Consumer behavior & Market Segmentation - Essay Example

Consumer Behavior & Market Segmentation Consumer decision making is a complex process because consumers display intricate buying behaviors. However, it is very important for marketing personnel to understand consumer behavior because this is what will decide their marketing efforts. Complexity of consumer decision depends upon the type of purchase; if the purchase is limited the decision will take less time and effort and the opposite is true for extensive purchases whereas for routine purchases consumers just go and fetch the product of their favorite brand.

According to Jack (129) consumer decision making can be explained with the help of Engel-Kollat-Blackwell model. This model suggests that consumers have some unsatisfied needs and wants whose recognition is the first step in the process. This need can be stimulated by internal or external stimuli. Upon need identification consumers search for information and evaluate the alternatives arising out of that search. Finally the purchase is made in favor of the best-liked brand. Consumers also display post purchase behavior; it is a phase that decides how satisfied the consumer is with the decision and will shape consumer’s re-purchase or recommendation decisions.

This whole process is influenced by many factors (Kotler’s Marketing Essentials and cited in Lee [31]) which include social influences, marketing influences, situational influences and psychological influences. According to Stanton (66) “Marketing segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-markets or segments each of which tends to be homogenous in all significant aspects.” Consumer buying behavior and market segmentation are related in that segments in a market are formed on four common bases which include geographic, demographic, psychographic and behavioral.

Hence behavior is one of the four major bases for segmentation. Segmentation on the bases of geographic (region), demographic (age, gender, religion, education) and/or psychographic (lifestyle or social class) is obvious however considering behavior while segmenting a market for a product is tough since it involves segmenting on the basis of usage, loyalty and other similar attributes which vary from person to person. Segmentation on behavioral basis not only focuses on the consumers traits but is also concerned with what consumers do and then forming a segment of consumers showing similar behavior/feelings towards a brand.

Hence identifying a segment which displays similar behavior/feelings towards a product is difficult.Samli (130) while talking about consumer behavior and segmentation emphasized on the need to make ‘consumer behavior’ a base for segmenting international markets. This is because it helps focus on specific segments within a country unlike the other three segmentation bases (geographic, demographic, and psychographic) which fails to segment precisely when it comes to international markets. Since other segmentation bases takes a broader approach and country-wide market considerations are not so important when it comes to international market segmentation efforts (Samli 130), therefore consumer behavior should be taken as a basis because it has a much narrow focus.

Hence understanding consumer behavior is very helpful for marketers because it not only helps them in their promotional efforts but also helps them in other major decisions like segmenting which in turn will decide the right targeting and positioning. Moreover, consumer behavior is very helpful in segmenting international markets because of its specific and micro focus.Works CitedJack, Keith. Video Demystified: a Handbook for the Digital Engineer. ed 4. UK and USA: Newnes Publishers, 2005. Print.

Lee, Seongsin. Academic Library Service Consumer (user) Motivation Study Based on Expectancy Theory. The Florida State University. USA: ProQuest, 2007. Print.Samli, A. Coskun. International Consumer Behavior: its Impact on Marketing Strategy Development. USA: Greenwood Publishing Group, 1995. Print.Stanto, William J. Fundamentals of Marketing. New York: McGraw-Hill Inc, 1983. Print.