Many marketers think young adults aged between 18 and 24 as a separate customer segment that boasts sizeable purchasing power. In the UK, such consumers spend approximately 10 bn each year, moreover, it is said that these segment will add more than the baby boomers in the US.

The importance of these segment of customers is also widely noticed. Their affect on home buying decisions is fairly noticeable and they are recognised as trend setters that influence consumption change within other market segments. senior managers also remain mindful that ensuring the backing of young adults may be important given their capability for latent future expenditure.

Same as mainstream consumers, the image, lifestyle and purchasing behavior of young adults is moulded to varying but significant degree by distinct Extrinsic factors. The challenge for investigators is to discover which elements hold sway. Past researches have signaled views that include family influences, peer influence and self perception to influence customer behaviours along side context specified elements such as age, gender and lifestyle. Few analysts and investigators conceive, however, that marketing managers have scant knowledge about what moves this consumer segment.

Some marketers think to to ward off the young adult segment on the assumption that such customers are not brand loyal. Proof for this is, however, passably indeterminate. On the one side, researchers 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.

customer loyalty to a brand is shaped by elements that include brand familiarity, convenience, usage experience and comprehended value. analysts previously measured loyalty through behaviour exclusively but cognitive variables are presently part of an research approach that also contains consumer attitude and values. Behaviour remains as a crucial indicant of loyalty and enables recognition of such issues as purchase relative frequency, buying volume and possibility of repeat purchase. It is as well possible to check out the ratio of purchases made against other products or services within a specific market or retail location.

senior managers also observe the affect of brand switching propensities on brand loyalty. It is reasoned in certain quarters that intrinsic or Extraneous components may motivate consumers to switch to a different brand. Variety and an abundance of choice are cited as key inbuilt motivators with the notion that curiosity or need for specific attributes can urge switching behaviour. External variables can be every bit authoritative and may, for instance, aid the consumer to accomplish or elude purchase or consumption objectives. The earlier reference to young people being prompted by fiscal constraints is a clear example of this phenomenon. Engagement levels and packaging are somg other factors noted as being latent roots to brand switching.

Behavioral intention is commonly sensed by learners as important to understanding consumer purchase behavior since it influences brand loyalty and switching behaviour. Many researchers view overall satisfaction as a all-important to behavioural intentions but others are at present finding this assumption trying as it does not look at the impact of contextual elements. It is also indicated that models planted on the premise that behavioural intentions are mostly forged by customer attitude are likewise defective. In this case, marketing and promotion variables are not deliberated significantly enough.

Keeping these issues in mind, I looked into the interaction between contextual factors, behavioural intentions and purchase decisions in the opinion that this will supply deeper understanding of customer behaviour.

The first part of the present work involved exploratory study using three focus groups (lasting more than 2 hours) comprising of young adults in the Sussex area of the United Kingdom. This qualitative inquiry dissected the specific features of this consumer segment and explored the loyalty, switching behaviour and purchase decisions of customers. Results of the focus groups were combined with extant literature and utilized to develop hypotheses and a structured, self-administered questionnaire, which was afterwards completed by 340 young adult respondents.

The research findings signaled that, as anticipated, contextual components significantly influence brand loyalty, switching behaviour and purchase decisions. A significantly positive relationship between brand loyalty measures and purchase decision was also determined. But converse to anticipation, the impact of brand switching measures on purchase decision was not substantial.

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

    * crucial reference groups like friends had the most impact on the loyalty behavior of young adult consumers;
    * the affect of product type and image on loyalty was significant but moderate;
    * brand loyalty is regulated by brand name and packaging;
    * the impact of promotion on loyalty was nominal;
    * enhancing products helped to increase brand loyalty; and
    * loyalty was not significantly affected by past utilisation, expectations and convenience.

The store where the customer buys was found as somewhat authoritative, evenif many focus group respondents did not count this variable as substantive. This provokes the subject of difference between consumers' perceived and objective behavior.

For brand switching:

    * in-store publicity was found to be most powerful;
    * the result of media advertisements was indifferent; and
    * price was amazingly seen as an minor variable.

Marketing implications for this study
Following the study findings, I recommend that marketing managers should:

    * build a substantial brand name;
    * pay fairly little attention to advertisements;
    * focus on continuous innovation and brand extensions;
    * be sensible of how young adults relate with the product in real life contexts; and
    * hold in-store promotions based on product volume rather than price.

It must be noted the sometimes impulsive nature of brand switching causes loyalty more weakened in-store. I thus suggest that senior manager should explore means to positively engage with young adults within this environment to lower the threat of switching behaviour happening.

I believe that the obvious significance of contextual factors warrants segmenting young adult consumers on this base. The changing nature of the concepts measured here is, however, accepted and I suggest periodical revaluation is essential to improve our reading of the interplay between these constructs.

Potential inquiry involving incremental consumer segments, product categories and markets can shape on present findings.

Source: Impact of contextual factors, brand loyalty and brand switching on purchase decisions