Understanding Consumer Behavior
Question:
Discuss about the Role of Consumer behavior in marketing and business strategy.
Consumer behavior is significant for any company before introducing the products and services. When an organization fails to assess how a customer will react towards specific products and services then the company could face losses. Consumer behavior is very complex as each customer has different attitude and mind with respect to consumption, purchase, and disposal of products. Along with this, understanding about theories and concept of consumer behavior aids to the marketing of product and services. In addition to this, studying consumer behavior could be effective in terms of different aspects. There are constant changes in the fashion, technology, living standard, attitude of consumers and trends with respect to purchasing of products and services. Understanding about these factors is significant because the marketing of products is highly depending on these factors (Armstrong, Kotler, Harker, and Brennan, 2015). Therefore, consumer behavior is an efficient technique which enables the marketers to meet the sales objectives. This report describes the role of consumer behavior in marketing and business strategies. It also applies different concept and theories to understand the consumer behavior.
Consumer behavior is defined as the buying tendency of consumers. An individual who goes for purchasing the products and services does not require that they will purchase it. There are different phases of consumer purchasing decision that he follows before finally purchasing the products and services in the market. At the same time, there are different factors which may affect the purchasing decision of consumers such as personal, cultural, social and psychological factors. Marketers should understand the consumer buying behavior with respect to particular products and services (Solomon, 2014). Hence, there is a need for marketers to comprehend how a consumer buys particular products and services and what stops him from purchasing. It is analyzed that marketing is a procedure to find the needs and wants of customers, building products and services solution to match and endorsing the advantages of products to targeted more customers. It is stated that understanding of consumer buying behavior and steps which followed by the consumer to make a purchasing decision is significant to develop a marketing plan (Papadopoulos, and Heslop, 2014).
The understanding of consumer buying behavior aids marketer to address and estimate the purchasing decision of consumer when they made purchasing decision. The consumer buying behavior aids the marketers to gain knowledge about what customer’s purchase but also aids to comprehend why they buy it. In addition, consumer buying behavior enables the company to understand where, how and when customers buy products and services and also responded. The consumption and causes behind disposition of that specific products and services aids marketer to assess the awareness of products and services which is marketed (Gummesson, Kuusela, and Närvänen, 2014). The consumer behavior studies aid marketer to increase their knowledge about the post-purchase behavior of the customers. Therefore, the marketers become aware regarding each stage of consumption procedure such as pre-purchase behavior, customer’s behavior during purchase and post purchasing behavior. It is assessed that each customer behaves differently for same products such as they purchase the products and services for different pays, prices, reason, different emotional attachment with products and used the product differently (Baker, and Saren, 2016).
Consumer Buying Behavior
It is assessed that a marketing plan defines market segmentation and targeting strategy which enables the company to target the customer and conduct market research. In addition, understanding about consumer behavior is essential to endorse the product and services and attract the customers towards them. Need recognition is a significant element of consumer decision making the process as a marketer can use this element to influence the consumer buying behavior. Marketer addresses how to conduct research and uncover the desires and preferences of targeted consumers. It also aids in the business development and helps to make effective advertising strategies. The company should make effective public relation and sales efforts to convince customers for their brand (Zhao, Gao, Wu, Wang, and Zhu, 2014). Further, the marketer should facilitate best brand offer and combination of benefits to customers to meet their needs.
Information search plays an important role to make marketing and business strategies. Company outlines the marketing plan and makes communication with customers by using information search process. Competitive assessment is a significant strategy to comprehend what competing brands are offered by competitors in the market. It allows the marketer to focus on core strength and get product benefits in advertising and another endorsement (Veit, Clemons, Benlian, Buxmann, Hess, Kundisch, and Spann, 2014). There are different companies which usually create and endorse the product by considering needs and preference of customers.
Consumer behavior is influenced by the marketer to retain the customer in long-term and helps to improve the customer loyalty. Marketer outlines the approaches to retain the customers and create the loyal association with them. These approaches are implemented during and immediately after buying decision of customers. There are certain companies which facilitate the customer rewards plan to attract the customers. In this way, these companies facilitate the discount or benefits for frequently purchase the products and services. A marketer also outlines the technique and strategies which are used for follow up and ensuring the customers that they have uses good experience (Strauss, 2016). A marketer can address the products and service related concern by conducting market research as it would be beneficial to influence the consumer’s behavior for future purchase.
Consumer follow estimated decision-making pattern in virtually buying condition. Initially, consumer addresses an emotional and function requirement like transportation, hunger, and desire for excitement. A marketer should find information to meet the needs of customers. Further, the company should consider the set of products and evaluates the decision-making criteria to influence the consumer towards company’s product. Consumer behavior understanding is also beneficial for marketers to make a selling decision. To influence the behavior of the consumer, the company facilitates a mix of benefits such as quality products and services at the affordable price (Erevelles, Fukawa, and Swayne, 2016).
There are several theories regarding buying behavior of customer and business who constantly analyze the customers and companies. These theories define that how to influence the customers to buy their products and services. However, different customers make a different buying decision as per different factors such as cultural influences, environmental element and own personality (Testa, Iraldo, Vaccari, and Ferrari, 2015).
How Consumer Behavior Helps Marketers
As per this theory, the consumer uses a generic model of decision making by using the procedure to make a decision. The customer addresses their need to make buying decision such as pricing and product quality initiates them to purchase that product. For instance, the decision to purchase a washing machine might come after the old one damage and requires a costly maintenance cost. In such situation, the consumer can invest in the new washing machine on the market and assess pricing, features, and benefits to make a buying decision. The company might face a challenge to identify how the consumer perceives about the products and services after buying it. In this way, if he is satisfied with the products and services then they will be more demand to buy that products and services in the future (East, Singh, Wright, and Vanhuele, 2016).
The cultural factor may influence the purchasing behavior of the consumers. A culture of person is set of belief and values which are learned by the community. These belief and standard can lead to buying behavior. It is assessed that social class relies on the income, occupation, education and it could influence the buying behavior of customers. Consumer behavior is influenced by the membership of friends and family at work. There are certain opinion leaders in the group that can persuade the buying decision of customers due to specialized knowledge and personality (Schiffman, O’Cass, Paladino, and Carlson, 2013).
As per this theory, it is evaluated that there are certain people who love to shop and takes buying decision by assessing each product and compare pricing before making a judgment. Customers have a different personality to choose a product for purchase. Hence, a product could be good for one but the same product could be not good for others in terms of features and price. The lifestyle of the customers can affect the buying decision of customers (Lovelock, and Patterson, 2015).
Conclusion
From the above interpretation, it could be concluded that consumer behavior theories and the concept is significant for a marketer to make business and marketing strategies. It could be summarized that products are made to cater the needs and demand of customers hence products and services should be cautiously marketed for attaining the organizational goals. The understanding about consumer behavior aids the company to assess the different factors which can influence the decision of customers. In could be evaluated that if the marketers are unable to understand the factor then they will not be able to attain the target.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. UK: Pearson Education.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. USA: Sage.
East, R., Singh, J., Wright, M., & Vanhuele, M. (2016). Consumer behavior: applications in marketing. USA: Sage.
Erevelles, S., Fukawa, N., & Swayne, L. (2016). Big Data consumer analytics and the transformation of marketing. Journal of Business Research, 69(2), 897-904.
Gummesson, E., Kuusela, H., & Närvänen, E. (2014). Reinventing marketing strategy by recasting supplier/customer roles. Journal of Service Management, 25(2), 228-240.
Lovelock, C., & Patterson, P. (2015). Services marketing. Australia: Pearson.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. UK: Routledge.
Schiffman, L., O’Cass, A., Paladino, A., & Carlson, J. (2013). Consumer behavior. UK: Pearson Higher Education AU.
Solomon, M. R. (2014). Consumer behavior: Buying, having and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.
Strauss, J. (2016). E-marketing. UK: Routledge.
Testa, F., Iraldo, F., Vaccari, A., & Ferrari, E. (2015). Why Eco?labels can be Effective Marketing Tools: Evidence from a Study on Italian Consumers. Business Strategy and the Environment, 24(4), 252-265.
Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., … & Spann, M. (2014). Business models. Business & Information Systems Engineering, 6(1), 45-53.
Zhao, H. H., Gao, Q., Wu, Y. P., Wang, Y., & Zhu, X. D. (2014). What affects green consumer behavior in China? A case study from Qingdao. Journal of Cleaner Production, 63, 143-151.
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