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.

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

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.

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

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)

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…