Consumer Behaviour


Due to individual differences on the basis of cultural background, learning styles, personality etc. emergence of conflicts amongst employees in various levels is inevitable. Moreover, managerial expectations, communication breakdown and accountability issues can be specified as additional sources of conflict. Stereotyping can be mentioned as another factor that can cause conflicts in workplaces. Interestingly, the same elements that are perceived to be success factors such as team-working and communication can be sources of conflict due to reasons specified above. Constructive debates and conflicts may benefit organisation to a certain extent. To be more specific, conflicts may result in clarifications of certain issues, contribute to more effective decision-making and improve certain organisational processes. Nevertheless, managers need to ensure that occasional conflicts in organisation are limited within the boundary of work-related issues and employees do not conflict with each-other on personal grounds. Negative outcomes of conflicts may include stress, decreased employee performance, game of politics in organisation etc. Range of measures to be initiated by managers that can reduce the numbers and scope of unnecessary conflicts include fully clarifying roles and responsibilities of each individual employee, making management expectations clear, eliminating communication barriers with their subordinates and improving the overall organisational culture.


By John Dudovskiy
Category: Consumer Behaviour

Consumer buyer behaviour is considered to be an inseparable part of marketing and Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Buyer behaviour has been defined as “a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants” (Enis, 1974, p.228). Consumer buying behaviour has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers. Alternatively, consumer buying behaviour “refers to the buying behaviour of final consumers, both individuals and households, who buy goods and services for personal consumption” (Kumar, 2010, p.218). From marketers’ point of view issues specific aspects of consumer behaviour that need to be studied include the reasons behind consumers making purchases, specific factors influencing the patterns of consumer purchases, analysis of changing factors within the society and others.       Authors  How to define consumer behaviour Findings Faison and Edmund (1977) “The assumption that people have series of needs which lead to drive state.”  Needs Engel, et al. (1986) “Those acts of individuals directly involved in obtaining, using, and disposing of economic goods and services, including the decision processes that precede and determine these acts” Acts, individuals Kotler   (1994) Consumer   behaviour   is   the   study   of   how   people   buy,   what they buy, when they buy and why they buy.   Solomon et al. (1995) Consumer  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”  Process, needs, individuals, group Schiffman (2007)  “the behaviour that consumers display in searching for,…


By John Dudovskiy
Category: Consumer Behaviour

Kotler and Keller (2011) state that the importance of studying consumer buying behaviour as an area of marketing is increasing due to several factors. In order to offer any product or service to the customers businesses must understand their customers’ culture, social group and many other factors. Understanding these factors helps businesses to draw an effective marketing plan in order to satisfy the needs and wants of their customers in more efficient way. Another reason for increase the importance of the study of customer buying behaviour is intense pace globalization. According to Nargunkar (2008), globalization has changed the way the businesses operate and target their customers. As more and more businesses are operating in more than one country, they need to understand the different cultures and characteristics of their customers. As businesses grow geographically, their customer bases change and the needs of customers in one country varies from the needs of the customers in another country. Therefore, the study of consumer buying behaviour is essential in order to target all the customers in all different geographical areas. In addition, studying the consumer buying behaviour is essential especially in conditions of fierce competition in the market. As the number of companies in the same industry which offer the similar or even the same products or services to the customers, these businesses need to target the right segment. To make this happen, it is important to understand the buying behaviour of the customers Lancaster et al (2002). Another factor leading to the importance of learning customer buying behaviour is rapid advancements in the technology. Due to the development of information technologies and IT systems, learning the customer buying behaviour has become more practical and easier. It is also stated that the large and multinational businesses are investing significantly on improvements of their…


By John Dudovskiy
Category: Consumer Behaviour
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The Model of Goal Directed Behaviour has been developed on the basis of the Theory of Planned Behaviour. This model “views the fundamental components of the theory of planned behaviour with respect to goals rather than behaviours” (Hagger and Chatzisarantis, 2009, p.36).   Desire plays an integral role in The Model of Goal Directed Behaviour in a way that it is perceived to be stronger predictor compared to attitudes and subjective norms (Sutton, 1998). Explaining application of the model in practical levels Erasmus et al. (2001) explain that markets need to study primary desires of their target customer segment so that product and services can be developed to satisfy this desire or give the perception of satisfaction of the desire.   References  Erasmus, A. C., Boshoff, E. and Rousseau, G.G.(2001). “Consumer decision-making models within the discipline of consumer science: a critical approach”, Journal of Family Ecology and Consumer Sciences. 2001(29) Hagger, M. & Chatzisarantis, N. (2007) “Social Psychology of Exercise and Sport” McGraw-Hill International Sutton, S. (1998) “Predicting and explaining intentions and behaviour: how well we are doing? Journal of Applied Social Psychology, 28, pp. 1317-1318


By John Dudovskiy
Category: Consumer Behaviour

The Theory of Trying promoted by Bagozzi and Warsaw (1990) focuses on the assessment of trying to act. In other words, in theory of trying “an attitude toward a reasoned action is replaced by an attitude toward trying and an intention is restricted to an intention to try” (Carsrud et al., 2009, p.155). In theory of trying Bagozzi and Warsaw (1990) divide goals into two categories: intermediate and end-state goals.   In relation to this theory Gould et al. (1997) have identified two main reasons of why consumers may fail to try to consume. Firstly, consumers may fail to consider the options available to them. Secondly, consumers may consciously refrain from buying for various reasons.   References  Bagozzi, R. & Warsaw, L. (1990) “Trying to Consumer” Journal of Consumer Research 17, (2) pp. 127 – 140. Carsrud, A., Brannback, M., Elfving, J. & Brandt, K. (2009) “Motivations: The Entrepreneurial Mind and Behaviour” in Understanding the Entrepreneurial Mind: Opening the Black Box, editors Carsrud, A. & Brannback, M.


By John Dudovskiy
Category: Consumer Behaviour

The cognitive approach to consumer behaviour perceives individuals as ‘information processors’ (Ribeaux and Poppleton, 1978) acknowledging the impact of environment and social experience in the processing of information. The development of cognitive psychology in general is credited with the introduction of Stimulus-Organism-Response model by Hebb in 1950s. According to Stimulus-Organism-Response model there is a linear relationship between the impact of stimuli on inactive organism, and as a result of the impact the organism responses in a certain manner (Cziko, 2000). However, this model has been subjected to criticism, notably by Tyagi (2004) and Kahle and Close (2006), and the criticism relates to the idea that Stimulus-Organism-Response model does not take into account the past experiences of the organism.   References  Cziko, G. (2000) “The Things We Do: Using the Lessons of Bernard and Darwin to Understand the What, How, and Why of Our Behaviour” Massachusets, MIT Press Kahle L.R. and Close, A. (2006) “Consumer Behaviour Knowledge for Effective Sports and Event Marketing”, Taylor & Francis, New York, USA


By John Dudovskiy
Category: Consumer Behaviour

According to behaviourist approach to human behaviour is depended to external events, and importantly, a specific pattern of behaviour can be learned because of external factors (Wiedmann et al., 2007). Advocates of behaviourist approach refer to famous behavioural experiments involving dogs and the impact of external environment on their behaviour conducted by Pavlov (1849-1936) to justify the validity of the approach.   However, Schiffman et al. (2007) argue that while to behaviourist approach to human behaviour has adequate level of relevance to modern marketplace it is not able to explain the issues of consumer behaviour thoroughly on its own.   References  Schiffman, L., Hansen H. and Kanuk L. (2007) “Consumer Behaviour: A European Outlook”, London: Pearson Education Wiedmann, K., Hennigs, N. and Siebels, A. (2007) “Measuring Luxury consumer perception: A cross-culture framework”, Academy of Marketing Science review, 2007(7)


By John Dudovskiy
Category: Consumer Behaviour

The economic man approach to consumer behaviour perceives consumers to be highly rational and adequate engaging in economic transactions in a beneficial manner for self-interest (Tyagi, 2004). According to this principle consumer rational behaviour includes being aware of all alternative options, as well as, having knowledge of advantages and disadvantages associated with each option (Kahle and Close, 2006).   Blackwell et al. (2006) adopt a sceptical approach to the level of applicability of economic man theory in today’s marketplace in practical levels arguing that nowadays consumers are more tempted to make ‘irrational’ purchase decisions due to the highly sophisticating levels of marketing strategies.   References  Blackwell, R., Miniard, P. and Engel, J. (2006) “Consumer behavior”, Mason: Thompson Kahle L.R. and Close, A. (2006) “Consumer Behaviour Knowledge for Effective Sports and Event Marketing”, Taylor & Francis, New York, USA Tyagi, C. and Kumar, A. (2004) “Consumer Behaviour”, Atlantic Publishers, US


By John Dudovskiy
Category: Consumer Behaviour

Multiple Stream Model developed by Kingdon (1984), on the basis of refining garbage can framework, represents an alternative approach to policy process and perceives it in terms of three different streams: a problem stream, policy stream to address the problem, and the political stream. According to this theoretical framework “the streams are usually independent, but windows of opportunity sometime open that allow for the streams to interact” (Crank, 2003, p.35). First, the problem stream relates to the source of the issue that necessitates introduction of a policy. As it has been partially discussed above, the problem stream for Tesco packaging policy is directly related to increasing status of sustainability issues in media, and consequently consumers in UK and elsewhere becoming more sensitive towards the issues related to sustainable development. Second, the policy stream involves evaluations and analysis of a wide range of policy ideas and proposals directed to the solution of the problem. In Tesco, the policy to be adopted as a response to the problem needed to balance the profitability of business operations with the creation of ‘green’ image fir the brand. In other words, Tesco strategic level management faced with the task of positioning the company as a ‘green’ in a cost effective manner. Third, the political stream includes various elements such as relevant government legislation, the influence of various non-government organisations and pressure groups and others. It is important to mention that while UK government encourages multinational business such as Tesco to behave in a socially responsible manner, there is a lack of legislation that specifies the extent of ‘greenness’ businesses need to adhere to (Horrigan, 2010). Therefore, Tesco possesses a great level of freedom in terms of government legislation when formulating its packaging policy. However, there are additional elements of political stream such as non-government organisations…


By John Dudovskiy
Category: Consumer Behaviour

Consumer decision making process comprises five stages: need recognition, information search, evaluation of alternatives, purchase and post-purchase behaviour. Marketing managers attempt to influence consumer behaviour during each of these stages as it has been discussed below in a greater detail.   Need Recognition Need recognition is the first stage of consumer decision making process and it can be explained as “result of an imbalance between actual and desired needs” (Lamb et al, 2011, p.190). Interestingly, need recognition may relate to actual need of a perspective customer to a specific product or service, as well as, ‘perceived’ customer need imposed by businesses through effective marketing communication strategies. Specifically, the emergence of the latter form of customer need plays an integral role in customer impulse shopping, and accordingly retailers attempt to create a ‘need’ in customer’s mind for the products and services they are offering. For instance, ‘imposed’ needs in retail environment may include ‘need’ to be refreshed and energised by consuming a range of soft drinks and energy drinks sold by retailers, as well as, ‘need’ to follow fashion trends by purchasing specific items sold by retailers.   Information Search The second stage of consumer decision making process relates to information search. Once a need is recognised by a perspective customer, he would seek for information about the available ways to satisfy the need. It is important to stress that “the extent to which the consumer needs to search for information depends on his current information levels and the perceived value of the additional information” (Pradhan, 2009, p.123). Customers are greatly influenced by marketing strategies of retailers during this stage of the decision – making process as well. Namely, retailers communicate information about the brand through various communication channels that might include any combination of advertising, direct marketing, public relations and…


By John Dudovskiy
Category: Consumer Behaviour
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