Consumer Behavior – Chapter 1

Consumer behavior chapter 1 introduction In our ever-increasing world(prenominal) commercialise, attention expects to be paid to the globose wargonr in fiat to identify who they argon. Marketers and consumer behaviour researchers argon unvaryingly attempting to nail down the similarities and the differences of the multifaceted global consumer. whatever general theory about the sociological and psychological influences on consumer behaviour whitethorn be common to all Western cultures, exactly there are still strong com/pricing-psychological science-consumption/regional consumption ways.Consumer behaviour as it pertains to the marketplace is concerned with the manner in which consumers purchase and use mathematical ingatherings and services, and how these reliables are incorporated into their lives. Researchers use various techniques to determine the features of consumers. These techniques include categorisation by the use of descriptive characteristics, much(prenomin al) as demographics and psychographics. Individual consumers are function of a big society with common pagan values and beliefs, which hobo be further seg custodyted into piddlingr groups, or subcultures.There are regional differences between consumers from disparate European countries, despite their being part of the larger European community. Marketers usemarket segmentation strategiesto adapt their communications to adopt the varied needs of a diverse target market. Consumer behaviour is good patronage Marketers who understand their customers needs and wants do better than their competitors. The essential subdivision is deciding who to target and how.Marketers do this by defining markets and then dividing these markets into smaller chunks, or segments. A segment is based upon the demographic and psychographic aspects of the targeted population. The consumers response is the eventual(prenominal) test of whether or not a marketing strategy provide succeed. However, init ial consumer testing is not an absolute science. both(prenominal)times a fruit can fail its initial test marketing and still go on to be highly successful. Sony has responded to market and consumer changes with its latest MP3 player, a equalise to the Apple iPod.In attempting to define accurate information about the traits, habits, likes and dislikes of consumers, effective market segmentation separates members of a population into smaller segments of consumers who share unique characteristics that see them apart from the main population. Market segmentationcan be describe as slicing up the market into bit-sized chunks of information. It is essential that for effective segmentation the next criteria are met Consumers within the identified segment share similar product needs that go away be different to opposite consumers in other segments.Important differences between the segments can be clearly identified. The segment is large liberal to be profitable. Consumers in the segm ent can be reached with an appropriate marketing mix. The consumers in the segment testament respond in the desired counsel to the marketing mix. Two important segmentation tools are the use of demographics and psychographics to determine unique attributes of the targeted population. Demographic statistics measure the observable aspects of the population. Psychographics are far more subtle. They illustrate the differences in consumers personalities and cannot be measured objectively.Demographic variables include Age contrary progress groups have different needs and wants. Consumers in similar age groups often share similar values and cultural experiences. Gender The behaviours and tastes of men and women are constantly evolving. It is thought that gender segmentation is an unintended dissolving agent of marketing strategy. Family structure Marital status and family are important demographic variables that often affect spending priorities. Social class and income People in the same social class often have similar occupations and may share values and interests.Income is a good determinant of buying indicant and market potential. Race and ethnicity Immigrants from Asia and Africa are the fastest growing ethnic groups in Europe. Increased multiculturalism creates new opportunities for marketers. Geography Cultural differences play an important graphic symbol in consumption patterns. Within the European context, consumption is common crossways cultures, but it is also specific between different cultural groups. European segmentation factors include Consumption traits that are common across different cultures. Consumption traits that are specific to cultural groups. Relationship Marketing build bonds with consumers The more marketers understand their current and potential consumers, the more effective they entrust be. This concept has developed into the role ofrelationship marketing, in which marketers build long-run relationships between the company an d the consumer. Relationship marketing is seen as the big trend for marketers. In conjunction with relationship marketing, a major growth battlefield has been the need to gather and manage accurate information about customers. This has culminated in the formation of sophisticateddatabase marketingthat tracks consumer buying habits.However, this big brother is notice you concept intimidates some consumers. Database marketing is required to comply with respondent confidentiality restrictions. As global consumers, we are influenced significantly by marketers through a digit of mechanisms centred upon building relationships with customers. Advertisements illustrate how we should act and define roles, as well as informing about the use of products. As of 2006, the legal age of good deal will live in urban centres and the number of megacities will increase to 26 in 2015.A moot effect of the sophisticated marketing strategies apply to fetch with these large potential markets is the emergence ofglobal consumer culture, in which people are united by their common devotion to brand-name consumer products, film stars and music celebrities. 2 Virtual consumption and the power of crowds There is little doubt that the digital revolution is one of the most significant influences on consumer behaviour, and the impact of the electronic network will continue to expand as more and more people around the world log on. It is not all bout businesses exchange to customers (B2C e-commerce).The cyberspace explosion has caused a revolution in consumer-to-consumer activity (C2C e-commerce) have to the new world ofvirtual brand communities. A close first cousin of the global consumer is theEuro-consumer. Much research and marketing effort is focused upon find the characteristics of this consumer. Findings indicate links between social class, culture and income, with consumers who expressed more positive attitudes towards cultural change being more likely to consume luxury goo ds, despite their demographics and social class. 2 Marketing EthicsThere is a constant battle between achievement of organisational profit goals and the necessity to occupy business honestly and ethically. 1 Prescribing Ethical Standards of Conduct Organisations often devise codes of conduct for their employees, and marketing associations provide guidelines for conduct, such as the following Disclosure of the tangible risks associated with a product or service. Identification of added features that will increase the cost. avoidance of false or misdirect advertising. Rejection of high-pressure selling. Prohibition of selling or fund-raising under the guise of market research. Socially Responsible Behaviour Some marketers continue to violate the bond of trust with the consumer with the use of bait-and-switch tactics and misleading claims. A critical barometer of ethical behaviour is the action taken by companies to rectify a problem with their advertising or products. Benetton disc ontinued their controversial advertisements that featured the depiction of an AIDS victim and which were deemed to be exploitative by consumers. Much reproach has been leveled at marketing techniques that influence consumers to purchase products that are not essential.Philosophers view this conundrum from the perspective of individuals exercising their free will and free action in coming to decisions. However, this clinical approach supports the bloodline so long as only(prenominal) informative advertising is used in the marketing communication. Any other type of advertising such as ones with imagery and underlying originators cannot be so clinically rationalized. The gaga debate that marketing techniques manipulate customers continues. We explore this issue from three perspectives. 3 Do Marketers Create Artificial Needs?Some conservative traditionalists opine that advertising can lead to the moral decay of societies by the pursuance of hedonistic delectation, while some l iberals believe that the misleading promises of material pleasure function to buy off people who would otherwise be revolutionaries running(a) to change the system. Through advertising, then, the system creates demands that only its products can satisfy. Numerous responses to this criticism abound, including the argument that needs are a basic biological motive and that a want represents one way that society has taught us that the need can be satisfied.The primary objective of advertising is to create sensation of needs, rather than to create the needs themselves. Needs are thus something that we are socialized to have. Marketers must be cognisant of the fact that they contribute firmly to the socializing influence of individuals in modern society and, thus, influence needs. Some commentators believe that purchasing decisions are manipulated by marketers using their understanding of psychology and the social sciences. They claim that marketers devise advertising techniques that m anipulate a majority of individuals. A sense of social responsibility should underpin all advertising.There is little doubt that advertising creates and changes patterns of consumer behaviour. The central issue is whether the audience is discerning seemly to see through the marketing hype and still make a deliberative judgement. Have a look at thePBS Frontline website on The Persuaders, which explores the world of modern marketers and advertisers, and discusses the methods they use to decipher who we are and what we want. As decently an influence as advertising is, in the majority of cases advertisers still do not know enough about their target audience to effectively manipulate them.This fact is supported by the high degree of product failures (40-80 per cent) that occur. 4 Interdisciplinary Influences on the Study of Consumer Behaviour Consumer behaviour is a multidisciplinary field that integrates a vast array of airfields, from psychophysiology to sociology and anthropology. Each discipline views the subject from their own perspective, which results in a rich sociological explanation of a fascinating and dynamic topic. The figure below illustrates the integrated and integrated approach to consumer behaviour from both a macro and micro perspective.The macro perspective represents the social focus and the micro perspective represents the individual focus. pic gain of comsumer behavior Consumer research has adopted two popular forms of research look-alikes, or organizes of beliefs Positivism Believes that human reason is supreme and that objective truth is only revealed by science. Structured and ordered. Stresses functionality. Celebrates technology. Regards the world as an ordered, rational place with a clearly defined past, present and future. Emphasizes material well-being, and is based predominantly on the homogenous views of a predominantly Western and male culture.Interpretivism Believes the social and cultural world in which we live is comple x. Dislikes too much emphasis on science and technology. Emphasizes the importance of symbolic and subjective experiences. Believes individuals construct meanings based on unique, shared cultural experiences, therefore there are no proper(ip) or wrong references. Consumption is interpreted as a set of diverse experiences. Many consumer behaviour experts believe that the existing predominant plus paradigm of consumer behaviour is undergoing a paradigm shift, due to challenge from the competing paradigm of interpretivism.