The interlinked constructs of context, loyalty and switching and their impact on

buying

Many marketers reckon young adults aged from 18 to 24 as a distinct customer

segment that touts sizeable buying force. In the UK, such consumers spend close to
10 billion each year, while it has been projected that young adults will inject
more into the US economy than baby boomers by 2010.

The young adult segment

The importance of these consumers is also widely known. Their impact on family
unit buying decisions is becoming significant and they are distinguished as style
setters that influence consumption change in other peoples behaviours too. Many
marketing managers also remain sensible that insuring the support of young adults
may be great given their ability for likely future expenditure.

Same as mainstream consumers, the image, lifestyle and buying behavior of young
adults is influenced to some degree by several outside factors. The challenge for
academics and managers is to describe which factors hold sway. Early
investigations have shown facets that include family influences, peer influence
and self perception to influence customer behaviours along side context specified
factors such as age, gender and lifestyle. Quite a few researcher consider,
however, that managers have deficient knowledge about what moves this consumer
segment.

Some managers continue to avoid the young adult segment on the assumption that
such consumers are not brand loyal. Evidence for this is, however, somewhat
inconclusive. On the one hand, academics suggest that the buying behaviour of
young adults is often determined by monetary constraints. An aim to save money
means that switching to cheaper brands becomes a natural response. Conversely,
there are also those who argue that the purchasing habits developed during their
young adult phase can remain with consumers for many years after. Considerable
research from the tobacco industry adds weight to this particular claim.

consumer loyalty to a brand is shaped by variables that include brand familiarity,

convenience, usage experience and sensed value. analysts previously measured
loyalty through behaviour solely but cognitive variables are now part of an
research approach that also comprises customer attitude and values. Behaviour
continues as a all important indicant of loyalty and enables recognition of such
issues as buying relative frequency, buying volume and possibility of repeat
purchase. It is also feasible to check the ratio of purchases made against other
products or services within a peculiar market or retail location.

marketers also note the affect of brand switching propensities on brand loyalty.
It is contended in particular quarters that inbuilt or Extrinsic variables may
motivate consumers to switch to a different brand. Variety and an abundance of
choice are cited as most-valuable internal incentives with the opinion that
curiosity or need for specific features can prompt switching behaviour. Extraneous
elements can be equally influential and might, for example, help the consumer to
reach or elude purchase or consumption motives. The prior mention to young people
being prompted by fiscal constraints is one such example. Engagement levels and
promotional material are somg other factors marked as being prospective roots to
brand switching.

Behavioural intention is commonly perceived by learners as fundamental to

understanding customer buying behavior since it regulates brand loyalty and
switching behaviour. Some academics interpret overall satisfaction as a strategic
to behavioural intentions but others are straightaway challenging this assumption
as it does not consider the impact of contextual elements. It is likewise debated
that theoretical accounts established on the assumption that behavioural
intentions are for the most part forged by customer attitude are likewise faulty.
In this case, marketing and promotion elements are not taken significantly enough.

Research findings

Focusing on these limitations in present literature, I inquired the interaction

between contextual components, behavioral intentions and buying decisions in the
belief that this will provide deeper insight into consumer behaviour.

The first part of the present work involved exploratory study using three focus
groups comprising of young adults in the Sussex area of the UK. This qualitative
research examined the features of this customer segment and researched the
loyalty, switching behaviour and purchase decisions of customers. Findings were
combined with extant literature and utilised to produce hypotheses and a
structured, self-administered questionnaire, which was subsequently completed by
340 young adult customers.

Research findings pointed that, as forecasted, contextual variables significantly

determine brand loyalty, switching behaviour and buying decisions. A significantly
positive relationship between brand loyalty measures and purchase decision was
likewise found. But contrary to anticipation, the affect of brand switching
measures on purchase decision was not significant.

Other studies have researched these concepts individually, whereas this research
work took in an integrated approach here to investigate the complexities of
customer decision making. This enabled me to determine that:

* principal reference groups like friends had the most impact on the loyalty
behavior of young adult respondents;
* the impact of product type and image on loyalty was significant but
moderate;
* brand loyalty is regulated by brand name and packaging;
* the influence of ads on loyalty was minimal;
* enhancing products helped to increase brand loyalty; and
* loyalty was not significantly affected by past use, expectations and
convenience.

The store where the consumer buys was identified as moderately authoritative,
evenif many focus group members did not consider this variable as significant.
This brings up the matter of struggle between customers' sensed and factual
behaviour.

For brand switching:

* store level publicity was seen to be most important;

* the effect of media advertisements was inconsequential; and
* price was astonishingly observed as an trivial element.

The study's implications for managers

Following the study findings, I recommend that senior managers should:

* develop a substantial brand name;

* pay little attention to advertisements;
* stress on sustained innovation and brand extensions;
* be mindful of how consumers relate with the product in real life
circumstances; and
 * give in-store promotions based on product volume rather than price.

It must be noted the sometimes impulsive nature of brand switching creates loyalty
more susceptible in-store. I hence state that senior manager should research paths
to positively engage with young adults within this environment to lower the
challenge of switching behaviour happening.

I consider that the unmistakable meaning of contextual components warrants

segmenting young adult consumers on this base. The changing nature of the measures
measured here is, however, recognised and I advise periodic revaluation is
required to improve our reading of the interplay between them.

Potential inquiry focusing on supplemental consumer segments, product categories

and markets can shape on present results.

Source: http://pauravshukla.blogspot.com/2009/09/impact-of-contextual-factors-
brand.html ; http://insuranceplanetblog.tumblr.com/