Discuss About The Measurement Of Environmental Resource Values.
A major part of marketing management involves consumers. Consumers provide the necessary market for the products and goods of business establishments. It is thus essential to understand consumer behavior and decision making. In a broad sense, this relates to the decisions, actions and processes involved in consumer purchases. There are a myriad of factors that influence consumer behavior which include personal preferences, prevailing economic conditions, influence, marketing campaigns by brands and the purchasing power of the consumers (Gbadamosi, 2013; Armstrong et al, 2015).
The report provides an in-depth analysis of consumer purchase behavior. The analysis includes concepts and theories relevant to marketing management. The report aims to provide insight in consumer decision-making process and the influential aspects that affect purchase of products. Following the introduction of consumer and product, the report proceeds to the analysis of purchase behavior that the consumer displays. The purchase of a high involvement product and other general products purchased are then compared.
The consumer involved in the report is Paul Millsap. This is an individual with 26 years of age, male and the marital status is single. He is from a family of five including parents and two siblings. Currently, Paul is enrolled in a university nursing a master’s degree part time. He is also an employee of a pharmaceutical company. Paul is part of the generation comprising of millennials. His demeanor befits specific value segments which are social awareness and highly optimistic (Roy Morgan, 2018). He portrays careful and detailed decision-making process and also has high value in achievements, reaching milestones and getting gainful experiences.
Paul places major significance in the decisions he makes involving purchases of products with high value such as the car in this case. His purchasing behavior follows a painstaking and very elaborate process. The profile displayed by Paul’s shopping is in line with the theory of reasoned action created by Martin Fishbein and Icek Ajzen (Ohio, 2018). This theory depicts that consumers act or behave based on achieving outcome in mind (Solomon, Russell-Bennett & Previte, 2012). The consumer behavior portrayed shows much emphasis placed on the expected outcome following the decision to purchase. The decision that Paul makes is based on rationality and is done with best interests at heart. Throughout the course of decision making on the purchase, Paul can change his mind and follow a different course of action (Palmer, 2012).
The purchases that are made in a week are substantial for most consumers. Paul Millsap shows detailed purchase of products that are wide ranging. The products are purchased for different purposes with many factors playing part in the decisions that Paul makes. There are several purchase factors in this case. Products are purchased based on the prices of the products, quality, convenience and health impact. Other factors considered are the incentives involved with purchasing specific items, the alternative products available, the taste of particular food products and the services provided by entities. The purchases that Paul makes are based on his needs, preferences and peer influence. The payment methods that Paul uses are in form of cash, credits and debit cards.
The purchase of consumer products can be explained using different theories which are able to adequately define the buyer behavior. The Marshallian model is relevant to the purchase actions that Paul makes. According to Alfred Marshall, consumers buy products and services based on the satisfaction that they can gain as a result. There are concerns with the theory due to implications surrounding acting on one’s best interest. However, this explains many of purchases that Paul and other consumers make. In the restaurants and stores, Paul buys foods and other products according to his interests that involve taste of the products and quality of the locales that provide the services. This shows that he prefers those very items over others and this forms the basis of his decision making as concerns what he eats. In a week, a major part of his expenditure is on food items (Palmer, 2012).
This figure shows the relationship between costs of products and purchases that are made. When the prices are high the demand is low. This portrays an aspect of consumer behavior that Paul displays. The figure also follows the concept of Marshallian model.
The costs follow a rational process in purchase of other items. In some cases when there are low cost products involved, the consumer does not use economic analysis for the purchases. The buyer behavior, in this case Paul, may be selective in utilizing an economic theory. Economic factors do not explain all the purchase decisions and processes of Paul. The product preferences of Paul and brands involved are lost in application of the Marshallian theory. The purchase behavior of Paul shows preferences for certain brands (Foxall, 2014; Freeman III, Herriges & Kling, 2014).
Change factor is less than essential. Paul shows clear choices based on what he likes which means making changes does not come easy. However, convenience has huge impact. Most of the purchases that Paul makes are convenient for him. The location of many of the entities where he makes his purchases are within the area that he has his affairs and obligations (Hosany & Martin, 2012).
A part of Paul’s purchase decision can be defined by the Veblenian social-psychological model. Thorstein Veblen proposed that persons embrace the standards that are set by the social circles. This theory explains the influence that Paul received from his peers. In this scenario, Paul develops needs and interests as influenced by others who have certain buyer behavior. Individuals in the university have habits which have caught on with Paul. Case in point, the University restaurant (Lantos, 2015).
Consumer decision model helps explain Paul’s purchases. Some products are obtained based on need. Paul can recognize need for specific products such as the internet while acknowledging the difference between desirable state and otherwise. This propels him to search for means of solving the issue at hand. Other factors are impactful in evaluating alternative options. Convenience and necessity affect the options of Paul in different levels.
The best interests of an individual are brought about by some factors. One factor is peer influence. Peer influence plays a role in the decisions that Paul makes. Most of this influence falls in the category of foods. In public restaurants, individuals appreciate the quality of products and services that are offered. This leads to spread of word to others. This kind of influence has led Paul to make certain buyer decisions. Other factors play part in these decisions. As much there is peer influence involved, the final purchase decision rests on whether the items meet the preferences that Paul has. Different factors are able to align for the Paul to purchase the products. With personal preference and peer influence at hand, other factors that are relevant are the costs, change of grounds and convenience. The role of costs is considerably significant but not consistent which can be explained by financial flexibility of the consumer. Still, the Marshallian theory explains this behavior as low prices lead to more purchases (Caruana, Carrington & Chatzidakis, 2016).
The buyer behavior that is depicted can also be defined by Maslow’s hierarchy of needs. This explains the motivation factors involved in the different purchases that Paul made. Physiological needs are the most basic buyer decisions that Paul makes such as food. Self-actualization represents high level needs of Paul. These form majority of the motivational needs of Paul. This is parallel to the value segment of social awareness where Paul falls under. His desires and interests are well represented in the products that he purchases for his own personal satisfaction. Food products he buys fall across all these categories (Nwankwo, Hamelin & Khaled, 2014).
The product in question is a vehicle. Paul purchased a car of model Toyota Yaris YRS worth $13,500. The purchase was made through Gumtree. This presents a definitive high involvement product for analysis.
This decision process can be explained in relation to some of the theories in marketing and consumer management. Given this is a high involvement product, Paul must put a lot of thought to the decision. Theory of reasoned action comes in to play in this case. There is a outcome that Paul expects to achieve as a result of buying this car. This is created from his intention to buy the car. Paul will be aided significantly in his movement about his businesses. The vehicle is very helpful specifically in traveling between to and from the university, workplace and home. The theory of reasoned action asserts that rationality is involved in this decision to buy the car. Paul does with his bets interests in mind and having much thought to this decision (Montano & Kasprzyk, 2015; Hale et al, 2002).
Engel, Kollet, Blackwell (EKB) Model is a great basis for understanding the consumer behavior that Paul has presented. EKB has a 5-step process of making buyer decisions (Shahnaei, 2012). Paul’s case follows the steps distinctly. His first step is the input where he absorbs the marketing content on the car through the internet, on TV sets or newspapers. Paul uses this data that he has collected, processes the information while comparing his expectations. This helps to apply rational insight when making the decision to make the purchase. An important aspect to note is that Paul’s decision is impacted by external influences and variables in the process. He envisions himself in the car before making the purchase.
The purchase of the car was influenced by several factors. The brand of the car is an important that Paul considered, and this is based on his preference or taste in cars. The specifications of the vehicle justify this choice. The car has affordable pricing for Paul. It is very economical in that it is not expensive to maintain has good fuel economy and has high reliability. The car is stylish and has vital convenient and safety features. It is also easy to operate. The qualities of the car fuel its reputation which attracts the attention of Paul and ultimately ends up the as the final decision (Hosany & Martin, 2012).
The products that Paul purchases have some similarities and differences as depicted by his buyer behavior. The purchases made on the course of the week and on the car are based on rationality. Paul applies rational decision making in buying the products. All the decisions are made with outcome expected by Paul. The application of Marshallian theory holds for most of the purchases made by Paul. The car is convenient for its pricing which has seen increased demand. According to the Veblenian model, buyer behavior is influenced by social factors such as social class, culture and groups. Paul’s decisions are impacted by these social influences.
The purchases differ when it comes to economic analysis involved. Most of the products bought over the week are basic needs. The week’s purchases have low costs in comparison with that of the car. Hence, while economic analysis is unnecessary in making the purchases done in the week, it is crucial that this be employed in the purchase of the car. The buyer behavior is quite detailed in purchase of the car. Reasoned action is a major part of purchases made. However, the process of purchasing the car entails a number steps in the decision-making process. Paul puts much more thought in the decision involving the car compared to other items.
The car that Paul purchases displays value proposition which leads to the purchase. The value propositions is based on the advantages that the car offers. These are meant to enhance the customer experience. For Paul, the car offers advantages in being economical and convenient. The car has adequate room, is easy to use and has essential features in place. The Toyota Company produces the product with emphasis on quality, design and features at a low price. The place or area of distribution is the internet through Gumtree. Paul is an avid user of internet and this provides the promotional tool for the product.
Competing product value proposition centers on what makes this particular product better than others. For one, the price is relatively cheaper. The design is appealing for customers which may offer advantage over other choices. Brand name is also significant part of the decision-making process. The channel for the purchase is quite convenient for Paul.
Analysis of Paul’s purchase behavior helps in noting a few aspects or patterns. Many of the products he purchased were food materials. These were mainly purchased in fast food restaurants such as KFC and Griffin Burger. Purchases include burgers, pizza and chicken. This shows the food preferences that Paul has which determines his buyer behavior.
The internet is a big part of the consumer process. The internet is used in collecting information on pricing, availability of products and promotions. This is an ideal ground that Paul uses to his advantage in his consumer buying journey as he purchases the car through Gumtree. The internet provided the information relevant to the purchase of the car. Paul also makes online purchases in the Coles Stores.
Paul displays a balance in his purchases made from local and international service providers. Some of the local entities Paul uses are Ballarista, Coles, Golden Nugget Bakery and Kogan Stores. International brands involved are Toyota, McDonald’s, KFC and Saigon Restaurants. International retailers have their benefits in wider range of products and their availability. Local retailers provide a sense of familiarity (Holmes, Byrne & Rowley, 2013; Armstrong et al, 2015)
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