Understanding of Consumer Behavior For Effective Marketing - Literature review Example

An understanding of Consumer Behaviour is essential for effective marketing. Discuss Introduction The development of effective marketing plans has been proved to be one of the key factors influencing the performance of organizations in the modern market. In fact, marketing is a key organizational sector linking the organization with its external environment. From another perspective, marketing reveals the ability of organizations to identify the changes in the market trends. Many efforts have been made by researchers worldwide in order to understand the criteria on which successful marketing plans are based. In most studies, the success of marketing plans is related to their interaction with the consumer behaviour. In practice, consumer behaviour is highly important for marketing. The successful promotion of products/ services in modern market is depended on the level at which the consumer preferences are taken into consideration. Consumer preferences in regard to the market’s products and services are reflected in the behaviour of consumers towards these products/ services. Thus, marketers who are interested in developing effective marketing plans need to capture consumer preferences – after examining the consumer behaviour in regard to products/ services involved. The role of consumer behaviour in the development of effective marketing plans is examined in this paper. It is proved that consumer behaviour has a decisive role in the development of marketing plans; however, the use of the specific concept is not always effective. The inability of marketers to appropriately interpret the consumer behaviour is the major reason of this failure. 2. Consumer behaviour – description and key characteristics In order to evaluate the relationship between consumer behaviour and marketing it is necessary to understand the context of consumer behaviour – as presented through the academic literature. Kurtz et al. (2009) describe consumer behaviour using the following definition: ‘consumer behaviour is the process through which the ultimate buyer makes purchase decisions’ (Kurtz et al., 2009, p.130). In the above context, the identification of the context of consumer behaviour is related to the identification of causes of human behaviour in general. In this way, consumer behaviour is depended on personal perceptions; the specific view could be used in order to oppose any theory, which considers consumer behaviour as being related only to the consumer’s environment. In accordance with East et al. (2008) consumer behaviour has been described using a series of theoretical models. These models show the aspects of consumer behaviour but also its role in the development of marketing plans. The key assumption developed through these models is the fact that ‘consumer is supposed to attend to product information and process it into memory’ (East et al., 2008, p.6). The most common theoretical models related to consumer behaviour are the following ones: a) cognitive, which focuses on the decision-making process used by consumers in order to buy a product/service, b) reinforcement, which does not accept the power of decision-making process in consumer behaviour; instead, it is based on the principle that the decision of consumers are differentiated, being influenced by the trends and the cost in the consumer’s environment; the perceptions of the consumer’s environment (family, friends) is of key importance – in accordance with the specific model – for the development of a particular consumer behaviour mode, c) habit, which is based on the principle that consumer behaviour is not developed gradually, through a specific decision-making process or under the influence of the environment; rather, it is learned through following a specific practice for a long time; in this context, consumer behaviour is considered as an automated response to the market trends (East et al., 2008, p.6). It is not made clear though under which terms the consumer behaviour of this form – a habit – can be changed and if such a prospect is feasible or expected, d) the Selectivity model; this model is based on the principle that males and females use different criteria when having to select a specific product/ service; therefore, gender is considered as having a key role in the behaviour of consumers (Darley and Smith, 1995, in Wof, 2009, p.9). The role of gender in consumer behaviour is also highlighted in the study of Parsons et al. (2009). The above researchers note that consumer behaviour can be influenced by a series of social concepts, like feminism. The latter involves in the development of particular social and cultural trends (Parsons et al., 2009, p.106); in this way also, it can influence the behaviour of consumers in regard to specific products/ services; e) the Centrality of Visual Product Aesthetics (CVPA); the above model is based on the principle that consumers have different views on the visual aesthetics of products/ services (Bloch et al., 2003, in Wolf, 2009, p.7). In the context of this theory it is assumed that the behaviour of consumers is differentiated even regarding the same product/ service. This theory would lead to the limitation of the potentials of marketing plans. More specifically, if the consumer behaviour is expected to be differentiated at such level, then it would be impossible for marketers to design a marketing plan that would respond to the preferences of many consumers. Therefore, it is necessary that certain criteria are used – in the context of the above model – for identifying the similarities in consumers’ responses to specific products/ services. Chaudhuri (2006) uses a different approach in order to explain the context of consumer behaviour. In accordance with the above researcher, the behaviour of consumers to various products/ services is expected to be influenced from factors belonging in two different categories: a) emotional factors, reflecting the emotions/ personal perceptions of consumers for specific product/ service and b) rational factors, meaning objective criteria on which consumer decisions are based. Rational factors are independent from emotions; they are depended exclusively on criteria like price, functionality and quality of product/ service. Emotional and rational factors are expected to influence the decisions of consumers on specific products/ services, or else the consumer behaviour as expressed through the choice of specific product/ services. The theoretical explanations presented above in regard to consumer behaviour are particularly important when having to evaluate the relationship between marketing and consumer behaviour. In accordance with the theoretical model used, different assumptions can be developed on the role of consumer behaviour in marketing. This fact is made clear if referring to a specific market sector, for instance the tourism. In the particular industry, consumer behaviour is more likely to be influenced by emotional rather by rational factors (Swarbrooke et al., 2007, p.3). This fact has to be taken into consideration by marketers who have to develop marketing plans related to the above sector. Through this approach, the role of marketer’s capabilities on the success of marketing plans is emphasized. The marketer has to be able to use the appropriate criteria when having to interpret consumer behaviour in regard to a particular market. Any failure in interpreting consumer behaviour appropriately could lead to the failure of the marketing plan involved. 3. The role of consumer behaviour in marketing The success of marketing plans is directly related to consumer behaviour. In fact, the marketing policies promoted within a specific market are not expected to achieve their goals unless they are based on the market’s trends. These trends are reflected to the behaviour of consumers within the particular market. At this point, following question appears: is marketing in all its forms related to consumer behaviour? In other words, are all marketing schemes depended on consumer behaviour or the above relationship is likely to have specific form? The research on the existing literature proved that all marketing schemes have to be aligned to consumer behaviour patterns – as developed within markets worldwide. However, there are certain marketing schemes, which tend to be closely related to consumer behaviour: these are the international marketing schemes. This issue is highlighted in the study of Samli (1995) where it is made clear that consumer behaviour is of particular importance for international marketing schemes. It is explained that these schemes need to be based on ‘international consumer behaviour information’ (Samli, 1995, p.1). Otherwise, they are expected to have limited chances to succeed. The relationship between consumer behaviour and marketing can be explored by identifying the common elements of the above concepts; moreover, it would be necessary to check the methods through which consumer behaviour can interact with marketing – and whether there are certain rules on which this interaction is based. In accordance with Samli (1995) the relationship between consumer behaviour and marketing can be considered as having a specific form: international consumer behaviour information provides the information required for the development of a particular marketing plan; then, effort is made for the development of a marketing plan that will be able to achieve a series of targets – related to the international market. The above framework is valuable for explaining the relationship between consumer behaviour and marketing; however, it is not made clear whether this framework is appropriate for markets of different characteristics, i.e. whether it can be used in the context of the international market – as well as in the national market. On the other hand, the framework suggested by Samli (1995) highlights the following important fact: consumer behaviour can be closely related to culture. Through this point of view, the information on international consumer behaviour should be regarded as information on cultural characteristics of consumers within a specific market. Kurtz et al. (2009) adopt a similar approach. In accordance with the above researchers, culture is closely related to consumer behaviour; in fact, culture is considered to be ‘the broadest environmental determinant of consumer behaviour’ (Kurtz et al., 2009, p.130). It is clear that culture has been taken into consideration when developing a marketing plan; this finding is of particular importance especially for international marketing plans, which address markets with different cultural and social characteristics. In these markets, consumer behaviour will be used by marketers in order to identify the level at which culture influences the behaviour of consumers to specific products/ services. The above view is similar with that of De Mooij (2004) who notes that culture is reflected in consumer behaviour and for this reason it is suggested that ‘culture is integrated into all elements of consumer behaviour theory’ (De Mooij, 2004, p.2). It is also mentioned that international marketing plans can address the needs of a market only if they are based on the cultural characteristics of this market – as these characteristics can be identified in the consumer behaviour within the particular market (De Mooij, 2004, p.2); the common mistake of marketers to consider markets worldwide as parts of a global village is also negatively criticized (De Mooij, 2004, p.2). It seems that the aspects of the relationship between consumer behaviour and marketing can be more that initially estimated. More specifically, Varey (2002) notes that within modern markets the criteria of consumers on buying are differentiated – compared to the past. Today, consumer needs are not any more of primary importance for choosing a specific product/ service; instead ‘what consumer wants’ has become the key characteristic of consumer choices in modern markets. Marketing policies developed worldwide need to take into consideration the differentiation in buyers’ preferences as expressed through the customers’ choices in each market. It is for this reason that brand names face high performance worldwide (Varey, 2002, p.344). The consumer willingness to buy a specific product/ service no matter if this product/ service is actually necessary is a key element of consumer behaviour – as used for developing marketing plans. Solomon et al. (2007) note that consumer behaviour is involved in all phases of a marketing plan. It is explain that data on consumers’ preferences in regard to specific products/ services are necessary to marketers that have to develop a marketing plan for the particular products or for products with similar characteristics. Moreover, demographic data on consumers can also help marketers to identify the conditions of the targeted market – also to estimate the potential response of consumers to the products/ services promoted through a specific plan. Data of consumers can be valuable in another phase of marketing plan: its evaluation. After the development of a marketing plan and its use within a market, the data on consumers’ responses to the specific plan can be valuable in order to identify the plan’s strengths and weakness (Solomon et al., 2007, p.8). From this point of view, the consumer behaviour can help not just to the success of a marketing plan but also to its appropriate update/ alteration in order to address more effectively the market needs. An important characteristic of consumer behaviour is highlighted in the study of Maclaran et al. (2009). In accordance with the above study, the initial form of consumer behaviour has been differentiated. Through the years, consumer behaviour had to broaden in order to include the consumption trends of humans in regard to all their activities. This trend also has been identified in marketing. It is explained that in its current form, consumer behaviour reflects the consumption of a wide range of products/ services, including the decisions of consumers on their gifts and charity (Maclaran et al., 2009, p.48). It is assumed by the above that the relationship between marketing and consumer behaviour cannot be considered as standardized. Through the decades, both concepts, marketing and consumer behaviour had to change following the market trends and the scientific/ economic development. On the other hand, the criteria on which the evaluation of the relationship between marketing and consumer behaviour is based do not need to change. However, these criteria should be appropriately alternated being aligned with current market conditions and consumers perceptions – as influenced not only by the personal beliefs but also by the environment. 4. Conclusion The examination of the aspects of consumer behaviour especially regarding its effects on marketing, has led to a series of interesting findings: a) consumer behaviour is differentiated across countries in the global market; the social and cultural characteristics of each country are likely to shape the consumption trends of citizens, b) marketing plans cannot be standardized; their structure and content are depended on the characteristics of the targeted market – as these characteristics can be identified by studying the consumer behaviour in the specific market, c) marketers need to be able to interpret the information related to the consumer behaviour within the targeted market, d) the results from the interpretation of consumer behaviour can be differentiated in accordance with the theoretical models used in the specific task. Differences in consumer behaviour trends may exist even among identical products/ services promoted within the same market. The time when the interpretation of consumer behaviour is attempted is of critical importance for the assumptions made regarding the trends of a particular market. On the other hand, marketing is a multi-layer sector encompassing activities like market research, design of the campaign involved, cost management (balance between the cost of the project and the expected benefit) and so on (Usunier et al., 2009, p.6). For this reason, any potential failure in interpreting appropriate the data of consumers regarding the targeted market can be justified. However, such risk can be avoided if appropriate preparation is made in advance – referring to allocation of the plan’s needs, delegation of tasks and use of time management for the completion of the relevant project. References Armstrong, G., Harker, M., Kotler, P. (2009) Marketing: An Introduction. Pearson Education Chaudhuri, A. (2006) Emotion and reason in consumer behavior. Butterworth-Heinemann De Mooij, M. (2004) Consumer behavior and culture: consequences for global marketing and advertising. SAGE East, R., Wright, M., Vanhuele, M. (2008) Consumer Behaviour: Applications in Marketing. SAGE Publications Hoyer, W. Macinnis, D. (2009) Consumer Behavior. Cengage Learning Khan, M. (2007) Consumer Behaviour. New Age International Kotler, P., Keller, K., Brady, M. (2009) Marketing management. Pearson Education Kurtz, D., MacKenzie, F. (2009) Contemporary Marketing. Cengage Learning Maclaran, P., Tadajewski, M., Stern, B. (2009) The SAGE handbook of marketing theory. SAGE Publications Middleton, V., Fyall, A., Morgan, M. (2009) Marketing in Travel and Tourism. Butterworth-Heinemann, 2009 Parsons, E., Maclaran, P. (2009) Contemporary Issues in Marketing and Consumer Behaviour. Butterworth-Heinemann Samli, C. (1995) International consumer behavior: its impact on marketing strategy development. Greenwood Publishing Group Sandhusen, R. (2000) Marketing. Barrons Educational Series Solomon, M., Bamossy, G. (2007) Consumer behavior. Pearson Education Swarbrooke, J., Horner, S. (2007) Consumer behaviour in tourism. Butterworth-Heinemann Usunier, J., Lee, J. (2009) Marketing Across Cultures. Pearson Education Varey, R. (2002) Marketing communication: principles and practice. Routledge Wolf, T. (2009) Effects of Gender Marketing on Consumer Behaviour. GRIN Verlag Read More