Consumer Behavior in the Realization of a Business - Coursework Example

Consumer Behavior Student’s Name :( First, Middle, Last) Admission Number: Course/Subject Title: Institution: Instructor/Lecturer: Date of Submission: (dd, mm, yyyy) Executive Summary The report focuses on the critical role of consumer behavior in the realization of a business or industry success or failure. In addressing this, the report has arguably applied various consumer behavior models. Introduction Critical analysis of consumer behavior plays a pivotal role in the realization of a business industry success. In light of this, therefore; this marketing report seeks to understand the varying impacts that consumer behaviour has on a business atmosphere or industry situation. This is because the study of consumer behavior helps organizations or business entities plan amicably on successful marketing strategies. In light of this, thus; consumer behavior (Tyagi and Kumar, 2004:45) studies individuals or groups of people selection process of goods and services and the ultimate impacts of those processes on the consumer and society in general. Consumer behavior gears towards the comprehension of a buyer’s decision making process. For example, it highlights the reasons that made person buy a certain company’s product and not the other. Tyagi and Kumar (2004: 48) further assert that such decisions are driven by preferences, individual income, influences from family, society and friends among others. A working class individual may opt to buy a Mercedes Benz automobile in order to fit into his/her workmates class. In light of this, marketers take this into consideration when deciding on prices, content composition and distribution patterns. In a classical example, marketers upon realization that a certain geographical location is inhibited by middle income earners can opt to distribute pocket-friendly products in a bid to woo consumers to their side. Moreover, they may reduce prices in a bid to outshine their competitors whose products are largely bought by the consumers. This helps in shaping consumer behavior patterns since many individuals might change product allegiance and loyalty to fit their standards. Analysis of a Business article: Men’s hobbies: cheap but exclusive brands in demand by Alina Lisina The article points out the various mitigating factors put into consideration to amicably ensure that businesses thrive during harsh economic times. This is realized through the study of consumer behavior and subsequent retention of the consumers. Effective analysis of consumer behavior enhances the realization of top-cream marketing strategies to boost business productivity. For instance, introduction of promotions such as buy one get one free is an efficient policy to increase sales and also build consumer behavior towards a certain product; quality and quantity constant. Lisina (2011) points out that a metamorphosis in consumer behavior would be a great impediment in the attainment of profits in an economic harsh situation. She asserts that harsh economic situations arguably affected the buying patterns of customers with only the basic commodities being purchased with a critical look at cheap products. “However, consumer behavior in this segment has changed- people choose cheaper products and buy only things they really need” (1). According to Lisina (2011) sports shops, for instance, to address issues of consumer behavior have turned to the provision of numerous brands for selection by the consumers. However, although the consumer numbers remain constant, the selection is primarily on basic necessities coupled with cheap prices in the market thus prompting reduction in profit margins of a commodity. Furthermore, Lisina’s article ascertains that the cheaper the products the higher their demand. She postulates that cheaper products attract consumers as opposed to expensive products. Change in consumer decision making is triggered though engaging in public road shows and increased media publicity aimed at enabling behavior metamorphosis to end-product users. Although she affirms the importance of broadcast and print advertizing, she articulates that the provision of quality brands at affordable prices as a gateway for enhancement of consumer behavior. The use of media is advantageous owing to their reach-effectiveness. Research has shown that almost all the households are proximate to a media outlet. In this regard, consumer behavior, through its’ stimulus model creates a center of attention on transformation mechanism of purchasing trends. To effectively nourish the needs of consumers, many fish industry players are resulting to stipulation of client oriented products. Consumer behavior relation to the article Consumer behavior and literacy play a fundamental role in the realization of an organization’s or business entity’s success. This is because marketers take advantage of consumer literacy to propagate their economic oriented ideologies. Understanding of consumer behavior is a long-term process that articulates various methods such as questionnaire research aimed at arriving at a conclusive resolution about the behavior patterns. Consumer research helps in product rejuvenation to fit into consumers’ tastes and preferences in a bid to maintain their behavior. For example, a beverage manufacturing company such as Coca-Cola might opt to carry out the consumer behavior on their products to ascertain the reasons behind low sales. Through this, consumers point out on the shortcomings of the product prompting the beverage maker to change products to avert change in consumer behavior. In essence, the fish industry in Riga results to a change in tactics to avert international competition. Moreover, Proliferation of an internet savvy generation has catapulted consumer spending, more so due to the ability of internet accessibility through cell phones. However as Lisina (2011) asserts in her article, consumers prefer one on one engagements with the seller in order to create a feedback mechanism about the products, unlike in the internet that creates an anonymous conversation of individuals. In responding to consumer behavior the Rigan fish business players result in the enhancement on client service delivery through the employment of valuable and experienced staff. Through this, they are able to tap into the consumer market retaining their clients and improving on consumer behavior in the long run. Kitchen and Proctor (2001:55) assert that consumer behavior is dependent of various internal and external factors. The factors bear considerable impacts on the consumer buying patterns. A classical consumer model deals with internal influence of end users on products and services. They include needs, perceptions, attitudes and demographics. On the other hand, external factors include culture subculture (social class) and marketing organizations. Consumer decisions are propagated by various information search channels such a personal sources, commercial sources, public sources and personal experience. According to Lisana (2011) the fish industries in Riga propelled by harsh economic times and the need to maintain consumer behavior have result in the provision of qualitative and quantitative services and goods. This greatly shapes the consumer behavior as many customers are attracted to their services thus upholding consumer behavior towards their products. For instance, the introduction of new marketing gimmicks such as promotions and offers aimed at changing buying patterns. Moreover, Kitchen and Proctor (2001:57) further argue that the representation of information to the consumers is instrumental in shaping their behavior patterns. In light of this, the massive information bombardment in the broadcast and print media can adequately shape a consumer’s perception about a particular product. After, scrutiny and subsequent acquisition of information about the intricacies of fish products, a buyer can opt to forego other unnecessary products for a fish commodity basing his/her decision on previous information. On the same point, past experiences on a product or service shapes consumer behavior thus determine the decision making process on products in the market. However, product prices also play a critical role in realizing consumer behavior. In light of this, the consumer’s income forms a determinant factor in his/her buying patterns. Low income earners tend to turn to cheap products regardless of their quality and quantity. This arguably portrays a clear picture of economic analysis and the subsequent impact on consumer behavior. Marketers in recognition of this ideological perspective turn to innovative strategies to capture their niche market. They apply strategies such as reduction of prices on their commodities to adequately fish out clients from their rival business enterprises. Coca-Cola beverage multinational company applies this strategy to win its market share in many of its operating branches across the world. Moreover, promotions are critical in ensuring industry existence Rise in technological innovations has changed consumer behavior of products resulting into introduction of counter mechanisms by the marketers. In light of this, marketers have been forced to change tactics to respond to competition. For instance, many corporate bodies have resulted to the use of social networking sites in a bid to capture the market. Through these sites they are able to sell their products and also create a feedback mechanism with their consumers (Tyagi and Kumar, 2004: 50). “Change is an ever-present phenomenon to which businesses of all kinds are forced to respond if they want to stand the best chance of survival and prosperity” (65). In realizing consumer satisfaction, a food industry player, should make appealing products that will at long last change a client behavior. Conclusion Effective analysis of consumer behavior notably helps in shaping businesses and industry a great deal. For example, it helps shape a business structure and also contributes to the formation of valuable marketing strategies aimed at fostering business development. Strategies include the use of press advertisements to boost consumer awareness and at times change their behavior towards products. However, as the report has found out various factors get into play in the attainment of good consumer behavior namely social, political, environmental and economic behavior. In response to consumer behavior, therefore; marketers should single out prospective strategies to boost their sales and enhance consumer confidence. In conclusion, consumers form the last resort in the realization of a successful business entity. List of References Kitchen, P, J and Proctor, T. (2001). The informed student guide to marketing, London, UK: Thomson Lisina, A. (2011). Men’s hobbies: Cheap but exclusive brands in demand, The Baltic Times, retrieved on April 18, 2011 from http://www.baltictimes.com/news/articles/28467/ Tyagi, C, L, and Kumar, A. (2004). Consumer Behavior, New Delhi, India: Atlantic Publishers Read More