Consumer Behavior Issues - Case Study Example

MARKETING Consumer behavior refers to the manner in which individuals decide to buy or not to buy a particular product. It is a study which involves elements of psychology, sociology as well as economics and it strives to comprehend, analyze and evaluate the decision making process of a consumer / buyer as an individual or in a group, and in the process attempt to understand the key factors which influence their buying decisions. The term Consumer Behavior can be defined as: "..the decision process and physical activity individuals engage in when evaluating, accepting, using or disposing of goods and services" (Loudon 2001, Pp.5) This study is mainly aimed at understanding the buying decisions of a select group of consumers – “the teenagers”. This term was first coined in the 1950s whereby the young adolescents were newly identified as a separate group of individuals with distinctive needs and since then has been associated with a range of products popularly marketed by the media as exclusively for teens such as ‘teen magazines’, ‘teen clothing’, ‘teen fashion accessories’, ‘teen music’ and the likes (Storry et al, 2002). A further offshoot of the term is “tweens” which includes a much younger age group i.e. eleven and twelve year olds since they are often found to emulate the older teens and display more or less similar needs and wants especially with regard to fashion. Fashion is no longer a restricted domain meant for adults and has crept into the wardrobes of a much younger generation thereby creating a whole new market to satisfy the demands of this emerging trend. Children as young as six are often seen attending make up parties and wearing crop tops and displaying fake tattoos. With changing global trends teens today have more buying power and are often seen shopping for themselves in malls at stores catering exclusively for them such as Gap, Tammy Girl, Children’s Next etc. It is on account of such a trend that a study influencing their buying behavior, particularly related to fashion products is of utmost significance to marketers. For instance it is often observed that teens today are largely influenced by Teen idols such as “The Jonas Brothers”, “High School Musical” stars, “Disney Channel” etc and Teen magazines such as “Seventeen”, and “Teen Vogue” which is playing a major role in dictating their fashion trends. The association between consumers’ attitudes towards certain clothing items and human behavior can be explained with respect to the society we live in since it plays a major role in the manner in which the consumers react and make their buying decisions. Most of the Western World can be regarded as a consumer driven society where the individual identity is strongly associated with their consumption patterns and their lifestyles dictated by largely accepted societal norms (Goodwin, Ackerman, & Kiron, 1997). One such expression of society’s impact on adolescents is evident in the manner in which teens choose to dress (Wilson & MacGillivray, 1998). Teens often try to ‘fit in’ and associate themselves with a group on the basis of what they wear. It is a means of gaining social acceptance and appreciation and thereby develop a sense of belonging and hence self esteem (Zollo, 1999). Teens in the 21st century find themselves on the cutting edge of fashion and choose to “wear their attitude” which is evident from their bodily accessories which includes all forms of body piercing, tattoos, studded jewellery or colored tresses. They are an extremely influential group of consumers who often emulate their peers. Thus, certain fads which are embraced by a supposedly “cool” group of teens triggers off a new wave of fashion trends. Such a group is referred to as “influencers” in the marketing world, while the rest of them that follow such a trend are referred to as “conformers” or “passives” who incidentally happen to form a majority of the teen population (Lamb et al, 2008). Reference groups are another important aspect of consumer behavior which influences the individuals buying decision and hence forms a key element of study since they influence the other groups about purchasing a particular product or brand, and persuade them to adopt a particular behavior which is consistent with those of the other groups (Lessig andPark, 1978; Schiffman and Kanuk, 2007). The reference groups virtually dictate trends by labelling the products as desirable or otherwise (Bristol and Mangleburg, 2005; Shim, 1996) and persuade individuals regarding purchasing a particular product, and form a specific attitude towards it (Bearden et al., 1989; Childers and Rao, 1992; Lachanceet al., 2003). It is on account of such reasons that the study of reference groups is of utmost significance to marketers and is the basic reason for a wide range of studies conducted on the topic by researchers (Childers and Rao,1992; Bristol and Mangleburg, 2005). A reference group is a group having a specific set of values and attitudes concerning their buying behavior and which are emulated by their peers (Schiffman and Kanuk, 2007; Hawkins et al., 2006). Of the various types of reference groups the comparative and normative reference groups have been of supreme significance for marketers and researchers alike. The normative reference group comprises of close associates of an individual such as parents, friends, colleagues, teachers, friends etc who offer the consumer advice or information regarding norms, values and attitudes concerning their buying behavior by directly communicating with them (Childers and Rao, 1992; Bristol and Mangleburg,2005; Subramanian and Subramanian, 1995) while the comparative reference groups comprises of those individuals who act as an idol or heroes for consumers. These include celebrities, sports stars, role models and others from the entertainment industry who have a definite standard of achievement which has the potential of influencing the consumer’s buying behavior (Martin and Bush, 2000; Subramanian and Subramanian, 1995). It is on account of the tremendous influence which these reference groups have over the buying behavior of the teens that such a topic has often been a subject of wide scale research centered on the manner in which such reference groups affect the adoption behavior (Subramanian and Subramanian, 1995); the manner in which the peers, as well as the media, affect the choices that teens make in buying their clothes (Lachance, et al., 2003); the manner in which their close associates such as family i.e. parents affect the teenagers choice (Yoh, 2005); influence of reference groups on brands (Bearden and Etzel, 1982; Childers and Rao, 1992); and their impact on the teenagers’ attitudes and preferences towards retail goods (Mangleburg et al., 2004). Retailing manufacturers are increasingly targeting teens on account of a sudden increase in their purchasing power as well as for their heightened sense of style. This is evident from the fact that the teen and preteen market in the U.S. alone constitutes of about sixty million consumers, representing a total of $1.5 billion of online purchase every year. The rise of technology and the increasing trend to shop online, has caused various companies such as Delias.com, madameonline.com (a popular teen fashion clothing brand) etc among others to sell teen fashion clothing online. Other popular sites include Gap.com, Amazon.com, etc. (Gillespie, 2009). The notions of self and individuality which are the foundations of Western consumer behavior theories are derived from Anglo - Saxon psychological research and include the proposition that individuals tend to purchase goods which are compatible with their concept of ‘self’ or which will boost their idyllic self image. Culture plays an important role in the understanding of self and in the awareness regarding ideal self images. For instance the widely popular Barbie dolls, have since generations dictated the ideals of beauty regarding a young girl’s physicality making it an “ideal” of the white adolescents (Mooji, 2009). Buying behavior can also be influenced by one’s social or functional needs for instance where clothes cater to an individual’s functional needs, ‘fashion’ in turn tends to satisfy an individual’s social needs. MTV which currently airs in over sixty countries has greatly influenced the teens’ fashion needs worldwide. Furthermore owing to recent trends in technology, teens universally are becoming increasingly wired, through chat rooms, social networking sites, blogs etc which has blurred the national and international boundaries thereby offering a wider platform for them to interact and get exposure of a wider international market and hence their fashion trends. Marketers are taking advantage of such a trend and are increasingly going online to capture the segment of teens who spend a considerable portion of their time online. www.loquesea.com for instance is one such company which strives to target Hispanic teens in the U.S. by offering impudent fare on fashions, dating and music. Other factors such as greater travel and enhanced opportunities for global interaction have urged the development of general standards and principles among the teens globally (Assael, 2005). Cultures and subcultures are another significant aspect influencing a teen’s buying behavior. Culture is regarded as one of the most indispensable influences affecting an individual’s needs and wants affecting their purchase decisions. Cultural precursors influence everyday activities and there is empirical evidence which supports such a view that culture is indeed one of the key determinants of certain, if not all, aspects of consumer behavior. Sub cultural groups on the other hand also influence buying decisions since these groups act as a resistance to the established norms of the society and defy the standards of ‘acceptable appearance’ or acceptable behavior. A new sub cultural group has recently evolved which are considered extremely fashion oriented such as Goths (short for Gothic) or ‘Emo Kids’ or ‘Scene Kids’ who have a completely difference sense of style and stand out solely because of the manner in which they dress. However its basis lies in the consumer theory which associates such a behavior with the need to have a distinct identity or individuality, and the urge to defy societal norms. The sense of style portrayed by such sub cultural groups is extremely poplar since they add a certain glamour and drama and hence capture attention (Johnston et al, 2007). Fashion is a multi-billion-dollar industry and has a significant influence on the teens and as fashion driven blogs, websites, movies and the likes continue to emerge, teens are offered with more and more options to follow the trends dictated by such popular media and is likely to have a long term influence on their buying behavior. References: Assael, H., (2005). Consumer Behavior: A Strategic Approach, Dreamtech Press, Pp. 386 Bristol T, Mangleburg TF (2005). “Not Telling The Whole Story: TeenDeception in Purchasing,” J. Acad. Mark. Sci. 33 (1), 79-95 Childers TL Rao AR (1992). “The Influence of Familial and Peer BasedReference Group Influence on Consumer Decisions,” J. Consum.Res. 19: 198-211 Gillespie, J. (2009). Global Marketing, Dreamtech Press, Pp. 172 Goodwin, N. R., Ackerman, F., & Kiron, D. (1997). The Consumer Society, Island Press, Washington, D.C. Hawkins DI, Mothersbaugh DL, Best RJ (2006). Group Influences onConsumer Behaviour in Consumer Behaviour, Building MarketingStrategy, Chapter 7, 10th edition, McGraw Hill: Sydney, 227-259 Johnston, H. E., Aloi, P.,(2007). The New Generation Witches: Teenage Witchcraft in Contemporary Culture, Ashgate Publishing Ltd., Pp. 118 Lamb, C. W., Hair, J. F., McDaniel, C., (2008). Essentials of Marketing, CENGAGE Learning, Pp. 158 – 159 Mooji, M., (2009). Global Marketing and Advertising: Understanding Cultural Paradoxes, SAGE publications, PP. 6 Schiffman LG, Kanuk LL (2007). Reference Groups and Family Influ-ences in Consumer Behaviour, 10th edition, Prentice Hall: London:310-352 Storry, M., Childs, P., (2002). British Cultural Identities, Routledge, Pp. 143 - 145 Subramanian S, Subramanian A (1995). “Reference group influence oninnovation adoption behaviour: incorporating comparative andnormative referents,” Eur. Advanc. Consum. Res. 2: 14-18 Wilson, J. D., & MacGillivray, M. S. (1998) “Self-perceived influences of family, friends, and media on adolescent clothing choices”, Family and Consumer Sciences Research Journal, 26(4), 425-443. Zollo, P. (1999), Wise Up to Teens, New Strategist Publications Inc., New York. Read More