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Understanding Consumer Behaviour

Consumers in the Marketplace -An Introduction to Consumer Behaviour

 

 

Understanding consumer behaviour is good business.  A basic marketing concept states that firms exist to satisfy consumers’ needs.  These needs can be satisfied only to the extent that marketers understand the people or organizations that will use the products and services they are trying to sell—and do so better than their competitors.

 

(Solomon, White, & Dahl, 2016, p. 4)

 

 

 

                        The criteria needed to become and continue to be successful and increase long-term sustainability for any business, marketer, entrepreneur, manager, CEO, or shareholder is to understand the basic concepts of consumer behaviour and how it relates to your organization and needs.  Several key points of consideration must be implemented in strategies towards building and increasing your brand and product(s) or services.  The following objectives are essential:

 

 

1)      Understand that consumer behaviour is a process;

 

2)      Be aware that marketers need to understand the wants and needs of different consumer segments;

 

3)      Understand that popular culture is both a product of and an inspiration for marketers;

 

4)      Understand that the Internet has changed patterns of consumer behaviour;

 

5)      Understand that there are many ethical issues to consider in the domain of marketing and consumer behaviour;

 

6)      Understand that various behaviours can have negative impacts on consumers and society, and these are sometimes referred to as the “dark side” of consumer behaviour; and

 

7)      Understand that many different research methodologies can be used to understand consumer behaviour. (Solomon, White, & Dahl, 2016, p. 1)

 

 

The idea of consumer behaviour as a process is derived initially from the fundamental concept of consumption which is the process of people buying products for what they mean instead of what they do.  The products role in our daily patterns and lifestyle has a deeper impact that help marketing towards consumer behaviour because the products function is important to the behaviour process and people choose brands based on images or personality that are consistent with their needs.  Simplified, “Our allegiances to particular sneakers, musicians, or soft drinks help us define our place in modern society, and these choices also help us form bonds with others who share similar preferences.” (Solomon, White, & Dahl, 2016, p. 10)  Consumers needs and wants are dictated by the brands and loyalty towards the products and services that they use to define them.  Marketers need to ensure that the marketing strategies they implement are based on consumer behaviours aligned with these concepts and ideals.

 

 

            Consumer behaviour is the study the processes that individuals or groups base their selections, purchases, and use or disposal of the products, services, ideas, or that enable the ability to satisfy their wants and needs.  Maslow’s Hierarchy of Needs describes the basic cornerstones that we as individuals categorize and label our basic needs, wants. 

 

 

 

Figure 1Maslow’s Hierarchy of Needs (Solomon, White, & Dahl, 2016, p. 95)

 

 

            The chart describes the basic level of needs from the lower-level physiological, which is the most basic needs and include our need for water, food, sleep with examples of the types of brands that fulfill this level needs.  The second level safety includes the needs for security, shelter, and protection and provides an example that fulfills this level.  The third level belonginess, describes our needs for love, friendship, acceptance by others and is indicated with the example provided to satisfy these types of needs.  The fourth level ego includes our needs for prestige, status, and accomplishment and as noted the example indicates the type of brand or product that will satisfy this need.  The final level is self-actualization, which includes our needs for self-fulfillment, and enriching experiences with the example provided on the right.  Marketers must ensure when directing their strategies and campaigns to consumers, they meet these levels needs and wants to be successful.

 

 

            The use of marketing segmentation is very important when defining consumer behaviour and there are many dimensions that include demographics, psychographics, product usage, and dictate the relationship that consumers and marketing need to have to be successful.  Being tuned in to your consumer segment allows for long-term sustainability that is marketed to the consumer and their consumer space that define their wants and needs.  The final outcomes of any marketing professional or organization depends on the ability to understand this and work towards a relationship that includes consumers in the complete process. 

 

 

                                                                        MB Success Blog Article #2

 

                                                                        Written by:  L. Strain (CEO)

 

                                                                        Date:  28 February 2019

 

 

 

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