UGB310 Consumer Psychology

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Use the example of your branded product/service to illustrate how consumer behaviour concepts can be applied to the purchase of such products.

Discuss the steps that the consumer will have to go through when making a purchase of your product. Also, discuss the implications for marketing.

Analyze the impact of psychological factors (such a perception, personality, attitude, motivation, and learning) on your buying behavior.

Describe the changing nature of family structure, cultural influences and the impact they have on buying behavior over time.

You will need to identify the consumer profiles that are most likely to purchase your product. Also, you should briefly discuss how promotion could help the product’s marketing.


“Explain the Evolving Nature of Family Structure, Socio-Cultural Classes, and Culture Through The Years And Their Impacts On Buying Behavior”

Consumer behavior is evolving with the changing times.

Industries are constantly evolving to satisfy the needs of customers of all kinds.

Although customers were the king pin of the marketplace since the beginning of this century, the market has to meet their needs. Otherwise companies won’t be able to sustain growth (Dudovskiy 2016).

Today’s marketers face the challenge of understanding and offering quality products and services that appeal to different customer groups.

The market’s taste is also affected by the major factors discussed below.

Structure of Family: There are two types of family structure:

Joint Family is a large, extended family that includes a couple, their parents and children (Van Doorn.

The nuclear family: A small group that includes a married couple with their children.

The choice of customers to purchase branded products on the marketplace will greatly impact the structure of a family.

You should consider that there is a greater number of people in a family with joint members than in a family with nuclear members, so they tend to prefer brands, particularly BMW.

BMW is one of the most expensive and sought after cars that isn’t affordable for everyone (Kaufmann Panni, Orphanidou 2012).

A joint family has more responsibilities, so they put off buying BMW cars.

If you are talking about the nuclear family, because there is a smaller number of relatives, there are only a few obligations that must be met by the head. Therefore, they can easily save some of their income to purchase a BMW car (BMW 12 2017.

The influence of family members on a purchase decision is another important factor.

In other words, family members can influence and get influenced differently depending on how they are related to each other.

Relationship dynamics are another important factor in family dynamics (Darley Blankson, Luethge 2010).

Three factors influence buying behavior in families:

The dominance of the wife in decision making will lead to more purchases of groceries, food and home decor as well as jewels.

These women are more inclined to buy such products.

Husband’s dominance of the decision-making processes: In this instance, the family will invest more in luxurious and reliable products, such as insurance and BMW cars.

Joint Decision: The family will put off buying cars, etc.

and are looking for short-term happiness, such as vacations.

(Topcu 2011 and Akar)

Additionally, it should be noted that earlier times, the majority of the society lived in joint families. The society’s head made decisions and they decided on the car purchase.

They were more inclined to buy low-cost, durable products with less status upliftment.

With the changing decade, consumers are more inclined to purchase BMW cars (De Mooij 2010.

Social Classes: Wealthier members of society prefer luxurious cars like the BMW to be on the market.

The car is used primarily by people as a status symbol, to highlight their accomplishments.

There are three main sections of society that make up the social class:

Upper Class: This is the category that premium products dominate the market.

They are the wealthy and most well-off who buy BMW cars to satisfy their status needs (Solomon Russell Bennett, Previte 2012).

The Middle Class is a group of people at the middle income level who are directly affected by economic decisions made in the government’s economy.

They don’t prefer premium products and instead believe in purchasing durable products.

However, they do purchase premium BMW cars out of their passion and dreams.

Lower Class: This is the lowest income group of society, those who have enough to meet their basic needs.

This group does not dream of owning BMW cars (Hernandez Jimenez, Martin 2010, and Martin 2010).

It is also worth noting that more people are shifting to middle-income and higher-income levels due to increasing sales of premium products, such as BMW cars.

There were two distinct sections of society in the past.

Higher and lower income people were the only ones who used to buy the product. But, the middle income has made it more popular for consumers to opt for first-class cars.

Culture refers to the behavior of a society when purchasing a product or service.

Culture is mainly made up of all the market factors that could affect a person’s buying behavior (Papasolomou, Kitchen 2011).

On the basis of these factors, people make decisions about purchasing luxury products.

Subculture can include aspects such as religion, geography, age, gender, etc.

It can impact the decision making process of an individual.

The cultural shift in purchasing BMW cars will be compared to the earlier times when only a certain section of society (the wealther one) was able to buy them to enhance their status in the market.

The market is highly competitive and more people want to be part of the race for these products.

If a person is successful in obtaining a product and becomes well-known, the whole society will be motivated to purchase that product in order to join the elite group of users (Moiseieva 2013.

The fact that the above factors greatly influence the demand for brand products on the market is obvious.

With the changing times, branded BMW cars are becoming more popular.

“Identify a consumer profile that highlights the most likely consumers to buy your product. Then, briefly discuss the promotional efforts that would effectively support the marketing of this product.

The BMW Company is recognized as a luxury brand on the market that is preferred only by people with higher incomes.

Furthermore, BMW’s sale is not just limited to people’s income but also other factors that influence the profile of the person who purchases a BMW car.

The following table outlines the demographic profile for a respondent who chooses to buy a BMW vehicle.

Age: It is important to note that the luxury BMW brand is preferred by two age groups. They are the middle-aged (25-35), as well as the people who have reached saturation (45-55)

De Mooij (2010) says that the first age group is very active and wants to live a lavish life.

A second group symbolizes the fact that they purchase such products after reaching satiety in market.

This group has lived a full life and is now content to spend their money on themselves.

Income level/social status: It has been observed that BMW is a well-known brand for its prestige, which increases people’s status symbols. Therefore, people with higher incomes only buy this product.

Because of the high cost of cars, this product is not affordable to the majority of society.

Middle-income people also have the option to purchase this product to increase their self-esteem and be part of the wealthy (Moiseieva, 2013).

The product is called “Dream” and it’s also preferred by people who dream about buying a luxury car.

The car is a passion product that many people want to own.

BMW cars are easy to use and have attractive designs that attract many people’s attention.

These people also love BMW cars.

Gender: According to Frank 2012, it was found that more men prefer this product than women (Frank 2012).

Marital Status. More married couples choose to purchase BMW cars.

These reasons could be many. In adolescence males are drawn to sports cars, while they become more interested in luxury cars after marriage.

Another reason is that they are now more comfortable with a larger car and can choose a vehicle that suits their family’s needs.

A married couple tends to be more successful and settle.

A second factor to consider is the fact that most people in the 25-35 age range are married.

You should also consider the 45-55-year-old age group. They are married only (Darley Blankson, Luethge 2010, and Luethge 2011).

This shows that BMW cars are more popular with married people.

Societal Influence: It depends on the society where a person lives.

People in particular societies may believe that if cars are not used for travel, there will be a decrease in population. In such cases, BMW cars will be preferred by less people.

High sales will be attained in countries where BMW has its headquarters.

Cultural dominance in the market: This is another major factor that determines the sales of premium BMW cars on the market.

It is as if a relative doesn’t want to buy the product or the market has fewer luxury cars.

These products will be less popular (Chattopadhyay Shivani, Krishnan 2010, and Krishnan).

If there is high market competition and promotion tool is heavily used, then more people will buy premium BMW-branded cars.

This is why a well-off consumer with a good reputation and high standard of living would prefer to own a BMW car.

BMW also welcomes consumers with big dreams or an interest in cars.

Everyone knows that the company targets specific markets to increase its sales (Bhasin 2017).

The company also uses promotional tools to encourage customers to buy their products.

Collaboration and sales promotion: BMW started the promotion for their cars by collaborating extensively with companies that provide spare product and raw materials.

BMW collaborated with other companies to promote their products as they purchased raw material from the companies.

BMW also developed customer connections with other companies, which resulted to increased sales.

BMW started dealerships for their branded cars.

Dealers can also help the company reduce their workload to increase sales.

BMW Group 2017 also mentions the company’s name more often in the market because there are more BMW-related companies.

Promotion via Advertisement campaigns: The advertisement is the most important part of selling and promoting the product.

Advertising helps companies promote their product both digitally and physically.

The tagline “The ultimate driving Machine” was also a success.

These are the types of techniques that draw customers’ attention and incite them to buy the product (BMW Group 2017.

BMW uses a highly effective advertising strategy. This includes providing details about the products, their unique features, and other information.

So that customers can trust the product, they offer advertising under the names and images of well-known actors and celebrities.

Public Relationship: BMW establishes a long-term relationship to its customers. This results in repeated sales.

Sponsorships are a major way for companies to market their products in the ideal target market.

For example, in car racing and football matches.

These are just some examples of areas where companies sponsor their product (Frank 2012).

The above statement should be concluded. It is important to note that BMW uses its target market effectively and promotes their product which in turn leads to an increase of sales.


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