Consumer behaviour is “an analysis of the behaviour of individuals and households who buy goods and services for personal consumption”. (Elliot, et al 2010 pp. 103) Mark Fishbein’s Theory of Reasoned Action states that “a consumer’s consumption behaviour is determined by the individual’s intention to perform the behaviour and that this behaviour is a combination of the consumer’s attitude and subjective norm.” (Abraham and Sheeran, 2003, pp. 271). Adapting this theory demonstrates that a key facet for marketers is to interpret consumer behaviour, which can be achieved by understanding and adapting the fundamentals of consumers’ needs, motivations and goals Over the years of research, interpreting consumer behaviour has changed from a simple hierarchal process to varying theories on social constructs which yield consumption behaviour. The continuing plethora of research in modern society has determined that consumption behaviour is a complex marketing relationship which can be influenced by psychological, biological and social influences. Recognising these influences and their effects provides marketers with the opportunity of surviving and growing in a highlight competitive market as seen through Commonwealth Bank and Apple electronics.
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Consumer Needs
A need can be classified as a necessary daily requirement (Elliot, et al 2010). The importance of a need is that it begins the chain reaction which results in consumption behaviour. Consumption behaviour can be captured through steps within the consumer decision making model as stated by Gordon (2004). The initial step of this model is that of problem recognition. This is where a consumer, recognises that a void is present in relation to a personal need or want whether it be in the desired state or actual state. Gordon (2004) demonstrates that a desired state refers to the manner in which an individual anticipates a need to be achieved, whereas an actual state is a reflection of the real approach that has been taken to satisfy the current need.
Regardless of the industry, each producer aims to satisfy the needs of the consumer. As consumer needs vary between individuals, analysts have found it difficult to create a link between the different needs of a consumer and the effect it relays on consumption behaviour. An example of providing such a link is evident in Maslow’s hierarchy of needs as stated in Elliot, et al (2010). This theory postulates that individual needs that have yet to be satisfied influence consumption behaviour, whether these needs be “physical or biological”. In coherence to Maslow’s theory, Cherrier and Murray (2004) illustrate that regardless of differing cultural and social values, all consumers attempt to fill these needs as a means to achieve self actualization. Green and Burke (2007) in relation to Maslow’s theory, emphasise that self actualization is the highest need that can be satisfied by an individual. This notion is evident when evaluating the service of Commonwealth Bank. Over the years of its existence, Commonwealth Bank has built up a reputation in which the organisation classified customer service its main priority. Establishing a mission statement as such, allows consumers to feel as though their individual needs will be attended to and that they will ultimately reach a level of self actualization. The unwavering commitment and success of Commonwealth Bank in the past supports the consumer’s beliefs that these needs will be satisfied.
However, Pepper, et al (2009) demonstrates that the method in which individuals attempt to satisfy their needs is heavily influenced by societal values and the classification of social norms. Pepper, et al (2009) further states that the influence of social norms creates conflict between individual interests and social interests. This ideology can be reflected upon the products of Apple electronics. The Apple revolution is dominating the electronic industry in a manner which reflects the trends and social norms of society. Whilst there have been several technical problems reported with each product released by Apple, this trend appeal is one that has proven to be heavily influential as many consumers are purchasing the Apple range, ignoring the fact that there are other products available on the market, which may satisfy individual needs a higher level. Such an analysis demonstrates that brands which have been classified as the social norm, have an influential effect on that of the consumer, and the manner in which they consume a product as a means to satisfy their needs.
Consumer Motivation
Elliot (2010) identifies motivation as the internal driving force that sparks an individual to satisfy an unfulfilled need. Motivation arises when the intensity of satisfying a need severely increases forcing the individual to rectify this personal disequilibrium. In conjunction, Maslow’s hierarchy of needs illustrates the manner in which individuals attempt to satisfy their pending needs. Green and Burke (2007) parallel Maslow’s concept with the ideology that once needs have been satisfied, motivation no longer exists. This immediately establishes the direct relationship between the two factors. Motivation occurs as a result of a need and is not longer present once a need has been fulfilled.
The direct relationship between consumer needs and motivations highlights the importance of producers being aware of a consumer’s motivation. Identifying the primary motivation enables the producer to provide the consumer with appropriate information which may source their satisfaction in a competitive marketplace (Grant, et al 2007). Through referral of Maslow’s theory, Pincus (2004) supports this claim as he demonstrates that individuals are motivated in all levels of Maslow’s theory. However, the prevailing motivation is dependant upon which lower need in the hierarchy has been fulfilled (Pincus 2004). This ideology is present in the service of the Commonwealth Bank. As the Commonwealth Bank caters for a wide customer base, it is imperative for the service to invoke a variety of motivations that stem from different cultures, genders and age as a means to persuade and attract customers towards the service (McEachern and Warnaby, 2008). The high standard of customer service present within the Commonwealth Bank establishes strong relationships between the service and consumer. This in turn triggers the emotions of the consumer as the service understands their needs and hence can further their motivation. A recent article in the Sydney Morning Herald “Customer Warm to the Big Four” highlights the increase in customer satisfaction on behalf of the Commonwealth Bank which has been brought about through successful motivational appeal. This service demonstrates the necessity in identifying the direct relationship between needs and motivations as both factors influence a consumer’s consumption behaviour.
As previously discussed, Grant, et al (2007), highlights the differing motivations fuelled by consumers. Instead of adapting to all forms of motivations, Apple electronics has focused on two main types – brand and the function of the product. In coherence with the social norms that affect the needs of consumers, Apple has created a positive emotional connection with the brand which in turn forces consumers to submit to the image that they have created. This social influence sparks the motivation of the consumer and provides Apple electronics success in comparison to other competitors in the marketplace as consumers thrive to achieve the status associated with the Apple image. In addition to image, the focus on product functionality exists for the demographic who are not affiliated with social norms. These consumers can still benefit from purchasing Apple products although the spark for their motivation may be different than others. As this product’s consumer base continues to grow, producers may need to expand the types of motivations that they cater for, in order to continually satisfy both new and current consumers. Such an expansion will continually enable Apple electronics to survive and grow in the marketplace as factors which influence consumption behaviour continue to be catered for.
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Consumer Goals
Many theorists have argued that goals are increasingly becoming the main influencer in consumption behaviour. A goal is a measureable result which can contain one or more objectives, and is achieved within a specific time frame, dependant on the individual. Mitchel and Zhang (2005) demonstrate that goals are cognitive principles which reflect the inner nature of an individual. In turn, it can be identified, that motivation must be achieved in order for a goal to progress and ultimately be attained, thus, demonstrating the direct relationship between the two factors.
A key facet to indentifying goals is establishing whether or not these goals are conscious or non conscious (Bargh 2002). A conscious goal is one where the consumer is aware of what they are achieving and what aspects in their environment are influencing their decision. On the other hand, and unconscious goal is one that stems from individual beliefs and values that have often been passed down from generations and which influence a consumer’s life, though, they may not be full aware of it. Large amounts of research have proven the consumption decisions made by consumers are in fact influenced by factors that are unknown to the individuals. In addition, researchers have found that the goals formed by a consumer contain a mix of both conscious and nonconscious aspects (Roberts and Pirog, 2004). Paralleling this theory, Abraham and Sheeran (2003) emphasises the key cognitive aspect encourages goals setting, hence further demonstrating the direct relationship that exists within motivation and goal setting and achieving. Commonwealth Bank is a clear example of a service which has understood the concept of conscious and nonconscious goals within a consumer and the cognitive factors that stimulate a consumer. As previously discussed, Commonwealth bank successful attend to the motivation aspect of their consumers through ensuring high standard of customer service, which attends to all forms of culture, genders and ages. Understanding such a wide demographic allows the service to identify with the nonconscious aspects of consumer goals. These aspects include varying beliefs, values, attitudes and needs, all which influence a consumer in some form or another. Furthermore, Commonwealth Bank thrives to present their consumers with the best resources and technology. This is evident through the existence of Commonwealth Bank’s large IT base, and implementation of smarter sourcing. Accommodating consumers with facilities such as internet banking and ATM’s is essential as consumers are now aware that the service is equipped with the best technology or resources required to satisfy their all their goals. Hence forcing consumers to continually use this service as opposed to others that may be present in the competitive market.
Abraham and Sheeran (2003) found the often consumers fail to act on their intentions or modify their goals due to their external environment, causing goal conflict to occur. This is evident in the product produced by Apple electronics. Whilst there are many consumers who have made a conscious goal to purchase and Apple product, there are many who have not consciously made this decision, but are forced to due to their nonconscious goals. As previously mentioned, this is due to the dominating image that has been created by Apple electronics. The surrounding environment in modern society is heavily influenced by brands and image which in turn affects consumer values and beliefs. In regards to Apple, many consumers have made a conscious goal to purchase an electronic, however, research has shown, that such a consumer purchases an Apple product over another electronic, as there are swayed by nonconscious goals which are influenced by current surroundings. This demonstrates the direct link between motivation and goals as the brand and image motivation pursued by Apple, has successfully forced their consumer to purchase a produce and therefore, provide Apple with growth and survival in the competitive market.
Conclusion
Through the varying theories that have been applied and the discussion of products and services, it can be seen that consumer behaviour is a complex relationship which is determined by a combination of factors. Fishbein and Maslow’s theories form a foundation for marketers to interpret and understand the direct and interdependent relationship between consumer needs, goals and motivations. Further research in relation to consumer behaviour demonstrates the various influences that manipulate an individual’s decision as they impact these three main factors. The differing social, biological and physiological influences that have been illustrated highlight the manner in which consumers can operate in relation to conscious and nonconscious decisions. Ultimately in the modern day society that we live in a consumer’s decision to purchase a product or use a service is heavily influenced by marketing. Therefore, responsibility rests upon marketers to promote a social environment and positive image, which will alter and persuade the consumption behaviour or society.
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