Discuss about the Personality Factors on Consumer Behavior.
Modern organizations are taking measures to gain competitive advantage. Understanding consumer behavior is one of the tactics that companies are using to boost sales and gain the competitive advantage. In this essay, theories related to personality and demographics are used to analyze the purchasing decisions of three respondents with the aim of understanding consumer behavior. The information obtained is used to derive characteristics of customers that are likely to purchase the Dell XPS 13 computer. It is also used to show strategies that can be used in marketing strategies using the learning and memory theories.
According to Udo-Imeh (2015), trait theory entails the measurements of characteristics that define an individual’s personality. Initially, there were different characteristics developed by psychologists such as Hans Eysenck that made it challenging to identify personalities thus the Five-Factor theory and model of personality was formed (Udo-Imeh, 2015). The characteristics included in the model are extraversion, neuroticism, openness, agreeableness, and conscientiousness (Zaidi et al., 2013). In this case, the second respondent scored high on extraversion, open to new experiences (openness), caring for others (agreeableness), and careful (conscientiousness). She is also emotionally unstable because she scored high on moodiness (neuroticism). The fifth respondent scored high on conscientiousness, extraversion, openness, and low on neuroticism and agreeableness. The third respondent scored high on extraversion, neuroticism, openness and low on conscientiousness and agreeableness. Those that prefer the fourth option are extroverted, careful, and open to new experiences while the third option is favored by one who is extroverted, open to new experiences and emotionally unstable.
The second theory is psychoanalytic, which was developed by Sigmund Freud. Freud argues that three structures (id, ego, and superego) in the unconscious influence behavior (Awara, Essien, & Udo-Imeh, 2015). The id is the structure that focusses on the fulfillment of basic needs and is driven by aggression and pleasure (Awara et al., 2015). It is also present at birth. The superego is a structure that incorporates ethics in the fulfillment of needs (Awara et al., 2015). The ego considers factors, such as cost and benefits, in the satisfaction of needs (Orji et al., 2017). In this analysis, the second respondent uses the ego because she values the weight and price. The third respondent uses the id because he focuses on the fulfillment of his need for the computer (processor and memory). The fifth respondent uses the ego because he focuses on the weight and warranty than processor and memory.
Neo-Freudian theories can also be used to analyze consumer behavior. According to Sarker et al. (2013), these theorists agreed with Freud’s opinion regarding the influence of the unconscious mind and childhood experiences on personality. They also added the belief in the impact of culture and the social environment (Onu & Garvey, 2014). Based on the theories, the second respondent who is Australian is friendly because she scored high on the question about sympathy towards others. Duarte et al. (2008) affirm that Australians are friendly. The third respondent is American, and he scored high on extroversion. Crouch (2013) argues that American culture favors extroversion. The fifth respondent who is German scored high on consciousness or being careful. Zimmermann (2018) affirms this trait by stating that Germans are cautious and perfectionists. This assessment reveals that the cultural aspects of the respondents can be used to predict their behavior. The prediction can be used to explain consumer behavior when the traits are analyzed using the trait theory.
The demographic transition theory can be used to predict consumer behavior. According to the theory, the population of a country undergoes four stages. The first stage occurs before industrialization (Nielsen, 2016). High mortality and birth rates characterize it. The second stage is after industrialization. It is characterized by high birth rates and low death rates. The third stage is slow growth. Low birth and death rates characterize it. The fourth stage occurs when the population is stable. In this case, the age of the participants is analyzed. The second, third and fifth respondents are 26, 38 and 63 years respectively. Based on these ages, it can be argued that the population is in the last stage because the life expectancy can be estimated to be above 63 years. For this case, the age of the participants should be used to determine the market segments of computers and the theory indicates the population will be stable.
Another theory that can be used to explain consumer behavior is the social role theory. According to Greaves et al. (2017), this theory states that the differences and similarities between men and women result from their social roles in the community. Additionally, when both sexes form gender roles, they maintain the division of labor in the society (Greaves et al., 2017). For example, the women take care of the family, and the men are seen as the providers in the home. For this case, the genders, occupations and family life of the participants will be evaluated. The second respondent is female, married by de facto, a flight attendant, and earns $60500 and the partner $69000. The third respondent is male, divorced and a fashion designer. The fifth respondent is male, married by de facto, a company director, and earns $162000 and the partner $39600. Based on the theory, the gender roles are defined, and the male is the primary provider. Therefore, the computer sellers should consider both genders when determining market segments.
The following are the characteristics of the clients of Dell XPS 13 based on the personality theories. From the characteristics of the fifth and second respondents, the personality traits of these customers are extroversion, openness to new experiences and carefulness. Both respondents use the ego structure to make purchasing decisions. They focus more on the benefits of the product, weight, warranty, and cost than the features related to its use. In some circumstances, the clients may care about others or not care depending on their cultural beliefs. For example, the Australian is caring, and the German is not yet they purchase the same computer. Generally, the main characteristics are extraversion, openness to new experiences and being cautious.
Additionally, there are other characteristics of the Dell XPS 13 clients that are based on the demographic theories. Firstly, the clients may be male or female aged between the 20s and 70s approximately. For example, the second respondent was female and 26 years and the fifth was male and aged 63 years. Secondly, the customers may be married or have partners where the male is the primary financial contributor to the relationship. This assumption is based on the fact that the man earns the highest income. Despite the man receiving the most upper income, the decision to purchase the computer rests solely on the woman. It can be argued that both manage their finances hence make personal purchasing decisions. Generally, the characteristics are both genders, high-income earners, aged between the 20s and 70s, and in relationships.
Marketers can use classical conditioning theory to attract Dell XPS 13 customers. Blumenthal et al. (2005) postulate that this theory shows how a conditioned stimulus and response is derived from an unconditioned stimulus and response through repetition. In this case, the marketer can attract customers by running the advertisement that advertises the product repeatedly. Additionally, to create a conditioned stimulus the marketer can use a symbol that is associated with the weight of the computer since the clients prefer light computers. For example, an advert where a person is having a good time carrying a light laptop. Eventually, through repetition, the customers can associate the computer with the weightlessness. Lastly, the marketer must ensure the quality of the computer is guaranteed, and the needs of the clients are met because the brand is not a vital determinant.
Marketers can also use operant conditioning theory to attract Dell XPS 13 customers. Operant conditioning aids in learning by encouraging good behavior through rewards or reinforcements and discourages negative behavior through punishments (Søraker, 2016). For example, if a client buys a Dell XPS 13 computer and the warranty is not enforced as stipulated in the purchase agreement, the customer may perceive it as a punishment. The result would be not to buy products from that outlet or marketer. For this case, the customers that purchase these computers may receive coupons, or additional software for a specified period. The use of such reinforcements ensures that customers feel good about the purchase.
The last theory that marketers can use to attract customers is cognitive learning. In cognitive learning, the process involves the thinking done by the consumer, not just reinforcement of behavior as shown by the operant and classical conditioning theory. A research that was done on the influence of cognitive learning on consumer behavior indicated that consumers trust their experiences and experiences of others when making purchasing decisions (Batkoska& Koseska, 2012). For this case, the marketer needs to ensure that the customers have a good experience when purchasing the Dell XPS 13 computer, especially concerning the after-sale services. Additionally, the marketer can use technology to check the impact of the advertisements using recognition tests.
Conclusion
Personality and demographic theories can be used to explain consumer behavior. For example, it can be seen that those who purchase Dell XPS 13 use the ego structure to decide while those that purchase Dell Inspiron 17 5000 use id structure. In addition, the classical, operant and cognitive learning theories can assist marketers in developing marketing strategies that guarantee the purchase of products and brand loyalty. Therefore, it is crucial for organizations to understand consumer characteristics and behavior.
References
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Batkoska, L., & Koseska, E. (2012). The Impact of Cognitive Learning on Consumer Behaviour. Procedia-Social and Behavioral Sciences, 44, 70-77.
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Nielsen, R. W. (2016). Demographic Transition Theory and its link to the historical economic growth. Journal of Economics and Political Economy, 3(1), 32.
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