Consumer Behaviour: the Road to Effective Policy-Making
CONSUMER BEHAVIOUR: THE ROAD TO EFFECTIVE POLICY-MAKING
1.
INTRODUCTION: WHAT IS CONSUMER BEHAVIOUR?
Have you ever told yourself that you should make an effort to be more physically active? Have you ever been determined to eat healthier or drink fewer fizzy drinks? Have you vowed to buy only organic or fair trade products? Did you ever promise to yourself that next time you'll throw your empty soft-drink can into the recycling bin? And do you think about recycling while on holidays or only during your daily routine?
It is often common to say one thing but then act in another way. It is also normal to act in such an "irrational way," yet the thought process involved in order to make that final choice is quite elaborate. This is why it is so challenging for policy-makers to try and understand why consumers behave in different ways and even more so to shape their behaviour. The complexity becomes more apparent when one starts to consider the variety of influences that can affect an individuals' decision-making process (Figure 1), which can be both internal and external. It becomes even more complex when it becomes apparent that the impact of these influences on decision-making varies from one individual to another.
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Figure 1: Internal and external factors influencing the consumer decision-making process1
Internal influences
External influences Need/ Problem recognition Culture and subcultures Information search Demographics Family Evaluation of alternatives Opinion leaders Reference groups Decision/ Behaviour/ Purchase Social class Marketing campaigns (Post-purchase)
Motivation Learning Memory Emotions Perceptions Attitudes Personality Lifestyle
What is clear from the above model is that influencing or shaping consumer behaviour for policy-makers, industry, or consumer associations alike is never simple. A significant amount of academic research is being undertaken in this area and it is important to appreciate the complexity of
1.
INTRODUCTION: WHAT IS CONSUMER BEHAVIOUR?
Have you ever told yourself that you should make an effort to be more physically active? Have you ever been determined to eat healthier or drink fewer fizzy drinks? Have you vowed to buy only organic or fair trade products? Did you ever promise to yourself that next time you'll throw your empty soft-drink can into the recycling bin? And do you think about recycling while on holidays or only during your daily routine?
It is often common to say one thing but then act in another way. It is also normal to act in such an "irrational way," yet the thought process involved in order to make that final choice is quite elaborate. This is why it is so challenging for policy-makers to try and understand why consumers behave in different ways and even more so to shape their behaviour. The complexity becomes more apparent when one starts to consider the variety of influences that can affect an individuals' decision-making process (Figure 1), which can be both internal and external. It becomes even more complex when it becomes apparent that the impact of these influences on decision-making varies from one individual to another.
2
Figure 1: Internal and external factors influencing the consumer decision-making process1
Internal influences
External influences Need/ Problem recognition Culture and subcultures Information search Demographics Family Evaluation of alternatives Opinion leaders Reference groups Decision/ Behaviour/ Purchase Social class Marketing campaigns (Post-purchase)
Motivation Learning Memory Emotions Perceptions Attitudes Personality Lifestyle
What is clear from the above model is that influencing or shaping consumer behaviour for policy-makers, industry, or consumer associations alike is never simple. A significant amount of academic research is being undertaken in this area and it is important to appreciate the complexity of