CONSUMPTION JOURNAL ANALYSIS

CONSUMPTION JOURNAL ANALYSIS

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Introduction

This assignment analyses and very well discusses the various theories that are related to consumer behavior. The first part of the study will be discussing the main topic that is consumer behavior, and later on, it will discuss the various stages that are involved in consumer decision making. The assignment will be discussing the various individual references or factors that play an important role in consumer decision making. The second part of the report will be discussing the various consumption process, and later on, Maslow’s theory is explained, and by that theory, it targeted various kinds of segments of people in the society and how consumer behavior is changing for each of them. The very next part will be about giving a suitable recommendation to an advertising agency on maximizing their advertisement popularity by taking the help of Maslow’s theory into their account. And finally, a conclusion will be drawn about summing up all of the topics that are mentioned in the assignment.

Part 1

Consumer decision-making process

Consumer or Buyers Decision-making process is said to be the method that is used by the sellers or the marketers to track the decision-making process of the customer or the buyer. In other words, the customer decision making process is said to be the journey that a customer goes through from deciding on buying a product to the purchasing of the same. It is also said to be a process by which a customer selects a product out of many other alternatives. The customer decision making, therefore, consists of many stages by which a buyer goes through and lastly satisfy their need by buying the product. The different stages are as follows:

• Need Recognition – This is the very first step and is considered to be one of the important ones. Recognition of buying a product is most important in the consumer decision-making process. Unless an until the buyer or the customer realizes that they need a product or something like they are not having, the buying behavior of the customer does not starts. This is the place where the retailers or the marketers come into place and make realize the customer that they are having a problem in their product, which they only can solve by buying another. Or something like a product that is new to the market, and the customers don’t have. Basically, the desire to buy the product needs to be imbibed into the minds of the customers. Once the desire is there in the mind of the buyer, then from that time, the whole process is starting until he/she buys the product.

Previously this was done with the help of paper advertisement in the form of flyers distribution or cold calling the customers. This was, later on, resulted in more time consuming as many of the customers are not interested in answering the calls that are done by the companies, and during the flyers distribution, many of them misplace those papers. This process, therefore, changed when the digitalization took place as nowadays, everything is online, and the customer can easily search for the things that they want and easily make a purchase online. Nevertheless, the results are the same.

Not all types of recognition are the same as for lower or medium valued items. For example, if an organization printer’s ink gets finished, then they usually buy the same from the same supplier they buy every time. This is the case for the medium and lower value items.

In case of the higher value items such as purchasing of computers in an office, the procedure changes a bit. As a company wishes to buy computers for their office, then they will find many suppliers who will supply them with the product. Therefore, from those, the company will filter the one who is quoting them with a lower amount among the others.

• Information gathering – There are several ways by which a customer can gather information about the product they wish to buy. Previously it was done by flyers, newspapers, billboards, radio, word of mouth, TV. Nowadays, the process got totally changed as the world is now moving digitally. The process by which consumers gathers the information nowadays is sponsored ads, social media marketing, testimonials, pay-per-click advertisement, websites, and many more.
• Evaluation of alternatives – Even a product of a company is better than the other, and then also before buying the product, a customer will compare that to other similar products. Previously the process was very hectic as the customer used to visit different shops to compare it, but nowadays, due to the use of the internet, a customer can as well as compare a product with others and buy the same product as well without visiting different shops.
• Assess the evidence – After selecting a product before buying, it is very much necessary to determine that the product that is chosen must be right, and the value and the quality of the product are apt. Reading testimonials and reviews from the other customers are very much helpful in this matter. Nowadays, those can be easily found online. Therefore, the companies are engaging more with the customers in order to get a positive review from them.
• Selection – After making different choices in mind, a customer may give a trial of a product. In case of grocery shopping that is done nowadays by many customers online, if someone finds a new rice brand comes in the market, then he/she may buy it in small quantities because they need to form an opinion about the product before ordering in large quantities.
• Implementing the decision – This is the stage for which the retailers or marketers have been waiting for as this is the penultimate stage of buying a product. In this stage, the customer decides whether to buy the product offline or online as they are ready with their choices.
• Decision Review – This is the stage where the sale is completed by the retailers and the marketers. At this very stage, many retailers do does not value their customers after the sale, but it was a long back story. Nowadays, since the review system is introduced in the purchasing behavior; therefore, all the retailers are focused on the satisfaction of the customer. They sometimes remain in touch with the customer in order to get a positive impression from the customer.

(Self-Created)

Individual references on consumer behavior

Individual factors play a very important role in affecting consumer buying behavior. Such as:

• Occupation – The occupation of an individual plays a key role in influencing the consumer to buy a product. The consumer’s nature of the job has a big influence on the brands and the products he chooses for himself.
• Economic Condition – The tendency of buying a product is directly proportional to the income and earning of the consumer monthly.
• Personality – Personality of an individual also plays a key role in making a decision to buy a product for an example if someone is into sports. Therefore, he will buy the brand that is associated with sports, or someone who loves music will buy things that are related to music.
• Age – The human life cycle and age also influences the buying behavior of the customer as teenagers use to wear loud colors clothes whereas aged people prefer subtle designs.
• Lifestyle – According to a psychologist named Alfred Adler stated that some people are very much brand conscious, and the others are not. It is really important for the brand conscious people to wear branded clothes. An individual who is staying in a posh area needs to maintain their image and status must follow the brands.

Group influences on Consumer Behaviour

Each consumer in their society is a member of the different groups depending on the like-mindedness and culture and the subcultures. This culture influences in the consumer buying process. If they are in a group and share the same norms, they usually buy the same brand’s clothes, which is considered as a key component of reference group marketing. Sometimes in a group, people use to buy things just to show off their status to the other; it also considered as one type of buying behavior. Kids get most of the influence of their parents as the kids who are having parents who are very brand conscious will also be the same, and from their childhood, they will only be wearing branded products.

Part 2

Consumption activity

Whenever anyone uses any service or commodity for the satisfaction of their wants, then the act is therefore termed as consumption of activity. The consumption activity mainly deals with wealth using activities as eminent from wealth-getting activities. It is henceforth dealt with the production. Therefore, the consumption deals with the satisfaction of wants. In other words, if someone desires a product, then he will be taking some necessary actions to buy that product and satisfy his need. Therefore, the whole process is called consumption activity, which also means by the satisfaction of the human wants.

Symbolic consumption – It is said to be a process that helps in giving meaning to the brands and the products which take shape in the experiences of the consumer and are inclined to aim at the expression and the construction of the identity. It is a type of consumption in which the choices of the consumers mainly depend on the various types of symbolic values of goods and not their functional ones. It mainly demonstrates the expression of status, self-image, and affiliation of the group through the services or the purchase of the good.

Vicarious consumption – It is a type of consumption that was introduced by a famous sociologist Thorstein Veblen that, in this consumption, people use to buy expensive items in order to just show off and display their wealth and status rather than covering their real needs.

Ritual consumption – This consumption can be defined as specific occasions, holidays, and other events that are sacred and are characterized by excessive and sometimes intensive consumptions of various goods, services, and experiences. It includes various objects and those types of events that have been set apart from the normal activities and treated with very much respect.

Utilitarian consumption – It is one of a kind that is most inclined towards an emphasis on the practicality, fulfillment of basic needs, usefulness, and functionality. It is usually are those products that add ease to every day, such as a basic phone, basic car, refrigerator, and so on. It mainly focusses on the necessity, not the luxury. These products are bought without a doubt and have an emotional and sensory attachment with the buyer.

Hedonic consumption – It is a type of consumption that helps in satisfying the various kinds of sensory and emotional needs after all the basic needs of that person are met—the basic needs, including food, shelter, and clothing. The emotional pleasure that the one gets after using the products varies for all the individuals—examples: designer watches, luxurious cars, and other products that excel the basic needs.

Conspicuous consumption – It is moreover the same as that we mentioned earlier as Vicarious consumption. In this type of consumption, people use to spend more money on acquiring luxurious services and goods in order to publicly display their economic power and wealth and maintain their social status. This consumption is only done by the people who are having enough disposable income to spend on these lavish things that are not necessary.

Identity creation – This is the type of consumption that happens when people are mixing with other is groups or in other words it a type of consumption by which one uses to describe themselves in front of others. This is more of meaning-based, and the brands that are associated with it often used to be more symbolic of the maintenance and the construction of identity.

Personal consumption analysis – After researching the different types of consumption, I came to the knowledge that the Income Factor is the one that drives me to purchase the different kinds of goods and services. Previously, I used to buy products that are of the basic category, but soon after using the branded things, I realized that branded things are good rather than using products that are of low value. Previously the company I was working for, I used to get a lower salary comparing with the one that I am working with now. Therefore, that time I couldn’t afford to buy products that are of higher value, but since I am in a better place now, I can afford it now. Henceforth, it is seen that the consumption patterns are changing as per time and money, and it can be explained further by using Maslow’s need theory that was developed by Abraham Maslow.

Maslow’s Hierarchy Theory of Need

According to Abraham Maslow, human needs are divided into five stages, such as:

• Physiological needs – This is basically underlining those products that one can’t live without. It is the basic necessity of human beings to survive. Food, Shelter, and Clothing, these three things are basic necessities of life. The organization in which we are working must look after the physiological needs of the employees.
• Safety needs – It is basically explaining the safety of the individual. The company we are also working must look into it as it is related to job security and the health of an employee.
• Social needs – This stage includes acceptance, love, and belonging. At this very level, the need for this relationship plays an important role as they drive human behavior.
• Esteem needs – Maslow in this stage described this need as the one that is needed by us in order to get respect from others by various means such as recognition, prestige, status, fame, and attention. To increase this, one, therefore, possesses a lavish lifestyle in order to get respected by others.
• Self-actualization – It is at the epitome of the needs; it includes hobbies, traveling, and so on. In this stage, after getting all the other needs, a person can exercise their hobbies, and some use this stage to travel around the world. It enriches the experience of a human being.

Part 3

Recommendation for an advertising agency

As per the study, it can be derived at this point that the use of Maslow’s Theory is very much needed by the advertisement agencies to do their marketing strategies and campaigns regarding a specific brand. A famous British advertising industry named Ogilvy uses only 360 brandings as their strategy. They must also use Maslow’s theory in order to gain more and more customers as it is the only theory that is linked to human psychology. This theory begins with basic or physiological needs and progress to safety, security, love, and belongingness and then to esteem needs of a human being and lastly reaches the ultimate level named as self-actualization needs. It is basically a theory by which any company can feel the pulse of a customer; therefore, this theory can be applied by the advertising companies in order to get a good number of customers. According to this theory, if someone is willing to buy a premium sedan (car) for his family and if the salesperson convinces him regarding the safety and reliability of the car for his family as per Maslow’s theory, then the customer will easily purchase the product. Before making any strategies for a product, the company must now the area or the demographics of the place where the product or the service has been launched. Then, if possible, the company must look into the culture and the society of the people that are living near it. As per the culture and society, if a company makes an advertisement, then it will be easily connecting with the customer, and in no time the product will be a huge success. Nowadays, people are more active on social media. Therefore, the companies must also tap that area in order to sell their products. There are many types of customer who uses that online platform. One who is in real need of that product or in other words, it comes under his basic need or another type of customer who wants to buy a product to show-off. Both the customers will get catered in that way. Maslow’s principles are very valid in the case of marketing; therefore, if any company can use it in a meaningful way, then they will be gaining a large customer base. The more the company dovetails more, they will be effective as per marketing efforts.

Conclusion

In this study, various kinds of purchasing behavior of the customer are discussed, and the classification is done as per their psychological needs. The first part of the assignment is all about the customer decision-making process, and how they are classified and linked with one another and the next part is all about the consumption activities that an individual goes through while purchasing a product and lastly the Maslow’s theory is explained and dissected into such a manner by which all types are customers are catered. The final part is all about giving recommendations to a well-known advertising agency regarding considering Maslow’s theory as one of its strategies to gain more customers. This will help them in designing their campaigning style and will be more successful in the near future.