Consumer Behavior and Decision Making

This assignment delves into the multifaceted realm of consumer behavior, examining the psychological factors that shape individual purchasing decisions. It analyzes concepts like consumer perception, motivation, learning, attitudes, and social influences, exploring their impact on brand loyalty and overall buying patterns. The analysis draws upon relevant research studies and theories to provide a comprehensive understanding of how consumers interact with products and brands.

Running head: Consumer behavior
Consumer behavior

Consumer behavior
(Literature review on contemporary consumer behavior issues)
The paper talks about the roles and significance of the consumers in the global world. It
explains that how the marketing activities influence the buying behavior of the consumers.
Further, it explains the various issues and barriers which are existed in the consumer behavior. It
describes that how consumers are becoming an integral part of the market and how they play a
significant role in our economy. Along with this, it tells that how marketers make plans and
strategies to attract more customers in the global market. The paper also explains the attributes of
the consumers (Hoyer and Stokburger-Sauer, 2012).
A consumer is a person who buys the products and services for personal and individual
use, not for resale and manufacture use. A consumer is a person who makes the buying decisions
related to the products and services. The consumer can be affected by the advertisements and
marketing. According to De Mooij and Hofstede (2011), consumer buying behavior is the sum
total of consumer preferences, attitudes, intentions and decisions regarding the consumer
behavior in the marketplace. After the various researchers it has been analyzed by the Rucker,
Galinsky, and Dubois (2012) where he said that consumer behavior is the study of individuals,
organizations, groups and the processes which they use to select, use, secure, and dispose of
products, experiences, services, ideas to satisfy their needs, expectations, desires and wants.
There are various factors which affect the buying behavior of the consumers in the market
(Morin, 2011). The factors include marketing campaigns, economic conditions, group influence,
personal preferences, and purchasing power. The success and growth of the organizations depend
on the consumers buying behavior. Consumer behavior plays a vital role in order to meet the
long-term goals and objectives of the firm. The main aim of the marketing is to satisfy the wants,
desires, and demands of the consumers (Chu and Kim, 2011). Consumer behavior is important to
launch a new product and service in the global market. Consumers are the significant person for
the salesperson and marketer. It is essential for the marketers to study and analyze the consumer
behavior. It is studied by Hosany and Martin (2012) that consumer behavior is the part of the
marketing and its main aim is to learn the how groups, persons, and organizations choose, buy,
and arrange the products and services in the market (Hoyer and Stokburger-Sauer, 2012).
Reed, Forehand, Puntoni, and Warlop (2012) said that consumers are the actors and
players of the market. Therefore consumers play a vital role in the marketplace. A study has been
2

Consumer behavior
conducted by the Paul and Rana (2012) where he said that consumer behavior is the decision
processes and actions of people, groups, and individuals who buy the products and services for
individual and personal use. Oliver (2014) studied that consumer behavior is the physical activity
and decision-making process which individual persons engage in acquiring, using, analyzing,
evaluating and disposing of the products and services. Marketers also play a vital role in
consumer buying behavior to increase the sale of the products and services.
Consumer behavior can be defined as the actions and decisions that affect the purchasing
behavior and action of the consumer. Consumer behavior helps to understand and evaluate the
past and it also helps to predict and estimate the future. There are various factors influence the
consumer buying behavior which has been discussed below (Venkatesh, Thong and Xu, 2012).
Marketing campaigns: Marketing campaigns play a crucial role in consumer behavior.
Advertisement plays a significant role to make the decision-making process effectively and
efficiently. The marketing campaigns are done on the regular basis which can affect the
purchasing decision of the consumers in the global market (Mick, Pettigrew, Pechmann, and
Ozanne, 2012).
Economic conditions: Economic conditions also affect the consumer behavior in the market.
The purchasing power of the consumers depends on the economic conditions of the market.
Personal preferences: Consumer behavior is also affected by the likes, morals, dislikes, values,
habits. Therefore, personal preferences play a crucial role in consumer buying behavior (Tsai,
Egelman, Cranor and Acquisti, 2011).
Group influence: It is seen that group influence also affects the decisions and buying behavior
of the consumers around the world. The group includes classmates, family members, neighbors,
and immediate labors. All these factors also affect the purchasing power of the consumers in the
world. Along with this, cultural, psychological and social factors also affect the consumer buying
behavior in the global market (Thompson, Arnould and Giesler, 2013).
The study of consumer buying behavior is significant in deciding the plans, pricing
policies, production policies, and sales and revenue in the supermarket. Further, market focuses
and monitors on the behavioral aspects and attitudes in the supermarkets. After the various
3

Consumer behavior
researchers, it has been measured that consumer buying behavior is not estimated and predicted.
Different researchers and concepts have been proved that when an organization is able to meet
the all the aspects and attributes of its customers around the world, then it will become a result of
higher efficiency and productivity. Further, there are various strategies and plans used by the
organization to provide satisfaction and motivation to the consumers in the world. A consumer
decision-making process is based on the various factors which are existed in the market
(Askegaard and Linnet, 2011).
Further, CRM model is developed and implemented by many companies to build and
develop a relationship with customers. It refers to the strategies, practices, plans, technologies
which are used by the companies to analyze and manage customer data and communication
throughout the customer lifecycle with improving the business relationship with consumers in
the market (Altman, 2015).
Customer relationship management also helps to overcome on the competitors in the
global market. There are various components of customer relationship model to build and
develop a reciprocal relationship with customers around the world. CRM model also helps to
increase and maximize the revenue and profits of the company (Tsai, Egelman, Cranor and
Acquisti, 2011). It also helps to increase and maximize the upselling and cross-selling of the
market. Through CRM model, the company can maintain good communication with its
customers in the world. It also helps to maximize the level of satisfaction of the customers
around the world. Further, it decreases the cost of products and services within the organization.
By using this model, the firm is delivering good quality of products and services across the
world. In this way, CRM model plays an essential role in consumer buying behavior to attain the
long-term goals and objectives of the firm (Boztepe, 2012).
A research has been conducted by the De Mooij (2010) where he said that there is a close
relationship between social media and consumer buying behavior. Social media channels
influence the purchasing power of the consumers around the world. A consumer is the main
player in the market. Social media channels include internet, facebook, twitter and other online
sources which play a critical role to increase and maximize the sales of the products and services
in the global market. The persons can share their experiences, knowledge, reviews, and opinions
with another person by using social media channels. The social media has a great impact on the
4

Consumer behavior
purchasing power of the consumers in the universal market (Darley, Blankson and Luethge,
2010). In addition, consumer movement also plays a significant role in commerce and trade.
Consumer movement provides support to the economy. Many companies use social media
channels to attract more customers in the market. It is the good source to generate more revenue
and profit around the world. These channels provide rights information to the customers related
to the various products and services. These channels also protect the rights of the consumers.
Pre-purchase and post-purchase also affect consumer buying behavior. The consumer can also
collect various information about the products and services through social media channels (Liu,
Guo, and Lee, 2011). Consumers have options to know the festival offers and special discounts
about the products and services around the world. These social media channels help to generate
consumer movement across the world. These channels protect and secure the rights of the
consumers. Further, these social media channels provide various growth opportunities to the
marketers as well as consumers (Tsai, Egelman, Cranor and Acquisti, 2011). E-commerce helps
to create awareness and alertness among the customers related to the various goods and services
which are available in the global market. Now it is assumed that social media channels play an
integral role in success and growth of the business. Consumers change their needs, requirements,
and expectations due to modernization and innovative technologies. In this way, sellers sell the
products according to the choices and requirements of the customers. The companies use various
techniques and methods to sell their products and services around the world. Dianshu, Sovacool,
and Vu (2010) said that many companies conduct various research surveys and studies to
evaluate and understand the buying behavior of the consumers in the world. Economy and job
stability affect the purchasing power of the customers around the world. The contemporary
consumer buying behavior factors are visible and noticeable. Lian and Yen (2014) said that
contemporary issues influence the behavior and actions of the consumers in the world. The
contemporary consumer behavior issues have been discussed below (Askegaard and Linnet,
2011).
Quality: The consumers expect that seller deliver the products and services with good quality to
fulfill the needs, requirements, and expectations of the consumers around the world. Further,
they also want good and reliable products for consumption. It means the firm needs to invest a
huge amount to make and manufacture these products in the universal market (Darley, Blankson,
and Luethge, 2010). Therefore, sellers are not able to provide good quality of products to the
5

Consumer behavior
customers across the countries. In this way, various challenges are faced by the many companies
in the global world. The sellers do not maintain quality and quantity of products and sometimes
they sell defective and damage products and services to the consumers in the world. Thus,
customers have to face many contemporary issues related to the quality of products and services.
After the various researchers, it has been evaluated and analyzed by Van Doorn et al (2010)
where he said that quality is the main feature of the products and services. None of the company
can attain long-term growth and success without providing effective and unique quality of
products and services. It is the essential part of the goods and services. Thus, sellers and
marketers should maintain the quality of products to attract more customers in the world (Darley,
Blankson, and Luethge, 2010).
Incentives: To attract the customers in the universal market, the company needs to offer some
incentives and rewards to the consumers. Sometimes, marketers promise to give some incentives
and other benefits to the customers while selling the products and services. But they do not
provide such kind of benefits and incentives to the consumers (Tsai, Egelman, Cranor and
Acquisti, 2011). They refuse to fulfill these promises and commitments. In this way, various key
issues and problems are faced by the customers in the world. Along with this, marketers and
seller promise to provide some contemporary products and services to the customers but they do
not provide such type of services and products. Thus, they get disappointed and face various
obstacles in the international market (Yeon Kim and Chung, 2011).
Budgeting: Budgeting is another contemporary key issue of the consumer behavior which
affects the purchasing power of the consumers. Sometimes, consumers do not carry cash and
they use a credit card and debit card but many sellers do not accept the credit card and debit card.
Thus, various difficulties are faced by the consumers in the market. In U.S 1/3 of consumers use
a debit card and credit card to buy the various items, products, and services in the universal
market. Now it is assumed that budgeting is one of the biggest key issues of the consumer
behavior (Jansson, Marell and Nordlund, 2010).
Website issues: There are various website issues faced by the consumers. Sometimes,
companies do not provide correct and accurate information to the consumers. In this way, they
face many difficulties and barriers in the global market (Tsai, Egelman, Cranor and Acquisti,
2011). It affects the purchasing power of the consumers around the world. There is a variety of
6

Consumer behavior
factors affecting the social media channels and it influences the tastes and preferences of the
consumers the universal market. Through the fake and wrong website, the consumers are not
able to rely on the profile and image of the company and they do not buy the products and
services in an organization. Moshrefjavadi et al (2012) said that it is one of the significant issues
of the consumer behavior which affects the buying behavior and actions of customers across the
nation. It is a very serious issue for the consumers as well as marketers within the organization
(Tsai, Egelman, Cranor and Acquisti, 2011).
Lack of technology: It is one of the biggest key concerns of consumer behavior. The company is
not able to introduce and manufacture new products and services in the international market.
Thus, customers do not buy the products and services without using effective and unique
technology in the international market (Zhu and Zhang, 2010).
Pricing issue: Consumer face various pricing issues in the market. The sellers sell the products
at high prices. They do not fix the reasonable prices of the products and services. Therefore,
sometimes consumers are not able to buy the products and services. Further, middle level of
customers faces various difficulties due to high prices of the products and services. After the
various researchers, it has studied by the Darley, Blankson, and Luethge (2010) where he said
that seller should fix the reasonable and appropriate prices of the products and services to
provide satisfaction to the customers. It will also help to build and develop the reputation and
image of the company (Tsai, Egelman, Cranor and Acquisti, 2011).
Lack of communication: Poor communication is one of the biggest issues of consumer
behavior. Sometimes, marketers and seller do not maintain proper communication with
customers in the international market (Askegaard and Linnet, 2011). Therefore, various issues
obstacles are faced by the consumers around the world. It has been studied by the Van Doorn et
al (2010) where he said that communication is the big concern of the consumer behavior. The
consumers are not able to know the features, attributes, and quality of products due to poor
communication. Further, sellers misbehave with customers in the market. They do not give
proper information about the size, quality, and quantity of the products (Dianshu, Sovacool and
Vu, 2010).
7

Consumer behavior
Socio-Cultural issues: The socio-cultural issues are also faced by the consumers around the
world. It affects the buying behavior of the consumers in the world. The seller needs to focus and
monitor on the socio-cultural issues to overcome on the competitors in the global market and to
satisfy the needs and requirements of the consumers around the world (Tsai, Egelman, Cranor
and Acquisti, 2011).
Exchange issue: Sometimes, sellers sell the poor quality of products and services to the
consumers. Further, they sell damage and faulty products to the consumers. If the consumers
come to the shop for exchanging the defective products and cloths thus, they do not exchange the
products. Hence, consumers have to suffer various difficulties in the market (Boztepe, 2012). In
this way, various conflicts and disputes arise between seller and consumer.
Other issues: Apart from these issues, various other issues also affect the consumer purchasing
power in the global market. Other issues include size, quality, quantity, and quality of the
products and services (Yeon Kim and Chung, 2011). Further, sellers do not maintain
collaboration and cooperation with customers in the international market. Further, advertisement
and promotion issues are also faced by the marketers. As result, consumers have to face various
problems and issues related to the product quality and quantity. In this way, various obstacles
and barriers are existed in the universal market (Darley, Blankson, and Luethge (2010).
After the various researchers, it has been studied by the Moshrefjavadi et al (2012) where
he said that these issues can be controlled and managed by the sellers and marketers by
evaluating and analyzing the needs and requirements of the customers. The marketers must use
effective tools, techniques and methods to increase the number of consumers around the world
(Dianshu, Sovacool and Vu, 2010). Further, marketers must improve the advertisement and
promotion strategies to enhance and build a good and reciprocal relationship with consumers in
the world. They should maintain proper communication and collaboration with consumers to
increase the revenue and profit. They must resolve the various queries and complaints of the
consumers related to the product quality and quantity. In this way, they can reduce the conflicts
and disputes of the consumers. They must exchange the defective and faulty products and
services to enhance and increase the level of satisfaction of the consumers (Hoyer and
Stokburger-Sauer, 2012).
8

Consumer behavior
On the above discussion, it has been concluded that consumers play an integral role in the
market. Entire marketing activities and growth depend on the consumer buying behavior. None
of the company can explore and flourish its business for a long time period without consumers.
Therefore, marketers must protect the rights of the consumers (Yeon Kim and Chung, 2011).
They must analyze and critically evaluate their needs, expectations, requirements, wants and
desires. Further, consumers play an analytical role in the economy. The company must produce
and manufacture the products and services according to the needs and requirements of the
consumers. Further, the paper explains the contemporary consumer behavior issues which can
affect the growth and success of the firm. Marketers should analyze and measure these issues and
they must resolve these obstacles and problems for providing satisfaction to the consumers
around the world. Along with this, marketers must make strategies and plans to evaluate and
identify the expectations and requirements of the consumers in the global market.
9

Consumer behavior
References
Altman, M., 2015. Handbook of contemporary behavioral economics: foundations and
developments. Routledge.
Askegaard, S. and Linnet, J.T., 2011. Towards an epistemology of consumer culture theory:
Phenomenology and the context of context. Marketing Theory, 11(4), pp.381-404.
Boztepe, A., 2012. Green marketing and its impact on consumer buying behavior. European
Journal of Economic & Political Studies, 5(1).
Chu, S.C. and Kim, Y., 2011. Determinants of consumer engagement in electronic word-of-
mouth (eWOM) in social networking sites. International journal of Advertising, 30(1), pp.47-75.
Darley, W.K., Blankson, C. and Luethge, D.J., 2010. Toward an integrated framework for online
consumer behavior and decision making process: A review. Psychology & marketing, 27(2),
pp.94-116.
Darley, W.K., Blankson, C. and Luethge, D.J., 2010. Toward an integrated framework for online
consumer behavior and decision making process: A review. Psychology & marketing, 27(2),
pp.94-116.
De Mooij, M. and Hofstede, G., 2011. Cross-cultural consumer behavior: A review of research
findings. Journal of International Consumer Marketing, 23(3-4), pp.181-192.
De Mooij, M., 2010. Consumer behavior and culture: Consequences for global marketing and
advertising. Sage.
Dianshu, F., Sovacool, B.K. and Vu, K.M., 2010. The barriers to energy efficiency in China:
Assessing household electricity savings and consumer behavior in Liaoning Province. Energy
Policy, 38(2), pp.1202-1209.
10

Consumer behavior
Hosany, S. and Martin, D., 2012. Self-image congruence in consumer behavior. Journal of
Business Research, 65(5), pp.685-691.
Hoyer, W.D. and Stokburger-Sauer, N.E., 2012. The role of aesthetic taste in consumer
behavior. Journal of the Academy of Marketing Science, 40(1), pp.167-180.
Jansson, J., Marell, A. and Nordlund, A., 2010. Green consumer behavior: determinants of
curtailment and eco-innovation adoption. Journal of consumer marketing, 27(4), pp.358-370.
Lian, J.W. and Yen, D.C., 2014. Online shopping drivers and barriers for older adults: Age and
gender differences. Computers in Human Behavior, 37, pp.133-143.
Liu, C.T., Guo, Y.M. and Lee, C.H., 2011. The effects of relationship quality and switching
barriers on customer loyalty. International Journal of Information Management, 31(1), pp.71-79.
Mick, D.G., Pettigrew, S., Pechmann, C.C. and Ozanne, J.L. eds., 2012. Transformative
consumer research for personal and collective well-being. Routledge.
Morin, C., 2011. Neuromarketing: the new science of consumer behavior. Society, 48(2), pp.131-
135.
Moshrefjavadi, M.H., Dolatabadi, H.R., Nourbakhsh, M., Poursaeedi, A. and Asadollahi, A.,
2012. An analysis of factors affecting on online shopping behavior of consumers. International
Journal of Marketing Studies, 4(5), p.81.
Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Paul, J. and Rana, J., 2012. Consumer behavior and purchase intention for organic food. Journal
of consumer Marketing, 29(6), pp.412-422.
Reed, A., Forehand, M.R., Puntoni, S. and Warlop, L., 2012. Identity-based consumer
behavior. International Journal of Research in Marketing, 29(4), pp.310-321.
Rucker, D.D., Galinsky, A.D. and Dubois, D., 2012. Power and consumer behavior: How power
shapes who and what consumers value. Journal of Consumer Psychology, 22(3), pp.352-368.
11

Consumer behavior
Thompson, C.J., Arnould, E. and Giesler, M., 2013. Discursivity, difference, and disruption:
Genealogical reflections on the consumer culture theory heteroglossia. Marketing Theory, 13(2),
pp.149-174.
Tsai, J.Y., Egelman, S., Cranor, L. and Acquisti, A., 2011. The effect of online privacy
information on purchasing behavior: An experimental study. Information Systems
Research, 22(2), pp.254-268.
Van Doorn, J., Lemon, K.N., Mittal, V., Nass, S., Pick, D., Pirner, P. and Verhoef, P.C., 2010.
Customer engagement behavior: Theoretical foundations and research directions. Journal of
service research, 13(3), pp.253-266.
Venkatesh, V., Thong, J.Y. and Xu, X., 2012. Consumer acceptance and use of information
technology: extending the unified theory of acceptance and use of technology.
Yeon Kim, H. and Chung, J.E., 2011. Consumer purchase intention for organic personal care
products. Journal of consumer Marketing, 28(1), pp.40-47.
Zhu, F. and Zhang, X., 2010. Impact of online consumer reviews on sales: The moderating role
of product and consumer characteristics. Journal of marketing, 74(2), pp.133-148.
12