PRICE, CONSUMER BUYING BEHAVIOR AND MARKETING ACTIVITIES Essay

PRICE, CONSUMER BUYING BEHAVIOR AND MARKETING ACTIVITIES - Essay Example Pricing behaviors used to advertise goods and services to consumers such as twenty thousand pounds for a Ferrari, are common in contemporary society, showing that they are advantageous for businesses (Baines et al. 2011). Further, price consultants have emerged to provide advice to business people on how to price their goods because of existence of a strong relationship among price, consumer buying behavior, and marketing strategies. It is significant for businesses to determine which pricing behaviors will harness more consumers. Buying behavior is an act where people make decisions whether to buy a certain product or not. Consumer buying behavior is the buying behavior of the final consumer product. Consumers tend to show distinct behaviors when buying products and services of their choice. It is significant to note that the type of goods they want to purchase affects their purchasing behaviors. Consumer buying behavior incorporates a long process in that the purchaser has to ident ify and study the product advantages and disadvantages before deciding whether to purchase it or not. Since the intention of marketing is to ensure satisfaction of the customer in return for profits, business managers need to understand the relationship among price, consumer behavior, and marketing activities. Marketers need to identify customers’ needs, preferences, tastes, desires, and expectations of consumers in purchasing their products (Doyle 2006, pp. 73–4). ... Some buyers have an intricate purchasing behavior that is linked with different products that they intend to purchase (Grewal & Mamorstein 1994, p. 462). 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 consumer’s income since high prices will drive them away (Lichtnstein 1993, p. 239). Price is one of the most significant marketplace signals. The issue of price is very important 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 a consumer is going to give to a product seller in order to acquire a product; therefore, if prices are high, they negatively affect the chances of the consume r 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 of their intentions and response to product prices (Lichtnstein et al. 1993, p. 241). In most cases, consumers utilize a product price to choose if they will purchase it or not. They utilize a product 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