior. Olshavsky (1985) discussed the idea that in order to understand consumer behavior in purchasing products, it would be necessary to integrate two separate streams of research. The first is that in which a consumer's preference for an alternative good is based upon the perception of product quality, as defined by extrinsic factors. The second stream of research is a consumer's preference for an alternative that is based upon some kind of evaluation process or decision-making process, defined by intrinsic factors. Combining intrinsic and extrinsic factors can give researchers and marketing practitioners a better understanding of consumer purchasing behavior.
Identifying basic characteristics of decision-making styles is central to consumer-interest studies. When businesses attempt to predict the chances of success for products and services, it is important to understand how consumers make their decision. The Consumer Styles Inventory (CSI) was first developed by Sproles and Kendall (1986) and defined as mental orientation characterizing a consumer's approach in making consumer choices. There are eight mental characteristics of the consumer decision-making style in the CSI. These characteristics are (a) the perfectionist and high-quality conscious consumer, (b) brand conscious and price-equals-quality consumer, (c) novelty, fashion conscious consumer, (d) recreational, hedonistic consumer, (e) price conscious consumer, (f) confused by over choice consumer, (g) impulsive and careless consumer, and (h) habitual, brand-loyal consumer.
In 1992, Hafstrom, Chae, and Chung continued the work and generalized the research across the country. The purpose of the research was to identify decision-making styles of young consumers in Korea and to find out if these styles were similar to those of young U.S consumers. The research indicated that decision-making is more complex and even more important for consumers today than in the past. However, the finding of this research also indicated that there was reason for cautious optimism because the CSI has elements of construct validity and has potential use across international populations. Moreover, the research conducted by Durvasula, Lysonski, and Andrews (1993) indicated that consumer affairs specialists should not assume that instruments validated in the United States are immediately applicable to other countries. Researchers were encouraged to develop a more robust decision-making style inventory to account for the variation in findings as reported in their study.
The study, conducted by Walsh, Mitchell, and Thurau (2001) tested the generalizability of consumer decision-making styles in different countries and with non-student samples, prompted an investigation of German shoppers. The study showed that the original U.S. eight-factor model could not be confirmed completely, but support was found for six factors. These elements included brand consciousness, perfectionism, recreationalism/hedonism, confusion by over choice, impulsiveness, and novelty-fashion consciousness.
After fifteen years of research on CSI, a study by Walsh, Thurau, Mitchell, and Wiedmann (2001) led them to suggest that researchers and practitioners use the consumer decision-making styles model as a basis for market segmentation. This study indicated that understanding consumers' buying-related decision-making behavior is important for companies in designing effective strategies for marketing activities. Consumer decision-making styles are relatively stable over time and determine the consumer's purchasing behavior. To use consumer decision-making styles as the basis for market segmentation is a new trend in marketing research. The applicability of the CSI has been investigated across several cultures by several authors and replications have been carried out in South Korea, New Zealand, Great Britain, Germany, Hung Kong, United State, and China. The original structure of decision-making styles, by and large, was confirmed in all seven countries.
2.3 Consumers' Perception
Teas and Agarwal (2000, 2001) indicated that consumers use extrinsic cues to infer product quality. The role of extrinsic product cues is important for marketers and scholars to enhance consumers' perceptions of product value and willingness to purchase. Perception refers to the manner in which a person selects, organizes, and interprets the stimuli to which he or she is exposed (Reibstein, 2005). In other words, each day our senses are bombarded with stimuli in the form of sights, smells, sounds, tastes and so on. Meaning is assigned to the stimuli according to the individual's beliefs and feelings. This is stimulus interpretation (Schutte & Ciarlante, 2007). Consumers are influenced by their perceptions of a product when they make a purchase. Furthermore, Reibstein (2005) found that the two aspects of perception that have been identified as being of particular importance to marketers are perceptions of price and perceived risk.
Consumers often judge the quality of a product or service on the basis of a variety of informational cues associated with the product. According to Schiffman and Kanuk (2004), consumers perceived the quality of products by using the physical characteristics of the product itself, such as size, color, flavor, or aroma. In the absence of any actual experience with a product, consumers often evaluate quality based on its external elements, such as price, and the image of the store carrying the product.
There are several researchers who have developed and tested models of consumers' perceptions of value with particular emphasis on consumers' use of extrinsic cues (such as price, product quality, and brand names) as indicators of quality and value (Dawar & Parker, 1996; Dodds & Monroe, 1985; Teas & Agarwal, 2000; Zeithaml, 1988). Dodds, Monroe, and Greawal (1991) specified a model in which perceived quality and perceived sacrifice mediate the linkage between extrinsic cues (brand name, store name, and price) and perceived value. Moreover, they suggested that these three extrinsic cues are associated with quality and value perceptions. Dodds et al. (1991) also added another extrinsic cue, which is country of origin. In their study, consumer perceptions of value are used as a trade-off between perceived quality and perceived sacrifice that results in a positive linkage between perceived quality and perceived value. At the same time, this trade-off led to a negative linkage between perceived sacrifice and perceived value. These results were similar to the studies by Hauser and Urban (1986) and Zeithaml (1988). Both studies suggested that perceived quality mediates the linkages between extrinsic cues and perceived value; while perceived sacrifice mediates the linkage between price and perceived value.
Mowen and Minor (2006) indicated that consumers' perceived quality and perceived price combine together to influence the perceived value of a brand. Thus, the perceived value can be defined as the trade-off that consumers make between perceived quality and perceived price when evaluating a brand. On the other hand, there are several researchers, who developed models to explain how perceived risk is important to consumers' willingness to purchase products. Perceived risk is defined as a consumers' perception of the overall negativity of a course of action based on an assessment of the possible negative outcomes and of the likelihood that those outcomes will occur (Dowling, 1986). Dowling and Staelin (1994) indicated consumers' perceptions of risk are considered to be central to their evaluations, choice, and behaviors. So consumer researchers have defined perceived risk in terms of uncertainty and consequences; perceived risk increases with higher levels of uncertainty and the chances of greater association with negative consequences (Oglethorpe & Monroe, 1994).
In 2001, Teas and Aganval proposed an integrated model based on past studies and reported the results of two experiments designed to test the role of perceived quality, perceived sacrifice, and perceived risks on consumers' perceptions of product value. The results of their study indicated that perceived performance risk and financial risk mediated the relationships that perceived quality and perceived sacrifice have with perceived value. The model can make it possible to effectively examine the consumers' perception on product value within a high-risk market.
3 Practical Application
As argued through the foregoing review of theoretical and empirical studies, the consumer decision making process is a complex one. The process is informed and influenced by multiple factors, including subjective consumer perceptions of a brand/service, the consumer/decision-maker's character and individual personality and the extent to which consumers have recognised their need for a specific good/service. The implication here is that numerous variables affect the decision making process and it is imperative for marketers to understand which of these has the greater influence on the purchase decision so that they may address it in their campaigns. Proceeding from a recognition of the imperatives of identifying the most influential of the variables in question, the researcher formulated a decision-making matrix, explained below.
In accordance to the formulated decision-making matrix, the purchase decision begins with the recognition of a need, following which, consumer personality determines the response or the approach to buying which the individual will adhere to. If the person in question is impetuous, s/he will clearly choose the first option available for the satisfaction of the identified need and if s/he is a brand-conscious shopper, s/he will likely decide to purchase the most reputable of the available brands. If, on the other hand, the consumer is price and quality conscious, s/he is likely to be a finicky customer who will engage in comparison shopping, comparing the price and quality of substitute products/services against one another prior to making a decision. The decision-making matrix, therefore, is comprised of the following variables:
Recognition of need: This refers to whether or not the consumer has identified a need for a specific product/service
Strength of need: Assuming recognition of need, this refers to consumer perceptions of the strength of their need for a specific product/service
Consumer personality: Needless to say, consumer personality will influence their decision-making process and the outcome of the process. Within the parameters of this matrix, the following consumer characteristics are important: Price and quality conscious
Brand conscious
Impetuous
Consumer perception of the service/product offered: When choosing between substitutes, consumers cognitively process the information available to them regarding each of these substitutes and, as such, subjectively react to the product/services in question. The implication here is that consumer perception of a product is an individualised and subjective evaluation of a product/service.
Consumer's socio-economic status: Socio-economic status undoubtedly factors into the decision-making process on several levels. A consumer's social class and education reflects the range of his experiences and his/her income level is a good indicator of both the quality accustomed to and the weight given to the price factor.
Consumer's age: Consumer's age is important as, based on the literature reviewed, the younger the consumer, the more attracted s/he is to innovative products/services and the more impulsive s/he is when making the purchase decision.
External influences upon consumer: Consumer may be subjected to external influences in the form of the advice of family and friends. This should be considered when trying to account for consumer purchase choices.
Based on the above variables, four respondents were interviewed for this study. All four respondents had been advised to undergo a remedial massage therapy program for physical reasons. In one case, joint stiffness was the complaint; in another it was a slipped disc; in the third it was general muscular complaints; and in the last, it the complaint pertained to a sports injury. In order to access these respondents, the researcher went through the Yellow Pages, looking for certified massage therapists. Three therapists, all in the same district were selected. The researcher went to these therapists and explained the purposes of the research study in order to obtain permission to interview patients. Only one of the massage therapists agreed, on the condition that both he and his patients remain anonymous and that no personal identifying information be collected from the patients. Of course, the consent of patients was a condition.
The researcher deliberately selected the participants, on the basis of gender and age. Two women and two men were chosen. One of these women fell into the 25-35 age group and the other into the 46-60 age group. The same applies to the male participants. Each participant was interviewed for a period of approximately 7 to 8 minutes, with the interview focusing on the reasons why they selected the therapist in question. The older female respondent mentioned that she had blindly acted upon her doctor's recommendation; the older male participant stated that he had acted on the advice of a co-worker who had previously suffered the effects of a slipped disc and had visited this same therapist. The younger male participant who was seeking treatment for a sports injury, acted upon the advice of his coach. Indeed, only the younger female participant made a conscious decision. She obtained the name of several massage therapists, contacted each and everyone of them to inquire about price and credentials. In fact, when she narrowed down her list to two therapists, she actually visited the offices of both and discretely asked patients about their experience. She was the only one of the four respondents who made a conscious decision which subscribes to both earlier reviewed theory and the matrix discussed above.
It is significant to note that three of the respondents simply acted upon the basis of advice given them, albeit by a trusted associate/friend/family member. In demographic terms, there is little in common between these three respondents. This means that one cannot simply explain their purchase approach in demographic terms. Instead, it is best explained through reference to the nature of the service in question. All were seeking a personal service of which they had no prior experience or much information. This meant that they had to turn to others with experience and information and this is precisely what they did. Accordingly, the fact that the decision-making matrix does not hold form here does not invalidate the matrix but is a reflection upon the service in question.
4 Conclusion
On the basis of both the theoretical and the practical sections of this research study, a number of conclusions can be articulated. The first, and the most obvious, is that there appears to be a disparity between theory and practice. Only one of the respondents made a conscious buyer's decision while the three others simply adhered to the advice given them. The implication here is that three of the four respondents did not engage in a decision-making process, in which instance, theories of consumer perception, consumer decision making and decision-making styles simply do not factor in. The differences between the respondents, whether in terms of age, education, experience and, of course, perceptions, among others, leads to the second conclusion. This is that the application section does not cast doubt on the theories reviewed earlier but that the disparity between theory and application is an outcome of the nature of the service. This is a remedial therapeutic, personal service with which the respondents have had no prior experience but which, for health reasons, they consider critically important. Importance within the context of lack of experience is what impelled three of the respondents to seek the advice of those whom they considered knowledgeable. It is, thus, that this research study will conclude with an affirmation of the validity of the theories reviewed but with a note of caution regarding their application to personal services.
5 References
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