Consumer buying behavior report example

Learning Resource

Analysis of Consumer Buying Behavior
Introduction
There is a growing literature on the importance of consumer behavior in the field of marketing. In today's era of the ever changing business environment, many firms strive hard for their survival and their stake in the market. With the advancement of technology, the trend toward globalization, the increasing socioeconomic involvement of businesses in foreign countries, and the rising political interference in corporate world, it is becoming very challenging for organizations to manage and develop their business. Many have come up with several strategies to optimize the use of their resources. They also make every effort to minimize their costs and generate maximum revenue.

However, organizations cannot accomplish their objectives if they have insubstantial marketing strategies. When it comes to marketing strategies, the customer is always bound to be the focus. Customers have a crucial role in the success of any organization since they are the people who generate revenue for the organization by buying, using, and influencing others to buy their products and services. Hence, companies always want to know what makes the customer buy or not to buy their products and services (Clopton, 1984). Marketing is about creating demand for the organization's products and services and fulfilling its customer's needs—present or future. For this reason, it is imperative that marketing professionals recognize the manner in which the consumers react when they are exposed to n number of available options varying in price, payment mode, and purchasing and delivering method.

Consumers do not purchase a product and service only because of its actual utility, but also because of its perceived worth. There are several reasons an individual may purchase a particular thing. For example, they may actually need it, or perhaps they just want to try it out, or buy it because the respect the opinion of someone who recommended that product (Esso & Dibb, 2004; Garbarino & Strahilevitz, 2004).

It has become difficult for buyers to make a purchase decision as a result of so many available options that are very similar. It is difficult for consumers to decide on what offerings they should spend their time, efforts, energy, and money. On the other hand, it is very difficult for organizations to know on what offerings the customer will spend their time, efforts, energy, and money. Therefore, it is crucial for marketing teams to understand the factors that impact customers' purchasing processes and buying decisions.

This paper highlights the importance of consumer buying behavior in the marketing field and analyzes the theoretical aspects of consumer buying behavior and the factors that influence it. This paper also reviews the relationship between consumer buying behavior and the factors that influence consumers' purchasing processes and purchase decisions. Additionally, it classifies the factors in different categories.

There is abundant attention paid on the four Ps of marketing—product, price, place, and promotion—and there has sufficient research in this area. However, there is a lack of research pertaining to the relationship between consumer buying behavior and the factors that influence consumers' purchasing processes and purchase decisions. This paper will help marketing managers gain a better understanding about what affects consumers' decision making and will aid them in using these factors to construct better marketing strategies.

Research Method
Recently combining research methods (e.g., Gable, 1994, p. 112) has become increasingly important, in particular when pursuing the goal of gaining "rich theoretical insights" (Dyer & Wilkins, 1991, p. 613). One form of "developing new theoretical insights" is the review-centric research approach in which a researcher reviews "existing theory and research" (LePine & Wilcox-King, 2010, p. 506), but the argument can be made that we also can include case study research findings that are based on the real world observation of practitioners and organizations (e.g., Dyer & WIlkins, 1991; Eisenhardt, 1989). In the research presented here, the focus is on combining the most important "previously established studies and concepts" that I have identified in the academic literature, based on which I provide a synthesis that "advances our understanding" LePine & Wilcox-King, 2010, p. 507). In this study I identify the most important success factors that help in the current business or organizational situation to build our goal to accomplish a competitive advantage. My research approach incorporates the "interpretive paradigm," in which a rich description of each factor in our current organization context is established (Dyer & WIlkins, 1991, p. 615).

Factors Influencing Consumer Buying Behavior
A fish-bone diagram presenting the important internal and external factors affecting consumer buying behavior. External factors are cultural and social. Cultural factors include buyer culture and subculture. Social factors include reference groups, family, and role and status. Internal factors are personal and psychological. Personal factors include age, education, profession, income, lifestyle, and personality. Psychological factors include motivation, learning, perception, and beliefs and attitudes.

Internal and External Factors Affecting Consumer Buying Behavior

The main objective of this research was to develop and review a conceptual model that depicts the relationship between buying behavior and four factors: cultural, social, personal, and psychological. The model presented in the figure above clearly identifies and classifies (internal and external) the important factors affecting the consumer buyer behavior. In addition, it depicts the relationship between buying behavior and main four factors.

Explanation and Discussion
There is much to discuss about the roles that these specific factors play in determining the consumer's behavior. In marketing, the functions of consumer buying behavior and the factors influencing it are correlated. For this reason, the outcome of the purchasing process may depend on various factors. This model focuses on understanding consumers' buying behaviors and the relationship between consumers' buying behaviors and the impacting factors. First, it is important to understand the meaning of consumer behavior and second, it is important to understand the impacting factors and their meaning. A complete explanation of these factors and their subfactors is presented below.

Consumer Buying Behavior