- Consumer Behaviour
- Definition of consumer behavior
Kopetz et al. (2012) and Hawkins & Mothersbaugh (2010) define buyer behavior is defined as the study of how organizations, individuals, or general consumers choose, purchase, use, and potentially dispose of certain services and products. Jewelry consumers exhibit different behavior when compared with other consumers (Kwok et al., 2006). Arguably, consumer behavior is a critical evolution of how consumers are likely to behave within the market place of specified products. The motives of consumers that guide each action are of crucial consideration. As Hawkins & Mothersbaugh (2010) point out, it is possible to determine customer preferences by indulging in why consumers buy. This allows marketers to identify the market trends, and the best way to present goods to the customer is evaluated. However, there is limited research on consumer behavior regarded as customer preference. Researchers and role theory often perceive customers as actors in the economy. That is, customers play diverse roles in the market place, including contributing to the decision-making process, business growth, and economic trends. According to Gajjar (2013) and Ajzen (2008), consumer behavior is the physical activity and the decision process which populations are likely to engage in when appraising, selecting, or even disposing of goods – in this case, the Jewellery.
The consumer buying decision-making process is a dynamic process that changes with time (Solomon et al., 2017). Primarily, every customer has varied psychology and family or social structure that changes with time. With this, Solomon (2011) recognizes that it is difficult to predict and understand the behavior of people within a dynamic Jewellery market. The Chinese market, although it has its unique features such as string cultural influence, may not be so different. The country’s market consists of local, foreign, and even second-hand Jewellery making the consumer market diverse and somehow complicated. Studies by Lu (2011) points out that consumer behavior in China is also dependent on the global economy. China is a vigorously growing jewelry economy that ranks it slightly below the US and Japanese industries. Studies on the potential, trends, and aspects of the jewelry industry are, however, limited since the market has developed dynamically in the last few years. There is a need, therefore, to study the Chinese market dynamics to conclusively determine the market potential.
Factors affecting consumer behavior
The consumer market is experiencing a major change in regards to consumer expectations (Solomon et al., 2017). While the Chinese market used to be traditionally collective, research indicates that the consumers have been significantly influenced by emerging trends leading to the modern-day diversity. Gajjar (2013) researched the factors affecting consumer behavior and found that consumers are influenced by a wide range of factors throughout the decision-making process (Manashree, 2018). Some of these factors impart a different yet measurable influence on consumer behavior, whereas other aspects may be less tangible, often suggesting to some extent on the pattern of buying behavior. However, as Gajjar (2013) argues, the intangible aspect, such as the perception of the product or the relationship between buyers and suppliers, may be of significant importance. A reliable understanding of the different factors affecting consumer behavior is, therefore, crucial to marketers, making it a subject for market research.
In modern economics, the factors influencing consumer behavior has been characterized as either internal or external. Kumar & Raju (2013) studies the role of advertising in decision-making. The authors found that advertising is an external factor that influences factors related to the extent of goods consumption. While studying the impact of advertisements on consumption behavior, Malik et al. (2013) argued that advertisements directly affect the brand and customer attitudes. In regards to brand awareness, the extent by which customers know a brand determines their willingness to but that Brand. Gajjar (2013) recorded similar findings by noting that advertisements increase brand awareness, which in turn increases sales. Socialization is influenced by proximity, which has been stepped up by the internet. Arguably, Chung et al. (2014) note that social media has significantly been targeted as a marketing platform due to its ability to influence consumer purchases. Moreover, consumer behavior in regards to trends is also dependent on the significant role played by social media and the internet in general (Barger et al., 2016). These studies, however fails to provide a viewpoint on other factors that accompany advertising. In a market like China, technology has influenced the collectivist culture, which must have also affected their consumption. The more people become aware of the product, the more they are likely to purchase it.
Gajjar (2013) identified internal factors, including culture, status, psychology, and environmental factors. The study found that the most identifiable factors influencing consumer behavior are social class as it relates to sub-cultures and culture. In another study, Manashree (2018) found that culture is the primary consideration that determines individual needs, wants, and behavior. He emphasizes that cultural norms, learned values, beliefs, and symbols that comprise of the society characterizes consumer segments. As children grow, they acquire a set of values, preferences, and behavior that, in turn shape the items they are more likely to prefer in the market. While concurring with Manashree (2018), Lu (2011) points out that a child growing is exposed to convectional ways of worship, the gifting culture, and certainly the desire for certain ornaments. They are therefore, likely to characterize jewelry based on these acquired cultural norms. While little research has been done on the Changes in Chinese consumer culture, the contemporary generation is perceived to have changed significantly. Generation Z stems from 90s parents and exhibits identifiable youthfulness, practicability, efficiency, material comfort, and innovativeness (Truong, 2010).
Secondly, each culture is characterized by certain subcultures that provide more narrowed identification and socialization. In their study, De Mooij & Hofstede (2011) discuss how organizations, groups, or general consumers choose, purchase, use, and dispose of certain services and products. The authors argue that these aspects are key factors influencing consumer behavior. Blackwell, Minirad & Engel (2001) argue that human beings are social beings and are influenced by the closes people. People within a sub-culture try to imitate the consumption behavior of those humans in a bid to be socially accepted within the society. Subcultures have nationalities, geographic religion, and racial groups. As a result, each sub-culture determines the type of products or services its members are most likely to purchase. As Lu (2011) argues, marketers are often obliged to weigh the market segments established by subcultures and, therefore design products and marketing programs tailored for this group. The third most influential aspect is social class. Perhaps, social stratification exists in all geographic religions, whether nationally or internationally (Manashree, 2018). Sometimes, these stratifications may assume a caste system where members are nurtured following specific roles, obligations, and cannot change this form of membership. The social class system assumed by stratification within the society represents the hierarchical order. Members of a certain class are expected to purchase certain items, which thus influences their consumer behavior. Moreover, member’s within a certain social class share common values and interests and are therefore inclined towards exhibiting certain consumer behavior (De Mooij & Hofstede, 2011).
The popular Fishbein behavioral propensity model argues that consumers’ willingness to buy products is influenced by their reference group and psychology – social aspects (Chan & Lau, 1998). The Fishbein model, studies by Ajzen (2008), indicates that reference groups, family roles, and statuses are fundamental influencers of consumers’ spending habits. Primarily, being social beings, the consumer’s behavior ought to be influenced by the people around them. Gajjar (2013) notes that the family plays a role in shaping the type of products and the extent to which people buy these products. An individual is likely to develop preference by watching the family preferences in regards to certain products and may continue to buy these products as they grow up (Solomon, 2011). Better put, the social behavior theories recognizes that people learn certain behavior from their families and are more likely to identify with these behaviors as they grow. Conversely, the reference group entails the group by witch a buyer identifies with (Hawkins & Mothersbaugh, 2010). In general parlance, a reference group can be a designated group or individual, particularly within a culture by which people form appoint of comparison. Often, the group has shared values, attitudes, or behavior and may perhaps exist in the form of culture or just a peer group. Philip Kotler defines a person reference group consisting of all the social groups that present a direct or indirect stimulus on one’s behaviors and attitudes both in the short and long-run (Kotler, 2017).
Gajjar (2013) identifies psychological factors that influence consumer behavior patterns. Motivation, beliefs, perceptions, and attitudes play a crucial role in what people are likely to prefer in the market. Primarily, people have a wide array of needs, including biogenic necessities rising from psychosomatic states such as thirst or discomfort (Kotler, 2017). Other needs may be psychogenically from psychological circumstances of pressure, belonging, or recognition. Whichever the case, a need transforms into a motive when its necessity is stimulated to certain measure intensity (Manashree, 2018). As Maslow indicated, needs to form a hierarchical status, and their satisfaction is dependent on necessity and urgency. Secondly, beliefs and attitudes that people acquire to determine their buying power. According to Manashree (2018), a belief is a descriptive thought that one has in reverence to a certain item or person. These beliefs may carry emotional attachments towards these items, which acts as a motivator. Motivated perception is generally ready to act (Qian, Razzaque & Keng, 2007). However, how this person acts is determined by the individual perception towards the predicts in question. As Hawkins & Mothersbaugh (2010) notes, perception ascribes physical stimuli, stimuli relating to the surroundings and conditions directly affecting a person. These aspects will determine whether or not someone will buy products.
The roles and statuses of define the groups in which one is likely to participate, including clubs and organizations. The Veblen effect entails the perceived conspicuous value (Truong, 2010). The effect model states that when people seek to establish a certain class system, then they are likely to display conspicuous spending behavior. According to Yang (2013), Veberen identified two motives of conspicuous consumer behavior; the invidious contrast and pecuniary imitation. The invidious comparison motive ascribes consumers in higher social class who often differentiate themselves from lower and middle social classes based on their consumption behavior (Yang, 2013). Conversely, the pecuniary emulation ascribes the people from the lower class, who, in regards to luxury, may exhibit the least consumption motives. The invidious consumers use price preferences to send a message to peers intended to impress them into luxurious living. They are therefore influenced by social class and perceive the price as a means of purchase power. You need, at some point, to raise questions and stress research gaps.
The role that one holds within the society will significantly influence the type of products they are likely to select, use, and hold-on, or dispose of. Also, as Chan & Lau (1998) notes, the type of products bought as gifts to others is decedent on social status and role. For example, political CEOs are often renowned executives likely to buy luxury following their apparent social roles and status. However, an employee within a company or staff may exhibit a different and sometimes incomparable buying pattern.
Other factors influencing consumer behavior include economic and personal factors. A significant number of researchers, theorists, argue that economic factors constitute the main influence on the purchaser’s attitudes (Gajjar, 2013). Put simply, the economic well-being of the consumer determines how much they are willing to spend on luxury and other products. One of the most common methods of categorizing consumer behavior is included in their income groups – family and personal disposable income determine an increase or decrease in rates of purchasing power (Kopetz et al. 2012). Disposable income is the amount left after catering for basic needs. According to Maslow’s hierarchy of needs, people tend to take care of psychological, safety, and esteem needs first before considering the need for luxury (McKinsey & Company, 2019). Higher family and personal income show how that there are higher finances available for basic needs and luxury. Moreover, if the economic boom is underway, consumers are more likely to spend more money. Industrialists and organizations also spend more at such times and are likely to extend their investment power.
- consumer behavior in jewellery consumption
Jewelry forms a special class of products that are often linked with the perceptible segment of consumers. With changing trends in the luxury industry, researchers in the marketing trends found that consumer’s behavior differs significantly across various brands, products, and services. A study by Vijaya (2013) on consumer behavior in jewelry business found that jewelry is highly cyclical, and the industry is dependent on consumer wealth. Being a luxury, jewelry is a credence good defined by dominant product attributes such as level quality – these can be hard to quantify. Thus, while factors such as advertisements may influence consumption of general goods, consumption of jewelry is largely based on the availability of disposable income.
Sultana, Siddique & Islam (2015), in the study of consumer behavior in the jewelry market, noted the four most influential economic factors that influence consumer behavior. First, the availability of disposable income establishes a close relationship between income and expenditure. Arguably, luxury occurs at the highest level of individual needs and is therefore accessed by minority groups within the society (Chand, 2020). With less than 1% of the global population holding world’s wealth reserves, then the biggest consumer of jewelry is limited to the wealthy depending on the type of jewelry in question. Secondly, the income and economic expectations of the consumers affect buying behavior. The rich and higher middle class are often considerate of economic trends, and these affect their willingness to spend on luxury. Thirdly, the propensity of consumers to save is also evaluated by Ajzen (2008). He notes that buyers who give importance to present goods are likely to spend more on luxurious items as compared to those characterized by uncertain financial gains. Moreover, buyers command more purchase power if they can afford to access the Facility of consumer credit system-hire purchasing decisions (Ajzen, 2008). However, this factor does not significantly influence the luxury market as it is driven mostly by cash sale characteristics.
To understand the consumer buying behavior of the jewelry, Singh (2018) researched an exploratory factor analysis study in Haryana. The research found that jewelry market behavior is influenced by the perceived quality, payment options, recommendations, and availability of outlets. (Truong, 2010) further notes that in regards to perceived quality, most consumers evaluate the purity of the jewelry, design, durability, faith on the maker, price, and availability of customized designs. These aspects are however, further influenced by class, status, and another aspect that influences consumer behavior. Sultana et al. (2015) evaluated the gold market in Bangladesh. Since Bangladesh and China share common aspects when it comes to culture, the study significantly contributes to this research. In their analysis, the authors noted that the availability of events or cultural make-up of society significantly influences the jewelry market. Primarily, most people buy jewelry for weddings and gifts, which leads to increased purchase of plain gold as compared to fashionable gold. Moreover, since people give rings, chains, and necklaces as wedding gifts, these items are often preferred in the jewelry markets. However, as Zhou et al. (2013) note in their research, there is little evidence exists to link Chinese gifting culture and ceremonies with jewelry consumption.
Cultural factors significantly influence the purchase and ownership of jewelry. While studying consumer behavior in Tiruchirappalli district, Chitradevi (2017) argues that jewelry plays a crucial role in traditional and anesthetic significance. Traditionally, most cultures use jewelry as an item of beauty, storage of wealth, marking life rituals, and to signify their status. Whether gold, silver, or base metals, jewelry has had a close association as a marker of status and measure of wealth for decades. Sultana, Siddique & Islam (2015) inferred that jewelry, especially gold ornaments, could be said to constitute some cultural aspects, including rituals in which god played a key role in sustaining the culture. While this might be a traditional view, it can be argued that rituals such as marriages and religious holiday’s forms core facet of modern society. These norms underlie the activities that influence people to purchase jewelry (De Mooij & Hofstede, 2011). While the Indian market holds significance to gold on cultural bases, the gold may not form a core aspect of cross-generational relationships.
Ahmed (2019) studied consumer behavior concerning initiator and influencer buying stages. In regards to the initiator, 64% of women note that they acquire jewelry in terms of gifts, especially form close social groups. This aspect exemplifies the concept of external influence on consumer behavior. While on the same consumer influencing factor, the aspect of influencer focuses on influencing the buying decisions within a peer group, family, or social class (Blackwell, Minirad & Engel, 2001). In this study, the author noted that most women are influenced by their peers and family. They also inferred that women played a minor role when the aspect of influencing people to buy jewelry. However, the research provides limited data on other factors that may influence women to buy jewelry.
- consumer behavior of Chinese consumers
The consumption behavior in the Chinese market is constituted by both cultural and contemporary factors. Bantam empirical research exists to evaluate consumer behavior in China. As Zhou et al. (2013) notes, little efforts have been made to speciciafaclly understand the Chinese consumer. Chinese culture significantly influences how individuals view and wealth and luxury. Studies by Dubois, Bernard & Laurent (1994) points out that the value attached to the buying behavior of jewelry exhibits a considerable aspect of the cultural-purchase attachment. Dubois et al. (1994) further note that the status-seeking consumption of goods in the Asian market stresses the social meaning attached to these items. It can be pointed out that Asian market consumers often buy luxury goods to gain social recognition, which forms a recognizable part of their social norms.
The Chines culture is collective – it is characterized by a group orientation. People who share the same group are inter-related and therefore, often adheres to specified societal norms (Leung, 1996). In agreement, Qian, Razzaque & Keng (2007), in their study, infers that Chinese buyers often exemplify social relationships over the presumed cost of individual desires and desires. Correspondingly, Du (2017) agrees that Chinese consumers often place great value on interpersonal relationships and social orientation. The author points out that the Chinese decision to buy luxury goods to show off their social position or wealth. Based on the luxury stages theory, the first stage is subjugation which entails the deprivation which builds the desire ((Du, 2017); secondly, people acquire wealth just like the growing Chinese economy and the next step is show off the existence of the wealth and lastly perception of luxury as a way of life. Kwok et al. (2006) further points out that while consumers in the USA and Japan are in the last stage, Chinese consumers are influenced by the second-last stage – showing off and thus tend to pursue the latest and most popular jewelry in the market. This is slightly expounded in recent studies indicating the need to conduct an in-depth analysis of the Chinese consumer.
Singh (2018) study consumer behavior concerning their social representation. The authors found that consumers influenced by the self-representation buy jewelry with the sole purpose of establishing a personal image. Such people, often collectivists are influenced by their culture, reference groups, and social status and often stress the explicit self and adjust to roles according to their surroundings. Gomathy & Devi (2015) further argued that consumers influenced by the establishment of interpersonal relationships are likely to react positively towards status centered products. Tsai (2005) contends by emphasizing that self-directed happiness, which characterizes the Chinese market, may not be fully influenced by the satisfaction of the reference groups while buying jewelry. Therefore, social standing and culture of the Chinese people, overlooking other factors, exhibit the special factors that typify the Chinese jewelry consumers (Kwok et al., 2006). This can be attributed to the fact that Chinese people are largely interested in upholding their self-representation and culture.
The theory of planned behavior (TPB) cuts across the attributes of the Chinese jewelry market. A study by Eves and Cheng (2007), aimed at examining consumer behavior in Chinese and British consumers noted that Chinese consumers are characterized more by individual attributes rather than subjective values. In another study, Shen et al. (2003) evaluated the extent to which culture influences consumer’s intention to buy jewelers and clothes established that consumer’s attitudes or behavior are not entirely influenced by subjective behavior. Although TPB has been applied to evaluate the specificity in Chinese buying behavior, there is no conclusive research that examines these theories’ applicability in the market.
Young Chinese buyers view ownership of jewelry and the affiliation with a brand as a typical form of social capital. In a luxury report presented in 2019, McKinsey & Company (2019) studied ways in which young Chinese consumers are remodeling the global luxury arena. The author found that consumers in this market seek to associate with an exclusive community while showing a distinct lifestyle. Shen et al. (2003) also found that the community is keeping pace with online trends to feed their desires of exclusivity. Indeed, both conventional and contemporary consumers are significantly influenced by the social-relationships, references, culture, and desire to stand out in regards to the luxury market. As Kwok et al. contend, the country’s consumers are upholding the desire to be unique and socially stable (2006). This consumer behavior has shaped the Chinese economy for decades and continues to remain a singled-out characteristic of the consumers.
- The latest consumption trends in China
China is on track to become a consumption-led commercial center and potentially a prosperous society. The booming business in the country has shaped consumer behavior trends in the country. Ho et al. (2019) conducted a study labeled “the many faces of the Chinese consumer.” The report indicated that there are emerging trends in the Chinese consumer market, with over 50% of consumers focusing on trends, health, and spending. Although the growing GDP and trade disputes with the United States has injected a cloud of uncertainty, the country’s consumers are consistently adapting to emerging trends. Over the past decade, the Chinese economy has transformed from a predominantly lower-middle-class, upper-middle-class, and affluent class society.
Studies by McKinsey & Company recognize the emerging trend of reconstructing social connections (2019). Consumers in first-tier cities are increasingly becoming sophisticated; however, more consumers are building their social circles built upon common preferences. Li et al. (2019) study identified that chinses between the ages of 25 and 35 form the largest consumer group. The author also noted that this age group is influenced by interest circles. This has forced marketers to build interest-oriented social e-commerce to reach young, vigorous consumers. The country has witnessed increasing e-commerce in 2019 and 2018, especially integrated e-commerce.
Customized products are increasingly becoming a consumer preference. Lannes et al. (2018) studied consumption in china and identified trends shaping the consumer market. Lannes and his colleagues found that the personalization of commodities has become the new mass market in China. By 2027, it is expected the personalization of products and services, and the consumer journey will be the common norm (McKinsey & Company, 2019). This aspect is likely to change not only what people buy, but also how they buy. Lannes et al. (2018) further emphasize that emerging technologies such as AI, robotics, 3-D printing will aid the designing of customized items, further reducing costs of production. In terms of jewelry, customization of fashionable jewelry is already taking shape in the market. While most consumers purchase jewelry for investment purposes, the young generation is keen to remain focused on fashion and trend. As personalization becomes pervasive, companies that own consumer data and focus on their brands will have the edge over brands that fail to recognize this trend.
Consumption in the Chinese market is slowly adopting western influence. Atsmon & Magni (2012) notes that consumers have become more affluent and gained more access to western cultures and lifestyles. Primarily, the incorporation of international jewelry in the Chinese market has reshaped the former collective consumer behavior. Thanks to the open china policy and technological growth, there has been remarkable globalization in the ornaments industry. Also, the incorporation of Chinese culture, heritage, and traditions into national education has led to the popularization of the country’s norms. Western lifestyle is deemed to significantly impact the luxury industry and potentially the consumption of jewelry.
Li et al. (2019) study the online consumption trend with the aging Chinese population. With the development of e-commerce, the authors argue that online consumption is increasingly becoming the new norm. Urbanization, globalization and market diversification has taken root cutting across almost all industries in the country. Li et al. (2019) further adopted the system-generalized method of moments (GMM) and noted that while urbanization is aiding the development of e-commerce, the aging population is reversing this trend. Primarily, urbanization has significantly impacted the development of the jewelry industry. Chinese generation Z has changed significantly beyond expectations. The urbanizing, the new rich class, and even the aging population, are creating a new consumer group for luxury products (McKinsey & Company, 2019). The Chinese consumers are becoming more mature on the taste, preferences, and motivations cutting a clear distinction on the market needs. This aspect indicates the extensive potential of the Chinese jewelry market.
- summary
This chapter started by providing a critical definition of consumer behavior as the study of ways in which organizations, individuals, communities, or general consumers select, buy, and use and potentially dispose of certain services and products (Gajjar, 2013). The definition was followed by evaluation of factors affecting consumer behavior a description provided by Kopetz et al. (2012), Hawkins & Mothersbaugh (2010) Gajjar (2013), and Ajzen (2008) who states that factors are affecting consumer behavior range from internal factors such as psychological, cultural, sub-cultural, social, and external factors such as Brand and advertising. The authors such as Kopetz et al. (2012) and Hawkins & Mothersbaugh (2010) also recognize the existence of environmental factors capable of influencing consumer behavior such as social group and one’s immediate situation. China is an extensive global market for luxury and jewelry, and its current consumption behavior continues to impact the industry positively.
Culture, subculture, and social class influence how an individual values wealth and luxurious products. Based on research, Chinese culture is group-oriented, better known as collectivists. Nevertheless, what really influences this group definition? Is it the buying decision amongst Chinese populations? Or the inherent behavior of satisfying respective social group needs?
The issue of culture led to the investigations on the apparent consumer behavior regarding the cultural orientation, sub-culture influencing a bid to answer the question; does culture influence the Chinese buying behavior of jewelry, if this is the case, how does it happen and to what extent.
The Chinese exhibit special consumer behavior that can be both group and individual. Individually, consumers can be driven to purchase luxurious products based on various factors. These may include social class, roles, and even the personal perception of the products. Primarily, the country exhibits a cultural purchase characteristic that is deep-rooted. What do Chinese buyers value in regards to interrelationships? How does this and the culture influence buying behavior? The fact that special consumption behavior for jewelry and general chines consumers is quite interwoven led to the need to conduct this study and answer the numerous research questions.
Research on Brand Choice Behavior
The study is limited to the core factors ascribed to brand choice behavior. As mentioned earlier, people have a high desire to consume a wider array of products and services. However, this desire is limited by various factors – brand choice playing a crucial aspect in consumer decision. Wang & Lin (2012) studies brand selection in regards to consumer cognitive perspectives. Most research on consumer brand selection points out that consumers are aware of the concept of the Brand as a determining factor of their choices. The research focuses on luxury brands in various consumer levels.
- Definition and connotation of Brand
A brand is one of the most significant considerations when weighing competitive advantage and consumer behavior. According to the Macmillan dictionary, a brand is described as the product or group of products with a specific name that links it to a specific company (Macmillan dictionary .com). Konstantinidou(2018) points out that brands are viewed from an organismic perspective as heterogeneous organic items and assemblages that are dynamically interpreted differently. Different doctrines and positions are often attached as supportive structures to the meaning. Recent literature adopts the view of dynamic, fluid, enacted, and mediated meaning of creating a brand image (Beverland, 2005). Brands are viewed as organic entities since they built together with stakeholders, and most parts are beyond the control of the organization.
The connotation meaning of brands as been evaluated by various researchers as an approach to sense or meaning. Konstantinidou (2018), evaluates the work of Hall and notes that connotation of the Brand is an associative meaning describing the interaction between a point, the user’s feelings, and cultural values. Better put, the connotative meaning is figurative and subjective. Chinese brands are often associated with Chinese cultures and events, which makes them associative chines branded jewelry (Tungate, 2009). Most Chinese consumers have a reference to gold consumption based on its symbolic nature of spiritual and wealth protection. This makes gold one of the most highly valued luxury in the Chinese market.
- Brand Choice Behavior
Global competition has increasingly become vigorous, especially with increased development of information technology. Wang & Lin studied the projections of brand selection behavior from a cognitive perspective (2012). The researchers identified that the consumer-oriented market is increasingly becoming more complex and changeable. Enterprises are focusing on consumer behavior to create competitive designs and brands. As Erdem, Imai, & Keane (2003) argue, research on consumer brand behavior is increasingly becoming a core research spot. Hitherto, scholars such as Tungate (2009), Beverland (2005), and Zhu (2007) points out that brand choice behavior factors and external appearance of a brand influences consumer behavior. From a macro perspective, Wang & Lin (2012) argues that the perceived market share of a brand, need for the product, and brand purchase influencing aspects forms the fundamental consumer prospects.
Marketing scholars have always paid much attention to brand choice behavior research. Berad et al. (2015), in their research on buyer preferences between branded and non-branded jewelry, argued that price, design, image, variety, and promotion or offers are the crucial factors that determine consumer’s preferences on jewelry brands. Moreover, the research identified that over 100% of consumers understand the concept of branding, especially in the luxury industry. In a separate study, Gomathy & Devi (2015) noted that consumers are largely aware of product bands, with most consumers preferring the Tanishq brand when jewelry is concerned. It can be argued that the impact of a product is dependent on the popularity of the Brand and attributes attached to the Brand such as price, quality, and reliability of the product. While gold is the most considered jewelry in china, the country has shown great interest in diverse brands, especially the young generation. This can be attributed to increased technological advancement, which has facilitated consumer education.
- Brand Choice Behavior process I thought you discussed this.
The consumer decision process entails all the decisions that consumers undertake before, during, and after purchasing products or services (Gomathy & Devi 2015). In as early as 1910, John Dewey discussed a five process model that determines a customer’s behavior when selecting a brand. According to Dewey (1910), the consumer needs to first recognize the existence of a need to purchase a certain product (Bruner & Pomazal, 1988). The need can be elicited by internal or external stimuli, both of which influence the buying behavior. Internal stimuli entail factors such as product or brand perception experienced, for example psychological influence while external stimuli may be an advertisement. The buyer then conducts information search and evaluates alternative brands based on brand knowledge, price, trends, and buying experience. Once this is achieved, Dewey (1910) notes that consumers will settle for a certain brand. According to Kotler (2009), the decision to settle for a certain brand is influenced by social, environmental, or cultural influence or motivators towards the brand preference. Jewelry consumers will be influenced by their income, the jewelry trends, and whether the Brand local or international (Bhat & Pinjari 2014).
Jewelry consumers first identify the need to buy the items. Usually, the need is influenced by internal, external, or environmental factors. Research by Berad et al. (2015) points out that jewelry consumers choose brands based on various factors. Onc a need is identified, the consumer evaluates the brand design and quality. Secondly, the price becomes a major behavior influencer, which can be controlled by the availability of promotions and offers. Brad et al. further noted that consumers opt for brands that are used by close peer groups and often consider their social image. Thus, the brand choice process operates in line with the Dewey model. Both concepts are based on identifying the need, choosing from alternatives, and utmost choosing the most preferred consumer brand. This aspect tends to shape jewelry in consumer markets.
- A brand Choice Behavior model
Research on the brand choice model exhibits a meandering path that is informed by works in physiology, economics, behavioral science, and statistics (Rusell, 2014). Rusell notes that consumers use constructs often referred to as preferences in psychology and utilities in economics to order alternatives within a one-dimension continuum. The first brand choice model that explained consumer behavior was postulated by Louis Thurstone. The Thurstone model explained by Rusell (2014) was dependent on physical stimuli. This aspect aligns with Berad et al. arguments that jewelry consumers are influenced by the design and image of the brands (2015). In the Thurstone model, the consumers select brands with the stimulus with the higher U(i) value. The U(i) value is the stimuli with the highest intensity. As such, the Brand with the highest intensity, just like gold in the china jewelry industry, is the most selected brand alternative.
Rusell (2014) and Zhu (2007) evaluated the Logit brand choice models that were popular in the 1980s. With theoretical justification in psychology and economics, the model applied calibration software to determine consumer behavior. Since the model is consistent with utility maximization, the research on the Logit model argues on its applicability in the jewelry market where consumers are concerned with maximizing pleasure. This model has been complemented by the reference price models that evolved in the late 1990s.
Prospect Theory initiated research aimed at determining the extent by which consumers are influenced by prices when it comes to brand selection (Rusell, 2014). In separate studies, Moon et al. (2006) used latent class analysis and established that there are internal and external reference price points that determine the most preferred Brand. The reference price literature shows a correlation Logit model being applied to empirically test the psychological theory in the market place (Rusell, 2014). Jewelry consumers are significantly influenced by the price of luxury products. As a result, the price preference model exhibits both a convectional and contemporary means of weighing consumer brand selection behavior.
Dynamic brand selection models aim at tracking consumer choice processes and behavior to observe brand choice over time. As Zhu (2007) argues, dynamic models focus on the price, quantity of purchase, and the maximization of utility. For instance, the discrete-continuous models are multiple decision models designed to determine the most preferred Brand and consumer spending power. Studies by Pinjari and Bhat (2014) on multiple discrete-continuous choice model points out that consumer choices are guided by both discrete and continuous dimensions. The literature of the discrete-continuous model recognizes two broad model structures; reduced form structure which uses stochastic terms to interwove both discrete choice model and a continuous regression model. Secondly, the employs the classical microeconomic theory of utility maximization. As Pinjari & Bhat (2014 and Rusell (2014) contend, most consumers are influenced by the desire to maximize utility. This aspect makes most brand choice models applicable in the jewelry industry. Erdem et al. (2004) considered brand choice and consumption quantity using a dynamic programming model to calculate the utility function model.
- Summary
by review the theoretical foundation of consumer decision-making in the brand context based upon literature from retailing, fashion consumer behaviour and customer journey, in order to develop a research framework.
ADDITIONAL REFERENCES
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- Methodology
- Findings and discussion