General Discussion of Consumer Behaviour - Paper Example

According to the theory of consumer behaviour, consumers tend to have unlimited wants but limited resources. This principle forms the underlying assumption as to why a number of factors influence consumer behaviour. Typically, the price of a commodity determines how consumers react towards it (Solomon, Russell-Bennett and Previte, 2013, 401). This is because different customers have varying levels of income. For average and low-income earners, a highly priced commodity represents a luxury. However, for high-income earners, the same highly priced commodity accounts for a reliable and high-quality product. Nonetheless, price alone does not influence consumer behaviour. There are other factors such as tastes and preferences, availability of substitutes, and changes in consumers income (Schiffman, L. et.al, 2013, 394).

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Overview of the company and its products

Muscat Haters Industry LLC is a company that specializes in the production of reliable, quality assured, and affordable technological equipment. Currently, the company supplies a large amount of heating and industrial cleaning equipment in several countries. The company offers an array of these two products to help meet consumer prices and preferences. The company produces products for industries such as building, commercial, farming, marine, automotive, mining, and manufacturing. These products come with fully covered customer and after sale services. Like any other successful company, this helps Muscat Heaters develop and maintain good relations with its buyers. Also, it helps the company obtain helpful feedback regarding its products and service delivery.

Discussion of consumer decision-making process

As stated earlier, there are factors influencing consumer behavior. These factors help consumers in making decisions regarding the products to buy. For example, when buying ice cream, a consumers choice is more likely to be influenced by his or her taste as compared to the price of the commodity. Once he or she has established the preferred taste, he or she is going to examine the costs of the seller before making the decision to buy.

A favorable price from a given supplier would encourage the consumer to buy the product. However, if the price on the product is expensive to the consumer, then he or she is likely to start looking for another supplier who offers the same ice cream flavor at an affordable price (Luce, 2015, 218). If the buyer finds his or her preferred ice cream flavor at a reasonable price from another seller, then each of the above factors is said to have influenced his or her decision-making.

Where the buyer finds the same ice cream product being offered at the same expensive price, then he or she is only faced with the choice of buying or foregoing the product. If the buyer chooses to purchase the ice cream, then he or she is said to have adjusted his or her demand. Hence, the supplier will continue supplying it at the same price. However, if the buyer fails to purchase the ice cream, he or she has not adjusted his or her demand. Hence, the supplier is most likely left to change his or her supply of the product.

The supplier can adjust his or her supply depending on how the many consumers of ice cream react to an increase in its price. If the growth in price does not affect the demand for the product from a majority of consumers, then the supplier is likely to continue selling the ice cream at the increased price. In the case where the buyer does not adjust his or her demand while every other buyer has already improved their demand, only a change in his or her income can help regulate it. Therefore, when his or her income increases, his or her purchasing power increases and he or she can purchase the ice cream at the increased price (Amos, 2016, 312).

Analysis of how consumers go through the process of decision making in purchasing the new product

Muscat heaters LLC has just launched a GPS tracking number for all types of vehicles. GPS tracking is a necessary commodity today given the increased use of vehicles round the world. With increased consumption of a commodity comes the need to adjust it to meet needs of a given population (Amos, 2016, 117). For example, in the industrial sector, vehicles provide efficiency in production because they are used to transport heavy raw materials and equipment, which cannot be transported by people. Also, when it comes to individuals, vehicles have provided people with a means of travelling when they want to move easily through locations (Aghdaie, and Alimardani, 2015, 265).

GPS tracking for all types of vehicles provides vehicle owners with the assurance that their vehicles are safe and that they can be traced if need be. Other companies provide GPS tracking systems all over the world. Hence, this provides the company with an equally competitive market. Given there is already a going price range for GPS tracking products and services, the company looks to penetrate the market by offering relatively affordable prices for its products and services.

Providing GPS tracking numbers at an affordable price helps the company in creating a consumer base (Luce, 2015, 890.) As an established product and service provider, most of the companys consumers are industries and commercial enterprises. These consumers are likely to react positively to the new product because they are aware that we offer reliable and quality products. Hence, reliability and quality assurance are the factors which will determine how new buyers interested in GPS tracking numbers will react to the companys product.

The companys increasing experience in product and service delivery throughout the years provides it with a good reputation. This reputation is likely to help new buyers in relating to the reliability of our products. Hence, even though the company has just started providing GPS tracking numbers, the new buyers will be confident when making the decision to purchase the companys product. Similarly, in a market of products such as GPS tracking number, consumers are more focused on the quality of the products. In this case, given the quality of our original products, consumers are also likely to exhibit confidence in their decision to buy the new GPS tracking numbers because they are aware that they are coming from a quality provider.

Conclusion

Given the frequent change in consumer behavior, the company should carefully monitor its consumers reactions to the products to help maintain its clientele. Also, given the competitive nature of the market, the company should be on the lookout for emerging trends to ensure it provides its consumers with up to date GPS tracking numbers.

Reference Lists

Aghdaie, M.H. and Alimardani, M., 2015. Target market selection based on market segment evaluation: a multiple attribute decision making approach. International Journal of Operational Research, 24(3), pp.262-278.

Amos, D., 2016. How to Define Your Target Market.

Luce, M.F., 2015. Consumer Decision Making. The Wiley Blackwell Handbook of Judgment and Decision Making, pp.875-899.

Schiffman, L., O'Cass, A., Paladino, A. and Carlson, J., 2013. Consumer behaviour. Pearson Higher Education AU.

Solomon, M.R., Russell-Bennett, R. and Previte, J., 2013. Consumer behaviour: Buying, having, being. Pearson Australia.