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Consumer Behavior Term Paper: The Key Elements in Consumer Behavior

Introduction

The examination of consumer behavior holds significant importance for marketers during the operational procedures within a specific market. The term “consumer behavior” refers to the cognitive and physical actions undertaken by individuals and collectives to assess, organize, obtain, and utilize goods and services to meet their respective needs (Babin et al., 2022). This essay aims to examine the various factors that influence consumer behavior. Specifically, it will explore different categories of consumer needs, the impact of motives on purchasing decisions, and the factors involved in goal setting.

The Key Elements in Consumer Behavior

The primary determinant of a consumer’s purchasing decision is the presence of an unmet need or desire (Prabhu, 2020). Consumer needs arise when a purchaser becomes cognizant of a disparity between desired and current states. Consumer needs have a direct impact on consumption behavior. Consumers can modify their purchasing decisions based on their needs and interpersonal factors. However, in order to cater to a wide range of needs, consumer choice would be influenced by various factors at different levels. According to Abraham Maslow’s (1947) hierarchy of needs, individuals are motivated to fulfill their needs sequentially, starting from lower-order needs and progressing toward higher-order needs (Lussier, 2019).

The most basic needs, known as the lowest-order needs, encompass essential physiological factors such as sustenance, hydration, adequate housing, clothing, rest, and reproductive activities. These fundamental requirements are crucial for the preservation of life and well-being. Consumers will only consider higher-order needs once their lower-order needs have been satisfied. The fulfillment of physiological needs precedes the establishment of emotional safety and security, encompassing elements such as protection from external factors, security measures, organizational structure, adherence to laws, imposition of boundaries, and maintenance of stability. Moreover, the higher-order needs in Maslow’s hierarchy encompass the requirements for love or belongingness, esteem, and self-actualization (Lussier, 2019). For instance, McDonald’s is recognized as the largest global fast-food restaurant chain. This establishment provides hamburgers and chips to fulfill the basic physiological needs of consumers, which are situated at the lowest level of Maslow’s hierarchy of needs. Once the individual’s basic needs have been fully met, the subsequent phase of needs will emerge. In order to enhance its competitiveness within the market, McDonald’s implemented an expansion strategy. The corporation has initiated efforts to enhance the restaurant’s environment to provide a more conducive atmosphere for dining experiences.

Consequently, the requirements for ensuring safety have been fulfilled. As the supplementary components reach a state of greater completion, they would progressively fulfill higher-order needs. Hence, it is evident that consumers prefer McDonald’s over alternative fast-food establishments.

Culture and social status are two additional factors that influence consumer needs. The culture within this context can be characterized as the comprehensive framework of knowledge, beliefs, values, rituals, and tangible objects through which a society or a significant collective entity establishes its identity (Saldanha et al., 2023). In contrast, Eastern countries exhibit a higher demand for rice compared to their Western counterparts, while Western countries demonstrate a contrasting pattern with a greater demand for bread. The significance of social status or social value is equally paramount. Suppose a product has the potential to enhance the perceived dignity or competitiveness of the consumer in a context where these values hold significant importance. In that case, it is likely to elicit a strong consumer response. A comparative analysis of McDonald’s establishments in China and Australia reveals notable distinctions in the meals offered, primarily attributed to varying religious influences. McDonald’s must adapt its strategic approach to meet consumers’ diverse cultural demands effectively. Every cultural group exhibits distinct cultural manifestations.

Personal factors play a significant role in consumer behavior. Motivation, as defined by Maslow’s hierarchy of needs, is characterized as an intrinsic impetus that manifests as goal-directed arousal (Joshi & Rahman, 2019). Underlying needs instigate behavior. Certain physiologists argue against using terms such as “motives,” “needs,” “urges,” “wishes,” and “drives” interchangeably as synonyms. The term “drive” possesses a virtue as it conveys the connotation of a compelling force that propels an individual towards action. Motivation is derived from tension systems that induce a disequilibrium within the individual. This phenomenon triggers a sequence of psychological processes aimed at identifying and pursuing a goal expected to alleviate the experienced tensions.

Consequently, individuals select specific patterns of action that are anticipated to accomplish the desired goal effectively. A comprehensive compilation of the fundamental human needs within the framework of motivation theory has been acquired. Psychologists concur that can be categorized into two broad groups: biogenic needs, which are rooted in physiological tension systems such as hunger, thirst, and sex, and psycho-genie needs, which stem from tension systems present in an individual’s subjective psychological state and their interpersonal relationships (Babin et al., 2022).

Another aspect that warrants discussion is the objectives of the consumer. The growing body of evidence suggests that goals play a crucial role in our everyday lives. They serve as guiding principles, providing a sense of purpose and focus for our actions while shaping our cognitive processes and behaviors. Research has provided evidence to support the notion that goals can be a valuable tool for self-regulation and a significant contributor to the overall sense of satisfaction and fulfillment (Sheth. 2021). Additionally, goals have been found to play a crucial role in fulfilling innate psychological needs, such as the need for competence and autonomy. Consumer goals can be classified into various categories, including task-related goals, epistemic goals, regulatory goals, and consumption goals. For instance, Apple offers a diverse range of products, each possessing distinct functionalities and price points. These products have been specifically developed to cater to consumers’ diverse needs and objectives. The iPod may appeal to consumers seeking personal entertainment, while the MacBook may be preferred by those pursuing an epistemic objective. When examining service consumption, such as that of McDonald’s, it becomes evident that the process of establishing a goal bears notable similarities. However, certain objectives were deemed unattainable. The individuals exhibited a heightened emotional state. Pride is an emotional response that arises from the successful achievement of goals. Goals can lead to favorable outcomes (promotion goals) or prevent unfavorable outcomes (prevention goals). Promotion pride stems from attaining positive outcomes and involves self-regulation of behavior toward pursuing ideals.

On the other hand, prevention pride arises from avoiding negative outcomes and involves self-regulation of behavior toward maintaining security. Unattainable objectives are prevalent among consumers of elevated social standing. Hence, the goal-setting behavior of consumers can be characterized by either a systematic and organized approach or by the influence of emotional factors. Most consumer behavior is goal-oriented, so ascertaining the specific objectives driving purchases and the corresponding outcomes is crucial.

Conclusion

Consumer behavior may be influenced by varying consumer needs, which are determined by specific factors. The decisions may have been influenced by personality, culture, and social status. The subsequent factor under consideration pertains to consumer motivation. Based on the case study of McDonald’s, consumer behavior can be influenced by various levels of needs that are interconnected. In order to comprehensively address various levels of needs and facilitate corresponding consumer purchases, a company such as McDonald’s has the potential to succeed. The final aspect that warrants attention is the establishment of a goal. Based on a fundamental necessity, the objective is to establish a framework to assist consumers in making informed purchase decisions. The process of establishing a goal adheres to a rigorous and structured framework. Marketers commonly assess products through the utilization of a goal-setting process. However, consumers’ goals may vary depending on emotional factors or their status. In contrast to an ordinal objective, marketers must demonstrate adaptability to modify their strategy in this circumstance. Based on the presence of these three elements, it can be inferred that consumer behavior would be significantly influenced comprehensively. Several key factors should be considered when markets prioritize consumer-centric approaches over self-interest.

References

Babin, B. J., Harris, E. G. (2022). CB9, South-Western, Cengage Learning, Mason, Ohio, ISBN: 978-0-357-51820-5.

Joshi, Y., & Rahman, Z. (2019). Consumers’ sustainable purchase behavior: Modeling the impact of psychological factors. Ecological economicspp. 159, 235–243.

Lussier, K. (2019). Of Maslow, motives, and Managers: The hierarchy of needs in American Business, 1960–1985. Journal of the History of the Behavioral Sciences55(4), 319–341.

Prabhu, J. J. (2020). A Study and Analysis of Consumer Behavior and Factor Influencing in Marketing. International Research Journal Of Modernization In Engineering2(04), 68–76.

Saldanha, N., Mulye, R., & Rahman, K. (2023). Cancel culture and the consumer: A strategic marketing perspective. Journal of strategic marketing31(5), 1071-1086.

Sheth, J. (2021). New research areas in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory and Practice29(1), 3–12.

 

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