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1.If a Ferrari was 20k would they be as desirable Discuss the relationship between price, consumer behavior and marketing activities Essay Example

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1.If a Ferrari was 20k would they be as desirable Discuss the relationship between price, consumer behavior and marketing activities

Consumers of products may have different types of purchasing behavior that are unique to themselves. Some buyers have an intricate purchasing behavior that is linked with different products that they intend to purchase. An intricate purchasing behavior is seen when the product to be bought is expensive; therefore, the consumer will tend to be more cautious when purchasing such products. For instance, intricate buying behavior is evident when purchasing things such as cars or computers. When setting prices for such products, marketers should consider the consumers income since high prices will drive them away (Lichtnstein 1993, p 239).Price is one of the most significant market place signal. The issue of price is very significant in buying situations since it represents to customers the amount of capital they must pay for a certain product. In addition, price represents how much money that a consumer is going to give a product seller in order to acquire a product, and therefore, if prices are high, they negatively affect the chances of the consumer buying a particular item (Bolton et al 2003, p 476). Consumer perception of the price level of a particular product has a negative influence on the buying behavior of the consumer and an indirect positive influence on buying intentions through product quality perceptions. This trend is attributed to the fact that consumers are heterogeneous in respect to their intentions and response to product prices.In most cases, consumers utilize a products price to choose if they will purchase it or not. They utilize a products price to determine the efficiency and quality of that product since they tend to believe that high prices imply good quality. According to research by Bolton et al (486), when consumers have access to data concerning the quality of a certain product, they often conclude that products with higher prices have high-level quality. More so, price tag is used to determine the quality of the product because the objective truth is that there is a strong relationship between price and quality.The relationship between consumer buying behavior, price, and marketing activities is very complex due to the context in which the relationship takes place. For example, most consumers are unable to differentiate the tastes of various beer brands but when the quality of the beer

References

Baines, P, Fill, C & Page, K 2011, “Consumer Buying Behavior, Oxford, OUP.

Bolton, E., Warlop, L & Alba, J 2003, “Consumer Perceptions of Price, Journal of Consumer

Research, 29 (March), 474–91.

Doyle, P 2006, Marketing management and strategy, Harlow: Prentice Hall.

Grewal, D & Mamorstein, H 1994, “Market Price Variation, Perceived Price

Variation, and Consumers’ Price Search Decisions for Durable Goods,” Journal of

Consumer Research, 21, 453–60.

Jobber, D 2010, Principles and Practice of marketing, London, McGraw-Hill.

Kotler, P 2009, Marketing management, Harlow: Prentice hall.

Lichtnstein, D, Ridway, N. M & Netemeyer, R 1993, Price perceptions, and consumer shopping

behavior: A field study, Journal of American marketing research 10, 234-245.

Olson, J. 2001, Consumer behavior and marketing strategy, New York: McGraw-Hill.

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preview essay on 1.If a Ferrari was 20k would they be as desirable Discuss the relationship between price, consumer behavior and marketing activities
  • Pages: 5 (1250 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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