Applied Consumer Behavior - Essay Example

Introduction This paper examines the the consumer behaviour trends and how they have changed in the year for marketers. This essay would examine the important trends in consumer behaviour for the year 2013. It would encompass important trends in decisions, consumptions and disposing of different goods and services. This would include different evidence from different parts of the world. Consumer Trends Important elements of consumer behaviour and consumer preferences and trends are identified in Appendix 1 below. In this examination, the various media outlets including Euromonitor [for Europe], Business Insider [USA/UK] and Forbes [USA] provided information about trends and activities that are likely to determine the consumer behaviour trends that would determine demand for the year 2013. Europe According to Euromonitor, the main cause of changes in the way people would behave in choosing products and services in the year 2013 include the changes in social structures that are connected to the global financial crises and credit crunch. These changes include the fact that more people, particularly young adults have moved from flats and other independent dwellings to live with their families. Thus, there are larger household sizes and more people live in the same dwelling than 7 years ago. Thus, spending and demand would reflect such systems. Also, digital structures in Europe are taking the place of mainstream leisure. Instead of people going out and having social lives, they now spend more time on their phones and internet. Social media is going to be used for more communication than it was a decade ago. Gender barriers are also disappearing. Producing for a particular sex and having roles strictly defined for particular peoples are going to be less relevant in 2013 than it has ever been. More products would be unisex or universal in outlook. Thus, emphasis would not be on the differences on the basis of different structures. Additionally, in 2013, there would be a larger adult population throughout Europe than there has ever been. This adult population would have a strong purchasing power because they would still be able to make demand since they are not normally retired and restricted to Old Age Homes as it was a couple of years ago. Most people above retirement age are working either part-time or full time. Euromonitor also points out that that there is a shift in focus on more healthy foods and this makes organic foods and other socially responsible products the order of the day in 2013. Additionally, consumers seek value and not just convenience. This means they would be more careful in purchasing in 2013. This would give way for the creation of different niches and products to meet different value needs throughout Europe. United Kingdom The BBC identifies that in 2013 and beyond, the UKs middle class will grow and they would control more money than ever before. Thus, they would have a major impact on deciding how things would go. This is partially attributed to the growth of the UK economy in 2012 as a result of the London Olympics. Also, urbanisation in the UK is going to increase in 2013. This is because rural life is clamping down and most migrants prefer to to live in cities. Thus, urban demand trends are going to increase whilst demand in rural settings in the UK would shrink. The BBC also concedes the effect of ageing people in the UK on the countrys overall dynamics. This would have a major impact on the kind of products that consumers would demand. There would be more demand for safer and more adult-friendly products around Britain. The UK is going to be more sensitive to the environment and the healthy components of what they consume in 2013. There would be an emphasis on boycotts and consumer bargaining power is going to be higher than normal. The UK is going to shift significantly in the smartphone revolution because the Chinese are now going to export smartphones to the UK. Thus there would be more reliance on smartphones for both shopping and use for social interaction. United States of America Forbes Magazine identifies four main trends that that would take centre-stage in the US. First of all, telecommuting in the United States is going to increase. Due to this, the kind of business environment marketing is likely to cease. More emphasis and discussions are going to happen over the Internet and consumers are likely to respond to such adverts. Smartphones are going to become indispensable items to people. More people would spend more time on their smartphone in 2013 than ever. Others who do not normally have such phones would acquire them and this would expand the influence and growth of Internet usage in America. Demands for accountability by members of the society would increase in 2013. More people have more outlets to make demands for corporate entities. This would naturally lead to an increase in the offerings and services of companies around the United States. Core Business Trends in 2013 There are various research works that were conducted by different scholars in academia and in practice which shows three main trends that would distinguish successful businesses from unsuccessful businesses in 2013. The main factors are: Internet and Mobile Marketing, Recovery from Financial Crises and Corporate Social Responsibility Trends Internet and Mobile Marketing Persaud and Azlar (2012) identified that mobile marketing is going to increase at a high rate in 2013. This is because the smartphone is becoming indispensable to most people. As identified above, Internet usage and Telecommuting has increased over the past years. This means that there would be a major increase in the number of people who would need to use the Internet to carry out their functions and activities around the globe. Thus, businesses would have to take advantage of this. Persaud and Azlars research identified that successful businesses of 2013 would have to adapt their mobile shopping sites to meet the relevant trends. There would be the need to build brand trust and brand exposure through the use of the Internet and Mobile device. There should also be other elements of competitive advantage that would be built into a firms website and mobile site to attain the highest and best results. Recovery After the Global Financial Crises The global financial crises caused a lot of unemployment and changes to consumers. Thus, businesses need to change their ways and their methods of carrying out their activities to attain the best results. Businesses need to get a proactive plan to check risks and ensure that they are meeting consumer demands and consumer expectations in 2013. Weaker competitors would need to fold up and go into other ventures (Schuh, 2013). Also, there is the need for branding strategies that would include the older members of society and also enhance affordability in the post-credit-crunch era (Schuh, 2013). Corporate Social Responsibility The research of Gonzalez-Perez (2013) was that corporate social responsibility in 2013 would be essential to balance negativities and errors of businesses. This would prevent boycotts and consumer hatred of a company or brand. Also, ethics are essential for businesses to survive in this year. This Is because they help businesses to deal with stakeholder needs and adjust to meet them (Gonzalez-Perez, 2013). Industry Specific Elements and Structures for 2013 This paper would examine trends and directions that would shape three industries: Travel, Luxury Goods and Retail entities. Details can be found in Appendix 2. Travel & Tourism According to AboutTourism, consumers in 2013 would want instant and personalized online services. This would include booking and researching to find out about new niches and elements. Also, AboutTourism identifies that there would be changing trends in consumer behaviour and expectations. New niches in Brazil, Russia, India and China as well as other developing countries would be attractive to consumers in 2013. However, safety, security and terrorism would be important indicators for the travel industry in 2013. Luxury Goods The luxury sector is going to be hit by the development of new centres to challenge the traditional fashion hubs of Paris, London, Milan and Rome. Financial Times identifies that there would be new niches in Brussels and Moscow to challenge the mainstream centres. Also, there would be the need for mergers and acquisitions to promote the survival of businesses. Asia would be a place where many luxury brands would enter and this would include the Middle East and China. Social responsibility and the dealing with social concerns would mark the reputation of luxury businesses in 2013. Retail Industry The retail industry is going to go mobile in 2013 (Forbes Retail, 2013). This is because more and more products and brands would be made available on mobile devices. Surveys and examination of consumer psychology would be done on mobile devices. There would also be a growth social media marketing for retail entities. There would be e-commerce integration to enhance online sales amongst retail entities around the world in 2013. Conclusion Social and work structure changes like the ageing population, working from home and use of the Internet and smartphones marks the consumer expectations of 2013. There are other elements like corporate accountability and the exercise of consumer sovereignty that marks consumer expectation in 2013. Businesses need to survive by identifying risks and dealing with them. They have to integrate adult and matured consumer needs and elements of affordability in what they do. Businesses need to use corporate social responsibility to cancel their deficiencies in society. Also, a business would have to survive through the proper integration of smartphone technology, e-commerce and social media into their marketing and corporate strategies. The travel industry would be strongly influenced by the Internet and the expectation of exploring sites in the developing world. Safety and security concerns would still be high. Luxury companies would need to merge to surivve and also use social media and expand to new markets around the world. Appendix 1 Table Summary of Dominant Trends in Consumer Behaviour in 2013 Criteria Euromonitor [Europe] BBC [UK] Forbes [USA] Changes in Social & Work Structures - Social structures have changed, people move to traditional family house to cut down costs - Digital life is replacing normal leisure structures - Gender barriers disappearing - Older people are still working and not staying idle during retirement - Crowd financing would be a common way of investing. - Online investments would take a large proportion of investments. - Home based workers will increase due to the popularity of telecommuting after the rescission. Dominance of the Smartphone & Digital Life - Changes in parenting, they connect with their children through the Internet and smartphones - Digital consumption and commerce is improving - China would enter the smartphone export race and liberalize smartphones further. - Mobile device apps would increase - Cellphone surveys would increase - Smartphone junta will increase. Accountability, Transparency and Responsibility - Healthy living will take centre-stage - Environmental concerns and healthy life would increase - Social responsibility and environmental responsiveness will increase - Basic demands for accountability Consumer Sovereignty - Consumers seek value and not convenience - Localisation of tastes and preferences - Niches of consumers are growing and there are niches for bigger people amongst others - Products from emerging economies would increase - Emerging countries would embrace global brands and luxury brands - Local manufacturing will return to developed countries. - Personalization of products Appendix 2 Sector Specific Trends Travel [AboutTourism.com] Luxury [Financial Times] Retail [Forbes Retail] E-Commerce Instant, Personalized & Global Services Global reach of brands and Online sales E-Commerce Integration Smartphone Use of smartphone for quick connection in exotic destination Marketing systems and structures Retail sales and surveys Competitive Advantage Safety assurance and proactive strategies Mergers and acquisition and entry to Asian markets Emergent strategy and concerns Globalization Use of Internet and international media for promotion of new destinations Shifts in fashion hubs from traditional settings to new centres Global sourcing and supply chain management to increase further. References About Tourism (2013) Trendspotting 2013 [Online] Available at: http://aboutourism.wordpress.com/trendspotting-2012/ Accessed: February 27, 2013. BBC UK (2012) Mega Trends Shaping Tomorrows Consumers [Online] Available at: http://www.bbc.co.uk/news/business-18503627 Accessed February 27, 2013. Business Insider (2013) “The 10 Hottest Consumer Trends for 2013” [Online] Available at: http://www.businessinsider.com/the-10-hottest-consumer-trends-for-2013-2012-11?op=1 Accessed: February 27, 2013. Euromonitor International (2013) “Top 10 Consumer Trends for 2013” [Online] Available at: http://mkto.euromonitor.com/rs/euromonitorinternational/images/Top%20Ten%20Consumer%20Trends%20for%202013.pdf Accessed: February 27, 2013. Financial Times (2013) Luxury 360 [Online] Available at: http://www.ft.com/companies/luxury-360 Accessed: February 27, 2013. Forbes Magazine (2013) “Four Consumer Trends that will Drive Marketing Growth in 2013” [Obline] Available at: http://www.forbes.com/sites/deancrutchfield/2013/01/03/4-consumer-trends-that-will-drive-marketing-growth-in-2013/ Accessed: February 27, 2013. Forbes Retail (2013) “Three Important Retail Trends, 2013” [Online] Available at: http://www.forbes.com/sites/lydiadishman/2012/12/17/three-important-retail-trends-for-2013/ Accessed: February 27, 2013. Gonzalez-Perez, M. A. (2013) “Corporate Social Responsibility & International Business” International Business Sustainability Vol 1 pp1 – 35 Persaud, A. and Azlar, I. (2012) “Innovative Mobile Marketing Using Smartphones: Are Consumers Ready” Marketing Intelligence and Planning Vol 30(4) pp418 – 443 Schuh, A. (2012) “Strategic Business to the Global Financial& Economic Crisis” New Policy Challenges for European Multinationals Vol 7 pp393 – 419 Read More