Consumer behaviour Essay Example | Topics and Well Written Essays - 2000 words

Consumer behaviour - Essay Example Discussions about external variables pointed to Wyld’s (2010) assertions that these are the general economic climate, technology, government and competition as factors affecting customers’ decision at the various stages. Scheiltz (2010) suggested other external factors such as the cultural, group and social values that sway the decision process of consumers. Decision process is defined as identification of needs, collecting of information, evaluation of alternatives, then finally going into a purchasing decision. (Chapter 6 Class Notes, n.d.) I. How do marketers persuade consumers using external variables? a. Economy The economy is the first factor considered as an external variable affecting consumers. The recent economic crisis is an external variable that affected consumers’ behavior in many states of US and in Europe, and many others. On the other hand, economy has been favorable to the emerging countries in Asia. The shrinking economy encourages shifts in bu yer demographics and the way products are used such that consumers may alter their purchasing decisions, how they perceive value and where they purchase the product. Market report of Bharatbook.com (2010) said that in Netherlands, consumers’ decisions are today influenced by the price sensitivity, value consciousness and attitudes towards private labels as about three quarters of its consumers suffered the recession in 2009. In the said market report, Dutch consumers reconsider their spending including decisions on where and when to shop; and that changes shown is that now, Dutch consumers are buying labeled products because they think they save more money in the long run. This is also true in the car landscape wherein the economic crisis has changed car-buying process of consumers. To help dealers determine changes of consumer buying process, Dealer Communications reported on a conducted a research to know the present motivations of car buyers; to know if there are opportuni ties still open for car dealers and manufacturers, and if so, how will they adjust. In issues how the products are challenged showed the way Apple has transformed how music is bought and played thru the introduction of iPod. (Wyld, 2010) Marketers also use the power of globalization to reach more and more country markets. Recent developments of off-shore business, in particular, the emerging economies of Brazil, Russia, India, Indonesia and China have encouraged multi-national companies to spread their business in these countries. Because of the improved purchasing power of consumers in these emerging countries, marketers find globalization as a driver of change in industries as motor vehicles, cell phones and credit cards (Wyld, 2010). b. Technology. One of the driving forces that encourage consumers’ buying decisions is the use of technology. It is observed that there is a growing acceptance of internet shopping, SNS websites and the constant growing series of internet appl ications. It is now easy for the company to sell products to customers using online technology, to work with suppliers and supply chain. However, because becoming an on-line seller is an easy process in the internet, this variable increases rivalry and competition among seller. An example of a successful on-line ordering system is being done by Wal-Mart stores that make shopping easy for busy people (Wal-Mart, n.d.) c. Competition An attractive market encourages competition to enter the industry. Most