Consumer behaviour updated Essay

Consumer

Behaviour

Price & M emory

Fathmath Shakir (Student ID :

S18021185)

Lecturer: Khadheeja Siuna

Words: 2528

Executive summary

This report reviews research and theory on human memory, emphasizing key findings

and concepts of importance to consumer choice . Due to time constraint, only limited numbers

of persons are contacted.

Contents

Executive summary ………………………….. ………………………….. ………………………….. ………………………….. ….. 1

Introduction: ………………………….. ………………………….. ………………………….. ………………………….. …………… 3

Hypothesis ………………………….. ………………………….. ………………………….. ………………………….. ……………….. 3

Procedures / Methodology ………………………….. ………………………….. ………………………….. …………………….. 4

Results / Analysis and findings ………………………….. ………………………….. ………………………….. ……………… 4

Conclusion an Marketing Implications ………………………….. ………………………….. ………………………….. ….. 9

Limitation and possible follow ups ………………………….. ………………………….. ………………………….. ………. 10

References. ………………………….. ………………………….. ………………………….. ………………………….. …………….. 11

Introduction :

“Without understanding how memory works it will not be possible to fully appreciate

how consumers reason, make decisions and solve problems, since most consumer decisions

are dependent on memory” (Jansson -Boyd, 2010).

Memory is “An active mental system that

receives, stores, organises, alters and recovers information” (Baddeley, 1990) . Consumer

memory refers to the processes that allow us to record and later retrieve experiences and

information related to products, services, and consumption experiences. Consumer memory

can be represented as an associative network or a massive network of associated ideas and

concepts. Memory processes are important because consumers act based on cognitions,

which are stored in memory and influence how incoming stimuli are interpreted.

The

challenge for marketers is to have consumers remember your name and brand in prefer ence to

those of competitors .

Memory plays a major role in consumer choice. The specific inferences drawn by

customers from product stimuli, advertising, word of mouth and other sources of product –

related information are heavily dependent upon what data

are in the memory and how they are organized. Memory

refers to a consumer’s ability to understand the marketing

messages and assign them value and meaning. Value and

meaning always together. The value and meaning

assigned is largely determined by internal factors,

(thoughts, feelings, emotion, attitude, perception,

motivation, personality and life style.) Which are

different for each consumer.

The purpose of this study is to evaluate and understand the recall and memory of

consumers. What are the variables that affect their recall function and how this affects their

buying behavior? This study also will help to understand the implications of memory and

recall in marketing strategies of th e products of 3S Supermarket.

Hypothesis

1. Consumer has a strong memory while buying durable goods

2. Customers mood have an impact on purchasing decision.

3. Packaging and branding will have a huge effect on consumer perception.

4. Women’s remember the prices of the products more than men’s do .

Procedures / Methodology

To do this research I observed the behavior of total 10 people of different age group,

while they were shopping. I accompanied these peo ple while they went to shopping at 3S

supermarket. I made sure that they do not know that I was monitoring, predicting and

understanding the behavior of them. I observe d how and what factors they were considering

before taking the decision.

In addition, to do this research I conducted a qualitative research. I went to shopping at

different time with different people. For this research, I took five women’s and five men’s.

For each one it took around 15 minutes. After they finished shopping I asked some question

regarding the prices. Before that, I asked the actual receipt from the shopkeeper so that I will

know the actual price easily.

Results / Analysis and findings

The age groups which was taken to conduct this research is ages between 18 -25 , 25 -35

, 35 -45 , 45 -55 and 55 -65. After the researches which I have done I get to know that even a

couple of seconds after they pick a product from the shelves most of the consumers are

unable to recall its correct price. Below there are analyzes of the some questions which I have

asked from the consumers.

1. Which type of products does you remember the prices?

As per as the result of the survey it shows that 60% of the people who have

participated in this survey remembers the prices of durable goods and 40% of people

remembers the prices of non -durable goods.

60%

40%

0%

Goods Bought buy consumers

durable goods Non-durable goods

Therefore, as per this result it shows that most of the consumers remember the prices

of durable goods rather than their daily basis products. This low recall level may be due to a

lack of attention and motivation by the consumer or the distraction n the store environment.

Durables have an extended product life and are not typically worn out or consumed quickly

when you use them. Since they are made to last, durable goods are often times more

expensive than non -durable goods that have to be purchased repeatedly over a short period of

time. Durables goods are expensive and when they have to spe nd more at a time they says

that they do remember the prices most of the time. For example, if we spend more amount of

money at one moment it will stick to our mind. Refrigerator , TV and other expensive goods

prices will be memorized easily.

2. Does your mood plays the important role while shopping?

While observing the customer does, I got to know that customer’s mood have an

impact on purchasing decision. A person’s mood or

physiological condition at the time of purchase can

have a major impact on what is bought and can affect

how products are evaluated. A specific mood is some

combination of pleasure and arousal. In general, a mood

state biases judgments of products and services in that

direction. Simply consumers like things much better

when they are in a good mood. Consumer’s mood can be changed with music in shopping

environment also. Moods can be affected by store design, the weather of other factors

specific to the consumer. In addition, music and television programming c an affect mood;

this has important consequences for commercials. When consumers hear happy music or

Watch happy programs they have more positive reactions to the commercials and products

especially when marketing appeals are aimed at arousing emotional rea ctions.

90%

10%

Role of mood

yes No

The result shown in the pie chat shows that 90% of people says that their mood plays

an important role while purchasing the good. When their mood is happy while they are

purchasing something, they do remember the prices. 10% of people say that mood does not

play any role while purchasing.

3. When you see an advertisement how much does it effect to your memory while

purchasing that product?

Most of the time consumers buying behavior depends on liking or disliking of

consumer to wards the advertisement of the product advertised . A good quality advertisement

is likely to influence consumers into buying that product while a poor quality advertisement

will do the opposite.

A good quality advertisement plays a very importa nt role to remember the prices.

People who are busy at their lives they may not remember the prices of the things that they

buy. However, when they see a quality advertisement that will stick to their mind and will

remember easily.

From the survey, 30% of the people say that advertisement does not help

them. However, 70% of people say that advertisement does help them to memorize the prizes

of the products. In addition, they say that especially the quality advertisements are useful for

their lives. A quality advertisement is enough to change your believes regarding a product

which you dislike before.

4. Does Branding and packaging help you to memorize the prizes of the product?

70%

30%

Advertisement effectiveness

effect not effect

The primary purpose of packaging is to protect the product, but companies

can use packaging as an instrument for promoting their marketing offer, and for boosting

their sales. A good packaging helps to identify and differentiate products to the consumer s.

Packaging is used for easily delivery and safety purpose. Packaging helps companies

differentiate the product from other brand.

Customers are drawn more than anything , to products that look good. Something that is well

designed and interesting is bound to attract more potential customers than a product that is

poorly designed and looks bland. This is the importance of packaging design. It is, after all,

the key part in marketing a product and ensuring it sells. It is also the key part in associating a

brand to a certain thing whether it a color or a font. What that means, essentially, is that

customers that are drawn to a package are bound to remember it later down the road before

coming back to the product.

When someone talks about a brand th at you want to buy. Obviously, you will search

the information you need. The best example we can take is “Apple brand”. Whenever a

person say apple brand your mind will signal you that it is a quality product. We do

remember the prizes of branded and quality products.

This pie chart shows the result that say 60% of the people who participated in

the survey says that the packaging and the branding does affect their memory. The quality

branding and packaging plays important role in their mind to remember the product prices.

However, 40% of people say that it does not affect their mind. When the packaging is

colorful, also it will attract the customer’s attention easily. This 60% of people says that

branding and the information that was included in the package is very important to them.

60%

40%

Memorizing the brand name and prizes

yes No

Because whenever they want to remember the product prize, the colorful packaging and the

good brand will help.

5. When did you mostly remember the prizes?

Most of the customers say that they do remember the prices when they are short

of money. The lesser amount of money they have they remember the prices. At the end of the

month mostly everyone will have less amount of money, so that they will remember the

prizes of ea ch product they buy. When they have enough money to buy the products which

they need they does not concern more about the prize.

Females go for shopping more than males. Therefore females do remember the

prices of products more than males. Mostly every house males does buy durable goods like

refrigerator, Air conditioner, TV etc… so they remember the prices of those goods more than

women’s . From the survey, which I conducted, I got to know that men’s long term memory is

higher than women’s. However, female’s short -term memory is much higher than men’s.

Because they do shop for household chores every day. Females have strong memory when it

comes to house hold items and cooking item. They remember the prizes of vegetables, fruits,

meat etc…

Different age has different level of memorizing power.

Youth ages between 18 -25 does not worry much about the

prices. They looks for the products, which satisfy their wants.

They do not pay any attention to the prices. Ages between 25 to

35, they are mature are people. Some of they remember the

prizes of products they bought. Women’s on this age group

usually remembers the prizes of every product they bought.

While shopping I observed them and noticed that they look for a good brand and they read

the instruction before they purchase. Instead, some of the men’s does not care about the brand

and packaging.

Ages between 35 -45 do pay attention to the prizes of products, which they buy.

Women’s on this age group does remember the items like vegetables, utensils etc… because

most of them are housewives and they do house chores. Men’s in this a ge group also

remembers some product. The age group of 45 -55 and 55 -65 mostly they do not know the

prices properly. They do ask the prices from the shopkeeper, but usually they forgot once

shopping is done.

Conclusion an Marketing Implications

How do you, as a marketer, ensure that you are doing everything that you can to

reach your customers? You first must understand how the consumer makes their choices.

This requires an understanding of the consumer decision -making process model . The

consu mer makes both rational and emotional choices when they are shopping, but that is

not their entire decision -making process. To truly understand how to market, you must

have a firm understanding of where your consumer has thought process lies. Your

marketin g materials, therefore, should represent not just the basic steps of consumer

choices, but play to your target demographics’ thought process.

A company marketing its products constantly strives to make the consumers form a

positive and favorable perception about the company and its products. For this the stimuli

sent out by the company through its messages, the branding, packaging, advertisements and

the very products themselves should stand out. They should be designed to be noticeable

among the din of other stimuli. Some plans to make the stimuli stand out are:

1. By contrasting

Inviting attention to an advertisement by employing contrast with the

surrounding in size, color, or style is common. Printing a teasing massage or using

different symbols and languages printing a massage, which will suit in this category.

2. By Motivating:

By a proper design of the messages, the promoter can catch the eye of the

individual who are disappointed with a specific circumstance. Their v iew of the

reason for disappointment can be shaped and a positive discernment about the

arrangement made . For example, we can take toothpaste. Some people have sensitive

gum and teeth. Looking to the circumstances, we can prefer good toothpaste, which is

made for sensitive tooth. This will help the person as well as the disappointment of

the person will

How do you, as a marketer, ensure that you are doing everything that you

can to reach your customers? You first must understand how the consume r makes

their choices. This requires an understanding of the consumer decision -making

process model.

Limitation and possible follow ups

To conduct this survey I have faced some limitations. First thing is that it is

difficult to choose a person to go for shopping. In addition, due to the busy schedule of

everyone it is very difficult to get time. When I was ready, the one who wants go for

shopping will be busy. The timing did not match.

I have chosen diff erent age groups for the survey and it was difficult to get

different ages people.

To conduct this survey I have select ed consumers from only one shop. In

addition, only 10 customers conducted it. To get the perception and the beh avior again

product of consumers it is better to do with more customers with different supermarket rather

than one supermarket.

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