Critical Analysis of Consumer Behavior: Theories and Research

This report provides a critical analysis of consumer behavior, examining various theories such as Marshallian Economics, Psychoanalytic theory, Veblinian Social-Psychological model, Theory of Reasoned action, and Engel, Kollet, Blackwell model, and the Motivation need theory. The analysis explor...Read More

CRITICAL ANALYSIS OF
CONSUMER BEHAVIOR

Table of Contents
INTRODUCTION...........................................................................................................................3
Analysis of consumer behavior....................................................................................................3
Research methods........................................................................................................................6
Recommendations............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The file is on critical analysis of consumer behaviour. Consumer behaviour is the study of how
individual customers, groups or companies select, buy, use and dispose the ideas, goods and
services to satisfy the needs and wants. The file discusses on consumer behaviour theories, their
analysis and application of the same in integration of theories. It proves its application in the
study of covid vaccine. The critical analysis of the consumer behaviour through theories
highlight factors which can ultimately drive the market. The synthesis of secondary and primary
research has been done in the file. Customer have been interviewed and unbiased feedback has
been taken. The file has discussed the factors which have motivated the customers for going for
the product and which restrict their movement towards it. A thorough analysis through the
theories has been provided. The study also provides recommendations of how the government
can increase people taking up covid vaccine and spreading awareness through various measures
which can influence people in the right direction. The file takes an approach to study and analyse
the consumer behaviour which is volatile and requires authenticity and convincing abilities
giving assurance about the product by the marketer.
Analysis of consumer behaviour
Consumer behaviour is the study of individuals and organisations of their selection and usage of
products and services. It is concerned with psychology, motivations and behaviour of people.
The considerations are influenced by three factors:
Personal factors: They are basically a person's interests and opinions. They will be affected by
demographics such as age, gender, culture, job etc.
Psychological factors: The response to the marketing campaign is based on the perceptions and
attitudes of people. It signifies a person's ability to comprehend information, perception of need
and attitude (Mothersbaugh, Hawkin and Kleiser,2019).
Social factors: Peer groups are influential like family and friends and social media. The factor
includes social class, income and education level.
The theories of consumer behaviour can be described as follows:
Marshallian Economics

The theory given by Alfred Marshall states that consumers buy goods and services based on
what is offering them personal satisfaction. The theory has given marketers these hypothesis:
 A product price being lower will influence the sales of product being higher.
 When there exists a substitute of the product, sales of the substitute will be higher if price
of substitute is lower than that of original product (Morales, Amir and Lee, 2017).
 When income of consumers is high, sales of product will be higher provided product is
not of inferior quality.
Talking of the implementation, the customers would like to purchase the vaccine if it is priced
lower. As the vaccine dose will be in large number, the pricing of the product will be low.
Customers however can go for substitute of government hospital vaccine rather than private as a
substitute where service charges will be less .
Psychoanalytic theory
This theory has been given by Sigmund Freud who is the Austrian founder of psychoanalysis.
Sigmund believed that humans are not able to understand the emotions well because the
psychological factors shaping them are mostly unconscious. The unconscious mind is of strong
urge and desires. People try to suppress these desires. The consumers respond to symbolic
concerns as they respond to those of economics and function. The factors such as age and
income do not fully account for consumer behaviour as motivations lay deep in psyche.
Marketing messages which contain an emotional appeal to consumer's feelings, hopes,
aspirations and fears prove more effective than rational appeals (Morales, Amir and Lee, 2017).
This theory can reflect on some consumers that they have a desire to go for the vaccine
but will wait for more people to lead the way. If the vaccine is marketed in such a way that it
appeals to them then there will be an action taken. The marketing strategy making an emotional
connect with people will influence them to take the vaccine. But there are people who would like
to be trend setters in going for the vaccine when launched in the market and thus would like to be
the first ones to try it out.
Veblinian Social-Psychological model

The theory given by Thorstein Veblen suggested that humans are social creatures conforming to
the standards of culture and subgroups in which they live. The economist believed that people's
individual needs and desires are influenced by group membership. The theory focused on
members of society's leisure class whom Veblen hypothesized were influenced by the desire of
prestige rather than fulfilment. The theory suggests that marketers should understand the social
influence that impact consumers in order to better comprehend demand.
The application of the theory can be put in the covid vaccine where people would go for a
product higher priced as they relate quality with price and would like to have expensive vaccine
to have their prestige status fulfilled. The people would not mind paying more to achieve a sense
of fulfilment. However, in case of middle-income group they may not go for the same as they are
looking for quality with affordability. Thus, they would not go for vaccine which is priced with
service charges at big private hospitals but would go for government sponsored channel for the
vaccine.
Theory of Reasoned action
The theory centres its analysis on importance of pre-existing attitudes in the decision-making
process. The theory states that consumers act on behaviour based on intention to create or receive
a particular outcome. This theory states that consumers act rationally to choose their best
interests. This theory states that specificity is critical in the decision-making process. A
consumer only takes a specific action when there is a specific result expected. From the time the
consumer decides to act till the time the action is completed, the consumer retains the ability to
change on their mind and decide on a different course of action (Rana and Paul, 2017).
The theory states that marketers have to associate a purchase with a positive result which
must be specific. The theory also highlights the importance of moving consumers through the
pipeline.
Engel, Kollet, Blackwell model
The model lays out a five-step process that consumers use when making a purchase. In the first
step, consumers absorb most of the market materials they see on television, newspapers and
online. Once the consumer has collected the data, then the customer moves in next step in

information processing, where consumer compares input to past experiences and expectations.
Consumers move to decision-making after a period of thought, choosing to make purchase based
on rational insight. The process variables and external influences include how the customer is
envisioning self after making the purchase.
Putting the theory in application, the customers will see the ads and also being endorsed
by celebrities which motivates people to go for the vaccine. If there are advertisements depicting
positive outcomes of the vaccine minus the side effects this can move customer to go for the
vaccine. Customers however take time in assessing how the product outcome is, how are the
reviews being given. If vaccine is taken by celebrities, then it will influence customers to go for
the product.
Motivation need theory
The hierarchy of needs was put forward by Maslow which impacted the entire psychological
community. Under this theory, people act to fulfil their needs based on five-part priority system.
The needs include physiological, safety, love, esteem and self-actualisation. Business schools
adapted Maslow's theories to explain need of tailor-marketing messages to consumers in
particular way. The theory states that consumers are motivated to prioritize purchases towards
the base of hierarchy (Rana and Paul, 2017).
Hawkins Stern Impulse buying
The theory states that customers are motivated to buy products as a result of action of stern
behaviour. Sudden impulses alongside rational purchasing decisions paint the picture of average
consumer. Impulse behaviour are driven by external stimuli and have no relationship to
traditional decision-making.
Research methods
Research type: The research are done in two ways: qualitative and quantitative. Qualitative
research involves collecting and analysing non-numerical data to understand concepts, opinions
and experiences. Quantitative data is used to quantify the problem by way of generating

numerical data that can be transformed in statistics. Here in the study, qualitative research has
been used (Queirós, Faria and Almeida, 2017).
Data Collection: The data collection is done in two types- primary and secondary. Primary data
has been collected in the form of questionnaire of 30 customers to judge about consumer
behavior. Secondary data has been sourced through literature review regarding the issue in
company.
Research Sampling: Sample in research means conducting a survey on a group of people out of
a population group. The sampling methods are of five types out of which the method used here
has been random sampling. It signifies that people are randomly questioned about the issue
concerned and this is not done on a pre-prepared basis.
Data analysis: The data analysis has been done by the process of cleaning, transforming and
modeling data to make useful information for decision-making. The qualitative data has been
assessed got from primary and secondary sources. Research sampling has been analysed to put
across interpretations about how the issue has been answered by sample (Queirós, Faria and
Almeida, 2017).
Ethical consideration: The research has been done taking in account the principles of validity,
voluntary participation, confidentiality. Validity design has addressed specific research
questions. No individual has been coerced to answer questionnaire. Confidentiality has been
respected of individuals on anonymity basis.
Recommendations
The government can take many measures which can influence people in buying the vaccine.
Firstly, it can take measures like safety for the people who would be taking the vaccine. There
can be queues in which people may have to spend a long time waiting. Therefore, ward wise
distribution policy of the vaccine can be done. Use of technology for sending personalised
messages and mails to the customers can serve the purpose for intimating them in advance to

come for their turn which can avoid long queues. Government hospitals can have facilities of
refreshments in nearby stalls to make customers at ease. The government has to focus on clearing
the myths which circulate and confirm about the quality and safety of the vaccine. Celebrities
can be roped in whom the people have faith to get assurance.
There can also be steps taken like informing the common public about the hospitals lists
where the customers can get vaccinated. This can be done by making information available on
loudspeakers on the city corporation vehicles who can go round the city. Advertisement through
print media like newspapers and pamphlets will also increase awareness about the vaccine and
the need to get vaccinated for safety of the society. Online promotion can also be done which
will be helpful to catch on the customer segment gone online. Various articles about the
authenticity and clinical trials can be circulated on government websites.
Government hospital authorities have to maintain the safety and cleanliness through
regular sanitisation measures to help the people get comfortable through waiting period.
Fumigation measures can also be taken beforehand as there will be a crowd.
CONCLUSION
It can be concluded that consumer behaviour is a sum of factors of psychoanalysis, the sub
conscious mind, the way of reaction of peers and the advertising strategy impact of the
marketers. All the factors have relevant importance and need to be studied by marketer. For
instance, if they are launching a new branch in a new country or location the consumer habits
and behaviour has to be studied considering the geographical, demographical, psycho-behavioral
etc. The age and income group can also be said as the main indicators of consumer behaviour
and thus marketers have the responsibility to address concerns of the people where a market is
provided for all segments ranging from higher to middle to lower income group. This will
influence consumer behaviour positively. Also, the factor of varying cultures if properly
understood by marketers will make it easy to market products in the right fashion.

REFERENCES
Books and Journals
Bell, L., Vogt, J., Willemse, C., Routledge, T., Butler, L.T. and Sakaki, M., 2018. Beyond self-
report: A review of physiological and neuroscientific methods to investigate consumer
behavior. Frontiers in psychology, 9, p.1655.
Drawson, A.S., Toombs, E. and Mushquash, C.J., 2017. Indigenous research methods: A
systematic review. International Indigenous Policy Journal, 8(2).
Hamilton, R.W., Mittal, C., Shah, A., Thompson, D.V. and Griskevicius, V., 2019. How
financial constraints influence consumer behavior: An integrative framework. Journal of
Consumer Psychology, 29(2), pp.285-305.
Huete-Alcocer, N., 2017. A literature review of word of mouth and electronic word of mouth:
Implications for consumer behavior. Frontiers in psychology, 8, p.1256.
Morales, A.C., Amir, O. and Lee, L., 2017. Keeping it real in experimental research—
Understanding when, where, and how to enhance realism and measure consumer
behavior. Journal of Consumer Research, 44(2), pp.465-476.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Queirós, A., Faria, D. and Almeida, F., 2017. Strengths and limitations of qualitative and
quantitative research methods. European Journal of Education Studies.
Rana, J. and Paul, J., 2017. Consumer behavior and purchase intention for organic food: A
review and research agenda. Journal of Retailing and Consumer Services, 38, pp.157-165.