Buyer Behaviour Essay Example For Students

Buyer Behaviour Essay Working women buy products and services essentially the same as non working women. INTRODUCTIONConsumer behaviour can be defined as the acts of individuals directly involved in obtaining and using economic and services, including the decision process that precede and determine these acts. (Engel et al, 1968, p 5)Buyer behaviour refers to the acts of individuals directly involved in the exchange of money for economic goods and services and the decision process that determined these act. (Engel et al, 1968, p 5). Both consumer and buyer behaviour differ amongst the population as people have different wants and needs. Therefore it is untrue to say that working women buy products and services essentially the same as non working women. No two people are similar as physiological factors, cultural forces, economic considerations, interpersonal relationships, personality, self-concept, and learning are variables that shape goals and influence. (Runyon, K.E. 1980). However consumers can be put into groups if they have similar characteristics, i.e. if they come from the same social class, background, age, lifestyle. Working and non-working women can be segmented in two separate groups. They are different because of many influences. Some are external due their social environment. What they do with these social stimuli involves a psychological process that differs from each other. These social influences and internal processes may evolve into a decision by the consumer to make a purchase or not. (refer to table 1). (Engel et al, 1968). As both groups possess different characteristics, it is necessary for marketers to understand that they will have different wants and needs. Table 1. Factors influencing behaviourPersonal PsychologicalCulturalSocial ? Age LifestyleMotivationCultureReference groups? OccupationPerceptionSubcultureFamily? Economic LearningSocial classRoles status? Personality Beliefs ? Self conceptAttitudesCulturalEngel et al, (1968) suggest that culture refers to the unique patterns of behaviour and social relations that characterises and distinguishes it from other societies. Culture is not inherited genetically, it is rather the result of learning. Parents, teachers and schools help indoctrinate each generation into a cultural decision. All cultures will develop from interactions between people in efforts to adjust to one another and their environments. In each society, the culture of that society has a functional purpose. It provides values, beliefs, attitudes, and behaviours that facilitate human interaction. The culture of a working woman will be very different from that of a non working female. Spiro, R.L studies show that Strodtbec t, I. L. found cultural differences with respect to the roles of females were related to differences in decision making. This is because both groups will have different beliefs and attitudes due to the way they have been nurtured. Social In a materialist society economic well-being much determines what social class you are in. If this was the case, than working women would be in a much higher class than non working. However focusing primarily on income fails to recognise the differences in spending of disposal income characteristics of social classes. For example a teacher who earns the same as a truck driver will spend their money in distinctly different ways, the service and goods will not be the same. (Runyon, K.E 1980). Working women may spend their money on socialising i.e. with friends etc. whereas a non working woman may have children and therefore spend much money on the family Social class differences are variations in life-styles, in values, interpersonal attitudes and self perception. These differences influence consumer behaviour, shopping patterns, and effective communications. Therefore marketing practitioners should understand that social class should be considered as a variable when may be help ful in developing strategies of product differentiation and market segmentation, however this does depend on the type of product itself the patterns of usage and competitive climate in which the product exists in. The working woman will more likely be earning a salary/wage than the non working which then puts them into different social group. Because of the money being earned this again changes the lifestyles, behaviour and attitudes of the non working female. The significance of reference group to buying behaviour varies depending upon the product or service, i.e. whether it is a necessity or luxury. Reference groups can be segmented into different categories, primary references will include immediate families, close friends and work co-workers. This group is particularly important when are purchases are made that will affect other members of the family such as holidays are booked. Secondary reference groups are those who we have formal contact with such as religious organisations, trade unions. (Runyon, K.E, 1980)Women change as consumers, as they have move through different stages of the lifecycle. The way they buy, and use products, read, watch and listen to media is affected by whom they live with, i.e. if there is a partner, children or single. Harvard Business Review (1978)Familiy background will also affect buying decision. This includes political views and how education is valued. It can be assumed that a working woman may be more educated than a non working women who may not find education as being a key priority. Adcock, D et al, (1993) suggest that status within these groups are not necessarily automatic, therefore purchase which imply status within this group are likely to be affected by the expected attitude to the product itself. Roles and status Working women tend to play a greater role in family decision making than non working. Studies by Wolfe, D.M. (1959) claim that the working woman gains power in several ways. Firstly she has resources such as financial. Intellectual, skill which cannot be developed at home, and secondly she becomes less dependent on her partner (if not single) for the satisfaction of her social and prestige needs. Personal The buying decision often depends on the consumers demographic profile. Any of the below variables can be relevant to an individuals buying decision. Lifestyle age A working woman will lead a different lifestyle to a non working woman. Working women will tend to spend money on lunch snacks from shops and eat out in restaurants more than unemployed as working women avoid cooking and this is one reason for eating out. Mintel report (Women 2000 Women and Shopping: The Role Of Convenience. (11/01/99) claims that 47% of working women will spend their Friday evening at the public house whereas only 19% of non working women will. (Refer to appendix 1). 11% of women with full time jobs say they visit or order from pizza or pasta restaurant at least once in 2 weeks where as only 4% of non working women do. (see appendix 2)Mintel studies of Women 2000 claim that working women are considerably more likely than those without jobs to be interested in film, book and music review. (WWW.sinatra.com)Bartos, R. (1979) studies show that working wives spend fewer hours per week carrying out house chores, thus many find it necessary to purchase time saving goods and services in order to successfully combine dual productive roles. Marginal costing distingushes between fixed costs and variable costs Essay? Target market selection? Product and services? Pricing decisions? Promotion decisions. ? Distribution process? PositioningTarget market segmentationMarketers should look at working women and non working women as two separate segments. This is because they shop differently, favour different brands, use media differently, have different motives and lifestyles. Harvard Business Review (1978)Product and servicesFrom the research carried out, evidence shows that working women will not purchase products and services essentially the same. Many internal and external factors will determine their purchase decision making. Pricing decisionNon working women will be cautious about the value of products and services, whereas the higher salary /wage earned by the working woman will vary in the cost of what they will pay for a service or product. The working woman may be brand loyal, however the non working woman will usua lly buy a less expensive product. (WWW.mintel.com). Promotion decisionsMintel report (Women 2000, 11/01/99) concludes that advertisers and marketers need to target working women differently from non-working women. This is because non working women watch more television than working women who scarcely view it morning or evening. Also working and non working women perceive different perceptions and messages from advertising. For example a study was conducted to examine how employed and non-employed wives respond to different elements of automobile advertising messages. Data was gathered by interviewing 727 women via telephone. Results revealed that employment status significantly affects perceptions of advertising message appeals. More so, retired wives respond differently from other home-makers even though they are also non-employed. It also found that employed wives views value for money, interest rate of loan and monthly payment more important than non-working women. However the latter considered length of warranty and special rebate offer to be of greater importance than employed women. European Business ASAP (Jan,1997 v37 p54)Working women are the heaviest listeners to Radio and magazines tend to be more important in their lifestyles. Harvard Business Review (1978). Distribution decisionsWorking women are least likely to enjoy any grocery shopping however they do shop in more than one grocery shop. It can be recommended that a secondary shopping outlet be situated near workplaces. Home deliveries could be successful as this would make them a prime target for home shopping services. PositioningTherefore marketers will need to position their products differently in the market so they can target both groups of women who have different wants and needs. BIBLIOGRAPHYBooksWolfe, D.M. Power and Authority In the Family. In Dorwin Catwright, ed., Studies in Social Power (Ann Arbor: University of Michigan, 1959), P.109Engel, J.E., Kollat, D.T,. Blackwell, R.D. Consumer Behaviour. Pub-Holt, Reinhart and Winston, Inc. (1968,)Runyon, K.E. Consumer Behaviour and the Practice of Marketing. 2nd edition. Pub-A. Bell and Howell Company (Northern Arizona University) (1980). Adcock, D., Bradfield, R., Halborg, A., Ross, R., Marketing Principles and Practice. Pub-Pitman Publishing (1993). JournalsWhat Every Marketer Should Know About Women. Harvard Business Review 56, 3 (1978): 73-85European Business ASAP (Jan,1997 v37 p54)European Business ASAP, (September,19,1991 p5)Spiro, R.L Persuasion in Family Decision Making. Journal of Consumer Research 9, 4 (1983): 393 402Bellante, D., and Foster, A.C. Working Wives and Expenditures on Services. Journal of Consumer Research 11 (1984): 700-707 Bartos, R. The Moving target: The impact of Womens Employment on Consumer Behaviour. Journal of Marketing 41, 3 (1977): 31-37. InternetWWW.Mintel.com Women 2000, Women and Shopping: The Role Of Convenience. (11/01/99)WWW.Mintel.com Women and Finance (27/10/99)WWW.Emerald.com. Bartos, R. The Moving target: The impact of Womens Employment on Consumer Behaviour. Journal of Marketing 41, 3 (1977): 31-37.