This report analyzes consumer behavior and the influences of personality and demographics on motor vehicle purchasing. It provides recommendations on how marketers can attract customers by applying learning and memory theories.
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Running head:SCIENCE AND CONSUMER BEHAVIOR1 Science and Consumer Behavior Student’s Name Professor’s Name Institutional Affiliation Date
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SCIENCE AND CONSUMER BEHAVIOR2 Executive Summary Consumer behavior is best understood by developing efficient customer relations. Marketers estimate and restructure the future demands of a product using the profile of the existing products and operations of their business to meet new demand and to capture new markets. The motor vehicle industry is sensitive to factors such as the macroeconomic dynamics due to events such as financial and banking crises, which are beyond the control of the company. Having no control of such externalities can be frustrating enough. However, marketers can influence their business growth by focusing on how best they can achieve customer satisfaction and consumer loyalty. Marketers who analyze and understand consumer behavior are concerned with how consumers make their choices and decisions. It is therefore critical to understand that buyer behavior is affected by several factors which encompass personality and demographics. This report shows an analysis of consumer behavior and particularly the personality and demographic influences on motor vehicle purchasing.
SCIENCE AND CONSUMER BEHAVIOR3 Table of Contents Executive Summary.........................................................................................................................2 1. Introduction..................................................................................................................................4 2. Analysis of Respondents Behavior Based on Personality Theories............................................4 2.1. Why their rankings of evaluative criteria are different.........................................................4 2.2 Why their choices of motor vehicles are different.................................................................5 3. Analysis of the Respondents Behavior Based on Demographic Theories..................................6 3.1 Why their rankings of evaluative criteria are different..........................................................6 3.2 Why their choices of motor vehicles are different.................................................................7 4. Recommendations........................................................................................................................8 4.1 Characteristics of likeliest customers....................................................................................8 4.2 How to attract these customers by applying learning and memory theories.........................8 5. Conclusion...................................................................................................................................9 References......................................................................................................................................11
SCIENCE AND CONSUMER BEHAVIOR4 1. Introduction The motor vehicle industry is a key sector of the global economy. The automotive industry is highly competitive having more than 50 key players or manufacturers across the globe, (Munywoki, 2016). The author regards the industry as a significant source of revenue and is also labor and capital intensive. Consumer behavior mirrors how different people choose what to buy with regards to both goods and services hence achieving customer satisfaction through customer relations. Customer satisfaction refers the degree to which a given commodity or service satisfies the needs, wants and the ultimate expectations of the customer (Santos, Varnum, and Grossmann, 2017). Efficient marketing starts with understanding the consumer behavior. 2. Analysis of Respondents Behavior Based on Personality Theories. 2.1. Why their rankings of evaluative criteria are different A trait refers to the predisposition to behave in a certain way in a given situation (BBA/Mantra, 2019). According toKeller (2016),patterns of individual behavior are stable and enduring, and as a result, are highly reliable factors that marketers can utilize to develop their brands. According to the trait theory, an individual's traits are the primary factors which influence the response given by that individual. The differences in the ranking of the evaluative criteria of the motor vehicle buyers, (respondents 2, 3, and 4) arise because basically, consumers purchase goods and services to reflect their personality. In addition, the rankings of evaluative criteria of respondents 2, 3, and 4 vary because they all have unique personalities and preferences. Some of the personality traits that were measured by the questionnaires filled by respondents 2,3 and 4 include extroversion, introversion, efficiency, individualism or
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SCIENCE AND CONSUMER BEHAVIOR5 dependence on partners (or lack of) when making decision, kindness, conscientiousness, friendliness, compulsiveness, and confidence or lack of it among other traits. According to BBA/Mantra, (2019), in their broader categories, these traits are usually categorized as; 1.Tensed versus relaxed 2.Outgoing versus reserved 3.Experimenting versus conservative 4.Controlled versus undisciplined 5.Bright versus dull 6.Aggressive versus docile 7.Conservative versus expedient 8.Happy Go Lucky versus Serious 9.Self-respective versus group dependent 10.Imaginative versus practical 11.Suspicious versus practical 12.Self-sufficient versus group dependent 13.Uninhibited versus reluctant and shy 14.Tender-minded versus resilient 15.Polished versus pretentious 16.Self-respective versus self-assured 2.2 Why their choices of motor vehicles are different As illustrated in the questionnaires filled by respondents 2, 3, and 4, each person has different taste, preferences, and attitudes on the motor vehicle brands. The choices that the 4 respondents make in purchasing of motor vehicles are different because people
SCIENCE AND CONSUMER BEHAVIOR6 have different brand and product preferences with the main influence being their varied personality types. Respondent 2 is a senior American bachelor who seems to be making independent decisions to buy a car. He is self-sufficient and decides on his own what car model to buy. He is single, extroverted, outgoing, kind, sympathetic, educated, earns a high income, and also very efficient and careful. It is thus apparent that he is appealed by happy with his high-end lifestyle. Respondent 3, is much extroverted, not so moody, moderately sympathetic and kind to others, open to new experiences and quite poor at being careful and efficient. Respondent 4 Respondent 4 is an independent decision maker when it comes to deciding on motor vehicle purchasing. 3. Analysis of the Respondents Behavior Based on Demographic Theories 3.1 Why their rankings of evaluative criteria are different Respondents’ behavior is influenced by demographic factors which are different from one respondent to the next. According toPecotich and Shultz (2016)the role of the family as an influencing aspect involves direct or indirect actions by family members that influence the course of a decision. Ethnicity is also likely to inform the customs, attitudes, beliefs and values that are acquired through learning, which in turn influence a person's wants and behaviors (Kotler 2010). Culture defines the needs of the members of the society and more specifically, directs and guides them in solving their predicaments and decision- making in an attempt to meet needs and wants (Lantos, 2015). Occupation is the single-most determinant an individual’s or their family’s social class and status (Santos, Varnum, and Grossmann, 2017).Occupations influence social classes because respect and status are accorded to different occupational levels depending on
SCIENCE AND CONSUMER BEHAVIOR7 the respective salary and the nature of the work itself. A person of a higher status occupation is likely to have more purchasing power compared to someone of lesser income. Education also influences occupation, income, attitudes, and ultimately, the social class. The extent of pre-purchase information that consumers have is also related to their level of education, their learning, memory, and information seeking activities. According to Dubois, Rucker and Galinsky (2015),variations in education also influence the way in which the consumers process or understand information and their decision-making styles across the spectrum. 3.2 Why their choices of motor vehicles are different People show different brand and product preferences based on demographic influences. Respondent 3 is a middle-aged Australian female who lives with her children and partner. Her decision-making involves consulting a husband, partner, or children when buying a car. She also seems to consider the family size when purchasing a vehicle that will accommodate the entire family. The divorced and unmarried respondents do not need to acknowledge family in a similar situation. Respondent 4, a 45-year old Swiss divorcee who works as a consultant prefers to purchase a Volkswagen Golf, which he considers to be efficient on fuel economy, distance coverage, and brand. He regards a Mitsubishi Lancer, a Ford Territory, and a Holden Colorado to be of better prices but still opts for a more expensive Volkswagen Golf. He makes his decisions independently and does not mind reaching for the high-end lifestyle expenses of owning an expensive car. Age, gender, family situation, ethnicity, education, and income tend to influence each choice made by the buyers. The married woman considers her family when making decisions,
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SCIENCE AND CONSUMER BEHAVIOR8 her family size, the economic aspect of the car with regards to being used by the family whereas these factors do not worry the other respondents who are two males, one divorced, the other a bachelor. The level of education and social and marital status, as well as the income, make it easy for the men to go for expensive and classier Volkswagen car model. 4. Recommendations 4.1 Characteristics of likeliest customers As an example, the consumer of a Ford Territory is a buyer who has a family to consider when making a decision to purchase a motor-vehicle. The high-end bachelors and male divorcees who earn really well prefer to buy vehicles that signify their social status. They prefer fine brands, over price. They do not have a family to consider in decision making and thusare more of independent decision makers and buyers. 4.2 How to attract these customers by applying learning and memory theories To do efficient motor vehicle brand marketing, marketers need to build on consumer behavior. Consumer behavior refers to the behavior that consumers display in the process of searching for, selecting, using and disposing products, services, experience, or ideas to gratify their needs and impact on the consumer and society. Marketers can leverage consumer behaviors and psychology if they understand the consumer behavior. An efficient marketer relies on what he has understood as the consumer behavior and uses it to his advantage. Learning theories, include classical conditioning, cognitive learning and operant conditioning. A marketer should use cognitive learning to reach their audience by displaying nostalgic scenes and impressions. This tactic makes an appeal to buyers by reaching out to their long-term memory system and creating awareness with the recall of past events involving their experience
SCIENCE AND CONSUMER BEHAVIOR9 with a car. If a consumer encounters an event that reminds them of a past experience with a car, they will desire to go back to the market and buy a newer model to achieve the same or a better experience once more. In classical conditioning, the marketer should craft their brand image to embody a product that will incite the desired response from the consumer. The marketer should make an advertisement that provokes the observer to feel that they have a desire that needs to be fulfilled. Such an advert should also go to an extent of reducing the perceived discomfort by informing the target that they (the advertisers) have a solution. In operant conditioning, the marketer should rely on the knowledge that learning comes by way of experience. If a customer gets a good service from a car, then that customer will want to buy the same car model again, when need arises. To attain brand loyalty, the marketer should create a rewarding system that consumers learn to recognize and to experience repeatedly. Consumers who purchase a trusted brand try to avoid a negative outcome should they choose another brand. A marketer of any of the car models should therefore ensure that customers get a great experience from the vehicles that he sells to them. 5. Conclusion A marketer of any motor vehicle needs to understand what influences the consumer decision when it comes to purchasing motor vehicles. Efficient marketers should study and relate the personality traits they identify among buyers to the consumer purchasing behavior. They can, therefore, recommend to their manufacturers the car models that they believe to appeal best to "prospects" for purchasing the product/service. In other words, marketers should try to match their products to what they feel will embody the perceived clientele's self-image (Middlebrook,
SCIENCE AND CONSUMER BEHAVIOR10 2016). The company's advertising and marketing communications, therefore, target consumers based on the personality characteristics of their product consumers.
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SCIENCE AND CONSUMER BEHAVIOR11 References Baines, P., Fill, C., Rosengren, S., & Antonetti, P. (2017).Fundamentals of marketing. Oxford: Oxford University Press. BBA/Mantra (2019). Personality-Approaches, Theories, Influence on Consumer Behavior. Retrieved on June 3, 2019, fromhttps://bbamantra.com/personality-theories/ Dubois, D., Rucker, D. D., & Galinsky, A. D. (2015). Social class, power, and selfishness: When and why upper and lower-class individuals behave unethically.Journal of personality and social psychology,108(3), 436-438. Havkinze, D. B., & Roger, K. K. (2009). Consumer behavior, a compilation of the marketing strategy. London: Sargol Publication. Keller, K. L. (2016). Reflections on customer-based brand equity: perspectives, progress, and priorities.AMS review,6(1-2), 1-16. Lantos, G. P. (2015).Consumer behavior in action: Real-life applications for marketing managers. London: Routledge. Middlebrook. B., S. (2016). Personality and Related Characteristics that Affect Consumer Buying Behavior. Retrieved on 3 June 2019 from https://toughnickel.com/industries/Buyer-Characteristics-and-Consumer-Behavior Munywoki, H. (2016). Factors Affecting the Sale Of The New Vehicles In The Motor Vehicle Industry: A Case Study Of Simba Corporation Limited, Nairobi. Retrieved on June 3, 2019, fromhttp://repository.mua.ac.ke/1646/1/HELLEN.pdf Pecotich, A., & Shultz, C. J. (2016).Handbook of Markets and Economies: East Asia, Southeast Asia, Australia, New Zealand: East Asia, Southeast Asia, Australia, New Zealand. London: Routledge.
SCIENCE AND CONSUMER BEHAVIOR12 Santos, H. C., Varnum, M. E., & Grossmann, I. (2017). Class, cognition and cultural change in social class.The Oxford Handbook of Cognitive Sociology. Oxford, UK: Oxford University Press. Forthcoming. Kotler, P., (2010).Marketing Management 11, the Edition. International Edition. Upper Saddle River, New Jersey, USA: Pearson Education Inc.