Customer Buying Behavior and Perceived Personality - Literature review Example

Assessing Buying Behavior and Perceived Personality Traits In Relation to the Attitude of the Seller Abstract A growing body of research on customer buying behavior focuses on the relationship quality between the salesperson and the customer. Personality assessment is taken as a valid predictor for an organizational success. In this experiment the Big Five personality model (extraversion, agreeableness, neurosis, conscientiousness, and openness to experience is used for assessment on customer buying behavior. This study aims to assess customer’s buying behavior and perceived personality traits of the salesperson in relation to the video valance (negative, neutral, and positive). Results show that customer’s buying decision is correlated with neutral delivery of the product. Conscientiousness and agreeableness provide high significance in sales; therefore affecting customer’s buying behavior. The quality of the relationship between a salesperson and a customer generally accounts for buying decisions. Keywords: Customer behavior; Salesperson attitude; Buying Decision Process; The Big Five; Non-verbal behavior; Perceived personality style; personality assessment. Literature Review This research investigated whether the attitude of the seller may have an effect on the buying decision of the customer. The research looks at the relationship between the perception of the salesperson and the personality traits of buyer in order to predict customer-buying behavior. This was done through an assessment of the personality trait of the buyers and their assessment of the perceived personality traits of the salesperson. In this case, the seller, a male and female will advertise a product that is water. It is suggested that the salesperson is the first, and in many situations, the only person the customers interact with; therefore it may have an effect on the buying decision (Crosby, Evans, & Cowles, 1990). Hogan (1996) also suggests that assessment of the perceived personality by other people is better at predicting personality of the same person, rather than self-assessment. Organizations are aware that the better the quality of the service, the more likely are the chances of re-purchase of the product in near future (Wang, Liao, & Zhan, 2011). Therefore, companies depend on their employees to deliver a service that will satisfy their customers. Previous investigations have shown that a healthy bond between the buyer and the seller is what ignites buying decisions and customer loyalty. It is suggested that assessment of people’s own personality trait is more complex than assessing perceived personality traits of the others (Beer & Watson, 2008). Companies depend on their employees to deliver a service that will satisfy their customers. The attitude of the employee as a representative for the company or the brand is important for the buying decision process of the customer (Hartline & Ferrell, 1996). Research puts focus on the relationship quality between the salesperson and the buyer/customer. The better the quality of that relationship, the higher the probability for future contact (to affect consumer buying behavior) (Crosby, Evans, & Cowles, 1990). The moment when a customer and a primary contact interact is called a service encounter. The quality of the service is especially important, since in most buying environments, the salesperson is the primary contact, which usually has a sole effect on the customer, both before and after a buying decision (Crosby, Evans, & Cowles, 1990; Hartline & Ferrell, 1996; Teng, Huang, & Tsai, 2007). In addition, the quality of a service provided depends essentially on the salesperson and his attitude towards the customer. A growing body of research focuses on personality assessment as a valid predictor for an organizational success (Zimmerman, Triana, & Barrick, 2010). The debate on whether personality assessment is a valid factor for organizational success is ongoing (Zimmerman, Triana, & Barrick, 2010). Many researches recognize that there is a need to examine the personality in a situation, but the focus of self- assessment is moved towards observer’s assessment of one’s personality type (Zimmerman, Triana, & Barrick, 2010). Hogan (1996) makes a distinction between self-analysis and observer’s analysis. He states that self- analysis may not be the best predictor for future behavior since it allows for conscious and unconscious inflation. By conscious inflation, Hogan (1996) suggests that individuals may rate themselves higher in order to appear closer to what is socially desirable. Accordingly, unconscious inflation may involve self-deception among other things in order to satisfy the idealized image people may have for themselves. In contrast, an observer will not be inclined to exaggerate the personality because he would not have any gain by doing so. Also an outsider will not be influenced by self- deception since he will assess the personality type of others rather than himself (Hogan, 1996). Research proposes that observer’s personality assessment on other individual is a more valid predictor for person’s future behavior in the workplace (Hogan 1996; Zimmerman, Triana, & Barrick, 2010). Research from Beer and Watson (2008) proposed that assessing personality of others is less complex than assessing a personality of the self. All of the traits in the Big Five personality model were judged harshly in others except of extraversion (Beer & Watson, 2008). For the purpose of assessing an employee’s character, most experiments use the Big Five personality questionnaire model. The Big Five personality questionnaire is widely accepted and used to predict job performance (Barrick, Mount, & Judge, 2001). Furthermore, this model has been used and supported in almost the last two decades (MacCrae, 2010). Even though, The Big Five traits include extroversion, openness to experience, agreeableness, neuroticism, and conscientiousness. Research suggests that conscientiousness has the highest influence in job performance; however when teamwork is involved, the importance of conscientiousness somewhat decreases while the level of agreeableness and emotional stability increases. Therefore, when teamwork is considered, the people need to work well with each other, meaning they have to be trustworthy, friendly, and cooperative and calm (Barrick, Mount, & Judge, 2001). Accordingly, previous research suggests that neuroticism has a negative effect on one’s job performance (Teng, Huang & Tsai, 2007). Extroversion is a personality trait that is characterizes charismatic, friendly, assertive and energetic individuals. These people are also very communicative and expressive (McCrae & John, 1992, McCrae & Costa, 1987). Analyzing extroversion as a valid personality trait, researchers have come to the conclusion that sociability that is the attitude that the person has in a social environment seems to be the essence of the trait (Eysenck & Eysenck, 1967; McCrae & Costa, 1987). Conscientiousness is characteristic of an individual that is responsible, ambitious, disciplined, productive, and highly organized (McCrae & John). More recent meta-analyses propose that conscientiousness is the trait that consistently brings the highest validity in job performance (Barrick, Mount, & Judge, 2001). After decades of work in personality types and their effect on job performance, Barrick, Mount, and Judge (2001) discuss that out of the Big Five taxonomy the focus should be on conscientiousness as the leading variable in theory on job performance. Conscientiousness and extroversion as well have been positive correlated with total sales performance (Barrick and Mount, 1991; Thoresen et al., 2004). Openness to experience is characterized by an individual who is curious, adventurous, imaginative, and insightful (McCrae & John). Agreeableness is individual who are kind, generous characterize a personality trait, compassionate, forgiving, and trusting (McCrae & John 1992; McCrae & Costa, 1987). Furthermore, research suggests that agreeableness has a positive effect on job performance only when the job consists of highly interpersonal interaction related to helping and nurturing (Mount et al, 1998). Neuroticism is defined by terms such as anxious, fearful, hostile, and insecure (McCrae & John). Neurotic people have disturbing thoughts therefore they may use inappropriate coping mechanisms to deal with a certain situation (McCrae & Costa, 1987). Openness to experience is characterized by an individual who is curious, adventurous, imaginative, and insightful (McCrae & John). Research supports the claim that when an individual exhibits a more positive affect to an advertised product, he will evaluate that product in a more positive manner (Peace, Miles, & Johnston, 2006). Meaning that if a customer associates the product with something positive the higher the chance that he will make a buying decision around that product. Muir (2008) suggests that the quality of customer service depends on both verbal and nonverbal cues delivered by the primary contact that we take to be the salesperson. The research proposes that salesperson’s genuine smile when paired with a specific product will result in a more positive evaluation of that product (Peace, Miles, & Johnston, 2006; Muir, 2008). People, in general, especially in direct contact with people cannot always smile because they are constantly happy. Therefore smile is sometimes serves as a mask that hides real emotions (Trumble, 2004). It is perceived as an expression of politeness and positivity (Trumble, 2004; Muir, 2008). Therefore the affective display of emotions may result in higher customer service satisfaction (Peace, Miles, & Johnston, 2006; Muir, 2008). In contrast to the positive affect of employee’s personality, negative affect will have a negative impact on the service quality delivered (Singh, 1993). Research therefore proposes that the negativity and hostility of the employee will have a negative effect on the buying decision process of the consumer (Singh, 1993; Teng, Huang, & Tsai, 2007). Teng et al. (2007) in their research concluded that neuroticism of the salesperson had a negative impact on the purchase representative’s perception on the quality of the service. Hartline and Farrell (1996) suggested that in order for the service quality to be on a higher level, the managers should aim to lower the conflict and anxiety of their employees. It is suggested that even employees who have a more negative affect related personality, like neuroticism, can be given training and counseling among other things so that they can improve their attitude and job performance (Judge, Wolf, & Hurst, 2009). Research by Grandey, Goldberg, and Pugh (2011) supports previous findings by concluding that service quality is better in companies where the employees are more satisfied, since they are transferring their mental state to the customers, which in return will positively affect their buying decision making process.  First this study aimed to determine buying decision processes in effect, of the video valance (negative, positive and neutral) on buying decision based on the attitude exhibited by the female and male confederate as a salesperson. Second, the study aimed to determine the effect that the video valence (based on the attitude) has on the participant when scoring for specific perceived personality traits of the salesperson. It is hypothesized that participants who did not see the negative video would have scored for the desirable personality traits higher. It is also hypothesized that such participants would have made a positive buying decision. Lai (2010) found a correlation between financial attitudes and impulsive buying behavior amongst the college students. His study, which contained a sample of 906 students from different colleges in Taiwan, found that the impulsive buying in students had been on the increased in the modern times. According to the findings, impulsive buying increased low education on finance. Students who had taken a course in finance management were more likely to use money cautiously. Such student always planned prior to make any purchases. Further, the study also found that the impulsive buying was higher in females, compared to their male counterparts. In addition to this, the study indicated that impulsive buying increased with age. According to Lin, & Lin (2005), while impulsive buying may negatively affect the young people (students), it is more beneficial to the sellers. This owes to the fact that the impulsive buying increases sales and profits. With this kind of behavior, the businesspersons are more likely to create products that target the young people. However, Kacen, & Lee (2002), noted that the attractiveness of the products elicited the impulsive behavior. This, according to them, explained the main reason why the manufacturers invested more on product design to ensure that they were attractive. Marketing was also an imperative tool that influenced the purchasing behavior of the students. Companies that market their goods through advertisements, either through the social media, or the traditional media were likely to affect the attitudes of the consumers towards the goods. According to Rook, & Fisher (1995), the increased marketing created an impression that the product is attractive in terms of quality. Hence, this would increase the impulsiveness of a majority of the students. Effective communication between a company and the customers has been said to have an effect on the customers’ attitude and purchasing behavior. Currently, a majority of companies realizes the importance of communication, hence employing different strategies. Building relations with customers has been one of the most effective strategies that a majority of the companies use. This has been achieved through direct communication, especially in the business to customer (B2C) selling strategies. This is where the company seeks to sell goods directly to the customers by eliminating the intermediaries. This strategy ensures that the company is able to interact directly with the customers, a situation that makes it possible to understand their tastes and preferences. It also ensures that a company is able to understand the purchasing behavior of the customers. The Customer Relations Management (CRM) is one of the most effective strategies that have been selected by the company explaining the choices that have been made. The theory indicates the importance of building a strong relationship between the customers and the business (Brown, 2008). According to the theory, understanding the behavior and perceptions of customers towards certain products will be vital in strategizing. Customers’ attitudes towards a product will determine their purchasing decisions. It will also determine whether the business will succeed or not. It is a strategy that will allow the marketers to have the information of the customers, and the current market trends in the target location. Currently, technology has been used to enhance the customer relations Management. It works properly through what is referred to as the digital marketing cycle. The CRM is vital for the success of the business due to the establishment of a number of factors. Firstly, the level of knowledge of the customers towards the product is established. Secondly, the attitude of the customers towards foreign products is determined. In most cases, a negative attitude will affect the sales that can be made by a company. CRM can also assist in pricing strategies due to the knowledge of the economic status of the target customers (Dwyer, 2008). These demographic factors will assist the company to make informed decisions, which will facilitate increased sales in the market. The CRM will also give the customers a chance to express their dissatisfaction, and allow them to make any necessary recommendations on how to improve the products further. CRM theory indicates that the relationship becomes customer-centred. This means that the business is more concerned about the customers and how to increase the sales of the product. This will be automatic if the business establishes a good relationship with its customers. The CRM theory indicates that there are two main conditions that are to be fulfilled (George, 2011). Firstly, the customers will demand quality services and quality products at a reasonable price. This explains why it is imperative to understand the socioeconomic status of the target customers. The other condition for CRM is that the entrepreneurs have to increase their sales and make profits. While the theory states that the relationship is customer-centered, the reality is that it is a strategy used to attract and retain customers with the aim of increasing sales. The CRM theory has become one of the major marketing tools in transacting businesses. Its ability to use technology has made it even more attractive and effective in interacting with customers. This makes it important for the promotion of goods and services through internet based marketing. However, to facilitate this, the entrepreneurs seek to use the digital marketing cycle processes. These include learning, relating, attracting, engaging and retaining potential customers. The former process explains the importance of capturing the customers’ information. This is also a way of building a rapport about the target customers with the aim of understanding their behavior. For the purpose of this project, the information about the customers will be obtained through both the secondary and primary methods. Interacting with customers through the social media will assist in obtaining primary data. For instance, the customers can be asked to rate the product in terms of its effectiveness. This will assist in understanding their attitude towards the product. In addition to that, issues of prices can also be known by following the customers’ conversations (Weill, 2001). This can assist in determining the socioeconomic status of the target customers. Secondly, relating to the customers through real time interactions will also be ensured. This, coupled with personalized interaction will play a major role in understanding customers more. Instant communication can be achieved through having a live chat, with a customer care service that runs 24/7. Any question that is raised by the customers will be addressed instantly. Thirdly, attracting customers through creativity and provision of interactive links will enhance the relationship between the customers and the company. The use of ‘catchy phrases’ and other attractive branding messages will be used to draw customers. This will also play a vital role of engaging the target customer in interaction. Finally, the technology will assist in retaining customers. This is one of the major targets of the company. The entrepreneurs realize that attracting new customers is a daunting task. For this reason, the company will seek to listen, and ensure that the recommendations proposed by customers are put into consideration. A business model refers to strategies that are employed by a business to increase the value to its stakeholders (for instance to customers, shareholders, suppliers, employees, and community members) with the aim of generating more revenue for the company (Gordijn, 2011). There are various business models that suits different businesses depending on the mission, visions and goals set. These models may include online business model, direct sales model, cutting out the middleman model amongst others. Regardless of the selected model, the goal is to ensure that the relationship between the business and the target customers is enhanced. Further, it is imperative that the company determines whether the selected model is sustainable and cost effective (Glynn, 2009). For the purpose of this study, the e-marketing business model will be used. The E-marketing model has been chosen because of its effectiveness in fostering communication between the business and the target market (Hummel, 2010). It is a model that will allow the business transactions to be conducted through the internet. With more than 1 billion people on social marketing, companies are able to interact with their customers. This makes it possible for the e-marketing business model to succeed. The availability of these communication gadgets ensures that interaction between the customers and the business will be achieved. This e-marketing model is aimed at enhancing customer decision making process. Firstly, it will assist the customers to realize about the current problem that is affecting them, and how the company is offering the solution (Hutt, 2004). This will be done by providing them with the statistics about the problems online. The management will ensure that there are useful internet links where customers can click and find objective information that will help them understand the problem. This will lead to their purchasing decisions, especially if there are no other alternatives. However, the entrepreneur understands that the decision to purchase will be determined by a number of factors. The customers will be focusing on the presence of other alternative products that can assist them in addressing the present challenge. The issue of price and quality will, therefore, play a major role in decision making. The management aims at building customer loyalty and satisfaction. The two will determine whether the customers will be retained or not. The main strategy applied by the company is to enhance communication between the company and the customers. The product needs to be of high quality, and customers given the guarantee that should the product become faulty within certain duration, they will receive a new one for free. This will assist in building trust with the customers, which has the ability to retain them. Method Participants The participants involved in this research will be students from Richmond the American International University in London. The participant’s age will range from 18 to 24 years old. All participants are going to be selected randomly. This experiment will aim to involve 120 participants, half of them male and half female. Regarding the fact that there are going to be three video conditions, whereas one will be positive, one will be negative, and one will be neutral, the researcher will aim to have 10 male and 10 female participants for each of the conditions. Design The experiment will use a between subject design. Each participant will be able to see just one of the conditions of the video negative, neutral, or positive. The dependent variable that was been measured was the perceived personality of the female confederate in the video. Each of the videos was 30 seconds in length. The first Big- Five Personality questionnaire was given prior to watching the video, while the second one was given right after. The Big Five were measured with a single item using a bipolar scale response ranging from 1 (desirable pole) to 9 (undesirable pole), since research show that method reduces bias and increases validity (Woods & Hampson, 2005).  The scale, as presented to the participants, did not have any numbers. They were only used by the researchers, for coding on SPSS. Extroversion and conscientiousness were reverse coded in order to increase participant’s attention and raise the validity of the questionnaire itself. It must be noted that they were inputted in SPSS the right way. The experiment will look at the correlation between the valance of the video and customer’s buying decision. It also looked at the effect that the video valence (based on the attitude) has on the participant when scoring for specific perceived personality traits of the salesperson. Materials & Procedure The research will look at the correlation between salesperson’s gender and customers buying decisions. Current experiment will follow the guide by using two Big-Five Personality questionnaires and a video under three different conditions (Positive, Neutral and Negative). The participants are going to be required to answer a Big-Five personality questionnaire for/on themselves measuring the traits. Followed by watching the video under only one condition on a high definition iPad screen and ending with another Big-Five personality questionnaire yet this time scoring the sellers attitude on the clip they are given to watch. First the participants will be given a consent form. Right after that they will be required to assess their own personality traits using the Big Five personality questionnaire. After that the participant will watch just one of the video conditions and then assess the perceived personality traits for the salesperson in the condition that they have seen. They are also going to be asked to answer two yes/no questions regarding their buying decision and the likelihood they would be surrounded with such a person or perceived personality traits in real life. At the end they are going to be given a debrief form in order to inform the aim of the experiment. The salespersons were a 21-year-old female student and a 22-year-old male. Both did not attend Richmond University in order to limit personality scores and buying decision based on already established perception of them. The setting of the video was minimal. It consisted only of a desk on which it was the product that is a bottle of water, and the salesperson in standing central position. The walls were simple and white in order not to disrupt participants’ focus from the delivery of the product. That was also the case why the confederate was without accessories and excessive make-up. Their hair was neat and braided to the side and both were dressed in a simple black shirt. The water that was promoted was a non-existing brand that the research gave it the name “Richmond Mineral Water”. The script that she followed in order to promote the water was the following: “Treat yourself well with Richmond Mineral Water. Water contains a unique balance of minerals essential for everyday active life. Seventy percent of our body weight is water; therefore it is advised to drink six to eight glasses of water daily. Research has shown us that water may have a psychological effect on our thinking functions, leads to improved exam performance, and less anxiety. In contrast, being dehydrated can have a negative effect on our concentration. Treat yourself well. Richmond Mineral Water!” Discussion There exists a correlation between the attitudes of the employees and customer satisfaction in the workplace. The warm, welcoming and smiling employees are more likely to make employees feel at ease, hence more willing to be part of the organization. According to the Big Five traits, extroversion, agreeableness, conscientiousness and agreeableness represents individuals who can spur growth and development within an organization. This owes to the fact that such individuals know how to interact with customers. On the other hand though, the neurotism personality has been associated with poor relations, negative attitudes and inability to control emotions. In the workplace, emotional intelligence is imperative. This refers to the ability to identify, and manage one’s emotions, in order to interact effectively with customers. While employees also experience stress and other forms of emotional instability, they are expected to manage them, and act as if they are fine. However, every employee is guaranteed an equal chance of employment provided they are qualified, despite their personality. For this reason, employers have a role in ensuring that the employers are able to manage their emotions, especially those with a neurotic kind of personality. More training will ensuring that they possess the skills necessary in fostering customer satisfaction and job performance. The more exposed to the product, the more the customers are able to develop positive attitudes. Sale promotion is one of the strategies that are used in introducing a product to customers. Major multinationals, such as Apple Inc. and Samsung have increased their advertising activities, a situation that has led to increased sales and profits. The marketing has therefore an effect on the customers’ purchasing behavior, and attitude change. Attractive adverts have an ability to prompt emotional attachment towards a given product. Companies can increase their sales and revenues by investing more on sales promotion. The buying behavior of customers can also be affected by a number of factors, such as fostering an effective communication, and building strong bonds. Currently, the customer relations management (CRM) has become imperative. The main aim of CRM is to foster a good relationship with the customers through constant communication. This assists in understanding the tastes and preferences of customers, as well as their attitudes towards the goods. Currently, a majority of the companies have taken the advantage of technological advancement to enhance their level of interaction. The social media has been one of the major avenues that have been used to attract and retain customers. The e-marketing has also made it possible for the companies to interact directly with their customers, a situation that assists in increasing sales and profits. References Barrick, R.M., Mount, M.K., & Judge, T.A. (2001). 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