Upon deciding on the Fox Twin Clicker racing shock made by FOX shocks, I needed to find the most reputable dealer with the lowest price at this time. If time were not an issue, myself or other consumers can take advantage of comparison shopping and waiting for certain sales to occur or closeouts on products to take place. I found out that no matter where I purchased the shock from, there was a 1-month lead-time to manufacture the product since it is not a stocked item. While conducting my search for the lowest price, I found that Lindeman Engineering was offering a 15% discount on all shocks this month. Usually, sales like this only apply to stocked items, but in this case, it was a across the board sale. I called around to other dealers and mentioned this price and promotion to them and none were able to beat or match the price. Since Lindeman Engineers is a highly reputable company within the racing industry, I decided to take advantage of the sale. This current promotion that they held was accountable for nearly 90% of my decision making process in buying this shock from them.
Since the purchasing process was conducted solely on-line, the place of business was nearly irrelevant to myself as the consumer. Either way I looked at it, I was facing a 1-month waiting period while the product was being made and unless I found a local dealer, I was faced with shipping charges either way.
While researching this product and topic, I made many observations of the marketing firms these days and how retailers and consumers are engaged in some sort of dance – and in this case, I, the consumer is leading. As a consumer and future marketer, I realized that the search for the best bargain, the best deal, and the best price, is growing and with this growth, shopping has taken on the activity of a hunt. The sport of shopping appears to be an addiction to the average and now addicted consumer. Everyone wants a bargain and people on all sides on the economic scale scan the current marketplace for the best deal. Discount stores are popping up all over attempting to simulate department and specialty stores while offering more breath-taking dips and twists to the retail/consumer dance. Consumers wait for high dollar items to go on sale while attempting to resist paying “retail” or “list” for goods or services. The thrill of the hunt for many of us as consumers is the motivation we hold while shopping. Whether it is online or in a typical storefront, the hunt for a specific product at the best price is what we all strive for on a day-to-day basis. How the consumer goes about conducting the hunt differently from the next consumer can be seen as the several types of consumer behavior.
A popular definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." (Hawkins, 1998)
There are four main applications of consumer behavior:
“The most obvious is for marketing strategy—i.e., for making 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, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers’ brand choices.
A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane 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 drug. To get consumers’ attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.
Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created 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 liquid ounce bottle of laundry detergent, you should 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, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.” (Hawkins, 1998)
Little piece of trivial knowledge
“Every year since 1929 until the present, with a few exceptions, consumer spending has accounted for between 60-to-70% of the total economy. Today out of our $10 trillion economy, some two-thirds or $6.6 trillion is consumer spending. About 40% of that, or $3 trillion, is spending on discretionary products and services.” (Danziger, 2002)
References
Hawkins, Del I., Roger J. Best, and Kenneth A. Coney (1998),
Consumer Behavior: Building Marketing Strategy, 7th ed., Boston:
McGraw Hill.
Danziger, P. (2002). Why People Buy Things They Don't Need.
Paramount Market Publishing Inc.
