The articles presumably discusses about consumer behavior on purchases. This is an important aspect for managers to perform the marketing strategies so as to capitalize their market or maximize their profits. The trends in human being in the choice of what they want to purchase are alarming and, needs to be premeditated properly. For an effective marketing manager, there are several principal aspects that need to be considered so as to reach out the market, sustain the success of the business. Moreover, the choice of the brands used would greatly affect the choice of item that the consumers would want (Hauser, 1978). It is with no doubt that, this paper tries to stipulate the consumer theory behavior and their response to the market goods and services.
Firstly, the study of behavioral economics tries to explain the spending behavior and, decision making processes on money matters of human beings. Managers have to know what the customer is most likely to choose when purchasing a given commodity, then provide with the right variety. In the field of mental accounting, human beings tend to spend off their income depending on where it comes from. For instance, one’s salary, bonus or gift would greatly influence how one spends money (Hauser, 1978). This aspect may be of importance to managers when choosing the prices of various commodities to fit the immediate consumers. The study of behavioral economics assists, the managers to understand why consumers on most occasions make irrational financial choices, which turn out to be most expensive.
Consequently, human beings tend to be affected by their psychological factors in determining their choices or preferences. This may conceptualize more so, from the law of heuristics where individuals tend to stick to a certain notion and, presume the future consequences are based on their beliefs (Hauser, 1978). At times this effect comes about unconsciously that even the consumers may be skeptical about the ideas they made as manager, the behavior of human beings limits them to narrow options. When consumers are given commodities of a wide range, they tend to be confused hence may even not buy the commodity. The priming of the brand enhances the possibility of the commodity being sold, due to the display nature and attraction of the commodity
Furthermore, the marketers have to understand that the aspect of trial versions commensurate as an eye blind to the consumers. Whenever one goes with a given product chance are from behavioral economics that, the customer will buy the commodity. Branding is an important aspect that lures consumers to purchase a given commodity. In most shopping malls commodities are shelf spaced so that those that are first on eyesight tend to have more profit margins (Fazio, 1982). Most consumers would not want to purchase commodities place far to their reach, hence they should be the ones possessing lower profits.
Human being has the tendency to remember what they saw and pleased them. The branding of commodity needs to be evaluated to ensure the memory of a given product could be retrieved due to the advertising nature (Fazio, 1982). The difference exhibited in the articles, is the reason of spending nature. While the first three articles talk about psychological influence, the last article talks about the effect of memory retrieval in the purchase of commodities. This may be achieved through proper advertising techniques, and batter marketing skills.
In conclusion the understanding of human spending behavior is an important aspect for managers so as to know the strategies which are to be used I marketing procedures. If these techniques are put in practice an organization is bound to realize high profit and would compete favorable in the current global arena.
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