Report on Consumer Behavior: Theories, Models, and Applications

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This report provides an in-depth analysis of consumer behavior within various business and marketing contexts, with a specific focus on the tourism sector. It explores contemporary consumer behavior theories, concepts, and models, including the learning model, the Engel-Kollat-Blackwell (EKB) model, and the Black Box Model, highlighting their practical implications. The report also examines factors influencing consumer behavior, such as cultural and social elements, and discusses individual decision-making processes. Furthermore, it addresses the importance of understanding consumer perceptions and the role of society in shaping consumer choices. The report concludes by considering future trends in consumer behavior, driven by urbanization, social media, and evolving consumer needs, emphasizing the necessity for businesses to adapt their strategies to meet changing consumer demands. Desklib offers this report along with a wide array of study tools and resources for students.
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UNDERSTANDING
CUTOMERS
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INTRODUCTION
Understanding of customers is important for every organisation for planning its products and
services and producing goods according to the consumer taste and preferences for customer
satisfaction (Khan, 2019). Consumer behaviour is all about study of individual or a group of
people, target market to whom the company produces or sells its products. Buying of consumers
is totally depends upon consumer individual emotions, attitudes, preferences etc. and has to be
studied before planning and production. Tourism sectors playing a key role in marketing now a
days and providing its customers all the facilities with travelling and the profits of this sectors are
totally depends upon the consumer good experiences and satisfaction. This report will include
factors that influence consumer behaviour in different businesses and marketing contexts,
including tourism. Furthermore, Understanding of contemporary consumer behaviour theories,
concepts, and models and their applications. Practical implications of consumer behaviour theory
in different businesses and marketing context, including tourism.
MAIN BODY
Contemporary perspective on consumption
Consumer behaviour This is the study of consumers or a group of individual of their
behaviours like attitude, emotions, their taste or the target market research before producing the
products by any company because if the researches are done wrong will create heavy losses due
to more sells and less demand Many companies are using contemporary approaches for the
making its sell equal to consumptions (Moon, 2021). The main aim of consumer behaviour is
making the consumer attracted towards the products or services like Hays travel is the greatest
company in the United Kingdom operating internationally and providing various facilities as an
accommodation with travel food and beverages etc for attracting its customers. This company is
using various marketing strategies for providing its message about its new offers and services
worldwide. This company also involved in deep research for making its services more better
with less cost for more consumer satisfaction.
Factors which are influencing consumer behaviours are
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Cultural factors they are the main factors which has to be keep in mind before creating
or producing the products because diversity of cultures creates different views and thoughts by
different consumers like some are comfortable with the price and some are bargaining more for
reducing the prices (Dhanabalan, 2018). Many are educated and will understand the products
detail easily and vice versa. The company Blue Bay Travel is a company which is advertising its
products and services in a way that it can be understand easily by the consumers with different
languages and cultures. Social factors these factors are creating huge change in the behaviours of
consumers like market new trends and offers are attracting the consumers because of their
friends and family are using that products and services (Osokpo, 2021). Education influence the
behaviours of consumers because educated peoples have more knowledge of the market and they
mostly go for a cheap products with affordable prices.
Individual decision making and involvement
Understanding the consumer decision making process is very important for the
businesses for planning its strategies and making any change or decision in the process of
productions. Like the Jet2holidays is using various models for making the decisions regarding
the consumer behaviours.
Learning model of consumer behaviours
This model states that buying behaviours can be influenced by the need and desires of the
consumers for the products. Maslow’s hierarchy of needs is applied by Jet2holidays before
deciding its products which include lower level needs of the consumers with low wages and
medium level needs with normal earnings and higher needs by rich peoples. This company is
providing all the basic level needs to each customers with necessity products and need no
involvements of deep research due to stability of the consumers. The products or services which
are having normal demand need research and changes because of the various subsidiary available
to the consumers (Hovy, 2021). Another need is the high level needs which need more decision
making because this generates more income and people will pay any amount to satisfy their
higher level needs for example making the services and products so luxury so that the people
cannot resist to say no to that products and services.
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Engel-Kollat-Blackwell (EKB) Model of Consumer Behaviour
This model is used by the company with five stages decision process that all the
consumers go through first is Awareness consumer first aware of their needs and desires through
advertisements from the business and start purchasing once the need is discovered (Rai, 2020).
Information processing then the consumer identify how the products and services satisfy their
needs by past information of the products. Evaluation then the consumer will compare its
products with another products for and decides which one will fit the best. Purchasing decision
then the consumers take the decisions and buy the products and after that do the Outcome
analysis of the product purchased by giving positive or negative feedbacks (Zhang, 2020).
Importance of perceptual process in understanding individual consumers
This is the process of company’s uses for getting the knowledge of consumers
perceptions about the products and services. Like Travelodge hotels are using various theories
for getting the customers feedback for their services provided to know the changes that need to
be made if any. For consumer positive perception the market has to do big researches by using
various models.
Black Box Model of Consumer Behaviours
This model helps the company in which it states that consumers are the sole members for
making any decisions related to any purchase internal or external. This model on three
components the first one is Stimuli is the advertisements and other forms of marketing which
stimulate or generate the needs in consumer behaviours. This are all marketing mix methods of
the company’s and the environmental factors that stimulate the need for purchasing and buying
the products. Then Buyer’s mind in which each consumer with his attitudes or cultural habits
and decision making process decides the or choose the products or services which it has to buy
this are all internal factors of an individual that helps them to buy. Lastly, Responses the
consumers finally decide after doing all the research whether they want to buy the products or
not or purchased the products or services with its affordable price or brand.
Consumers in society
There are variety of consumers in the markets due their social and cultural changes and
involve in buying or purchasing of goods in small or bulk quantities it totally depends
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(Cherubino, 2019). The advertisements by the company’s affects the consumers need due to
every consumers or a group of consumers need to purchase products according to the society
needs. Increasing use of social media emerged the urge for new and trending products in the
market due to more competitions in the market between the products. Every consumer wanted to
be respected in the society and wanted to buy those brand and products which it friends and
peers are using. Social circles of consumers influence the buying for example buying all trendy
clothes to look good in the society and the buying the products which make them look attractive
by the society the company need to take or do the research deeply on the society because it has
more influence in the buying power of the consumers.
Future trends in consumer behaviours
Due to increasing change in the market rapid growth has led to increase the demands in the
market due to urbanisations. Bulk purchasing by the consumers the consumers now a days are
purchasing in bulk quantities due growing shopping needs and junk food needs of the consumers.
This new generation is now dependent on ready made goods and due to variety of stores in
market they are buying all the lower level to luxury goods from the markets (Dholakia, 2019).
Trendy lifestyles the consumers with increasing use of social medias and trending environment
or western trends increase the needs for buying trendy things supplied by the UK markets like
footwear, packed food, ready to eat food, clothes etc. Buyers market nowadays the sellers are
selling products according to consumer needs because they are the only one with that they can
earn profits. The buyers are the only influencers for the demands of the products the company is
producing those products after the research which has more demand and customer satisfaction.
Company is designing or pricing its products and services according the needs of the consumer
because if they will not provide them the products which they want they will switch to another
products with similar quality.
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CONCLUSION
From the above report it has been concluded that understanding the needs or behaviours of
the consumers is necessary for successful operation of the business or to earn more profits. There
are various factors which influence the consumer behaviours and the company before producing
its products should plan every activity for satisfying the consumers. Further, different company
uses different models or theories of consumer satisfaction or studying the consumer behaviours.
It also concluded that society plays a key role in influencing the consumer behaviours and due to
urbanisations all the people of every level is demanding trendy products and services due to
more competitions in the market and more substitute availability to the consumers.
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REFERENCES
Books and journals
Khan, and et.al., 2019. Understanding consumers’ behavior intentions towards dealing with the
plastic waste: Perspective of a developing country. Resources, Conservation and
Recycling, 142, pp.49-58.
Moon, J., Choe, Y. and Song, H., 2021. Determinants of consumers’ online/offline shopping
behaviours during the COVID-19 pandemic. International journal of environmental
research and public health, 18(4), p.1593.
Dhanabalan, and et.al., 2018. Factors influencing consumers’ car purchasing decision in Indian
automobile industry. International Journal of Mechanical Engineering and
Technology, 9(10), pp.53-63.
Osokpo, O. and Riegel, B., 2021. Cultural factors influencing self-care by persons with
cardiovascular disease: an integrative review. International journal of nursing
studies, 116, p.103383.
Hovy, D. and Yang, D., 2021. The importance of modeling social factors of language: Theory
and practice. In The 2021 Conference of the North American Chapter of the Association
for Computational Linguistics: Human Language Technologies. Association for
Computational Linguistics.
Rai, A., 2020. Explainable AI: From black box to glass box. Journal of the Academy of
Marketing Science, 48(1), pp.137-141.
Zhang, and et.al., 2020, November. Extended Engel-Kollat-Blackwell Consumption Behavior
Model for Residential Customers. In 2020 International Conference on Smart Grids and
Energy Systems (SGES) (pp. 751-756). IEEE.
Cherubino, and et.al., 2019. Consumer behaviour through the eyes of neurophysiological
measures: State-of-the-art and future trends. Computational intelligence and
neuroscience.
Dholakia, N. and Firat, A.F., 2019. Markets, consumers and society in the age of
heteromation. European Journal of Marketing.
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