Consumer Behaviour (key concepts, theories, frameworks and models in practice)

Bamossy & Solomon (2016) observed that consumers are the group of people that have been targeted to consume or purchase a particular service for all products. They are a critical part of an organization that leads to an understanding of consumer behavior toward a particular product. Understanding the behavior of customers is critical because it provides an answer to the questions related to why and how customers decide to buy a particular product. Therefore, the organizations often start to invest efforts and money to analyse and evaluate the behavior of a particular group of customers so that it can finally lead them to success. This particular literature is certainly about the consumer behavior toward organic personal care products of the particular company in China.

The concern with organic personal care products has been common among the consumers in China. Many individuals see organic products as a safer option for their utilization. Such aspects are possible because many individuals perceive organic products to be free from questionable ingredients and other chemicals. At present state, the organizations are usually driven by consumers. However, a decision was taken by the consumer concerning organic personal care products and individual consumption experience that plays a primary role (Kalafatis et al., 1999).

It is observed that five-dimensional values namely emotional, epistemic, functional, social and conditional, has been able to affect the decision of consumers. However, the assessment of products by the consumers is based not only on performance and quality but also on the factors related to pleasure and enjoyment. Such dimensional values are often found to be independent which thoroughly influence the choice of the customers. Wilson et al. (2012) identified for distinct values that affect the consumer decision concerning personal care products and organic aspects. These include social, performance, price or value for money, and emotional factors. Such factors support consumer behavior and attitude during purchase. These factors are also able to support the perception of the consumer toward a particular product related to premium price. However, Solomon (2010) claimed that the purchasing attitude of a specific product depends highly on factors such as personal beliefs and expectations of the consumers.

Such factors state that perceived values are the critical factor that enables the consumers to make a judgment regarding a particular product. Indeed the customer and product interaction have significant value that determines the post-purchase attitudes and behaviours of the individual. Thus, it can be understood that consumer behavior is a critical path of a business related to product or service (Solomon et al., 2014).

The concept of consumer behavior has many definitions. Argyriou & Melewar, (2011) defines it as the display of attitude toward purchasing, disposing, and evaluating the products that can satisfy their demands. Another definition is the study of behavior or attitude concerning the examination of services or products that are purchased by the consumers and how the individuals are influenced by it daily (Schiffman & Wisenblit, 2015). However, the before understanding the concept, it is vital to recognise the primary factor behind it: the decision-making process of the consumer.

Factors Influencing Buying Decisions of Consumers

The decision-making process has been described by Kotler in 2001 (Mihart, 2012). The first step of the decision-making process starts with the recognition of desire or problem. The initial step is critical because it provides a clear picture of the consumers and the need to purchase a particular product. The individuals are required to take action to satisfy the observed need or desire. After the recognition of the need who purchase, the individuals go ahead to the second state, which is searching for information (Carlile, 2002). In this stage, the individuals are required to show an effort to fulfill the need of purchase for searching for the source of information about it. At this time, the consumer is likely to go through different series of information such as advertisements, websites, and stores (Young et al., 2010).

The third step involved the evaluation process where the individuals search for alternatives of the product. At this stage, the consumer starts comparing the products and the brands such that they can meet the appropriate criteria and their head. The next option is the purchase decision that is made by the consumer. In this aspect, the prevention of the actual purchase can be done by the negative review that the individual can read or hear from another person. This stage shows that the individuals actually strive to read the feedback about the chosen product before making a particular decision. The actual purchasing just done by the consumer is the fifth stage (Parsons, Maclaran & Chatzidakis, 2017).

East et al., (2016) shows that consumer buying behavior is influenced by four group factors such as social, psychological, cultural, and personal factors. Among them, social factors unable to have higher influence over the consumer behavior toward buying. The social groups include reference groups, status, family and other friends. Family members profoundly influence the buying behavior of the consumer along with the reference groups. The attitude of the consumer towards purchase is formed by individuals leaning on a particular person or group of people for making a decision (Keller, 2013). It shows that individuals act differently concerning the decision-making process.

The psychological factors pose a higher impact on the behavior of an individual to add the purchase of a particular product. Such psychological impact is usually inspired by a particular individual, celebrity in most cases. It shows that the buying behavior is generally determined by the particular individual or idol. The individuals identify with the idols or the role models and make the important decision regarding purchase (Same & Larimo, 2012).

The most critical role is played by the cultural factor concerning the buying behavior of the consumer. Even to the consumer behavior has been studied by many scholars that usually determined that cultural factors affect it a lot. The cultural aspect has various factors such as geographical location, nationalities, and religion that can further influence the individual behavior of the consumer (Keller, Paramemeswaren & Jacob, 2011). Social classes are another existence of cultural factors that promote own buying behaviour. For instance, a particular individual would not likely to purchase a specific product if it’s against their cultural regulations or background. The last is the personal factors that are determined by personality, economic situation, occupation lifestyles, and age. The consumers determine the behavior based on personal factors depending on current occupation (Carrington, Neville & Whitwell, 2010).

Furthermore, several models are also related to the consumer behavior that motivates the individual to purchase a particular product. Such aspects involved expectancy value, need achievement, and equity models. It has been observed that consumers are profoundly affected by the difference in perception and equity factors. It has been observed that the motivational has a profound impact on the behavior of the customer related to price sensitivity and quality (Bu et al., 2013).

Other than that the knowledge of individual consumers plays a vital role in altering behavior and attitude toward a particular product. Therefore, the consumers that have prepared knowledge about organic personal care products are likely to choose such brands. It has been observed that consumers having more knowledge about organic products are likely to go for such brands rather than non-organic consumers. Information about organic products observed to be taken from past experiences of the individual that affects the consumer purchase decision (Carrington, Neville & Whitwell, 2010).

The primary purpose behind the marketing of the particular product is the satisfaction of the consumer demands. Since the consumers are the critical person for any marketer, it is essential that the individual dislikes and likes are recognised. It is dome so that the organization can attain competitive advantage and the consumers would be ultimately satisfied. The marketers usually predict the consumer behavior before they can sell any service or product out in the market (Kotler, 2013). Such factors help the brand in gaining more loyal consumers, targeting the group of individuals that are interested in the service or product. Several individuals have made efforts to ensure and forecast consumer behavior so that they can attain a higher benefit (Jansson-Boyd, 2010).

The consumer behavior and studies related to it helps in understanding the ability of individuals to have a potential impact on the organization. The marketers are explicitly aiming to ensure that organizations face higher benefit by getting more information about consumer behaviour (Yeon Kim & Chung, 2011).

Such aspects promote the need to have an understanding of consumer behavior that is also acquired by many companies all around the world. More often, it is observed that consumer behavior has been complex that announced the need to have an appropriate understanding of it. In a recent study, it has been observed that shoppers are only able to cover 33% of the entire area of the store in 20 minutes. However, about 58% purchases observed in the stores and markets remain unplanned (Schütte & Ciarlante, 2016). That’s what forces many marketers to find out the primary compelling aspect that forces individual customers toward making an instant decision about purchasing the product.

It has been observed that individual consumers influenced by their needs and desires for purchasing. However, the customers are also often seen to make decisions on a random basis. Zarantonello & Schmitt, (2010) observe that everything decision that the consumers take concerning the purchase of a particular product has a reason behind it depending on social personal or any other factors mentioned above. The purchase can be done in many ways, but the decisions are usually taken related to physical, security, affection, self-esteem, self-performance, and other reasons.

Natural and organic skin care and other personal care products are not new to Chinese consumers. However, new research shows that consumers are a motorcycle for organic personal care products in China and Hong Kong. In the research, it is observed that 69% of the consumers had been belonging to the Chinese and Hong Kong area that chose organic personal care products. A sudden shift towards spending on natural products has been observed to be a recent change in the cosmetic industry (Gordon, Carrigan & Hastings, 2011).

Even though the consumers have shown recent alertness toward the purchasing of organic products in Chinese and Hong Kong area, the unfortunate events about doubtfulness of organic material have acted as obstacles for the companies. In 2012, one such company was going to be labeled as organic, but the certification was canceled by China Food and Drug Administration (CFDA). Such aspects created problems for the organizations in China related to natural personal care products. For that, the marketers need to identify the consumer behavior factors that lead them initially toward the organization at first place (Akehurst, Afonso & Martins Gonçalves, 2012).

However, the growing market of Chinese customers concerning organic personal care products cannot be ignored. Certainly, consumer behavior has affected the decision to be made by individual customers. Such a decision has been affected either by the past behaviour, or present scenario concerning the growing market of cosmetic products that harm the skin. Something organic is likely to have a positive image on the consumers in Hong Kong and Chinese area. Certainly, personal care products hold a high value concerning customer behaviour. At this time the organizations make unique strategies to gain competitive advantage (Albert & Merunka, 2013)

With each passing day, the personal care product and cosmetic industry are growing to be the most lucrative, profit earning and stable industry. There is a broad opening for successful launching of organic personal care products which lately is witnessing a rise in its demand in the global market. Organic Trade Associations present across the world are finding a rise in the ‘go green’ spree among the consumers of cosmetic and personal care products, as the later is getting more educated regarding environmental ethics and hazards of the destruction of natural resources (Yeon Kim & Chung, 2011). In the USA, a rise in the demand for organic personal care commodities is the second burgeoning sector just after the well-established organic food market.

To frame effective marketing strategies for widespread acceptance of organic personal care products, market researchers might need to engage themselves in in-depth understanding and analyzing of changing consumer behavior in this segment (Solomon, 2014). A great number of studies has been based on the theory of planned behavior (TBD) by Ajzen (1985). The planned buying behavior of a consumer is determined by the nature of the existing value system of the consumer. The value system of a consumer is highly controlled by the psychological functioning of an individual’s fundamental belief system (Ali, Said & Salleh, 2016). To some consumers value may stand for what one is getting in exchange for what he is giving while to others it can be the essence of achieving the desired result.

Market researchers have a common belief that there should be a common group of consumers who opt for both organic category of food products as well as personal care products. But certain literature on organic food consumption has found opposite tendencies between the buying behavior in these two sectors. It has been found that eco-friendly attitude of the consumers is more active while making purchases in the food sector when compared with the purchase attitude in the personal care products, as the latter manages their external appearances (Reddy, 2018). Various studies show that there can be three dominant factors that drive the attitude of the consumers in the market of personal hair and skin care products: a sense of appearance, health consciousness, and environmental concerns.

Numerous other studies show, an individual may possess a favorable attitude to behave in a way but might change his course of action when faces some sort of difficulty in performing the same. According to Rawat and Garga (2018), such inconsistencies between attitude and intention can be justified by the price factor. Global economic recession and higher price range of green products bar most of the consumers from opting the same when compared with conventional cosmetic skin and hair care products (Ahmad, Omar & Rose, 2015). A greater perceived behavioral control can establish a harmony between buyer attitude and intention when comes to purchasing organic personal care products. Studies conducted across the global markets show that the positive relationship between buyer’s attitude and intention keeps changing from country to country depending on the social, cultural and economic factors of an individual and of the country.

Consumerism in China has evolved with every passing decade since the formation of the Peoples Republic of China and various mechanisms like geopolitical location, values, and norms of Chinese culture and ideology and ongoing socio-political changes form the background in shaping the consumption pattern of consumers in present China. The marketers know people of China have an all-pervading tendency to achieve self-actualization by magnifying their consumption pattern to signify their social status and wealth possession (Kapferer, 2010). 

A thorough examination of Chinese culture and economy will help to understand the pattern of consumer behavior. The vast geographical expansion of the country of China has given rise to various subcultures apart from a dominant Chinese culture, which in turn characterise market mix price, brand name identification, product positioning and promotional proceedings. Similar form of lifestyle patterns give birth to social classes which in turn characterize the educational levels and values and communication styles (Liu & Wong, 2013). Apart from social and cultural factors, economic factors like household income, residential location, and local economic zones directly impact the consumption style and standards of consumers in China.

Preferences towards home furnishings, clothing, modes of entertainment and gaming consoles and automobiles are the outcome of the joint influences of the social, economic and cultural background of an individual. There are various sources like personal, public, commercial and experiential from where a buyer can gain knowledge regarding his future purchase plan. A comprehensive market study will help market researchers to identify the most dominant source of information.

An average Chinese family invests lion’s share of the household income on education, healthcare and wellbeing of children and youth in the family. Children play a crucial role in the family and top the priority list also during any major purchase decisions made by the adult family members (Goetze, 2011). Most of the literature on the Chinese economy and market strategy highlights the fact that Chinese consumers of this decade indulge too much in foreign versus domestic brands and on the macro level functioning of the Chinese economy. Consumerism in present-day China can be well replicated through the term “conspicuous consumption” coined by American economist Thorstein Veblen that defines a state of living where consumption is made to fulfill one’s status benchmark rather than actual need (Connelly, 2008). Various literature findings show that there is a cluster of factors both cultural and economic that reinforce the decision-making styles among Chinese consumers: search for perfection, driven by novelty fashion, recreational benefits, price-conscious consumerism and indecision of being overchoiced (Kim & Seock, 2009). Today’s hyped consumerism in China is the effect of walking in the footsteps of globalization and Western mode of commercialization post-1970’s when the government of the Republic of China opened the nation’s economic door to welcome foreign investments.

In general, a study of the buying behavior of the Chinese consumers reveals that a major segment of the population looks for their money’s worth in the course of their buying process. There has been a rising demand as observed by Kim & Seock, (2009) among the present day consumers to adapt to a western pattern of product consumption with a declining preference towards the traditional Chinese products.  High levels of disposable income and a need for higher levels of education especially amongst the members of the young generation has led them to adapt to healthy lifestyles with a growing concern to protect and conserve the environment which has eventually made them aware of the need of consuming organic products in their daily lives. As per the report of International & International, (2018), 40% of organic consumers constitute this segment of the Chinese population. The foreigners staying in the country as indicated by (Goetze, 2011), due to a relatively higher rate of remuneration and prior knowledge about its benefits are being able to afford organic product for daily care increasingly with time. They have been found to be more interested in buying imported organic products from their home country over the local products thus constituting almost 7% of organic product market share in the competition. The rapid spate of globalization has led the young Chinese population even with moderate earnings to opt for organic daily care products simply out of a growing concern to survive in a healthier and environmentally friendly manner (“Understanding Chinese Consumers – China Business Review”, 2018). This group has been observed by the study of Ghazali, Soon, Mutum & Nguyen, (2017) to have a 3% market share in the organic product segment.

A study of the recent statistics reveals that the business sector with high pay packets constituting almost a market share of 5% has become increasingly inclined towards the consumption of organic products to ensure safety and protect health in the spate of the recent Chinese food scandals (Wang & Cui, 2008). The number of government officials in excess of 40 million employed in various sectors of the economy sharing 10% of the market has been observed according to the “Five New Trends of Chinese Consumers”, (2018), to promote the consumption of organic product in daily life by introducing bonus schemes involving offers of organic personal care products to the employees.  Around 25% of the organic product consumers in China as stated in “10 Trends of Chinese consumers in Cosmetics”, (2018), comprises of single-child families, the families having issues related to health and members returning from foreign countries after completion of professional or academic goals. The rising level of pollutants and harmful chemicals present in the conventional products has led to grave medical conditions thus instigating the population to settle for organic products for daily use and personal care which guarantees health benefits from long-term consumption. A survey on the buying behavior of Chinese consumers by (China, 2018), revealed that about 71% of the people are ready to pay a premium price of almost 50% for organic daily care products.

It, therefore, can be concluded that success in market competition can result from adopting measures that ensure certification of quality, safety, and health value in the organic personal care products to the Chinese consumers with less focus on the conventional vehicle of mass promotion and advertisements.

On the basis of the above framework, it is clearly evident that the consumer buying behavior of the Chinese population in the organic personal care product segment has been largely dependent on the economic, cultural, health and environmental factors which have led to its increased rate of consumption over the recent years. Although the Chinese consumers are traditional and conventional in product preferences, however, in recent times with an increase in the disposable income amongst the younger generation and a growing concern of leading a healthier and environmentally responsible lifestyle has led to a major paradigm shift in the buying behaviour causing an escalated inclination towards consumption of organic care products (Rawat & Garga, 2018). Globalization has widened the scope of the domestic market to offer a large number of imported products produced by organic farms guaranteeing chemical-free, healthier substitutes which are being accepted widely even at a premium price (Goetze, 2011). A large section of Chinese consumers as had been suggested by various surveys and studies, over time have shifted their loyalty towards the consumption of certified organic daily care products to ensure a superior quality, disease-free and safe life.

Conclusion

The study of the secondary literature on the factors affecting the buying behavior of the Chinese consumers in the organic personal care product segment has revealed a number of interesting facts and figures about the existing consumption patterns and preferences and its subsequent transformations in the recent times. The significant factors of levels of income, the standard of living, the safety of health and environment and traditional preferences have been studied in detail with the help of theoretical models to understand its practical implications on the market competition of the concerned segment as well as the economy of the nation as well. The significance of an in-depth analysis of the buying behavior of the Chinese consumers with regard to the strategic branding of the organic products has been highlighted to gain understanding about ways of innovating the branding and promotional strategies to ensure success in market competition. The concern with organic personal care products has been common among the consumers in China. Many individuals see organic products as a safer option for their utilization. Such aspects are possible because many individuals perceive organic products to be free from questionable ingredients and other chemicals. At present state, the organizations are usually driven by consumers. The decision taken by the consumer concerning organic personal care products and individual consumption experience played a primary role and the factors are also able to support the perception of the consumer toward a particular product related to premium price. However, researchers have claimed that the purchasing attitude of a specific product depends highly on factors such as personal beliefs and expectations of the consumers.

The facts and figures as has been revealed in the course of this study thus reinstated the transformation of the buying behavior of the Chinese consumers in a spate of a large scale proliferation of the organic personal care product in the recent times.

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