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Demographics and Its Role in Understanding Consumer Behavior - Essay Example

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This paper "Demographics and Its Role in Understanding Consumer Behavior" focuses on the efforts of understanding start with the demographic details of the consumer. In a broad way, the age group categorizes product or services offered. Now for each category targeting strategy would be different. …
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Demographics and Its Role in Understanding Consumer Behavior
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Download file to see previous pages Recently, Wedel and Kamakura (2000) concluded that the relationships between demographic segments and purchase behaviour/marketing variables are often too weak to be of any practical value. Despite these criticisms of demographics, there is a reasonable amount of supporting evidence which indicates that demographics are indeed good predictors of consumer behaviour. From the utilitarian perspective, demographics are known to be cheaper, easy to measure and collect (Mitchell, 1996) and such their application requires lesser knowledge and skills than more complex segmentation bases.
There has been an ongoing debate in recent years about the demographics and its exact role in consumer behaviour studies. Demographics offer basic criteria to differentiate customer group from one another.
“The primary objective of service provider and marketer is identical to that of all marketers to develop and provide offerings that satisfy consumer needs and expectations thereby ensuring their own economic survival.” (Zeithmal and Bitner, 2000)
Concepts of segmentation, targeting and positioning are vital for any marketer. The first effort of any marketer is to find out an identifiable market segment which is responsive, accessible and stable. According to Wilkie (1990) segmentation depends on the number of factors like personal characteristics of the consumer like demographics, culture, and other factors, benefit sought, the behavioural measure of a consumer, competitiveness within the segment and operational aspects. Demographic divides population on the basis of its size, geographic distribution and structure. A demographic structure includes factors like age, occupation, gender, income and education Marketer looks at all the factors on the basis of profitability and growth. Brooksbank (1994) states positioning strategy should be based on three main components i.e. customer targets, competitor targets and competitive advantage of the product.
In segmentation or positioning or any other marketing strategy, there is a basic need for understanding target customer.    ...Download file to see next pagesRead More
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