Understanding Consumer Behaviour
Consumer behaviour refers to the study of how individuals select, purchase, use, and dispose of goods and services to satisfy their needs and wants. It encompasses several elements, including:
1. Psychological factors: These include perception, motivation, beliefs, and attitudes that influence consumer decisions.
2. Social factors: Family, friends, social media, and cultural influences play a crucial role in shaping consumer preferences.
3. Economic factors: The consumer's economic situation affects their purchasing power and buying behaviour.
4. Environmental factors: External stimuli such as marketing strategies, advertisements, and product placements can impact consumer choices.
Schiffman and Kumar have identified various elements within these categories that help explain why consumers behave the way they do.
Key Concepts by Schiffman and Kumar
Leon Schiffman and Ramesh Kumar have outlined several essential concepts that contribute to our understanding of consumer behaviour. Their book, "Consumer Behaviour," serves as a comprehensive guide to these principles.
The Consumer Decision-Making Process
One of the fundamental frameworks discussed by Schiffman and Kumar is the consumer decision-making process. This process typically involves five stages:
1. Problem Recognition: Consumers identify a need or want that requires fulfillment.
2. Information Search: Consumers seek information about products or services that can satisfy their needs. This can be internal (recalling past experiences) or external (searching online, asking friends).
3. Evaluation of Alternatives: Consumers compare different options based on attributes such as price, quality, and brand reputation.
4. Purchase Decision: After evaluating alternatives, the consumer makes a decision about which product or service to purchase.
5. Post-Purchase Behaviour: After the purchase, consumers evaluate their satisfaction with the product, which can influence future purchasing decisions and brand loyalty.
Factors Influencing Consumer Behaviour
Schiffman and Kumar emphasize that consumer behaviour is influenced by a variety of factors, which can be broadly categorized as follows:
- Cultural Factors: Culture, subculture, and social class shape consumers' preferences and behaviours. For example, cultural values can dictate what products are considered acceptable or desirable.
- Social Factors: The influence of family, friends, and social networks is significant. Consumers often rely on recommendations and reviews from their social circles during the decision-making process.
- Personal Factors: Individual characteristics such as age, gender, income, occupation, and lifestyle impact purchasing behaviour. For instance, a young professional might prioritize convenience, while a family-oriented individual might focus on durability and safety.
- Psychological Factors: These factors include motivation, perception, learning, beliefs, and attitudes. For example, a consumer's motivation to buy organic products might stem from health concerns, while their perception of a brand could be shaped by advertising.
Models of Consumer Behaviour
Schiffman and Kumar discuss various models that help explain consumer behaviour. Two prominent models are the Engel-Kollat-Blackwell Model and the Howard-Sheth Model.
Engel-Kollat-Blackwell Model
This model outlines a comprehensive framework for understanding the consumer decision-making process. It includes the following components:
- Input Variables: These are external factors that influence consumer behaviour, including marketing stimuli (product, price, promotion, and place) and environmental influences (economic, social, cultural).
- Process Variables: These represent the internal processes consumers undergo, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
- Output Variables: These are the final outcomes of the decision-making process, such as the product choice, brand loyalty, and post-purchase satisfaction.
Howard-Sheth Model
The Howard-Sheth model is another influential framework that categorizes consumer behaviour into three main types of decision-making:
1. Extensive Problem Solving: This occurs when consumers are faced with a high level of involvement and risk, leading them to engage in thorough research before making a purchase (e.g., buying a car).
2. Limited Problem Solving: In this scenario, consumers have some prior experience with the product but still engage in information search and evaluation (e.g., purchasing a new smartphone).
3. Routinized Response Behaviour: This type occurs when consumers make habitual purchases with minimal thought (e.g., buying groceries).
Implications for Marketers
Understanding consumer behaviour, as outlined by Schiffman and Kumar, has profound implications for marketers. By grasping the nuances of consumer decision-making, businesses can tailor their strategies to effectively engage their target audience.
Segmentation and Targeting
Marketers can use insights from consumer behaviour to segment their audience based on demographics, psychographics, and behavioural patterns. This enables them to create targeted marketing campaigns that resonate with specific consumer groups, enhancing the effectiveness of promotional efforts.
Product Development and Positioning
By understanding consumer needs and preferences, companies can develop products that align with market demands. Additionally, effective positioning based on consumer perceptions and values can differentiate a brand in a crowded marketplace.
Marketing Communication Strategies
Schiffman and Kumar highlight the importance of effective communication in influencing consumer behaviour. Marketers should consider the following strategies:
- Emphasizing Benefits: Clearly communicate the benefits of a product rather than just its features. Consumers are more likely to make a purchase if they understand how a product meets their needs.
- Building Trust: Establishing brand trust through authenticity, quality, and positive customer experiences can enhance consumer loyalty.
- Utilizing Social Proof: Leveraging testimonials, reviews, and influencer endorsements can influence consumer decisions, as people often look to others for guidance.
Conclusion
In conclusion, consumer behaviour is a multifaceted discipline that offers valuable insights into the factors influencing purchasing decisions. The contributions of Leon Schiffman and Ramesh Kumar have provided a robust framework for understanding this complex field. By examining the decision-making process, key influencing factors, and various models, marketers can develop strategies that effectively engage consumers and drive sales. As the market continues to evolve, staying attuned to consumer behaviour will be essential for businesses seeking to thrive in an increasingly competitive landscape. Understanding the motivations, preferences, and behaviours of consumers will not only enhance marketing effectiveness but also foster long-term relationships with customers.
Frequently Asked Questions
What are the key components of consumer behavior according to Leon Schiffman and Ramesh Kumar?
The key components of consumer behavior identified by Leon Schiffman and Ramesh Kumar include psychological factors, personal factors, social factors, cultural influences, and the decision-making process.
How do Schiffman and Kumar define the decision-making process in consumer behavior?
Schiffman and Kumar define the decision-making process as a series of steps that consumers go through, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
What role does perception play in consumer behavior according to Schiffman and Kumar?
According to Schiffman and Kumar, perception plays a crucial role in consumer behavior as it influences how consumers interpret marketing messages, recognize products, and form attitudes towards brands.
How do cultural factors impact consumer behavior as per Schiffman and Kumar?
Schiffman and Kumar highlight that cultural factors, such as values, beliefs, and customs, significantly impact consumer behavior by shaping preferences, behaviors, and purchasing decisions across different demographics.
What is the significance of brand loyalty in consumer behavior according to Schiffman and Kumar?
Schiffman and Kumar emphasize that brand loyalty is significant as it leads to repeat purchases, reduces marketing costs, and enhances customer lifetime value, ultimately contributing to a brand's long-term success.
How do Schiffman and Kumar suggest marketers can influence consumer behavior?
Schiffman and Kumar suggest that marketers can influence consumer behavior by understanding consumer needs, creating targeted marketing strategies, leveraging psychological triggers, and fostering emotional connections with their brands.
