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Explain illustrating your answer with reference to an organisation(s) of yourchoice why marketers should understand consumer behaviour

Introduction

The notion of marketing management refers to a pre-determined strategyaimed at achieving a given marketing objective Consumer behaviour andthe study of consumer response to a companys interaction with thecommercial environment represent key deliberations and are integral tothe success of a marketing strategy Historically the study of consumerbehaviour has been rather neglected with Dubois (2000) suggesting that itis the stepchild of the marketing discipline

This essay seeks to explore the relationship between these two concepts

while examining some of the key reasons why marketers should attempt tounderstand consumer behaviour

It could be reasonably assumed that a consumer is in the best position tomake a rational product purchase if that person has access to all theinformation available to them Issues such as price quality product brandimage and others affect the attractiveness of a product and its subsequentchances of being purchased

Understanding consumer behaviour gives marketers the chance to

influence the availability of this information in a way which is beneficial tothe company Providing positive information on product attributes relative tothe competition will evidently increase the affiliation and informationconsumers have with that product The reasons for this are explained laterin this essay

From the perspective of the organisation a companys ability to retain apersonal relationship with its customers can be restricted when it is dealingwith large numbers of people In such situations failure to adequatelyunderstand the target market may result in any number of negative

consequences such as delivering a product to the market which consumersdo not demand Dubois (2000) suggests that understanding consumerbehaviour is necessary when direct contact with those consumers is notfeasible

Consumers as Decision Makers

By analysing and predicting the way in which consumers may be likely toreact to a companys marketing activity (eg a new product launch) the

best course of action can be ascertained (eg a choice between initialsales promotion or a sustained advertising campaign) Hence

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The role of a marketing strategy as set out above will likely differ dependingon these consumer decision making processes East (1997) identifies twocompeting types that of a cognitive decision process and behaviouristicreinforcement decision making

The cognitive approach involving high levels of thought processing whenmaking a buying decision would seem to allow the greatest scope formarketer interaction (as in the Microsoft example above) Fill (2002)suggests that a cognitive based decision making process assumes thatindividuals attempt to control their immediate environments in whichproducers play their part This view is backed up by Foxall (1992a) as citedin East (1997) who goes as far as to suggest that consumers handleconsiderable quantities of information when making cognitive based

purchase decisions We hence see decision making which is close to aninformed and rational thought process open to manipulation by marketersvia media such as advertising campaigns

A second decision making process is one of behaviouristic or learnedbehaviour This reinforcement argument focuses on the idea that a personwho has a positive experience one time with a product will be more likely topurchase that product again as they remember the positive resultsassociated with the purchase It could be argued that this decision makingprocess can be nurtured by marketers by ensuring that consumers are left

with positive feelings towards the product thus increasing the chances thatthey will purchase it again Likewise a process known as shapingidentified by Skinner (cited in East 1997) in which consumers can beprompted towards particular attributes of a product (eg by selectiveadvertising) provides marketers with more possibilities as regardsmodifying learned behaviour The 3 Mobile Network may represent anexample of this with its current marketing campaign which emphasises theability to download music videos on mobile phones By providing incentivesto use such services many consumers will effectively move from one

behaviour to another (ie a different use for their phone) and if

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The role of a marketing strategy as set out above will likely differ dependingon these consumer decision making processes East (1997) identifies twocompeting types that of a cognitive decision process and behaviouristicreinforcement decision making

The cognitive approach involving high levels of thought processing whenmaking a buying decision would seem to allow the greatest scope formarketer interaction (as in the Microsoft example above) Fill (2002)suggests that a cognitive based decision making process assumes thatindividuals attempt to control their immediate environments in whichproducers play their part This view is backed up by Foxall (1992a) as citedin East (1997) who goes as far as to suggest that consumers handleconsiderable quantities of information when making cognitive based

purchase decisions We hence see decision making which is close to aninformed and rational thought process open to manipulation by marketersvia media such as advertising campaigns

A second decision making process is one of behaviouristic or learnedbehaviour This reinforcement argument focuses on the idea that a personwho has a positive experience one time with a product will be more likely topurchase that product again as they remember the positive resultsassociated with the purchase It could be argued that this decision makingprocess can be nurtured by marketers by ensuring that consumers are left

with positive feelings towards the product thus increasing the chances thatthey will purchase it again Likewise a process known as shapingidentified by Skinner (cited in East 1997) in which consumers can beprompted towards particular attributes of a product (eg by selectiveadvertising) provides marketers with more possibilities as regardsmodifying learned behaviour The 3 Mobile Network may represent anexample of this with its current marketing campaign which emphasises theability to download music videos on mobile phones By providing incentivesto use such services many consumers will effectively move from one

behaviour to another (ie a different use for their phone) and if

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The role of a marketing strategy as set out above will likely differ dependingon these consumer decision making processes East (1997) identifies twocompeting types that of a cognitive decision process and behaviouristicreinforcement decision making

The cognitive approach involving high levels of thought processing whenmaking a buying decision would seem to allow the greatest scope formarketer interaction (as in the Microsoft example above) Fill (2002)suggests that a cognitive based decision making process assumes thatindividuals attempt to control their immediate environments in whichproducers play their part This view is backed up by Foxall (1992a) as citedin East (1997) who goes as far as to suggest that consumers handleconsiderable quantities of information when making cognitive based

purchase decisions We hence see decision making which is close to aninformed and rational thought process open to manipulation by marketersvia media such as advertising campaigns

A second decision making process is one of behaviouristic or learnedbehaviour This reinforcement argument focuses on the idea that a personwho has a positive experience one time with a product will be more likely topurchase that product again as they remember the positive resultsassociated with the purchase It could be argued that this decision makingprocess can be nurtured by marketers by ensuring that consumers are left

with positive feelings towards the product thus increasing the chances thatthey will purchase it again Likewise a process known as shapingidentified by Skinner (cited in East 1997) in which consumers can beprompted towards particular attributes of a product (eg by selectiveadvertising) provides marketers with more possibilities as regardsmodifying learned behaviour The 3 Mobile Network may represent anexample of this with its current marketing campaign which emphasises theability to download music videos on mobile phones By providing incentivesto use such services many consumers will effectively move from one

behaviour to another (ie a different use for their phone) and if

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downloading music videos becomes an acquired new behaviour there ismore chance that 3s service will be successful

Consumer Attitudes

Described by Soloman et al (1999) attitudes relate to a lasting generalevaluation of people objects or issues There are many models (eg Ajzenand Fishbeins Theory of Reasoned Action 1980 and Theory of PlannedBehaviour 1991 - cited by East 1997) set out to describe the links betweenattitudes beliefs intentions and associated behaviours which marketerswould do well to follow but are beyond the scope of this essay It wouldhowever seem logical that prevalent attitudes have a key impact ondecision making both in learned or cognitive purchase decision making

Attitudes as described by East (1997) refer in the commercial sense toopinions on the actual process of purchasing a given product Hencemarketers are able to influence opinion on their products to improve thechances of a person reflecting favourably to purchasing that product Thispoint would seem to add further weight to Peter et al (1999)s assertionthat Ads that consumers like seem to create more positive brand attitudesand purchase intentions than ads they dont like

Dubois (2000) suggested that attitudes form preferences to a particularbrand or product which in turn triggers a potential purchase This being thecase it would be the aim of a marketing strategy to create preferences fora product by altering attitudes Dubois argues that this can be achieved viathe process of persuasion by influencing the attitudes of the audience Asidentified by Peter et al (1999) commonly successful persuasion methodsinclude in store communication advertising publicity creation and personalselling

Due to competing messages or noise (East 1997) effective persuasion isof crucial importance in the face of competing brands or external

messages According to Zaltman (2003) poor quality thinking cannibaliseshigh quality thinking In order to communicate a product to the consumer inthe best possible way Zaltman et al argue a company must addressnegative or incorrect prevailing attitudes towards it Such stigma maybecome attached to a brand through external sources such as negativepress in the media (common with global brands like McDonalds and Nike)Understanding consumer behaviour provides organisations with theopportunity to counteract such messages as well as compete against thenoise of other messages from competing organisations

Back to Marketing Essays

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Conclusion Implications for Marketing ManagementStrategy

Whether a marketing strategy is to create awareness improve image

create brand equity or increase sales it has become clear that consumerresponse should be a vital component of the strategy Furthermore theimportance of understanding the way a consumer behaves is also crucial tothe successful formulation of a marketing communications strategy as setout by Fill (2002) and Peter et al (1999) as consumer response must befactored in to all four stages of the process (ie context analysis settingpromotional objectives devising an appropriate communications plan andevaluation of consumer response)

What becomes apparent throughout the body of research carried out by theacademics highlighted in this essay is the core principles of consumerbehaviour as discussed above and their relevance to a structuredmarketing management strategy By taking the decision making processesof consumers into account marketers are able to better tailor theirmarketing efforts There would seem to be a balance marketers must strikebetween understanding why consumers make the decisions they do on theone hand while at the same time attempting to shape attitudes and hencetheir behaviour on the other

Bibliography

De Mooij (2004) Consumer Behaviour and Culture Consequences forGlobal Marketing and Advertising Sage Publications London UK

Dubois (2000) Understanding the Consumer Pearson Education LtdLondon UK

East R (1997) Consumer Behaviour Advances and Applications inMarketing FT Prentice Hall UK

Fill C (2002) Marketing Communications Contexts Strategies andApplications (3rd Ed) FT Prentice Hall UK

Peter Olson Grunert (1999) Consumer Behaviour and Marketing StrategyEuropean Edition McGraw-Hill Publishing Company UK

Soloman Bamossy Askegaard (1999) Consumer Behaviour a EuropeanPerspective Prentice Hall Inc New Jersey USA

Zaltman (2003) How Customers Think Essential Insights into the Mind ofthe Market Harvard Business School Press USA

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Personality middot Positive

Social

Applied science

Clinical middot Consumer

Educational middot Health

Industrial and organizational

Law middot Military

Occupational health middot Political

Religion middot School middot Sport

Lists

Disciplines middot Organizations

Outline middot Psychologists

Psychotherapies middot Publications

Research methods middot Theories

Timeline middot Topics

Portal

v middot d middot e

Consumer behaviour is the study of when why how and where people

do or do not buy a product It blends elements

from psychology sociology social anthropology andeconomics It attempts

to understand the buyer decision making process both individually and ingroups It studies characteristics of individual consumers such

as demographics and behavioural variables in an attempt to understand

peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behaviour study is based on consumer buying behaviour with

the customer playing the three distinct roles of user payer and

buyer Relationship marketing is an influential asset for customer behaviour

analysis as it has a keen interest in the re-discovery of the true meaning ofmarketing through the re-affirmation of the importance of the customer or

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Personality middot Positive

Social

Applied science

Clinical middot Consumer

Educational middot Health

Industrial and organizational

Law middot Military

Occupational health middot Political

Religion middot School middot Sport

Lists

Disciplines middot Organizations

Outline middot Psychologists

Psychotherapies middot Publications

Research methods middot Theories

Timeline middot Topics

Portal

v middot d middot e

Consumer behaviour is the study of when why how and where people

do or do not buy a product It blends elements

from psychology sociology social anthropology andeconomics It attempts

to understand the buyer decision making process both individually and ingroups It studies characteristics of individual consumers such

as demographics and behavioural variables in an attempt to understand

peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behaviour study is based on consumer buying behaviour with

the customer playing the three distinct roles of user payer and

buyer Relationship marketing is an influential asset for customer behaviour

analysis as it has a keen interest in the re-discovery of the true meaning ofmarketing through the re-affirmation of the importance of the customer or

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buyer A greater importance is also placed on consumer retention

customer relationship management personalisation customisation and

one-to-one marketing Social functions can be categorized into social

choice and welfare functions

Each method for vote counting is assumed as social function but if Arrowrsquos

possibility theorem is used for a social function social welfare function is

achieved Some specifications of the social functions are

decisiveness neutrality anonymity monotonicityunanimity homogeneity a

nd weak and strong Pareto optimality No social choice function meets

these requirements in an ordinal scale simultaneously The most important

characteristic of a social function is identification of the interactive effect of

alternatives and creating a logical relation with the ranks Marketing

provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level

to the end of the cycle the consumer (Kioumarsi et al 2009)

Contents

[hide]

1 Black box model

2 Information search

3 Information evaluation

4 Purchase decision

5 Postpurchase evaluation

6 Internal influences

7 External influences

8 See also

9 References

[edit]Black box model

ENVIRONMENTAL FACTORS BUYERS BLACK BOX

BUYERS

RESPONSEMarketing

Stimuli

Environmental

Stimuli

Buyer

Characteristics

Decision

Process

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Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Demographic

Natural

Attitudes

Motivation

Perceptions

Personality

Lifestyle

Knowledge

Problem

recognition

Information

search

Alternative

evaluation

Purchase

decision

Post-purchase

behaviour

Product

choice

Brand choiceDealer

choice

Purchase

timing

Purchase

amount

The black box model shows the interaction of stimuli consumer

characteristics decision process and consumer responses[1] It can be

distinguished between interpersonal stimuli (between people) or

intrapersonal stimuli (within people)[2] The black box model is related to

the black box theory of behaviourism where the focus is not set on the

processes inside a consumer but the relation between the stimuli and the

response of the consumer The marketing stimuli are planned and

processed by the companies whereas the environmental stimulus aregiven by social factors based on the economical political and cultural

circumstances of a society The buyers black box contains the buyer

characteristics and the decision process which determines the buyers

response

The black box model considers the buyers response as a result of a

conscious rational decision process in which it is assumed that the buyer

has recognized the problem However in reality many decisions are not

made in awareness of a determined problem by the consumer

[edit]Information search

Once the consumer has recognised a problem they search for information

on products and services that can solve that problem Belch and Belch

(2007) explain that consumers undertake both an internal (memory) and an

external search

Sources of information include

Personal sources

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Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated withinformation search is perception Perception is defined as the process by

which an individual receives selects organises and interprets information

to create a meaningful picture of the world

The selective perception process

Stage Description

Selective exposure consumers select which promotional messages they

will expose themselves to Selective attention consumers select which promotional messages they

will pay attention to

Selective comprehension consumer interpret messages in line with their

beliefs attitudes motives and experiences

Selective retention consumers remember messages that are more

meaningful or important to them

The implications of this process help develop an effective promotional

strategy and select which sources of information are more effective for thebrand

[edit]Information evaluation

At this time the consumer compares the brands and products that are in

their evoked set How can the marketing organization increase the

likelihood that their brand is part of the consumers evoked (consideration)

set Consumers evaluate alternatives in terms of the functional and

psychological benefits that they offer The marketing organization needs tounderstand what benefits consumers are seeking and therefore which

attributes are most important in terms of making a decision It also needs to

check other brands of the customerrsquos consideration set to prepare the right

plan for its own brand

[edit]Purchase decision

Once the alternatives have been evaluated the consumer is ready to make

a purchase decision Sometimes purchase intention does not result in anactual purchase The marketing organization must facilitate the consumer

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to act on their purchase intention The organization can use a variety of

techniques to achieve this The provision of credit or payment terms may

encourage purchase or a sales promotion such as the opportunity to

receive a premium or enter a competition may provide an incentive to buy

now The relevant internal psychological process that is associated with

purchase decision is integration Once the integration is achieved the

organization can influence the purchase decisions much more easily

[edit]Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested

there should be a feedback loop Foxall (2005) further suggests the

importance of the post purchase evaluation and that the post purchase

evaluation is key due to its influences on future purchase patterns

[edit]Internal influences

Consumer behaviour is influenced

by demographics psychographics (lifestyle) personality motivation

knowledge attitudes beliefs and feelings Consumer behaviour concern

with consumer need and consumer actions in the direction of satisfying

needs leads to his behaviour of every individuals depend on thinking

[edit]External influences

Consumer behaviour is influenced by culture sub-culture locality

royalty ethnicity family social class past experience reference groups

lifestyle market mix factors

[edit]See also

Food and Brand Lab Consumer socialization

Art amp Copy

[edit]References

1 ^ Sandhusen Richard L Marketing (2000) Cf S 218

2 ^ Sandhusen Richard L Marketing (2000) Cf S 219

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