Consumer Behavior: Factors Influencing Consumption

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Table of Contents

Introduction
Literature Review
Methodology
Works Cited

Introduction

This study is aimed at analyzing the consumer behavior towards the products especially in consideration of symbolic features. Most consumers in the world today are concerned with the features of the product as they form the most important factor in determining consumer behaviors. Take for example of products of general motors. The company is involved in the manufacture and servicing of heavy commercial vehicles and light vehicles. General Motors has got many sections and departments the main ones being the Mechanical department, auto-electrical department, bodybuilding department, Quality control department, Sales department, Welding department, and the management. The bodybuilding department is concerned with building various bodies for heavy commercial vehicles. The mechanical and auto-electrical sections are majorly concerned with fault diagnosis of all brands the company deals with.

Consumers use vehicles as the main means of transportation. To make a final decision of buying a specific type of vehicle they are usually influenced by some factors. Consumer behavior in the automotive industry especially in consideration to general motors is influenced by cultural factors, social factors, Personal factors, and Psychological factors.

Literature Review

Some products contain some features which make customers go for them, while others because of their brand image they are purchased. The factors that influence the purchasing behaviors are:

Psychological factors

People’s buying behavior is influenced by their physiological factors some of the physiological factors that affect buying behavior include motivation perception, learning, and beliefs and attitudes.

Motivation: some people get satisfied when they buy specific brands of cars. Some consumers feel that they have satisfied specific needs by buying general motors automatic cars especially for the handicapped. A customer with only one of his legs feels satisfied when he buys one of the general motor automatic cars that he is able to drive without one of his legs. Because these are cars that select gears automatically after the accelerator pedal has been depressed (Kotler P., 215).

Perception: once a person has been motivated he is willing and ready to act. In order for most consumers to be motivated and act will depend mostly on their perceptions of the situation. Two people in the same motivated state may act differently depending on how they perceive the situation. The general motors-designed car, its body finishes all appeal to the perception of a customer (Kevin H. 125).

Learning; people tend to purchase goods that give them a learning process thus those products give a consumer change in terms of experience. It argued that products that give drives, stimuli, responsiveness, and reinforcement, are purchase by individuals. We describe dive as a strong stimulus impelling action n which ends up to be a motive to purchase e particular product for example if one goes to one house and see how a computer works he will have a drive to up a computer( Kotler P., 209).

Beliefs and attitudes: most consumers follow some set of beliefs when making a decision on the type of car or brand of car to buy. Most people believe that electronic fuel injection vehicles have more benefits than vehicles having carburetors. Even though other companies produce electronically controlled vehicles most people believe that those specifically produced by general motors have more features like airbags, more power, and they are more durable. These are beliefs that promote general motors. Hence it sales team takes fewer efforts to advertise this vehicle (Douglas, M. and Isherwood, B. 215)

Most consumers have a good attitude towards general motor products. They have attitudes showing that general motors produce the best vehicles in the world. General Motors are preferred by a majority of consumers because it fits into their pre-existing attitudes. General motors have been performing according to the needs, desires, and attitudes of a big number of consumers(Kevin H. 98).

Physiological Pricing

With psychological pricing, the assumption holds that the particular price will lead to sales as a result of the emotional reaction that it evokes with the consumer in contrast with purely rational and economic buying considerations.

Generally, three forms of physiological pricing are distinguished in retailing, namely drastically reduced prices, the use of odd numbers to indicate selling prices, and quality-related pricing. Surpluses resulting from special purchases, special sales efforts for certain products; price adjustments; broken variety; discontinued lines; damaged goods; and special concessions to customers can be regarded as the most important causes of drastically reduced prices. The selling prices of certain products are often indicated with odd numbers, that is instead of indicating a product’s price with 200 for example, it is purposefully given as 199. It is claimed that such a price sounds “cheaper” to the consumer than it really is. The use of physiological prices tends to focus the attention on the price and implies that the retailer costs his prices to the lowest cent to the advantage of the customer. This practice also prevents dishonesty on the side of the sales personnel in cash transactions because the odd numbers usually make it necessary for the sales clerk to use the cash registers. Some retailers also believe that the odd numbers compel the customer to wait for his change, during which time the sales clerk gets an opportunity to recommend additional purchases (Kotler P., 213).

Culture factors

In the world, today culture is one of the most fundamental determinants for one when deciding the type of vehicle to purchase. There are many motor vehicle manufacturing companies producing a wide range of vehicles, they also offer different quality of services. Most of the people due to their cultural influence have started preferring general motors brands. Children growing up now prefer specific values that are crucial to a vehicle. One of the values they like most is comfort. These values common in children remain in them even if they grow up. The values of the vehicles that general motors offer are of high class.

Cultural factors real influence consumer behavior. Consumers believe in values like efficiency and practicality. Vehicles from general motors are known to be very efficient in their operations. These vehicles are perfect in all weather conditions. Both light and heavy commercial vehicles perform well on rough roads. For customers who believe in practicality very much, general motor vehicles perform in extreme conditions. Hence it has been like a culture for some consumers that these vehicles are reliable (Farquhar, P.H., Herr, P.M. 215).

Social factor

In the world, today consumer behavior is greatly influenced by social factors like statuses, family, and reference groups. When one goes to the market to purchase a car he will take consideration to his membership groups. These are groups having a direct influence on one buying decisions. These are the groups one associate with most of his time (Elliott, R., 451).

In the world, some groups like the upper class prefer buying vehicles from general motors. Since general motors produce many types of vehicles that fulfill this group it attracts most people. In the world, the influence of a family is very great. These families using general motors brands have greatly encouraged their family members to also own similar vehicles. A co-worker also influences one’s buying decision. In the developed world if especially the boss has bought a given commodity the juniors will also try to buy the same (Ries, A., Trout, J. 202).

Consumers are influenced by reference groups in three ways. Reference groups usually expose a person to new behavior and lifestyle. One can belong to a group whose lifestyle believes in owning a car. Since general motors produce high-quality vehicles it stands at a better chance of making more sales. Reference groups also influence one’s attitudes because their desires fit in these groups. Consumers prefer cars from general motors, hence once could like to join his friend or family member towards belonging to the same social class by buying a vehicle from general motors. Also, reference groups influence similarity and conformity that may make a person to alive at a specific decision. So doing one will eventually buy a product similar to that of his friend (Farquhar, P.H., Herr, and P.M.,123).

People who are in the same social class share similar values, interests, and behavior. In developed have upper-class people who are social elite with good family backgrounds. (Cole Gerald, 78).

Personality and self-concept: Personality and self-confidence also influence consumers’ buying behavior in the automotive industry. The expensive car, which is electronically controlled and having four-wheel drive systems are associated with people who have high Self-confidence (Kotler P., 207)

Methodology

This document mostly will be concerned with analyzing and interpreting research works carried out somewhere else on the topic. This will give this research positivistic aims that are keeping some truth in the research. A deductive and inductive approach which is normally used in researches is a rare reality in this research. A deductive approach that relies on theoretical issues by observation comparison and analysis will have partial application in this paper. The inductive approach which uses objects without relating to existing methods is also partially applicable. The problem at hand at the moment is how and in which direction the research problem will take for interpretations and findings.

Implications of the study

A direct relationship exists between the social and psychological factors and consumer behavior because both motivate a buyer. Some products are very much encouraging and will greatly influence the customers’ loyalty and future consumption of a consumer thus improving brand image.

Works Cited

Allen, D. E. and Anderson, P. F. ‘Consumption and social stratification: Bourdieu’s distinction’, Advances in Consumer Research, 21, 70–74., 1994.

Cole Gerald ‘2004; management theory and practice; 6^th Edition, TJ International, Pad stow, Cornwall.

Coolican, H. (1994) Research Methods and Statistics in Psychology, 2nd edition, Hodder & Stoughton, London, UK.

Elliott, R. (1999) ‘Symbolic meaning and postmodern consumer culture’, in Rethinking Marketing, Brownlie,

Farquhar, P.H. (2004), “Managing brand equity”, Marketing Research, Vol. 1 pp.24-33.

Farquhar, P.H., Han, J.Y., Herr, P.M., Ijiri, Y. (2002), “Strategies for leveraging core brands”, Marketing Research, Vol. 4 pp.32-43.

Farquhar, P.H., Herr, P.M. (2003), “The dual structure of brand associations”, in Aaker, D.A.,

Kevin H. (1998), “The Psychology of Persuasion: How to Persuade Others to Your Way of Thinking”

Kotler P., 1989, Marketing management; Analysis, planning, implementation and control, 6^th Edition; Prentice-hall, India (NewDelhi)

Ries, A., Trout, J. (2006), Positioning: The Battle for Your Mind, McGraw-Hill Inc., New York, NY

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