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Discuss the impact of consumer behavior on marketing decisions.

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Introduction

CONSUMER BEHAVIOR DISCUSS THE IMPACT OF CONSUMER BEHAVIOR ON MARKETING DECISIONS Consumer behavior is the study of how people behave when purchasing and disposing of products. This essay aims to give a description of consumer behavior, its segmentation and the ways in which marketing decisions are influenced by it. "Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires." (Solomon et al, 1999, p.8) There are many types of consumers such as young, old, rich and poor. Products include a wide range of tangible items such as automobiles and electronic goods. Services incorporate intangibles such as brokerage services and financial advisors. People can have needs for survival basics such as McDonalds for hunger, Coke for thirst and desires like Levis for fashion. ...read more.

Middle

Demographics include such factors as age, gender, social class and ethnicity. Geographic factors include region and country. Psychographic areas are comprised of personality and lifestyle. Lastly, behavioral differences include brand loyalty, usage situations and benefits desired. Different races and ethnicities have demands for goods and services that may not exist in other ethnic segments. An example of this could be South Africans wanting dried meats such as Biltong. If this consumer segment creates enough demand then a supplier will respond to fill the market gap and create marketing strategies for it. Geography does not simply consist of different land masses and borders. Geographic differences can also dictate diversity in cultures, beliefs and languages; one such example of this is England and France. All of these consumer behaviors and differences influence marketing decisions and strategies in different ways. The level of influence of each consumer behavior can be dependant on the target consumer of the marketing campaign. ...read more.

Conclusion

Congruity states how homogenized the segment is, how well the consumers fit into the segments defined values. Basic principals of supply and demand are at work here. The business is supplying the demand from consumers and, in order to increase or keep market share, as well as increase demand for the products, the business must effectively market the products and services by listening to the consumer demands and thus the consumer influences the business. This philosophy is known as the marketing concept.(Assael, 1998, p.8) "The marketing concept states that marketers must first define the benefits consumers seek in the marketplace and gear marketing strategies accordingly." (Assael, 1998, p.8). It is clear that each consumer segment has a large bearing on marketing decisions. The individual consumers behavior has little power but grouped together with others of similar values and interests it creates a larger 'consumer' with enough purchasing power to cause businesses to respond either with new or tailored marketing plans and products. ...read more.

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