Importance of CB

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Why Study Consumer Behaviour

The understanding of the reason why we

study consumer behaviour cannot be over

emphasis. Some of these however, include;

Firstly, Consumer behaviour is significant in

our Daily lives. The most important reason for

studying consumer behaviour from a general

Sense is the role it plays in our lives.


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Much of our time is spent directly in the

market place and shopping amongstothers. Secondly, consumer

behaviour is indispensable in decisionmaking. Consumers are often

study because certain decisions aresignificantly affected by their

behaviour or expected actions.


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Applications of Consumer Behaviour Knowledge :

From the marketing point of view,understanding consumer behaviour is

crucial to successful delivery of firms

offerings in the market place.

Some of the marketing application areas of

consumer behaviour

knowledge include;


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Market-Opportunity Analysis, this involves

examining trends and conditions in themarketplace to identify consumers needs

and wants that are not being fully satisfied.Target- Market Selection, this has to do withidentifying distinct groupings of consumerswho have unique wants and needs and the

selection of segment that matches the firmsstrength and offer better opportunities.


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Marketing- Mix Determination, thisinvolves developing and implementinga strategy for delivering an effective

combination ofwant-satisfying features to consumers

within target market. The marketing

mix is made up of four components;product, price,

promotion and place.


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Marketing strategy, understanding of

consumer behaviour is needed in

strategic marketing activities. This isbecause marketing strategies and tactics

are based on explicit or implicit beliefs

about consumer behaviour. EffectiveRegulatory policyin terms of marketing

practices requires an extensive

knowledge of consumer behaviour.


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Social marketing also require an in depth

understanding of consumers

and their behaviours or attitudes. Socialmarketing is the application of

marketing strategies and tactics to alter or

create behaviours that have

positive effect on the target individuals and

or society as a whole.


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Social marketing has been used in attemptsto reduce smoking, to increase thepercentage of children receiving their

vaccinations in a timely manner, toencourage environmentally soundbehaviours, to reduce behaviours

potentially leading to AIDS, to enhancesupport of charities, to reduce

drug use, and many other important courses.


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Marketing Strategy and Consumer Behaviour

To survive in a competitive environment, amarketer must provide target

customers more value than is provided by itscompetitors. Customer

Value is the difference between all the benefits

derived from a totalproduct and all the cost of acquiring those

benefits.


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Providing superior customer value requires

the organization to do better job of

anticipating and reacting to customerneeds than the competitors does. An

understanding of customer behaviour is

the basis for strategic marketingformulation.


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Consumers reactions to this marketing

strategy determine the organizations

success or failure. However, thesereactions also determine the success of

the consumers in meeting their needs,

and they have significant impacts on thelarger society in which they occur.

Marketing strategy is conceptually very

simple.


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It begins with an analysis of the target

marketwhich includes company,

conditions, competitors, and consumers.Next, Market segmentation: This involves

identifying product-related need sets,

grouping customers with similarneed sets, describing each group and

selecting an attractive segment to

serve.


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Third stage is marketing strategyand itinvolves manipulation of marketing mix.The marketing mix includes the product,price, communications, distribution, andservices provided to the target

market. The final stage Outcomes involves

analysis of firms product position andcustomer satisfaction resulting fromimplementation of the Strategy.


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Best Answer - Chosen by Asker

A perspective of marketing is about making a

consumer realise that they want your

product, even though initially they might

not.

Therefore it is important for marketers to

understand how consumers behave whenthey are exposed to particular advertising

methods and messages.


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For example. Consumer behavioural

theories such as the process of

innovation diffusion is vital for marketersas it allows us to understand how

different market segments, which have

different purchasing and thinkingcharacteristics might decide whether or

not to buy a product. For


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example - for a consumer in a relatively highsocial status earning reasonable money, apurchase of a laptop might not be such as high

involvement purchase since they have thedisposable income to afford it plus, if they areyoung to middle age, the chances are theyknow exactly what they want to get out of the

product since they have been brought up in agenerations where computers run our everyday lives.


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On the other hand, if the laptop was to be

marketed at a OAP, their consumer behaviour

to such product will change the overall

marketing effort to persuade such consumersthat they want the product. OAP for example

may not know exactly what a laptop can do

for them, and if they are living on a pension,such product may seem very expensive and

carries high amounts of purchasing 'risk'


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since they might not fully understand whetherthe product can solve their initial need to buy theproduct. If we relate back to the innovation

diffusion model and general purchasing decisionmaking process theories, marketers may thenhave to increase the amount of informationwithin their marketing campaign in order to

communicate exactly what the laptop can do forthem and how the price justifies they benefit.


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If you look at consumer behaviour in anotherperspective, many marketers and marketing

campaigns rely on people buying their product

due to the self concept theories of consumerbehaviour. Products such as Sony laptops rely

on people wanting to spend the extra money

on their laptops rather than a competitor suchas del who may have the same spec for a far

lower price because people buy into brands

like Sony to show off their image / status.


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If you see someone on a train with a delllaptop, you may not take a second look.

Meanwhile, someone using a Sony laptop;

people may think Wow, thats pretty cool andmay start associating the user as successful

and wealthy. Therefore, the Sony laptop user

has may have spent the extra money on Sony

rather than dell in order to portray this

reaction and create a positive self image for

himself. Look up a theory called the looking

glass self theory (Cooley 1902 or 1922).


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If brands can understand such form ofconsumer behaviour, it works hand in handwith brand management and productpositioning since once the marketers have

generated a positive, prestige image abouttheir products, they then rely on otherconsumers buying into this form of 'quality'and portraying their positive self image from

using this product to other consumer whothen may think ... 'that guy looked cool... iwant to buy one'....


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Another very important consumer behaviourconcept for marketers is how consumers learnabout a product. Does a marketing campaign

want to use cognitive learning approaches in itsadvertising i.e. whereby our product will beassociated with a band or a type of music or dowe want to use a form of instrumental or

behavioural learning approaches - A marketneeds to think what type of consumers they aretargeting, look at their general characteristic andthen work out what is the best approach to

generate their overall campaign objectives


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For example, cognitive learning approaches are used

(by theory) on more educated consumers as

theorists believe they have more ability to make a

cognition between i.e a song and a product - Check

out some Sony adverts - For example, every timepeople heard that Jose Gonzalez tune back in 2005,

people immediately thought of thousands of

coloured balls rolling down a hill in San Francisco -

then they thought of SonySo there you go - thats a few reasons why consumer

behaviour is vital to understand - because it is the

basis of how you are going to target your prime

target audience

Importance of CB

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