Essay in Marketing (Essay Sample)

Essay in Marketing Introduction Consumer goods refer to a wide range of goods and services that people purchase for their household and personal uses (Srivastava & Sharma, 2019). There goods are classified on several categories based on their usage, characteristics, and purchasing behaviour. Some of the most common types of consumer goods include digital goods, fast-moving consumer goods, green products, social goods, luxury goods, intangible goods, consumer durable goods, non-durable goods, shopping goods, convenience goods, unsought goods, impulse goods, industrial goods, and store brand goods (Srivastava & Sharma, 2019). When purchasing these goods, shoppers go through a psychological consumer decision-making process that is influenced by various theories or principles. The aim of this essay is identifying a consumer goods category and describe consumer-decision making process for shoppers when they are purchasing these goods. The chosen consumer goods category is luxury goods, and the identified theories are consumer decision-making information processing, and consumer social influence. Luxury Goods Luxury goods are high quality consumer goods that are often expensive products or services that are known for their exquisite craftsmanship, exclusivity, superior quality, and possess significant brand prestige (Gil-Cordero & Han, 2023). Most of these products are limited editions to not only provide exclusivity for consumers but also meet some of the self-actualisation needs that consumers possess. The high price point of luxury goods is supposed to offer an indication that they possess exceptional quality through exquisite craftsmanship. Luxury goods are also accompanied with exceptional customer service compared to other products in the market. Producers can concentrate on customer service since they charge a premium price to consumers who wish to own these products or receive these services (Gil-Cordero & Han, 2023). Consumers who purchase luxury goods like to be associated with a high-end lifestyle due to the sophistication, refinement, and elegance that is linked to these products. Consumer Decision-Making Principles Consumer-decision making process is a complex procedure that is influenced by numerous factors. Some of the main factors that influence these decisions include perception, social influences, cultural influences, personal factors, emotional and rational appeals, cognitive dissonance, and post-purchase evaluation (Hoyer, 1984). It is crucial that businesses understand these factors when aiming to deliver goods and services in the market that meet consumer needs and tastes. When consumers are purchasing consumer products from the listed consumer goods categories, different consumer decision-making principles come into play. Some of the main principles include motivation, ability, and opportunity, attitudes towards the product, emotions towards the brand, consumer decision-making, information processing, psychographics, ethics and social responsibility, exposure to the product, and emotions to the brand (Hoyer, 1984). The identified principles for luxury goods that are assessed include decision making, information processing, and consumer social influence. Consumer Decision Making, Information Processing for Luxury Goods The decision-making process of consumers when purchasing luxury goods is perceived to be different from other consumer goods due to the premium prices and exclusivity that is associated with these products. The process is associated with unique considerations that are not observed when purchasing everyday products. According to Zhang & Cude (2021), luxury goods provide exclusivity and emotional value to consumers than other products. As a result, consumers go through a more elaborate process that is more emotional than any other consumer goods. The consumer decision making process, information processing starts with aspiration and desire. Consumers must desire a certain level of craftsmanship, exclusivity, and prestige that is associated with luxury goods at the very onset of the purchase journey. The second phase of the consumer decision-making process is information search. According to Güss & Starker (2023), information search entails seeking information about the luxury goods through assessing their heritage, craftmanship, and heritage associated with the product or service. The information search can take place on the brand’s website, engaging with other consumers who have purchased the goods before, and reading luxury publications that have written about the same. The information search is crucial in understanding the unique selling propositions of the brand compared to others in the market (Soh, Rezaei, & Gu, 2017). The next step is brand consideration where a consumer assesses various brands in line with their preferences. Consumer preferences for luxury products are often dictated by a brand’s history, emotional connection established by the brand in the market, and reputation. The brand is an integral part of the decision-making process since the higher the brand value, the more customers would be willing to purchase the luxury goods. When considering the various brands, consumers also analyse the brand’s exclusivity and rarity. Luxury products, unlike other household items are more likely to be demanded when they are rare and provide exclusivity to consumers (Kim, Park, & Schwarz, 2010). Rarity and exclusivity of products leads to an increased perceived value among customers. Many companies that produce luxury goods guarantee exclusivity by ensuring they are limited editions and possess unique designs that are not visible in substitute products in the market. In exchange, producers can charge higher prices compared to competitors who mass produce their products. When processing information about luxury brands, consumer decision making is also influenced by emotional connections they develop towards a brand. Owning a luxury item creates an emotional connection since many seek to purchase a product that resonates with their emotions, aspirations, and self-image. Each of these factors play a crucial role in heightening their self-worth. The next phase of the decision-making process is trial and experience. Some luxury brands provide consumers an opportunity to try the products before purchase. An example is luxury cars such as Ferraris and McLarens, where potential buyers are given free test drives before purchase. Customer experience is critical for luxury brands since it is the best stage to make a sale (Hoyer, 1984). The next stage in the process is the purchase decision. The purchase decision is influenced by a culmination of factors including the emotional attachment, perceived value, self-image, and brand loyalty. The more aligned a luxury product is to a consumer’s lifestyle, the more likely they are to make a purchase. After the purchase, a consumer may assess the satisfaction they have gained from not only the product but also their experience with the brand. The post-purchase evaluation may reinforce the position of the brand in the market due to word-of-mouth marketing among consumers. Consumer decision making, information processing is influenced by numerous factors including selective attention, perception and symbolism, sensory marketing, and personalisation. Many luxury brands today have put in place measures that ensure that their products are personalised to all consumers. Some luxury automakers have gone out of the way to personalise cars to fit each consumer’s preferences. Despite this being expensive, they provide rarity and exclusivity, two aspects that are major selling points for luxury products. Perception and symbolism are present in luxury brands where symbols are used to link brands to status, exclusivity, and craftsmanship (Soh, Rezaei, & Gu, 2017). Luxury brands employ sensory marketing to create a multisensory experience for consumers. This is often achieved through product packaging and employing aesthetic appeals in their stores. These elements can influence consumer choices and attitudes before purchase. Consumer Social Influence, Information Processing for Luxury Goods Luxury goods, unlike other personal and household products and services are associated with numerous social factors that influence consumer preferences, tastes, perceptions, and purchase decisions (Zhang & Cude, 2021). Various aspects of luxury goods influence consumer social influence including peer groups, celebrity advertising, social media, word-of-mouth marketing, social norms, and brand communities. Luxury goods are often associated with significant prestige and social status. As a result, peer or reference groups can significantly influence purchase from similar people who have the same values and aspirations. Once a person from a given reference group purchases an item, it is bound that their peers would purchase the product too. Luxury brand marketers are keen to ensure that they provide exquisite customer experience for each consumer throughout the purchase process since buyers can easily influence their peers or reference groups. Creating influence within the reference group happens through word-of-mouth marketing. According to Gil-Cordero & Han (2023), word-of-mouth marketing remains a powerful and potent force that drives the sale of luxury products. Positive recommendations among peers can easily drive the sale of luxury products, thus marketers for these goods must always ensure that they provide the best customer experience. Social media platforms are increasingly becoming popular channels for creating social influence for luxury goods. Social media has created a digital environment where consumers share their lifestyle experiences that they experience from purchasing these products. These uploads shape the public’s social perception towards these products and may influence purchase ...