Consumer Buying Behavior – Assignment Help
EXECUTIVE SUMMARY
This assessment is primary based on consumer behavior and consumer buying process explaining how for what reason a consumer makes a certain purchase. Following are the points that will be discussed through this report.
- Description of the consumer
- Nominated Product
- The consumer buying behavior with different examples
- Buying process
INTRODUCTION
There are many stages through which a consumer passes to make a right decision taking into consideration the kind of information he or she has for any particular product. A person can instantly buy some product or take a little or more time to make the purchase. If he has ample information, one can take the decision instantly but with no information, the time consumed can be longer and at time a total waste. In the assessment below, a decision is taken by a consumer in unconsciously is involved in a proper marketing process. Different steps have been followed where the customer has problem in hand, has recognized the same, collected information from the surroundings, tried to find out different alternatives and then did the purchase.
Unlock the secrets behind Louis Vuitton’s triumph in the luxury market with Assignmentstudio. Our comprehensive examination of the Success Story of Louis Vuitton unveils the brand’s innovative approaches and enduring influence on luxury fashion.
MAJOR FINDINGS—KEY INSIGHTS AND JUSTIFICATIONS
DESCRIPTION OF THE CONSUMER:
The consumer is a newly wedded couple where both the partners are professionals and have spent around 8 to 12 years in their respective industries. Taking into consideration the demographics and psychographics of the consumer, listed below are details:
DEMOGRAPHICS:
- AGE and GENDER:
- Age of the couple is between 30 to 35 (Female consumer is 30 years old, male consumer is of 35 years old).
- INCOME LEVEL:
- The couple falls in the upper middle-income group and earns around USD 8,000 to USD 12,000 on monthly basis making average annual earnings of USD 240,000. The couple has great saving habits and tries to save half of the salaries.
- EDUCATION LEVEL & OCCUPATION:
- Both have done Masters in Business Management along with CFA while work as Investment Bankers in a well-reputed bank.
PSYCHOGRAPHICS:
- PERSONALITY: Fun Loving, outgoing, peace lover
- ATTITUDES: Professional and career oriented
- INTERESTS/HOBBIES: Spending time with friends, spending holidays at peaceful areas
- LIFESTYLES: Independent, fun loving, eating out
NOMINATED PRODUCT:
In the first week of March 6, our consumer deposited an amount of USD 200 for June long weekend in a luxury holiday house. Details of the product or purchase are as follows:
PRODUCT: Booking in a luxury holiday house.
PRICE: USD 200
PURCHASED FROM: Abalone House
TIME SPENT ON MAKING THE DECISION: The consumer took less the three (“3”) hours to take this decision.
EFFORT PUT INTO DECISION MAKING PROCESS: It was a high involvement decision as the whole family wanted to spend time together.
OTHER PRODUCTS THAT WERE CONSIDERED: Consumer sister in law has an experience of visiting this place and hence the same place was selected.
FACTORS THAT LED TO THE CHOICE: The sister in law had experience of visiting this place earlier last year and hence the decision was taken. The house was available on the beach side hence the view is beautiful more over one can spent time in swimming and other activities. It is specious and has enough space for 7 people. The luxury element was an add on as the house itself is really beautiful.
ANALYSIS NO 1: CATEGORISATION OF PURCHASES BASED ON MARKETING AND CONSUMER BEHAVIOUR THEORIES
Yakup and Mücahit et al. (2013, pp. 2-3) discusses that as per the Maslow’s Hierarchy of Needs, all the purchases of any customer depends on different level of personal needs. In this main purchase, the customer is at SOCIAL need level and hence needs to mingle up with the people around him. Moreover, as the personal traits of fun loving and outgoing person, the consumer has inclination towards using luxury item once in a while.
Treacy and Wiersema 1993; Normann and Ramirez (1993) stresses that to investigate the consumer’s product valuation, the consumer thinks about his/her cultural values, personal values, consumption values, and product benefits. In this case, our consumer wanted to spend quality time with the family and hence decided to have a long week end with the whole family.
Boyd and Levy (1963, p. 130) explains that the behaviour of the consumer for a particular product is bound to be affected with the use of that product but also by the related or associated products and their use which completes the deal. In this case, the consumer booked a house with the beach side hence and additional product to be used which completed the package.
ANALYSIS 2: KEY INSIGHTS TO PURCHASE BEHAVIOUR
Treacy, Michael and Fred Wiersema (1993), says that there are many factors influencing a consumer’s behaviour while he or she is making any purchase. The experience is keep to all the purchases one does. It can be a personal experience or it is dependent on successful purchase by someone close. In this case, the consumer sister in law had the experience and hence took the decision of renting out the luxury house for week end.
The main idea of this purchase was to spend quality time with the family along with luxury element to enjoy. It was a high involvement purchase as it happens twice a year and involves a lot of money. The high involvement is obvious as the booking was done almost 3 months before the actual time. Experience and knowledge gives consumer to have a quick decision and hence less time usage, yet in this case, the consumer took almost 3 hours to finalize the decision. The level of involvement reflects how much the consumer himself is interested in the decision and purchase making and how much information he has to take the decision.
ANALYSIS 3: FACTORS THAT INFLUENCED PURCHASE OF NOMINATED PRODUCT
As per the consumer decision, there were many factors that were involved in making the decision. The most important one was Holidays as the consumer wanted to pull himself out of the professional routine.
2nd factor was the luxury house itself. It was under the budget and had ample space for 7 people to reside. The location is good and along the beach side and hence beautiful view and an additional product to be used.
REFERNECE:
- Yakup, D., Mücahit, D. and Reyhan, O. 2013. The Impact of Cultural Factors on the Consumer Buying Behaviors Examined through An Impirical Study. International Journal of Business and Social Science, 2 (5), pp. 2-3. Available at: https://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CEEQFjAC&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F228467814_The_Impact_of_Cultural_Factors_on_the_Consumer_Buying_Behaviors_Examined_through_An_Impirical_Study%2Ffile%2Fd912f50fd815ee9c23.pdf&ei=PAcSUsG5KOLa4ASRoIHABA&usg=AFQjCNHwjjtkPPCrzdj5Wo5owtDtCvpFiw&sig2=90-lXbc2EcvMkhuBUu9ZLQ&bvm=bv.50768961,d.bGE [Accessed: Aug 19, 2013].
- Treacy, Michael and Fred Wiersema (1993), “Customer Intimacy and Other Value Disciplines,” Harvard Business Review, 41 (January-February), 84-110.
- Boyd, Harper W. and Sidney J. Levy (1963), “New Dimensions in Consumer Analysis“, Harvard Business Review, 41 (November-December), 129-140.
