Consumer Behaviour Assignment Question In this assignment, the students are required to ch oose a product and explain exp lain the factors which control the consumer purchasing behavior towards that product. First, the students should give a brief introduction to the chosen product in terms of the market sales, brands, and popularity. Next, the students may choose factors such as value for money, quality, brand feeling, social influence, and consumer ethnocentrism.
Introduction Shampoo is personal hygiene product that is very essential in our daily needs. It feeds consume consumers’ rs’ physio physiolog logica icall needs needs as it cleans cleans the hair hair and provid provides es other other additio additional nal benefits such as conditioning, reducing dandruff, moisturizing, nourishing and etc. it is a multi-million ringgit industry that contributes largely in the annual GNP (Gross National Product) and GDP (Gross Domestic Product). There are countless brands in the market and only the famous ones are those that we usua usuall lly y hear hear of. of. What What about about loca locall bran brands ds?? Usua Usuall lly, y, consu consume mers rs purc purcha hase se by recognizing the brand and sometimes ignore the fact about quality and price. Imported shampoos dominate the market and the aim of the research is to research on what are the fact factor orss that that infl influe uence ncess cons consum umer ers’ s’ behav behavio iorr and on a smal smalle lerr scal scale, e, cons consum umer ers’ s’ purchasing pattern and behavior. Local shampoo brands includes Shurah, Fair & Lovely, TLC (Tender, Loving, Care) and so forth. Examples of imported shampoos such as Schwarzkopf, Redken, Pantene, Tracia, L’ Oreal are those we usually hear of because of its intensive advertising and popular brand name. These imported shampoos have terrorized the local market scene and not many consumers can actually differentiate between local and imported ones. Shampoo is an industry that contributes annual income in millions of ringgit. Therefore, it is crucial to investigate the reason consumers prefer certain types or brands of shampoo compared to others. The problem that arises is that consumers nowadays just simply cannot differentiate between imported shampoo brands and local brands. For those who are able to identify the difference, these consumers are using it based on its brand-name and thus do not put other important criteria into consideration. There are also consumers who purchase based on its value for money, quality, peer pressure and so forth. The intention to purchase shampoo is thus influenced by all these factors and it is important for researchers to discover the real or most influential factor that control consumer purchasing behavior.
Factors which control the consumer purchasing behaviour According to the information provided by Wikipedia.com, consumer behaviour referred to as the study of when, why, how, where and what people do or do not buy products . [1]
It blends elements from psychology from psychology , , sociology sociology , social social , anthropology anthropologyand and economics economics . It
attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer consumer from from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and oneto-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak and strong Pareto strong Pareto optimality . No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).
Most of worldwide consumer are able to contact with product and service from all over the world in large numbers. Through widespread communication, consumers get more knowledge of products and are more familiar with the product. Information which is easily obtainable enables consumers to examine and know local product closer and clearer. Information and consumer perceptions on one country and the particular product pay impact on consumer behaviors and it become main concern in marketing person’s supply ( John.E.Spillan, 2007; Orsay Kucikemiroglu, 2007; Talha Harcar, 2007 ). In research study for consumer perceptions in car buying local produced shampoos and imported shampoos, COB's theory (Country-of-Origin of Brand) used. Apart from that, theory of 'Consumer Ethnocentrism' also used to observe buying decision tendency in plenty consumer. It also used to identify factors which influence consumer buying onto some particular product.
Quality The quality is the perception of the customer to meet his or her expectations towards the performance of the product. Quality is a perceptual, conditional and somewhat subjective attribute. According to Peter Drucker, quality in a product or service is not what the supplier puts in. It is what the customer gets ou t and is willing to pay for. W.Edwards Deming defines quality as concentrating on “the efficient production of the quality that the market expects and improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes. A good customer customer experienc experiencee comes comes from from the high quality quality of the product product of service. When the customer finds that the shampoo is high quality because their hair grows healthier and stronger. The quality determines the good customer experience. It will help to shape the consumer behavior.
Theory COB (Country-of-Origin Of Brand) When majority has national difference in their view for their product’s quality, 'Country of Origin' (CO) show influence for consumer choice. Effect-of ‘Country of Origin” by now moderate by features user group. It have been exposing that the impact from the world mentality product improvement has been enhanced for the foreign country coun try product and this incident disparage local product. However, impact accepted from nationalism for product improvement has been enhanced for local produce product and it has been understated foreign produced product (Mohammed Y A Rawwas, 1996; K N Rajendran, 1996; Gerhard A Wuehrer, 1996). CO's Impact (country of origin), also known as “ locally-made” concept and has been define defined d by widesp widesprea read d result resultant ant that that positi positive ve or negati negative ve impact impact whether whether product product produc produced ed by local local produc productio tion n will will influe influence nce by decisio decision-m n-maki aking ng proces processs consum consumer er (Ellio (Elliott tt And Camero Cameron, n, 1994). 1994). Through Through consume consumerr decisio decision n making making,, CO (count (country ry of origin) has been defined as extrinsic who act as risk mitigation or quality sign consumer for counter counters. s. (Corde (Cordell ll,, 1992). 1992). Althou Although gh there there were were resea research rch about about some some propoun propound d question on the importance of OC (country of origin) to consumer decision making
(Elliott And Cameron, 1994; Hugstad And Durr, 1986; Mitchell And Greatorex, 1990; Schooler And Wildt, 1968), lately, plenty researcher has shown that CO (country of origin) have the titan effect on purchasing behavior for product and tendency of purchase stated by the product. It also has shown a more powerful impact for brand, price or quali quality ty of a stat stated ed produ product ct (Ahm (Ahmed ed and and d'As d'Asto tous us,, 1996; 1996; Lant Lantzz And And Loeb, Loeb, 1996 1996;; Okechuku Okechuku,, 1994). 1994). Market Market differ difference ence betwee between n the local local shampo shampoo o and the import imported ed shampoo is dissimilar by factors as culture, history and geography. Apart from that, difference in the way consumer accept or consider product and brand also will influence consumer decision making in their purchasing behavior. This theory comply show that stereotype country wherein consumer perceptions for quality and buying value is different in each country. This matter influence consumer thinking and action action to more more than than inclin inclined ed make make choices choices deep deep buying buying decisi decision on product product.. This This tendency afford lead consumer behaviour, but consumer behaviour is not the same where it can become anything specific. specific. Willing Willing Sharma et al. (1995) cultural cultural similarit similarity y among two different countries is a factor which can influence tendency 'consumer ethnocentric' impact on consumer behavior towards product produced by foreign country. Hence, there is higher desire level to purchase local produce product.
Theory 'Consumer Ethnocentrism' Lately, there is research which have connected CO (country of origin) impact to the the leve levell of 'cons 'consum umer er ethn ethnoce ocent ntri rism sm'. '. 'Cons 'Consum umer er Ethn Ethnoc ocent entri rism sm'' focus focuses es on the the responsibility and moral of purchasing locally produce product and consumer attitude towards product and the level of loyalty of consumer towards products generated by their own country (Shimp And Sharma, 1987). Meas Measur urem emen entt for for 'cons 'consum umer er ethn ethnoce ocent ntri rism sm'' produ produce ced d with with plann plannin ing g the the CETSCALE (Consumer Ethnocentric Tendencies Scale) which is produced by Shimp and Sharma (1987). CETSCALE contains seventeen items where it measure consumer intere interest st to acted acted consist consistent ently ly on goods goods and produc productt produce produced d locall locally y and product product imported imported from foreign country. Greater Greater 'consumer 'consumer ethnocentri ethnocentric' c' to notional notional product, product, consumer will likely to have bad behavior towards imported products. This negative relationship with reference and purchases of goods tendency by imported product has been found in France's consumer model nation and Japanese Japanese national, Soviet Armenia's Armenia's country and also Korean national. Lantz And Loeb (1996) have found that there is a lot of consume consumers rs 'ethnoc 'ethnocent entric ric'' in compar compariso ison n have have low level level of 'consum 'consumer er ethnoce ethnocentr ntrism ism'' individually where behavior design are more favorable for product from other country which their culture are almost identical.
Social Influence According to Maslow Hierachy of Needs, it explains what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy, safety needs, need s, where the priority lay with job security and the knowing that an income will be available to them regularly. Social needs come in the next level of the hierarchy, the need to belong or be loved is a natural human desire and people peop le do strive for this belonging. Esteem need is the need for status and recognition within society, status sometimes drives people, the need to have a good g ood job title and be recognised or the need to wear branded clothes as a symbol of status. So, the people will seek for social recognition. They will be influenced by the social because they want the people to recognize and agree with them. We are living in a interconnected world. We exert influence to each other. For an example, the family members can strongly influence buyer behaviour. The family is the most important consumer buying organization society and it has been researched extensively. The marketers are interested in the roles, and influence of the husband, wife and children on the purchase of different products and services.
Conclusion Shampoo is the personal hygienic product and has a large market. So, it is important to determ determine ine which which factor factorss play play the pivota pivotall role role to influe influence nce the consum consumer er purchas purchasing ing behaviour. In this assignment, the first factor is quality, country of origin-brand, theory of consumer ethnocentrism, and the social influence. These variables form a combination to produce an impact as to manifest our different behaviour of a consumer.
