Perception is the process by which a person selects, organizes, and interprets information. Perceptions are developed through experience. Buyers often receive large amount of information in short period of time and usually perceive and use only a small amount of it. Some information are immediately ignored or quickly forgotten. Process of filtering information is called selective exposure. Portion of information an individual is exposed to is selected to be organized, interpreted and taken into account. Different human’s needs, wants, attributes and beliefs make buyer focus more on different parts of information that are exposed to him. It means choosing the portion of information that supports buyer’s attributes and beliefs (Futrell, 2001). Price perception is the process by which consumers translate prices into meaningful cognitions. Each individual assigns unique meaning to the objective price while translating it to a perceived or psychological price (Black, Bloch & Lichtenstein, 1988). Perceived price is the price encoded by the consumer. Customers don’t always remember actual price. Instead, they encode prices in a way that are meaningful to them (Zeithaml, 1988). Price conscious consumers may not necessarily pay the lowest price available, but they tend to pay the lower price when they analyzing characteristics of more expensive alternatives that cannot be justified. If the price conscious consumer pay higher price for some product, he requires explicit justification of returns in quality for increased kuna outlays (Black, Bloch & Lichtenstein, 1988). Studies reveal that consumers do not always know or remember actual prices of products. Instead, they encode prices in ways that are meaningful to them. Profession... ... middle of paper ... ...ual or company that purchases goods or services produced by another individual, company or other entity. He can purchase them for his personal needs, but also for merchandising or resale. There are two types of customers: external and internal. External customer is the customer that is not directly connected to the organization and environment. Society can easily influence on his purchasing decision. Internal customer is the person that is directly connected to the organization. Internal customers are usually stakeholders, employees and shareholders (Blyth, 2008). Customer can be the same as consumer but he doesn’t need to be. Customer is purchasing the product but he doesn’t need to consume it, but he can use it if he buys it for his personal needs and wants. Consumer is an individual who acquires goods and services for his own personal needs (Frain, 1999).
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
A consumer is a person who is seeking for products and services for personal, domestic and household use or consumption only.
We the consumer would rather pay less for any product that is needed or want. Ultimately we are the reason for high prices as well as low prices. Prices of products do not always stay the same and more popular products have higher prices than less popular products. These fluctuations, high prices and low prices are from the idea of supply and demand. Supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price. Generally, if there is a low supply and a high demand, the price will be high (Investopedia). To understand the idea of supply and demand, the understanding of supply and the understanding of demand must be defined. The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices, also that the supply increases as prices increase and decreases as prices decrease (Curriculum Link). The Law of Demand states people will buy more of a product at a lower price than at a higher price, if nothing changes, at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price and that at lower prices, people tend to buy some goods as a substitute for others more expensive (Curriculum Link). In todays economics these ideas are seen frequently in everyday life. The laws of supply and demand are seen in many ways in the company Apple Inc. Each year Apple Inc unveils a long awaited mobile operating system and IPhone. We can also see many aspects of the law of supply and demand in Nike Inc’s Jordan Brand. Jordan Brand has released a number of...
In the perspective of consumers, the price awareness of everyday necessities and needs is increasing, as customers would be encouraged to continuously observe the cheapest and affordable stores.
All consumers should aware themselves of the factors involved with price elasticity and how the traits potentially impact their purchases and personal or commercial budgets. Commercial firms have the problem of managing price elasticity with their products and prices and governments have a constant problem of determining taxes from price elasticity. I used three examples to attempt solving how firms manage their products with price elasticity factoring with Proctor & Gamble, the oil, and airline industries. I used government examples of how the attempts to collect data to formulate their policies for taxation on elastic and inelastic products while also describing how the US Postal Service uses price elasticity to compete with corporate competition. Exposure to these factors of price elasticity will generate consumers’ awareness of firms and governments role to determine goods or services at a particular price.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
Price is the values entirety that consumers trade for the advantages of having or utilizing the product or services. Different places and cultural have different spending culture. Therefore the price has to be relevant according to the product offer because it can reflect the image of a
Different Types of Customers Business facilities are used by a wide range of individuals including those with special needs, such as disabled and deaf people. All of these people want a high level of customer service. To provide a high level customer service, I need to identify the following different types of customers: * Children * The elderly * Foreign customers * Physically or mentally disabled * The deaf * The blind * The know-it-all Children Businesses, such as Barclays need to treat children fairly because, they are tomorrow’s customers and businesses should treat them with care as they do to older customers. People who are working for an organisation should always remember to: * Use simple language and vocabulary * Help them with money and to deal with their change, if necessary * Use their name if the staff member knows it * Distract them rather than rebuke them if they behave badly The elderly When dealing with elderly people, they do not want staff members to talk down to them as if they are less worthy.
Price is what a buyer must give up to obtain a product. It is often the most flexible of the four marketing mix element that the price is the quickest element to change. A marketer can raise or lower prices more frequently and easily than they can change other marketing mix
In this scenario consumers typically see thresholds above and below the products price and then either do not notice or ignore the rest. For example, the textbook author’s noted automobile companies often use this tactic by offering free financing compared to a fixed dollar rebate. Consumers wil...
In literature compulsive buying behavior is studied under individual social psychological perspective and individual psychological prospective mainly. Socio-cultural theory, social learning theory, social cognitive theory, social comparison theory, Affluenza falls in social psychological perspective while as Symbolic self-completion theory and other psychological theories belongs to individual psychological prospective.
Perception in marketing is critical, for what consumers believe about a product is in equal importance to what the product really carries in relation to performance. And so marketers’ most important job is to control their products’ perception in order to produce a positive image in the thoughts of consumers. In addition, when they consider perception, companies must look for ways to get consumers to trust their products. And when marketers form the perception in people’s thoughts that they truly want to own this product, they can easily get people to come to their stores and buy what they
According to Slater (1997), Consumer Culture is the culture of market societies and is defined though market relations. It predominantly is the product of capitalism. He believes that this new culture is a pecuniary culture based on money. The central claim is that the values from the realm of consumption will spill over into other domains of social action. He further argues that Consumer Culture is in principle, universal and impersonal. He simultaneously agues, that there is an ultior claim towards this definition, as although it seems universal and is depicted as a land of freedom, in which everyone can be a consumer, it is also felt to be universal because everybody must be a consumer. ...