Gut I. Irrationality of behavior of domestic enterprise as consumers

Українська версія

Thesis for the degree of Candidate of Sciences (CSc)

State registration number

0405U000868

Applicant for

Specialization

  • 08.01.01 - Економічна теорія

21-01-2005

Specialized Academic Board

К 08.120.01

Essay

The object of the present research is the system of relations between households and enterprises which is formed in the process of consumer goods circulation under the circumstances of market transformation of Ukraine's economy. The objective of the dissertation paper is to find out the main reasons and forms of irrationality in the market behaviour of households as consumers, specific character of Ukrainian households' irrationality and to make suggestions for Ukrainian enterprises on how to take into consideration consumer's irrationality in managing business. The given research is based on systematic approach to the analyses of households' consumer behaviour. The reasons and displays of irrationality are analyzed in certain interrelation, and the irrationality itself as an element of a higher level system. While researching the system of irrationality factors the author uses both generally accepted methods of carrying out scientific research and specific ones: abstract and logical method, method ofsystematic analysis, statistical and economical method, method of analysis and synthesis, method of classification, graphical method and others. The theoretical and methodological basis of the dissertation paper in question was studying and artistic re -interpreting of the greatest achievements of Ukrainian and foreign scientists in the domain, of market behavior of economic subjects households as consumers. The information base of the research are official statistic materials, the reports of analytical agencies and organizations, original documents of the enterprises working on the Ukrainian market and normative documentation. The obtained results are new for the economic science because a model of behaviour of households as consumers has been suggested. It reveals the motives, forms and strength of irrationality as an integral part of a connumer decision making process in modern conditions and trends of the development of market relations in the economy of Ukraine. While carrying out the research the following has been done: - subdivision of irrational behaviour of households as consumers into conscious and unconscious has been suggested; groups of forms reflecting conscious and unconscious irrational motives as well as the role and the structure of people's cognition in the process of conscious and unconscious irrational behaviour have been found and analyzed; - the structure (cognition, social environment, psychological peculiarities of consumer) and a number of trends in the development of the system of the "filters" determining the level of influence of the external factors (communication system and sales stimulation system which are subsystems of enterprise management) on the consumer behaviour of households have been discovered; the development of the process of the above mentioned subsystems integration has been described; the main reason of low efficiency of its particular elements (direct advertising, discounts, etc.) have been found as well; - multi-aspect significance of the income factor in making consumer decisions has been determined: income as a basic internal factor of consumer choice, as a rational consumer resource, income as a factor of structural and qualitative contents of the subsystem which corrects consumer's perception of the effect of communication system and demand stimulation system created by enterprises; income (in terms of level and differentiation) as a factor of disposition to wards irrationality. - information-productive and information-functional entries of the information function of enterprise's communication system have been singled out; it has been proved that in some correlation they unify rational and irrational content (mixed effect of functions) and that particular content of communication signals is a result of conscious - unconscious actions of their creators - levels and peculiarities of a product quality influence on the choice of households in the market system have been determined; a new vision of a product quality role and functions including the influence on the consumer's choice, the encouragement for entering the market; finding the target market, keeping long-term relations with consumers; influencing the content and the character of communication messages has been suggested; reasons for limited possibilities of consumers in comparing quality of products have been revealed. The structure of cognition of a household as a subject of consumer choice made by singling out groups of primary and secondary factors has been suggested; in frames of the model "income - cognition - irrationality" it is suggested to consider cognition as a "limitator" of rationality; the role of particular elements in the consumer resources structure has been determined depending on the income factor. Rational-irrational content of the factor of fashion as well as its economic essence of accelerator of the processes of replacement of the goods and services used by households to satisfy their needs has been determined; it has been suggested to consider fashion as a factor which reduces households' disposition towards savings, as a means against consumer conservatism, and independent element of enterprise's communication policy. Scientific theses, conclusions and recommendations of the dissertation research can be used both on scientific and practical level. Scientific institutions, analytical organizations can use them in further research of the economic behaviour of households as consumers on the Ukrainian market. Enterprises can use the author's conclusions and recommendations concerning irrationality in households' behavior and ways of taking it into account to improve the enterprise's marketing policy. The recommendations on the improvement of the governmental policy in regulating households' income can be used on macro-level. The conclusions of the dissertation research can be useful in teaching process for higher educational institutions as well as in special programs for corporate schools. The author has worked out the programmes of courses "Consumers behaviour" and "Sales techniques", provided their methodological background and teaching at Dnipropetrovsk University of Economics and Law. Besides, the author's recommendations have been used to improve the teaching of Microeconomics and Marketing. Some recommendations have been used in practice by enterprises: CJSC "Temde Ukraine", LLC "Onix" , SE "Praxet-Dnipro" of LLC "Praxet".

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