Consumer Views

Consumer behaviour is a very complex matter. Indeed whole books have been written on the subject and it is not our intention here to go to that level of detail. What we will endeavour to do is to introduce some of the key ideas that inform us as to how consumers approach the complex process of buying goods and services. The chapter starts by introducing some basic elements of consumer behaviour including cultural, social, personal, and psychological factors. We consider how consumers perceive price and value and go on to examine consumers’ perceptions of quality. We also draw out some of the implications for producers. A way of understanding differences between goods and services is then explored. While recognizing that one simple model cannot capture all elements of consumers’ decision processes, we use a simple five-stage framework to identify the key issues. We conclude the chapter by developing a comprehensive model for understanding the issues which influence not only how consumers behave, but also how suppliers may respond.