Muhammed organization that is specifically targeted to sell

 

 

 

 

 

 

Muhammed
Ahmed

20170624

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Master’s
in Business Administration

Managerial
Economics

 

Consumer
purchasing ability

 

 

 

 

 

 

 

 

 

Abstract

Studying consumer behavior is a very difficult task. If a
the company wants to survive, be able to compete well. The main purpose of this
research is to measure the impact of pricing strategies on consumers’
Psychology and their buying behavior accordingly.

 

 

Introduction

 

There is high competition among companies to obtain and maintain customer loyalty. But this is not the case the task is easy for marketers, because many companies and brands compete simultaneously to keep customers and gain abundant profits. The study of consumer buying behavior has a vital role in understanding which factors purchasing decisions affect consumers. Customers are the main focus of the marketing process and the benchmark to measure the success or failure of goods and services. Therefore, most companies study Consumer behavior to increase the probability of success.

 

Consumers make many decisions in their daily lives and one of these decisions is the purchase decision. They decide to buy some products because of several reasons: in need of these products, want to try them, the products are strongly recommended by others or products will be given as a gift.

 

Pricing is one of 4 P of the marketing mix that is product, price, place and promotion. Pricing is the only obvious factor that produces money and provides a clear indication of the success or failure of the products Services. Who is a consumer?

Ø
A consumer need not to be just only an individual; a
consumer can also be an organization, A consumer can be someone who buys goods
or services or you can also identify the goods and services economic service or
products, or goods, or commodities. A consumer is the end user or a target to
whom the goods and services are sold.

 

Ø
In simple words consumer can be described as a person or
an organization that is specifically targeted to sell a product or a service of
a company.

 

 

 

The consumer is
the decision maker here in the economic system. He can take the following
decisions

1.     The decision of buying or not a product
in a store or at a shop

2.     The consumer will decide if he would
want to be influenced
by the marketing strategies and the advertisements of the organization for a product or a
service.

3.     Many consumers are influenced by marketing and
advertisements

4.     The consumer decides what they want to
buy and when they want to buy it

5.     The consumer chooses between competitors
and their products.

 

Decision making is the power given to
consumer

 

Everyone has
been a consumer and participated in the consumer market. The consumer market is
where the consumer has the right and the ability to make a decision of spending
their money. Even buying a packet of chips from a store is being part of the
consumer market as you are involved in purchasing a packet of purchased chips
to pay for the purchase. Here you also make a decision. This is a decision to
buy goods and spend your money. You decide where to spend your money and what
you should spend your money on. You are deciding amongst competitors. The more active
the consumers of the nation the more active will be the nation’s consumer
market.

 

 

 

 

Consumer behavior

Nowadays companies are more concerned about individual
consumer behavior. They help them achieve information on how consumers think,
feel and choose their products. Everyone is consumer. Consumer behavior is the
study of the processes involved when selecting individuals or groups, purchase,
use, or dispose of the product, service, ideas or experiences to meet the needs
and desires.

 

 

Expanding consumer embrace offer is much more than a
study why and what consumer buying, but also focuses on how the marketer
affects consumers and how consumers use products and services.

 

Customers are in tough spot. Individuals are exposed to a
different window of information and varieties of products; many options and
options available in the market to impulse their Purchase decision. However,
the interpretation and decision-making is different among individuals and also
influenced by internal consumer behavior (perception, height, motivation) and
external factors (family roles, peer influence and collective influence).

 

 

Factors
affecting consumer buying decision

 

Consumer behavior studies individuals and groups when
they select, purchase, use and dispose products, ideas, services or experiences,
there is a huge variety of consumers from a small child asking mum to buy a new
game to an international corporation executive making a huge investment deal.
Consumers seek items to satisfy their basic needs and desires. Consumer
behavior is much more than studying what consumers buy. It attempts to
understand how the decision making process goes and how it affects consumers
buying behavior.

 

A consumer buying behavior is influenced by cultural,
social, personal and psychological factors. Consumer behavior is a part of
human behavior and by studying previous buying behavior; marketers can estimate
how consumers might behave in the future when making purchasing decision.

 

Social factors

 

Social factors
affect consumer behavior significantly. Everyone has someone around influencing
their purchasing decisions. The Important social factors are: reference groups,
family, role, and status.

 

Every consumer is an individual, but still belongs to a
group. The group which a consumer belongs to is called a membership group. This
is a direct and simple classification. The second group type is a reference
group. The reference group

Influences the self-image of consumers and consumer
behavior.  Family members can influence
individual consumers buying behavior. A family forms the environment for an
individual to acquire values, develop and shape personality.

 

 

 

 

Personal
factors

An individual’s decisions are influenced by personal
factors such as a buyer’s age and life cycle state, occupation, economic situation,
lifestyle, and personality and self-concept.

Consumers change during their life and buying of products
alter depending on age and stage of life. Age related factors such as taste in
food, clothing, recreation and furniture.

 

Psychological factors

 A buyer’s choices are also
influenced by four psychological factors, i.e. motivation, perception,
learning, and beliefs and attitudes.

 A consumer is an individual who has different
kind of needs. These needs can be biological like thirst or psychological
arising from the need of recognition or belonging. A need can be aroused to a
sufficient level of intensity when it alters a motive. A motive is basically a
need that drives a person to seek satisfaction.

 

Conclusion

Consumer behavior is a
widely studied field. Understanding it completely is impossible, because it is
related so closely to human mind. However, forecasting how a human behaves in
purchasing situations can be estimated through previous purchasing decisions.
Consumers make buying decisions every day and many people do not even know the
factors that derive them to this decision. There are characteristics behind
every buying decision that can come from cultural, social, personal or
psychological factors. Each of these factors includes dimensions that can be
used in marketing.