Consumer Behavior

CONSUMER BEHAVIOR.

Tony

Business Series

Introduction.

Consumers are a central pillar of all business activities. Therefore, it is imperative for business entities to study the processes used by consumers to select and purchase goods and services that they need. The marketer must also understand the needs of consumers when branding and advertising their products and services. Hence, a working knowledge of consumer behavior and marketing mix is essential to all businesses and marketers (Blackwell, R., Miniard, P., & Engel, J. 2006, 113).

Marketing mix is a blend or combination of several specific marketing techniques in the processes of packaging, pricing, advertising and related activities aimed at promoting the sale of a good or service. Marketing mix is thus important because it promotes the sale of goods and services (Luan, J. & Sudhir, K., 2010). It is also a vital business tool used by marketers in the determination of the product’s offer (Yoo, B., Donthu, N., & Lee, S., 2000, 203). It is traditionally associated with 4 P’s: price, place, product and promotion of such products on offer. Currently, the 4P’s are gradually being replaced by the 4 Cs theories in order to address the customer driven nature of business. This is an outcome of studies done on consumer behavior. The 4 Cs theories are categorized into two: Lauterborn's 4 Cs and Shimizu's 4 Cs. Lauterborn's 4 Cs are consumer, cost/price, communication and convenience; while Shimizu's 4 Cs are commodity, cost/price, communication and channel(East, R., Wright, M., & Vanhuele, M., 2013, 171).

Consumer buying behavior is also known simply as consumer behavior. Consumer behavior refers to the study of the decision-making processes and physical activities undertaken by persons and/or organizations in order to select, acquire, utilize and then dispose of the purchased products or services. It also evaluates the impact of such processes and activities on the individual consumers and the society at large. Apart from the above factors that influence the buying behavior of consumers; consumer behaviour also studies how consumers are influenced by external factors such as family, peers, friends, religion, reference group and the wider society (Blackwell, R., Miniard, P., & Engel, J. 2006, 131). It thus incorporates and blends together information acquired from diverse fields such as psychology, economics, demography, sociology, behavioral sciences and social anthropology (Foxall, G., ‎ Goldsmith, R., & ‎Brown, S. 2005, 115).

According to the definition of consumer behavior, the consumer can be a user, purchaser or payer depending on the prevailing circumstances. On the other hand, consumer behavior lacks the inherent characteristic of predictability, and it is thus augmented by relationship marketing in the affirmation of its conclusions. Such conclusions are applicable to the business environment as they enhance customer relationship management, consumer retention and marketing customization (Blackwell, R., Miniard, P., & Engel, J. 2006, 233).

Consumer behavior is also related to social functions such as welfare functions and social choice. For instance, utilization of Arrow’s possibility theorem in social function results in the attainment of social welfare function. Social functions possess the following specifications: anonymity, unanimity, decisiveness, homogeneity, neutrality, monotonicity and variations in Pareto optimality. However, on the ordinal scale of the above stated specifications, none of the social functions possesses all the specifications simultaneously. Thus, the chief characteristic of social functions is the identification of interactive effects of achievable alternatives in the decision-making processes of the consumers. It can, therefore, be inferred that consumer behavior influences the production system from the initial production level to the final segment of the system: the consumer (Schiffman, L., &Kanuk, L., 2010, 87).

The following report is about a medical product that lowers the lipid levels in the body by altering its rate of metabolism. The brand selected for this report is Lipitor. The report will be looking into the various components of the marketing strategies used by marketers to promote the sale of Lipitor to the general population. The model analyzed for Lipitor marketing is the Consumer Decision Process Model.

Lipitor.

Lipitor is a lipid lowering agent whose mode of action is inhibition of the fat-metabolizing enzyme (HMG-CoA) thus altering the metabolism of fats by the body. Lipitor is a brand name, and its equivalent non-proprietary name is atovarstatin (Black, M., Bakker-Arkema, G., &Nawrocki, W. 1998, 577). The psychological and sociological factors after the marketing of Lipitor are discussed below.

Sociological factors.

Among the most potent sociological factors that significantly influence consumer behavior are the marketing stimuli. There are various stimuli from marketing mix elements that do influence consumer responses. These stimuli are product, price, place and promotion. These stimuli do trigger and influence the decision making process of the consumer as described hereafter. These stimuli do interact with consumer characteristics such as decision-making process and consumer responses. The consumer has identified a need or want that must be satisfied, and its satisfaction is assured by the purchase of a specific tangible or intangible product. The product is usually subjected to a life-cycle and this influences the product mix thus determining the configuration of the product development strategy and also its availability in the market. This, in turn, influences the price of the product in the market (Evans, M., Jamal, A., & Foxall, G. 2010, 107). For instance, a low supply of a superior quality product would result in that product being sold at a high price. This may necessitate the consumer to search for other viable alternatives to that product. However, if the product is valued by the consumer, he/she is likely to purchase it at such a high price. Such purchases influence the profitability of the company, and in turn this determines the viability of its business operations. Also, the method used by marketers in the promotion of the product does influence consumer responses as the consumer is likely to purchase an appositely advertised product from a reputable company. Moreover, the consumer is likely to purchase a product that can be conveniently accessed. Thus, the distribution of products to places which can be conveniently accessed by consumers will result in an increase in the sales volume (Solomon, M., ‎ Bamossy, G., ‎&Askegaardet, S., 2006, 177).

The other general sociological factors that affect consumer behavior are discussed below. A product advertised using culturally-sensitive theme is more likely to be purchased by consumers. Also, a product advertised and/or associated with a specific social class is likely to be purchased by a consumer who wants to be associated with that specific social class. Likewise, products associated with a specific reference group are likely to be purchased by consumers who want to be associated with that specific reference group. Furthermore, products that are advertised using themes that promote family values are likely to be purchased by consumers who value family life. Moreover, the consumer is influenced by the societal perception of a product.

The sociological factors that affect consumer behavior in relation to Lipitor are discussed below.

From a sociological perspective, the brand is influenced by personality associated with the advert (Maehle, N., Otnes, C., &Supphellen, M., 2011). The advertisement picture below does show a healthy person who has recovered his functional capabilities after suffering from a stroke or a related cardiovascular condition caused by high lipid levels in the serum. This advert creates the personality of a healthy person who had his health restored after using Lipitor.

The packaging of a product is one of the components of the marketing mix. Packaging also makes a product to be socially appealing and therefore gain social acceptance. For Lipitor, its packaging shows that the product is manufactured by a reputable company whose social profile is exemplary.  Sample packages are shown in the photo advertisement below (Lipitor, n.d).

Moreover, the contents of the product do influence social acceptance as well-formulated and quality contents do lead to positive post-purchaase evaluation, and this improves the sale of that product. The product contents of Lipitor are depicted by the adverts shown below. They do showcase the mastery of formulation of the drug tablets and its packages.

Various product displays in chemists are shown in the advert below. Appropriate display of the product enhances social approval and this enhances the sale of the drug (East, R., Wright, M., & Vanhuele, M., 2013, 45).

To bolster positive post-product evaluation and social acceptance, the product must clearly state the benefits that it offers to the consumer. For Lipitor, the company states that its beneficial effects are visible within a period of two week time as laboratory test start to show a decrease in serum triglyceride levels. Such a decrease in serum triglyceride levels do reduces the probability of a person suffering a heart attack during the course of treatment with Lipitor (Lipitor, n.d). This information can also be inferred from the advertisement below.

Lipitor does cost about £10 per tablet with shopping malls selling it at a discount of about 10%. Such bulk purchases are given quantity discount by the company (Lipitor, n.d). This shows the consumer that the company is sensitive to their financial status, and this will result in positive product review, which in turn augments the level of social acceptance.

Psychological Factors.

The general psychological factors affecting consumer behavior are discussed hereafter. To begin with, both the brand and user personalities do have a significant influence in consumer behavior. The personality of a consumer will determine which specific brand of product he/she will purchase as individuals purchase brands that reflect their personalities. The brand personality determines the brand image and such an image are transformed into symbols by consumers. Consumers desire to be associated with the symbols do lead to increased sales of the corresponding brands. Also, positive post-purchase evaluation does act as a positive reinforcement that compels the consumer to purchase a particular brand.

The psychological factors that affect consumer behavior in relation to Lipitor are discussed below.

1.     Brand.  

The identifier of a brand is its name. In case of Lipitor, the brand does add value to the product because it is easy to recall. Also, the prefix Lipi in Lipitor indicates that it manages problems concerning lipid metabolism. Moreover, the fact that the brand name is associated with a reputable international pharmaceutical corporation (Pfizer Pharmaceuticals) lends credence to its claims concerning its ability to control lipid levels in the body (Maehle, N., Otnes, C., &Supphellen, M., 2011).

Psychologically, the product description convinces the consumer that the product has been certified by the manufacturer, and a s such it is safe for human consumption. The product description of Lipitor is described below. Lipitor® whose active compound is atorvastatin calcium is formulated as tablets which are packaged as shown in the photo advertisement below (Lipitor, n.d).

Marketing Elements.

From a psychological point of view; the photograph of a fair looking adult female patient in the advertisement above is meant to generate an emotional response. Also in the advertisement, when the photograph of the adult woman is combined with the photograph of the tablet package in order to enhance recall of the drug name. This concept can also be seen in the advertisement photograph below

In this advert, the use of a serene background which depicts a calm climate covering a mountain range is meant to generate an emotional response which when combined with common knowledge about mountain retreats, it creates nostalgia. Also, nostalgia is created by the romantic message on the advert. This can also be seen as an aspect of psychological conditioning as the romantic message displayed on a serene mountain range background is meant to elicit the recall of the drug name: Lipitor.

The product contents are depicted by the adverts shown below. They do showcase the mastery of formulation of the drug tablets and its packages. They also show that the weight of the contents corresponds to the weight displayed on the package.

This shows the consumer that the company values integrity; and, this has the psychological value of assuring the consumer that the other claims of the product care true. Moreover, it enables the consumers to belief with certainty that Lipitor will decrease their serum triglyceride levels and therefore offer them the benefits that the drug affords.

To further convince the consumer that Lipitor is safe and dependable, the company developed as advertisement shown below which shows the consumer that Lipitor has been tried and its efficacy ascertained (Lipitor, n.d).

The product description also states that Lipitor has a proven track record of efficacy. Moreover, to lend more credence to its efficacy, Lipitor marketing department has released brochures that provide a description of how Lipitor has fared in 400 clinical studies which has involved about 80,000 patients. The product description also identifies the side effects associated with the drug. The side effects stated are muscle pain, diarrhea, joint pain, upset stomach and changes in several blood tests (Lipitor, n.d). Psychologically, this information is meant to convince the consumer that the drug has no adverse effects and therefore reduce the anxiety associated with purchasing and consuming drugs.

The advertisement for Lipitor possesses a health theme, and they also show that the product is for people at risk of hyperlipidemias and their consequent negative outcome as the advert below shows (Lipitor, n.d). Psychologically, the association of a heath theme and drug is meant to elicit the consumer to worry about his or her health and therefore consider purchasing the drug.

Consumer Decision Process (CDP) Model.

In the CDP model, the need must first be identified. Also, the problem must be recognized. CDP model also postulates that motivation for benefits is the main psychological drive that compels the consumer to purchase a particular product (East, R., Wright, M., &Vanhuele, M., 2013, 225).

In this case, the need is identified as the requirement to lower high lipid serum levels. The problem is recognized as high lipid levels in serum thus predisposing the person to a myriad of negative outcomes such as heart attacks, coronary artery disease, myocardial infarction, xanthomatas and cerebrovascular accidents. Also, due to changes in diet and lifestyle, many people are currently affected by a pathologic derangement of lipid metabolism, and current epidemiological statistics do forecast that the number of people affected will increase in the near future as more people migrate to urban areas and also change the lifestyle to a sedentary system. This creates a huge market for Lipitor. In this case, the need is triggered by internal stimuli (High levels of serum lipid concentrations). The need recognition is also influenced by the individual’s perceptions of an ideal desired state (which is usually dictated by the audiovisual advertisements of most medications), improvements in diagnosis and management of the condition, innovations that ensure efficiency in managing the medical condition, emotional value expressed by an advert, ego appeals and disorganization of the schemata of self (Hawkins, D., Best, R., & Coney, K. 1983, 71). According to Maslow’s hierarchy of needs, a person must fulfill the needs of a lower hierarchy before attempting to fulfill needs of a higher hierarchy, for instance, a person must fulfill the physiological and psychological needs before he or she fulfills the security needs. The need to combat high lipid levels in the body is a physiological need, and as such it is given the utmost priority by most patients. Thus, the consumers will consider the product (Lipitor) as an object for motive achievement as depicted by the advert below which appeals to consumers to acknowledge that high cholesterol levels leads to a negative outcome and eventually death. Moreover, the patient is psychologically motivated by the advert to worry about his or her health status. Thus, in order for the consumer to avoid either of the two, he or she needs to purchase Lipitor which will maintain his cholesterol (lipid) levels within normal limits (East, R., Wright, M., &Vanhuele, M., 2013, 300).

Once the consumer has identified a need or recognized a problem, he or she will then search for information with the aim of finding out if there are possible solutions to his or her problems. During this search, the consumer analyzes both the external and internal business environments in order to identify and select reliable sources of information concerning the management of his or her problem. It is at this point that the consumer relies on various forms of advertisement to get the necessary information. Thus, in order for marketers to demonstrate that the brand does satisfy the specific needs of their consumers, they have resorted to the use of scientific findings and results done during clinical trials as depicted the adverts below (East, R., Wright, M., & Vanhuele, M., 2013, 244). The benefits of Lipitor usage have been indicated in advert brochures as the following: reduction in blood triglyceride levels, improvement of heart health and a reduction in the risk of stroke, heart attack and chest pain. In order also for marketers to show that the drug does deliver benefits, they have incorporated information in their adverts, which shows that Lipitor reduces the chances of heart diseases or that Lipitor improves the quality of life in patients who have suffered heart attacks. This is depicted by the adverts shown below. Psychologically, these adverts are meant to convince the patient that Lipitor will improve their health.

The benefits outlined by the marketers does influence the consumers to verify if the information provided in the advertisement concerning the drug and its potential benefits is true. At this point, they may search for approval ratings of the drug by recognized scientific and medical entities, or they may rely on the reputation of the company to consistently produce high-quality drugs. In this case, most consumers will rely on the reputation of Pfizer as a well-known and reputable company which has a history of sponsoring legitimate scientific research, studies and clinical trials of drugs. The consumer may also at the same time seek for information on alternative behavioral changes that are likely to reduce the lipid levels in the body or combat the negative outcomes of such high serum lipid levels. If the alternatives of behavioral change is unfeasible to the consumer, he or she is then obliged to purchase a lipid lowering drug such as Lipitor (Lipitor, n.d).

The means-end-chain model would allow the consumer to link his or her needs (or problems) to the appropriate brand of product. Such a brand must have favourable value consequences. During the process of evaluation of the alternative brands of lipid lowering agents, the means-end-chain model will allow the consumer to select the most appropriate brand. The means-end-chain model has four level of abstraction that are outlined hereafter in their heirachial order: physical attributes of a product, functional consequences, psychosocial consequences and values. For the physical attributes of the product, Lipitor has small tablets and its dosage regimen favors compliance unlike other brands of antilipidemic agents, which either have huge tablets that are difficult to swallow especially when the patient’s throat is narrowed by an intercurrent disease, or their dosage regimen which require frequent administration of the drug (due to short duration of actions) do favor non-compliance. The functional consequences of the product include the immediate tangible results obtained after use of te drug. This includes the side effects associated with the drug. The drug company must, therefore, do its best to ensure that it has documented all the possible beneficial and detrimental effects that the patient may experience after using the drug. Pfizer has done its best to document all the possible effects that Lipitor has on the body. This documentation is found in the product sheet that is contained in the product package. Other anti-lipidemic drugs may omit to list some of the adverse effects caused by the drugs due to fear that such documentation would lead to reduction in the sales of the drug. Thus, it is evident that Pfizer upholds the virtue of integrity and honesty in its reporting, and this in turn results in its drugs gaining a deservedly excellent reputation in the market(East, R., Wright, M., & Vanhuele, M., 2013, 333). Sociologically, such a reputation is important especially when one considers the fact that a reputable brand is associated with symbolic interactionism whereby the brand Lipitor is associated with self actualization, delightfulness, self esteem and wellbeing as shown in the advert below (Lipitor, n.d).

The values abstraction and psychosocial consequences include changes in body habitus and exercise tolerance which in turn alters the way the consumer is perceived by the wider society(East, R., Wright, M., & Vanhuele, M., 2013, 222). This is a socialogical aspect of the drug that influences the consumer to purchase the drug. This is due to the fact that Lipitor does cause improved exercise tolerance and a mesomorphic body build as shown in the figure above, and this has the effect of improving the self-esteem and societal perception of the consumer. Thus, it can be inferred that the motivation to achieve the desired benefit of reduced serum lipid levels and its consequent beneficial effects are likely to prompt the consumer to purchase Lipitor.

The purchase decision is influenced by feedback concerning the drug from other consumers and the consumer’s acceptance of such feedback (Farris, W., & Quelch, J., 1987, 23). This can be considered as a sociological component of purchase decision. According to Fishbein’s multi-attribute attitude model, attitudes towards a particular product are formed from beliefs that arise from experience and/or communication. Since, feedback is the reporting of the attributes of the drugs by people who have used the drug, it can be considered to encompass both aspects of experience and communication. Thus, a negative feedback about  a product is likely to influence the consumer to avoid purchasing that product. Moreover, a persuasive advertisement of a specific brand is likely to influence the consumer to purchase that particular brand(East, R., Wright, M., & Vanhuele, M., 2013, 437). Thus, proper advertisements and positive feedbacks concerning the drug are likely to influence the consumer to purchase the drug (Lavidge, R., & Steiner, J., 1961, 59).

The cognitive processing model is heavily influenced by psychological factors. In the cognitive processing model of consumer decision making process, the consumer evaluates the utility of the product vis-a vis the current problem, and if the product can solve the problem, it is purchased (East, R., Wright, M., & Vanhuele, M., 2013, 501). Thus, an effective lipid lowering agent such as Lipitor is likely to be purchased by consumers who feel that they need to check the lipid levels in their body.

After the product has been purchased, post-purchase evaluation is done by the consumer in order to assess if the product has fulfilled his or her expectations. Positive assessment of such expectations do lead to brand loyalty (East, R., Wright, M., & Vanhuele, M., 2013, 507). Brand loyalty is a psychological factor that would make the consumer to always purchase that particlar brand in exclusion to all other brands (Wilkie, L., 1990, 76).

Conclusion.

It is imperative for business entities to study the processes used by consumers to select and purchase goods and services that they need. An understanding of consumer behaviour would also enable marketers to understand the needs of consumers when branding and advertising their products and services. Marketing mix is important because it promotes the sale of goods and services. There are various stimuli from marketing mix elements that do influence consumer responses. A positive post-purchase evaluation done by the consumer could lead to brand loyalty.

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