Tuesday, February 02, 2010

Consumer Behavior in the Psychology of Marketing

Introduction

The study of consumers' assists companies and organizations improve their marketing strategies by understanding issues such as how?


Psychology of how consumers think, feel, reason and select between different alternatives (eg, brands, products);


Psychology of how consumers are influenced by his or her surroundings (eg, culture, family, signs, media);


The behavior of consumers while shopping or making other marketing decisions; 
Limitations in consumer knowledge or information processing abilities influence decisions and marketing performance;


How consumer motivation and decision of a difference between products that differ in their level of importance or interest that they bring to consumers and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach consumers.


An "official" definition of consumer behavior is "investigation of individuals, groups or organizations and the processes they use to select, secure, use and disposal of products, services, experiences or ideas to satisfy needs and consequences of processes have for consumers and society. "Although it is not necessary to remember that definition, it brings some useful points:


The problem arises, either for the individual, or in connection with a group (eg, friends influence what kinds of clothes a person carrier) or organization (people on the job for decisions on what products the company will use).


Consumer behavior involves the use and disposal of products and to study how they are purchased. Use of the product is often of great interest to the marketer because it can affect how a product is best positioned or how we can encourage increased consumption. Since many environmental problems as a result of product disposal (eg motor oil being sent into sewage systems that save recycling fee, or garbage piling up in landfills), this is also an area of interest.


Consumer behavior includes services and ideas, and practical products.


The impact of consumer behavior on society is also relevant. For example, aggressive marketing of foods high in fat, or aggressive marketing of easy credit, may have serious consequences for national health and economy.


There are four main applications of consumer behavior:


The most obvious is for marketing strategy-ie, to make better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, while the rest of the population, we learn that (1) companies that introduce new products will also be financed, so that they may be alive, until their products become a commercial success, and (2) It is important that you first customers, as they will in turn influence many subsequent customers brand choice. 
Another application is public policy. In the 1980s, Accutane, a near miracle cure for acne. Unfortunately, Accutane has resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the substance. To get consumers' attention, Federal Drug Administration (FDA) has taken steps to require very graphic pictures of deformed babies be displayed on medicine containers.


Social marketing involves getting ideas across to consumers rather than to sell something. Marty Fishbein, a marketing professor, went on leave to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, of course, would be if we could get illegal drug users to stop. This was however considered to be impossible. It was also determined that the practice of sharing needles was too ingrained in the drug culture must be stopped. As a result, created using the knowledge about consumer attitudes Dr. Fishbein a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.


As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 ounce bottle of liquid detergent, you'll pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, if in this case, knowing this fact will make you aware of the need to control the unit cost labels to determine that you really get a bargain.


There are several devices on the market that can be analyzed. Our main thrust in this course is the consumer. But we also need to analyze our own company's strengths and weaknesses of competing companies. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a declining market, is likely to consider repositioning for our market. To evaluate a competing business potential threat, we need to examine its assets (eg technology, patents, market knowledge, awareness of its brands) against the pressure is off the market. Finally, we need to assess conditions (market environment). For example, although we may have developed a product that offers great appeal to consumers, a recession may cut demand dramatically.



Consumer Research Methods
Market research is often necessary to ensure that we produce what customers really want and not what we think they want.


Primary vs. secondary research methods. There are two approaches to marketing. Secondary research involves using information that others have already put together. Found, for example, if you are thinking of starting a company that makes clothes for tall people, you do not need to question people about how great they are to find out how many tall people, that information has already been published by the U.S. government. Primary research, however, research that you can design and perform. For example, you have to find out whether consumers will prefer to get your soda sweater or Tarter.


Research will often help us to reduce the risks associated with a new product, but it can not take the risk away entirely. It is also important to determine whether the research is complete. For example, seemed Coca Cola, a large part of the research prior to releasing New Coke, and consumers prefer the taste. However, consumers were not ready to have this drink replace traditional Coke.


Primary Methods. Several tools are available on the market researcher-eg, mail questionnaires, telephone surveys, observation and focus groups.


Surveys come in several forms. Mail surveys are relatively inexpensive, but response rates are typically very low-typically from 5-20%. Telephone surveys have somewhat higher response rates, but not many questions can be so many possible answers to be repeated and few people are willing to stay on the phone for more than five minutes. Mall intercepts are a convenient way to reach consumers, but respondents may be reluctant to discuss anything sensitive face to face with an interviewer.


Focus groups are useful when the operator wants to launch a new product or modify an existing one. A focus group usually involves having some 8-12 people coming together in one room to discuss their requirements, preferences and experiences. The group is usually led by a moderator, who will begin to talk broadly about issues related to largely the product without mentioning the product itself.


Personal interviews involve in-depth questioning of a person about his or her interest in or experience with a product. The advantage here is that we can come quite in depth (if the respondent says something interesting, we may ask him or her to elaborate), but this method of research is expensive and can be extremely vulnerable to interviewer bias. 

Projective techniques are inherently inefficient to use. The major issues to be put in place takes time and energy away from the main question. There may also be real differences between the respondent and the third party. To say or think about something, "hits too close to home" can also affect the respondent, who may or may not be able to see through the ruse.

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