2. Why Marketer Should Have an Understanding of Consumer Behavior
2.1. Market differentiation
2.2. Fierce competition
2.3. Better forecasts for marketing trend
2.4. Policies concerning prices
2.5. Sales promotion
2.6. Prompt introduction of novel products
2.7. Designing of production policies
2.8. The trade-off between quality and price
3. How Companies Apply Consumer Behavior Information in Marketing Their Products and Services
3.1. Social currency
3.2. Endeavor for a sensitive connection
3.3. Offer real-world value
3.4. Offer social evidence to develop trust in the product
3.5. Track transactions and promo codes on social media
3.6. Special deals for the target customers or segment
3.7. Triggers that are to be easily remembered
Each individual indeed has diverse opinions, perceptions, and attitudes to buy specific products. Consumer behavior signifies the activities and the decision procedures of people who buy products and services for their consumption. Consumer behavior is a significant aspect for the organization to determine the success of its current goods along with the novel product introductions. It is a systematic procedure concerning the purchasing decisions of the consumers. Besides, it is influenced by numerous factors like personal, situational, cultural, social, psychological, and more. It may also happen that a consumer has diverse behaviors towards diverse products, for example, they may like a particular product the most than others and hence purchase more quantities of the liked item (Panwar et al., 2019). This report discusses the importance of consumer behavior for marketers and they must understand the concept of consumer behavior in detail. Moreover, it describes how companies apply consumer behavior information in marketing their products and services.
Consumer behavior plays a vital role in marketing management as it offers information to the marketers through which they can easily determine and plan their marketing mix strategies and modify them in the future as per the tastes and preferences of consumers at that time. In today's competitive environment, marketers must have a thorough understanding of consumer behavior as it allows them to know and forecast the purchasing behavior of the consumers in the market. Moreover, they get to know about the reason for purchasing the specific product, the place they buy it, the time of their purchase, and other numerous aspects (Jain, 2019).
It is a fact that today’s contemporary market is consumer-oriented rather than seller-oriented. The philosophies of the modern marketing entail identification of the needs of the consumers and effectively satisfy them concerning its competitions. However, certain differences exist in the contemporary market that cannot be tailored by the constant marketing approaches and the related programs. It is because each market has its exclusive consumers having different motives behind purchasing the products. Thus, marketers must understand those different behaviors of the consumers do that they can offer tailored-made products and services. (Chou et al., 2020).
Marketers need to know the consumer's behavior due to the fierce or cut-throat competition existing within the market. Everyone is in the race to sell his products whatever the price may be to remain in the competition. However, this situation sometimes can be unfruitful for the marketers as they even sell their products at lower prices than the cost of its production. Therefore, the study of consumer behavior is essential for marketers as it assists them to provide more competitive products as per the prospects of the consumers. With this, they will be able to gain a more competitive advantage in the market (Priporas, Stylos & Fotiadis, 2017).
The study of consumer behavior helps the marketer to forecasts the market trends in such a manner that they will be able to know about the threats and opportunities available for the company. With the increasing use of social intellect and the observing tools, it has become easier for marketers to analyze and evaluate the visions of the consumers over the web using social media like Twitter, Facebook, and more. These sources are the best where marketers can get quality information about the tastes and preferences of the consumers for a particular product. Moreover, the contemporary technologies like artificial intelligence, robotics, big data analytics, machine learning, and more are being used to produce the improved predictions with more accuracy than has enabled the marketers to study consumer behavior easily (Erevelles, Fukawa & Swayne, 2016).
Consumer behavior is helpful for marketers due to the diverse behavior of consumers towards the price of the product. It means that, in the market, there are different types of consumers like some buy products based on status in the market irrespective of the price, some buy by seeing its cheaper price than other products; some buy certain products as emotions attached to them like khadi clothes. Therefore, marketers need to know the consumer behavior to know their willingness t but the specific product and their motive behind the purchase so that price can be charged accordingly from them.
Decisions concerning sales promotion are reliant on consumer behavior thus, marketers must know consumer behavior for taking sales promotion decisions. The study of consumer behavior allows the marketer to know what motive forces the customer to make a purchase and the same are used in advertising campaigns to stimulate aspiration to acquire.
There is no doubt that technological advancements are increasing at a faster rate due to which there has been an increase in the development and introduction of novel products into the market with advanced technology.
As the study of consumer behavior identifies the tastes, desires, and habits of the consumer for the product thus, marketers must understand this concept properly. This allows them to develop and plan their products as per the stipulations. Moreover, marketers need to be in contact with the consumers so that they can know the changing perceptions or insights of consumers. Therefore, consumer behavior helps marketers to accurately design the production policies.
Marketers also get to know the perception of consumers in respect of price and the quality of the products. Consumer behavior study enables them to have a thorough understanding of the consumer's preferences related to price and quality. Certain consumers give more preference to the price means that they are price-sensitive and buy cheaper products irrespective of quality. However, certain individuals prefer to buy quality and superior products regardless of prices (Frederiks et al, 2016).
Previously, companies were struggling in applying consumer behavior information to market their products and services. However, with the advancements in the technological and innovations and advent of the internet, companies are no longer facing these issues. The increasing use of social media like Facebook, Twitter, Messaging applications, and more has enabled the companies to market their products and services by accurately using consumer behavior information (Stephen, 2016).
This is the most widely used method in the marketing of the products of a company. It can be defined as the concept that helps companies to create an exclusive brand image and offers convenience and consent to constantly interrelate with consumers and clients. Moreover, in this technique, people share information regarding a particular brand as a portion of their daily social lives at work. There are numerous benefits associates with social currency for marketers or companies. Certain benefits entail more leads, more brand loyalty, more trust for a particular brand, better customer retention, more brand awareness, and more. The strategies that must be adopted by companies to drive social currency are as follows:
One example of this concept can be seen in the mobile game designers who give an option of share high scores in the game end. This allows players to showcase their victory and thereby people promote the application to a large public.
Emotional marketing is a common method that is being used by the companies by telling a story to connect with the audience in a somewhat personal manner. The social media platforms are used by companies for this purpose that have better access to product stories, and sellers have numerous ways to express their brand’s uniqueness and image. A company needs to stimulate a positive robust emotional response in the people by using its products and broadcasting its marketing resources. The strategy that must be followed by the companies for this purpose is that company must select a strong positive emotion that is suitable for the company’s brand and then use the same for the promotional materials of the product.
It is the common principle that applies to promotional initiatives rather than goods or services. It means that the company’s content for its products and any marketing material must be practical as people assess any content by seeing its usefulness or practicality. The strategy that must be followed by companies in this respect is to provide a new idea; a novel taste of information must belong noticeably with the advertising materials.
3.4. Offer social evidence to develop trust in the product
The companies use the customer appraisal and recommendations that act as an influencer that encourages the company's product to the consumer in a positive manner. The consumer must make a knowledgeable decision by knowing other’s insights despite being inclined by social media ads.
The company must give away promo codes and deals to market its products and services over social media. The main purpose behind this is to keep the users engaged all the time by offering promo codes regularly.
Companies can also market their products by offering special deals with special discounts to the target customer that is analyzed by understanding consumer behavior.
This is the best method that is to be included in the products of the company so that they can remain in front of the buyer's mind. The main purpose or idea behind triggers is that they must be knotted to certain environmental inducements. It further allows the buyers to remind of that product when feeling the stimuli (Hill, 2017).
From the above report on consumer behavior, it can be concluded that Consumer behavior is an important phase for the business to define the achievement for its present goods along with the new product introductions. Moreover, it can be inferred that it is important for marketers to understand or study consumer behavior due to numerous reasons. They must study this as it helps them to know the market differences that cannot be achieved by the constant marketing approaches. Thus, they need to understand consumer behavior so that they can know that market differences. Moreover, there is a cut-through competition that marketers must know that enables them to understand the unique features offered by rivals. Furthermore, the companies, after knowing the consumer behavior information, can market the products and services using social media platforms. Companies can use social currency, triggers, special offers and deals, promo codes, and others
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Erevelles, S., Fukawa, N., & Swayne, L. (2016). Big Data consumer analytics and the transformation of marketing. Journal of Business Research, 69(2), 897-904.
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Hill, L. (2017). Market well: 6 ways your brand can build an emotional connection with customers. Retrieved from https://www.welltodoglobal.com/market-well-6-ways-brand-can-build-emotional-connection-customers/
Jain, M. (2019). A study on consumer behavior-decision making under high and low involvement situations. IJRAR-International Journal of Research and Analytical Reviews, 6(1).
Kesgin, M., & Murthy, R. S. (2019). Consumer engagement: the role of social currency in online reviews. The Service Industries Journal, 39(7-8), 609-636.
Panwar, D., Anand, S., Ali, F., & Singal, K. (2019). Consumer decision making process models and their applications to market strategy. International Management Review, 15(1), 36-44.
Priporas, C. V., Stylos, N., & Fotiadis, A. K. (2017). Generation Z consumers' expectations of interactions in smart retailing: A future agenda. Computers in Human Behavior, 77, 374-381.
Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10, 17-21.
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