Answer to Question #213244 in Marketing for abiy

Question

You are required to consider one of the following topics and conduct a survey study in your organization or any other organization you are more familiar with.

1. Assessment of market segmentation practice:

2. Promotion strategy practice

3. Assessment of positioning strategy implementation

4. Assessment of pricing strategy practice:

5. Assessment of product development process execution:

6. Determinants of consumer buying behaviour.

7. Assessment of buyer awareness towards individual product decision issues

(product attributes, brand, package, level, and after sales services)

8. Analyse demand management practice:

NB: This term paper should include at least the following topics:

 Introduction (i.e. general introduction, study objective, significance,

& scope)

 Review of related literature (at least include some important issues,

which are relevant for the topic you are working on)

 Methodology

 Analysis

 Identified gaps (conclusion)

 The way forward as professional (recommendation)

Answer 1

 Determinants of Consumer Buying Behavior.

Companies spend in gaining a better understanding of consumer behavior and developing methods to help them retain clients.

Individual consumers and organizational/industrial customers are two types of consumers. Understanding their buying patterns and behavior is critical to a company's long-term success in the marketplace.

Consumer behavior refers to the behaviors and processes involved in making a purchase decision for products or services. In recent years, service decisions have become an increasingly important component of customer behavior.

Consumer behavior and consumption behavior are two separate ideas that cannot be used interchangeably. Consumer behavior is studying how an individual or organization makes a purchasing choice, whereas consumption behavior is studying how a consumer uses a product or service.

Furthermore, there is a distinction to be made between customers and purchasing behavior. As previously stated, consumer behavior focuses on the processes and behaviors of final or end-users. In contrast, buyer behavior focuses on intermediate users (who add value to goods and services) and final users.

The study of the consumer purchase process is the first step in understanding consumer behavior. The consumer purchasing process consists of five steps. The process begins with the recognition of a need, which leads to information gathering. Once information is gathered from numerous sources, the following step is evaluation and intent, in which the customer assesses various aspects of the product or service. The buy decision is the following phase in the five-step process, wherein desire is translated into an actual purchase of the good or service. The final phase is the post-buy reaction, in which the consumer promotes the goods or services to other potential customers or repeats the purchase if she is satisfied. If a customer is dissatisfied with her purchase, she will spread negative word of mouth and seek a different product or service.

Three factors are identified as determinants of consumer behavior, namely economic determinants, psychological determinants, and sociological determinants.

Personal income (an individual's purchasing power), family income (a family's total purchasing power), future income expectations (expected increases or decreases in disposable income), availability of liquid assets (assets that can be converted to cash), consumer market credit (if market conditions are favorable, credit is readily available), and social class are all economic determinants (affluent class, upper-middle-class, middle class, etc.). In comparison, the industrial purchasing process is a considerably more formal procedure that follows pre-determined policies and guidelines. The main characteristics of organization buying are that it is a formal and structured procedure, done in large quantities and at regular intervals of time.

In conclusion, as there are determinants for consumer behavior, similar industrial buying behavior has its own set of determinants, which are overall objectives of the organization, technological capabilities of the organization, which consist of information systems and network capabilities, and finally, organization structure, which includes its capital and number of employees.

Recommendations

The decision-making process should frequently involve more than one person for proper ideas to be brought out.