Scenarios Relating to Consumer Behavior

QUESTION

Consumer Behavior

Assignment Week 1b

Reflective Journal

Scenarios Relating to Consumer Behavior

This week we’re discussing consumer behavior, what it is and why it’s important. We have learned that consumer behavior is the process in which consumers, who are motivated by a need work to find ways to fill those needs. Consumer behavior can be looked at as a human behavior (thoughts, feelings and actions) in relationship to consumption and consumer behavior as a field of study. The consumption process includes: a want, exchange, costs, benefits and reactions. And consumer behavior can be studied as a part of economics, psychology, sociology and marketing. As we have read in our lesson this week, consumer behavior is relevant in a variety of situations.

Take a look at the following six scenarios. Pick three of these situations and reflect on how each of the three situations relate to consumer behavior. Your work should be at least 500 words and draw from your own personal thoughts and ideas. This journal entry should be written in first person and if you use information from the textbook or lecture be sure to cite your sources.

1. A student selling a textbook back to the college bookstore
2. A student purchasing a value meal from an on-campus fast-food stand
3. A family purchasing a new home
4. A corporate CEO taking a prospective customer to lunch
5. A consumer injured during a pick-up football match who is given a tetanus shot at a first aid clinic
6. A consumer in a third-world nation who is considering the purchase of a battery-operated television from a government-owned store

ANSWER

Scenarios Relating to Consumer Behavior

A Family Purchasing a New Home

We, as human beings, are all characterized by the need to live comfortably and feel secure. A family that wishes to purchase a home will be doing so in the pursuit of comfort, luxury, and security of the family. In our need to own a home, we tend to focus on various issues. The cost of the new home will determine whether we take it or not. If the cost is too high, and our pockets are not deep enough, we will not have the capacity to purchase the home. We may even foster negotiations with the aim of bringing the cost of the home to a value that we can afford. Our wants (tastes) or preferences influence what products or services we are interested in. when searching for a new home, we shall only be interested in the kind of home that we envision owning. Let us say we are interested in a mansion. Any real estate agent looking to sell a bungalow will not interest us, in our quest to find a good home. Preferences tend to bias our decisions on what we want to buy. Benefits are of the highest need in any bargain. We shall want to analyze the benefits that will accrue from the purchase of each home availed to us for potential buying. For instance, if we have the choice of two different homes, we tend to compare them in terms of which one offers more benefits. A home with a kitchen garden and water storage facilities will appeal more to us, compared to one that lacks these facilities.

A Corporate CEO Taking a Prospective Customer to Lunch

Consumer behavior is largely influenced by the actions of our potential business associates. Our feelings tend to cloud our judgment, in any business dealings. The humanitarian and humble action of the corporate CEO, taking me to lunch before our business dealings, will influence my decision to go into business with the corporation either positively or negatively. First, I may be utterly impressed by the kind gesture of the CEO. I may view him as a good person and not a greedy businessperson. The image I get of the leader of the corporation will definitely affect my view of the entire corporation. Taking me to lunch and engaging in talk may convince me that any business dealings with the corporation will be good and that the corporation will be truthful or will not overcharge me. However, I may look at the CEO’s gesture in a negative way. I may see his act as an act of desperation to get a new client or customer. This may mean that the corporation has been going through trouble getting customers. My mind may proceed to make a judgment that the business dealings with the corporation are bad, or that the services and goods offered are of low standards. The act of the CEO, seeming to be one done to lure me into a business deal, will push me back on the supposed deal, and the corporation may end up losing a potential customer.

A Consumer faced with the Consideration of Purchasing a TV set that is Battery-operated, from a Government-owned Store, in a Third-world Country

As illustrated earlier, consumer behavior relates to how our feelings, preferences, and needs affect consumption of goods and services offered by businesses. My decision on whether to purchase a TV set provided by a government store will be influenced largely by my perception of the government. Third-world governments are affected by problems such as instability and corruption. My view of the government as being corrupt or offering goods of poor quality will negatively affect my decision to purchase the TV from a government store. I may even consider looking for a similar product in a privately-owned store. However, if I view my government as being a morally-upright structure, with good intentions on the citizens, I will not have any doubts about the TV’s quality and durability. This feeling will push me into purchasing the TV set from that particular government store.

Conclusion

From the above case scenarios, it is evident that consumer behavior affects the decision to buy or reject goods or services. Businesses, therefore, need to carry out activities that will positively influence consumer behavior, in the favor of their commodities and services.