Analyzing Purchase and Consumption Patterns - Lab Report Example

? Analysis of my consumption choices Table of contents Introduction 3 2. Situational influences 3 3. Consumption perspectives 4 4. Value 5 5. Satisfaction 6 6. Relationship quality 6 7. Perception, learning and memory 7 8. Motivation, emotions and aroused feelings 7 9. Personality, lifestyle and self concept 8 10. References 10 11. Appendix 11 1. Introduction Identifying, evaluating and analyzing consumer behavior is vital business strategy that significantly helps to gain competitive advantage in the industry. In the current environment of cutthroat business, the identification of purchase and consumption behavior of consumers adds to the knowledge base and gives important clue for innovation in the products and services. The paper primarily analyzes purchase and consumption pattern of consumer (myself) as per the purchases made in two weeks’ period from 8th August to 21st August 2011. 2. Situational influences Purchase of goods made during the period could broadly be divided into four categories: convenience good; shopping goods; specialty goods; and unsought goods. While basic needs were responsible for purchasing convenience goods (annexure attached), the shopping items were deemed necessary primarily because of the need to be comfortable within and outside the academic area. The decision to buy shoes and clothes was influenced by the situation. The old pair of shoes was torn and I lacked appropriate clothes for formal occasions. The books and stationery were essential items and constituted important part of my study curricula. The specialty item like Apple iPad was instantaneous buy as all my friends had it and since I had recently received a little extra money from my parents, I thought I could splurge a little in luxury and save in essential. Maybe, reducing the consumption of cigarettes and keeping away from the temptation of going to sales and goods exhibitions would compensate the luxury buy! The purchase decision of unsought items during an exhibition was mainly influenced by its unique carving which attracted me. They were actually abstract buying and probably satisfied deep craving for the items. 3. Consumption perspectives The consumption behavior is subtle but complex process that takes into considerations various factors like perception of need for the product that could be influenced by personal choice or external elements. Perceiving the need for good can be triggered by the basic human need or through other media like advertisement. I had bought the Apple iPad because I had gathered the information from my friends and acquaintances who had bought the product and knew its super utility and functions. After sales service was also important issue while buying shoes and iPad. Lee et al. (2002) assert that when the consumer experiences satisfaction in relation to the consumption, possession, maintenance, life cycle and the after sales service of the product purchased, he tends to repeat the purchase decisions. Pair of Nike shoes was bought because of satisfaction with the good. The other convenience goods had long term satisfaction history so needed no reference or external influences for buying the goods. In the current environment, the hedonistic and experiential goods have become major competitor of utilitarian products and services. Hedonistic goods are distinct in their pleasure that buyer receives when he/she consumes that good or uses it. The various goods that promote lifestyle statements are important examples of such goods. Experiential consumption, on the other hand is not need based but describes the consumption pattern of new breed of buyers who are motivated by mass culture of representative values of goods and services. It differs from the hedonistic goods mainly in its feedback and conceptualization aspect. While hedonistic goods give pleasure to the buyer, with or without consumption, the experiential goods are just bought because they represent something important to the society at large. The goods could be bought as a status symbol, even though they do not have any perceived value or satisfaction. I could perhaps keep my purchases of iPad, knives, magazine and decorative items under this category as they were also bought because of the above mentioned motives. 4. Value The convenience good were bought for their value and shopping goods were branded that gave them the credibility of value and quality. Since I was previously also using the shoes of same brand, I was well aware of its performance under rugged condition. The purchase and consumption of non sought goods mainly relied on its aesthetic value. 5. Satisfaction I was highly satisfied with my purchases of Nike shoes and Apple iPad. They not only satisfied my inner self but gave me distinct status within the peer group and community. Apple iPad was a latest craze and possessing it made me very happy. The carved knives and decoration items looked nice on shelf and became my prized possession when my friends envied for buying such unique multipurpose knives. The only item that did not give value to its price was the magazine. It had no article that was worth reading and the purchase was total waste of money. The food items like pizza, cold drinks etc. are important palate satisfying items that were necessary. 6. Relationship quality The Nike shoes and Apple iPad were items that were my favorite purchases. Their quality, performance and credible brand had already created special relationship that had ensured that I not only would recommend their purchase and re-purchase to others but I was motivated to become their committed consumer. 7. Perception, learning and memory Perception and learning and memory become are also critical elements of consumer behavior. Nike, iPad, Pizza, knives and grocery items were five items whose purchase decision was influenced by their perceived value and cognitive learning theory. The perceived need for the goods and services can be triggered by memory of the advertisement or otherwise that can contribute towards effective decision making for the purchase of the good. The items were regularly advertised, thereby increasing their perceived value. The grocery items had perceived value derived through long use. Interestingly, cognitive learning becomes hugely important as it suggests that that through various means of learning processes, people can retain the information in the memory and apply it as and when required. Advertisements clearly demonstrate this theory because it is easier for consumer to recall visuals and the textual contents of the advertisement if they appeal them. Indeed, it is reflected in the behavioral pattern of the people who may or may not become their customer. 8. Motivation, emotion and aroused feeling These are important imperatives that not only influence purchase and consumption behavior but considerably contribute towards new mechanisms of impulse buy. Toy car iPad, Pizza, knives and decorative items were five items that were bought they were associated with intense feeling. iPad aroused intense longing for making a social statement while toy car, knives, decoration items and pizza reminded me of home. The unsought items that I had bought could very well come under this parameter. I was motivated to buy those products because sudden feeling of homesickness was aroused when I saw those items in the shop. Such items clutter my room at home and I was motivated to buy those items primarily so that my hostel room would resemble my room at home. Indeed, various motivation aspects like personal wellbeing, environment, homesickness etc. have increasingly become strong factors to influence the buying behavior for goods that accommodate these factors. 9. Personality, lifestyle and self-concept Motivation for buying a product is considerably impacted by the personality and self-concept of the consumer. Self-concept can broadly be defined as the way one perceives or likes to perceive himself/herself. On the other hand, personality is how other people see them or interpret the person’s general appearance. Nike, iPad, clothes, cigarette and fashion magazine were bought primarily to emphasise higher social status as these items had their own brand value associated not only with quality but also with their higher cost. Fashions and changing trends highlight this motivating factor. People tend to be influenced by the changing trends in the society and cultivate attributes and embrace living styles that reflect their new values, tastes and personal preferences. Purchase of iPad was bought for this reason! Scholars believe that motivated behaviour is need driven and fills desired goals (Arnould et al., 2004). Products bought as a lifestyle statement are prompted by motivated goal. It becomes the major determinant as to how people like to spend money and to what extent, they are ready to change their personality to suit changing lifestyle. Luxury brands, fashions and trends indicate changing lifestyle patterns which are adopted to keep up with change. Reference Arnould, Eric & Price, Linda & Zinkhan, George. Consumers. 2nd Edition. US:McGraw-Hill, 2004. Lee, Dong-Jin, M. Joseph Sirgy, Val Larsen, and Newell D. Wright. Developing a subjective measure of consumer well-being. Journal of Macromarketing, 22(2), 158-69, 2002. Appendix Purchase details Dates In August 2011 Purchase Item 1 Item 2 Item 3 8th Nike shoes 9th Cigarettes Snacks 10th Milk Bread Butter 11th Cold drink Pizza 12th Cigarettes 13th Grocery Milk Bread 14th Clothes 15th Book and stationary 16th Magazine Cigarettes 17th Apple iPad Milk Bread 18th 19th Decoration item 20th Grocery Cigarettes 21st 3 carved knives Toy car Classification of goods purchased Number Convenience goods Shopping goods Specialty goods Non sought items 1. Grocery and grooming items Clothes Apple iPad Carved Knives 2. Cigarette Nike Shoes Toy car 3. Milk & Bread Books Decoration items 4. Pizza Stationery Magazine Consumption choice Number Rational Experiential perspective Behavioral choice 1. Grocery, Milk and Bread Carved knives and toy car Cigarettes 2. Books Decoration items Nike shoes 3. Stationery Apple iPad 4. Magazine Classification of purchase based on hedonistic and utilitarian value Number Hedonic Utilitarian 1. Cigarettes Grocery 2. Pizza Books and stationery 3. Apple iPad Shoes 4. Carved knives snacks 5. Toy car Milk and bread 6. Decoration items 7. Magazine Read More