Consumer Behavior Has Many Definitions - Essay Example

“The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high-fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy” (Consumer Behavior, 2010).

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how:
• The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);
• The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing decisions;
• Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcomes;
• How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and
• How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.
“One "official" 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" (Perner 2010). Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer, and buyer. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the reaffirmation of the importance of the customer or buyer.
Some of the key concepts of consumer behavior are;
• Behavior occurs either for the individual or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).
• Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption.
• The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high-fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

Reasons for studying consumer behavior;
• To stay in business by attracting and retaining customers.
• To benefit from understanding consumer problems
• To establish a competitive advantage
• The subject of consumer behavior is very interesting.
“Through the application of sociology, psychology, and demographics, marketers can begin to understand why consumers form attitudes and make decisions to purchase. Consumer-behavior studies inform marketers, advertisers, and public agencies how product and service selection is influenced by personality, perception, values, and beliefs” (Kirchheimer 2011). For marketing, these influences are studied in the context of demographics, which includes ethnicity, age, marital status, size of family, income, education, and employment.

Perception:
• Is how information is collected and categorized. Perception is affected by the amount of exposure to a stimulus and by individual interpretation.
Personality:
• Is a weak component of consumer behavior, Personality means a pattern of behavior founded on an individual’s outlook and internal traits. In this use, outlook means the point of view, and traits mean the consumer’s usual manner of responding to the environment.
Beliefs:
• In consumer behavior study, “beliefs” are specific beliefs about products in the marketplace. Consumer belief is a combination of knowledge, emotions, and actual actions to purchase or not purchase.

Attitude:
• Consumer attitude is a combination of perceptions, values, and beliefs. The consumer must first perceive the production and then focus values and beliefs on the product and make a decision to purchase or not to purchase.
“A definition of the term "consumer behavior" can vary, but simply defined, it refers to the study of how and why consumers make purchase decisions” (Objectives for Consumer Behavior, 2011).

Conclusion:
• Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology, and economics. It attempts to understand the buyer decision-making process, both individually and in groups. Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption.
“So consumer behavior can be defined as the study of when, why, where and how people buy or do not buy products and services” (Importance of Consumer Behavior, 2010). It is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in-depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry, and economics. “All marketing decisions are based on assumptions and knowledge of consumer behavior," (Hawkins & Mothers Baugh 2007). Researching consumer behavior is a complex process” (Defining Consumer Behavior, 2011).

Consumer behavior involves quite a bit more, as this more complete definition indicates: “Consumer behavior reflects the totality of consumer’s decisions concerning the acquisition, consumption, and disposition of goods, services activities, experiences, people and ideas by decision-making units” (Hoyer & Macinnis 2009). Read More