Effects of Consumer Knowledge on Purchase Behavior - Article Example

Due to the availability of information on the products, performance, services, and efficiency, the consumers are able to choose from the options available in the market and make valued decisions for purchase. The consumer knowledge leads to the active role of the consumers in putting forward relevant queries on the products sold and also clears any confusion that may be present in the minds of the purchasers. China, for example, has overtaken the US in automobile market sales in 2009. This is due to the fact that with the spread of globalization, Chinese consumers have become increasingly knowledgeable and aware of automobile products. The tastes and preferences in the market have become rationale due to the aspect of consumer knowledge. The availability of information with the customers prior to the point of the transaction provides an idea of the value of the product and also judges the aspects of price, economy, efficiency, and product safety. Thus consumer knowledge enables to make informed decisions and influences the purchase behavior.

Is impulse buying really impulsive?
There are many instances happening around us where it could be observed that customers take decisions of purchase just by looking at the product. It apparently looks as if the customer had no intentions of purchasing just a few moments back but suddenly decides to buy the product. Researches on impulse buying suggest that these impulses exhibited by the customers are primarily the effects of underlying emotions and feelings or sentiments that are instigated at the occurrence of a specific event. This means that the intentions of obtaining the product features are hidden which comes out due to the impulse of a certain incident. It would be unreasonable to think that the customers have never experienced such emotions or feelings before and that sudden flow of emotion and feeling has led to the purchase of the product. The marketing specialists look to utilize the impulse buying behavior of the consumers in order to increase the sales of their products. For example, a customer going to purchase clothes and garments is not likely to buy cakes and chocolates. However, marketers adopt the techniques to bring out the basic needs and desires of the customers in order to influence impulse buying. The chocolates, cakes, fashionable toys are displayed on the counters. The electronic items and accessories may be wrapped up with the national flags of a particular country. By looking at these items, some customers experience the sudden flow of emotions and passion. This leads to the intent of purchase and thus influences the purchase decision.

Market segmentation methods vary from one company to another
The companies are better off targeting a segment of the market rather than focusing on the entire market. This would lead to a more profitable and sustainable business as the product and services offered by a company may not fulfill the needs of the broader market (Kotler 15). In order to narrow down on the market segment whose needs are fulfilled by its products and services, and analysis of the target market segment is necessary. The cost of the marketing and promotion of its products and services are reduced and increased revenues are earned by the company from the identified market segment. The companies undertake market segmentation based on the features of their offered products. For example, a merchant selling umbrellas and water-proof jackets may divide the market based on geographical features and identify the region that experiences frequent rainfall as the target market segment. The companies having a business of fashionable clothes may divide the market based on the lifestyle and habits of the population. Companies selling items for decoration and festival-related items like lamps, bulbs, etc. may divide the market based on occasions and then identify the target market segment. The prices of the products are also fixed on the basis of the demand of the identified market segment and the existing market competition. Thus, the companies tend to apply different methods for choosing the market segments based on the needs of the people which could be fulfilled by their product and service offerings.