Having taught marketing courses, especially Consumer
Behavior, and being an Applied Anthropologist, I find that there is a simple
paradigm you can use when considering your product and your customer.[1]
Business is a transactional human activity that takes place in a “transactional
environment.” The act of consumption is transactional taking place on the
individual and the social level. To understand how and why business takes place
the way it does, one must understand how the transactional system works. That
is, one must look at the very nature and structure of the consumption patterns
and their motivational roots.
The transactional environment may be divided into basic
observational or transactions units. A
transaction is a dyad, a simple two-party behavioral structure of a “buyer” and
a “seller.” It represents an exchange between the two parties that is
“mutually” satisfactory in the moment. The key word here is ”satisfactory”
which signifies that the exchange has taken place. “Mutually” implies that each
party agrees that “what was exchanged” met their individual standard of
“fairness”. “In the moment” implies that the transaction is bound by the time and
place of the transaction, i.e. is an event resulting in behavior under specific
circumstances. Every event is unique, yet every event pattern falls into one of
three motivational patterns. These patterns together represent the Consumption
Pattern.
A transaction event or situation arises when two or more
parties[2],
each decides that it wishes to exchange a quantity of A for a quantity of B.
The transaction begins with individual party’s decision and ends when a “deal”
or agreed decision is made to make the exchange and the exchange takes place.
The Consumption pattern consist of a buyer or consumer and a
seller or producer of a physical good or behavioral service. The pattern is
structural, that is an outside observer can witness the exchange and identify
and label the part or role each party plays in the transactional event.
In a smaller or more traditional economy (transactional
space), exchange may take place in a context of “barter” where the status/roles
of the parties are complementary. In a barter economy, the individuals in the
transaction occupy both the buyer and seller statuses and must play both seller
and buyer roles in order to “make a deal”. Thus, every Buyer is also a Seller
and every Seller is a Buyer. The exchange takes place when there is a mutual
agreement on the relative value of the good/service A = the value of
good/service B. Value varies based on the availability of A and B in the
transactional space and is highly situational.
In modern and global society, we identify the “buyer” as the
party that receives the product (a good and/service) from the producer in exchange
for money (“an object of generalized value”) received by the
“seller.”[3]
The value of the exchange is defined as the “price” the buyer pays to the
seller or the value demanded by the seller. Money is an agreed upon unit of
measure that transforms the good or service provided by seller into a
generalized “value” that the buyer can access at a time and place of his/her
choosing.
Every “deal” has a purpose. That purpose is to support Life,
that is the life of the parties to the deal, in some way.
Life has two basic requirements. First, a living body must
survive its environment. That is, it must have the capacity to perform the
basic function of life – self regulate itself within an external environment.
To do this the individual must survive as a separate entity in its
environment. Survival in itself does not constitute “life”. Life requires that
the entity also contributes to the dynamic stability of its environment. When
the entity can no longer contribute to its environment it dies, or ceases to
exist.
What distinguishes life from non-life, is that its survival
is dependent upon and requires that it contributes to environmental stability.
Otherwise, if the entity fails to contribute to stability, the system must
change or adapt in order to survive. Thus, the entity must be capable of replicating
itself.
Every transaction constitutes as “deal” and , as such, it has both
an individual and a social psychological dimension. These dimensions begin with
the customer as an animal with basic physical needs that can be satisfied by
the physical environment. The individual acts as the “buyer” and Nature acts as
the “seller”. These are the inherited biological requirements for survival as a human animal with individualized needs.
As a human, however, we have a specific set of needs that
can be satisfied by Nature by a certain set of products. There are other
products in Nature that threaten the individual's survival. Humans must learn the
differences. This means the individual must Choose between the products that Nature offers.
Choice creates “wants” which are preferences among
the products offered by Nature. Finally, as the individual grows and ages, her/his
needs and wants change to accommodate his/her position or a status in its
environment. These changes are part of the lifecycle.
An individual’s
lifecycle is defined in terms of one’s biological age, physical
characteristics and needs, and the social meanings and values attached those
characteristics. These meanings and values create social status. The
social meanings and values influence one’s choices in their social environment
and their status in that environment.
One's choices influence how others interpret
one’s status. Status, in group terms, is based on the group’s shared values. To conform to the group,
individuals must select among its available choices, those that conform to the
group. Thus, they distinguish between those choices that satisfy a physical
need and those that satisfy a social status need.
Choices that satisfy a social need become desirable choices because they identify
one’s social standing in the wider socio-cultural system. We can define these
choices as desires. As we proceed through the lifecycle and become
identified with social groups, we find that the power relationship between
BUYER and SELLER changes.
[1]
See my earlier essay, “Consumption Patterns: Needs, Wants, and Desires” https://www.researchgate.net/publication/259495871_Consumption_Patterns_-_Needs_Wants_and_Desires
[2]
“two or more” implies that there may a “supply chain’ through which the “end
buyer” and “primary producers or seller” are connect through a “chain” of
deals, e.g, buyer of bike + retail store + wholesaler+ shipper+ bike
manufacturer.
[3]
“Money or generalized value” means that the object received by the seller
fulfills the three basic functions of money – a medium of exchange, a store of
value, and a unit of account.
[4] The
study of Consumption patterns depends on the researcher’s focus e.g. the
individual, family, community, social class, etc. They also express the power
relation between buyer and seller.