The Effects Of Beliefs And Attitudes On Consumers’ Decisions

The effects of beliefs and attitudes should not be underestimated as they can severely affect consumers’ decisions. As stated in the article, as a result of superstition, Chinese consumers gain a belief that the number ‘4’ is inauspicious. Hence they perceive that products associated with that number will bring them more harm than good which in turn lead to them moving away from the purchase of such products when possible. Such an attitude can slowly become more wide spread and affect more consumers in the long run as they are passed down to friends or relatives. Therefore, beliefs and attitudes are crucial factors that companies should not ignore or overlook. If left unchecked, they can cause huge economic losses. According to a study by the Stress Management Centre and Phobia Institute in North Carolina, it is estimated that businesses lose up to $900m (£585m) in sales and productivity when the 13th of the month falls on a Friday as people stay away from activities such as travelling, purchasing major items or conduct of business.

If marketers can make good use of these psychological factors, they will be able to appeal to more consumers which will in turn benefit their business. It is stated in the article that homes with numbers ending in 8 are charged an additional 0.9 percent premium. Evidence have also shown that consumers tend to be more superstitious during economic uncertainty. By taking such factors into account, marketers can adjust their policies and deal with market fluctuations more effectively. They will be able to set their prices appropriately and stock up on necessary products. This will also enable them to handle a sudden surge in demand for certain goods and dish out price promotions on special occasions. For example, in Brazil, it is widely known that wearing yellow underwear in the night of New Year’s Eve will assure money in the coming year. Coupled with its poor economic situation, sales for these products boomed and even caused shortages as millions of people are worried about losing their jobs. Hence, it is extremely crucial that marketers conduct research and understand the various beliefs and attitudes that consumers may hold towards certain products or services. Such knowledge will allow companies to make better marketing decisions and perhaps aid them in their new product development strategies.

Thirdly, beliefs and attitudes are hard to change. Since young, consumers are exposed to many different teachings, values, needs and wants. Their interaction with the environment will shape their beliefs and attitudes. To change these factors, difficult adjustments have to be made and sometimes they may not be effective or sufficient. This can be seen in the article, which shows that even in highly educated societies like Singapore, superstitions are still widely adopted. Thus, a company should usually try to fit its products into existing attitudes and beliefs rather than attempting to change them. For example, yellow is a color highly favored in Thailand as it is considered to represent royalty but it may not work well in Mexico whereby the yellow color is associated with death or disrespect. Companies thus have to modify their product mix so as to minimize any possible conflict with the beliefs and attitudes of the local consumer groups. This learning point also reminds us that reckless business management or decisions can lead to lasting negative impacts that may take us forever to repair. For example, if consumers’ beliefs and attitudes towards a company are twisted, they will deem every product from the company as questionable. This can be seen from the 2008 Chinese melamine milk scandal whereby an estimated 54,000 babies were hospitalized. This incident crippled consumers' trust in locally-made products and make them form beliefs that domestic brands should not be trusted, thus resulting in widespread boycotting. Domestic brands have since been struggling trying to capture market share despite tougher government regulations on quality control. Now some companies have even resorted to forming partnerships with foreign companies so as to make formula overseas and then sell it to consumers back home.