Why Is Understanding of Consumer Behaviour Useful from the Perspective of the Marketer - Case Study Example

Why consumer behaviour and an understanding of such processes is useful from the perspective of the marketer Name: Institution: Why consumer behaviour and an understanding of such processes is useful from the perspective of the marketer Introduction Consumers form an essential part in the development and management of any business enterprise. This is because every product or service that is provided by a business is often aimed at satisfying the needs of target consumers. This makes it important for a business to develop strategies on the best methodologies that can be used in attracting more consumers to access a specific product or service (Jodl 2010, p. 36). The ability of a brand or a business enterprise to attract customers is an indication of the provision of quality products that are in demand. This boosts the ability of a company to improve in terms of its profit margins, market share and customer base (Samli 2010, p. 61). The desire to make these forms of improvement prompts companies and other organizations to initiate techniques through which they can understand consumer behaviour. such an understanding will not only determine the types of products and service that accompany chooses to provide, it will also provide the company with ways through which it can improve on the provision of service to meet the demand of the consumers. Understanding consumer behaviour helps the marketers and the management of any organization to realize how customers think or feel about a product (Samli 2010, p. 62). Apple Company Inc. is considered as one of the most successful companies in the provision of mobile phone devices, portable computers and music players. The success of this company has been attributed to its ability to provide products and service that are tailor made to fit the demands of its target customers, despite the high level of competition in the mobile phone market (Carlson & Moren 2014, p. 16). The iPhone, a product from Apple, is still considered as one of the smart phones in terms of design, and its efficiency and effectiveness in the delivery of services to customers (Ferrell 2014, p. 70). The main objective of this report is to realize the association between understanding consumer behaviour especially for marketers. This will be realized through an in depth analysis of the effects of consumer behaviour on the sale and production of different products and service. Apple Inc. is considered as one of the most successful brands in the technological market. This report will be engaged in an analysis of the efforts that Apple Company has continued to initiate in the making of its product ad and in its marketing initiatives. This analysis will help in understanding the essence of consumer behaviour in the sale of Apple products. Apple company Inc. profile Apple Inc. is a US based company that was established in 1976 and incorporated in 1977. The company mainly deals with the design, manufacture and marketing of mobile communication devices, computers, portable music players and media devices (Carlson & Moren 2014, p. 7). In addition, the company also sells complementary software and provides digital and networking solutions to their customers. The products that the company offers includes the iPhone, iPad, iPod, iTunes and Mac App Store among others. The success of the company is in its innovative abilities that allows it to design products that are tailor made to meet the interest of their customers (Ferrell 2014, p. 59). Importance of consumer behaviour Understanding consumer behaviour is one way through organizations, through their marketers can develop strategies on how to improve on their sales. This is because consumer behaviour is largely a psychological attribute, which determine the way consumers think, reason or feel about a selected product or service (Quester and Cathy 2007, p. 45). This feeling often generates the notion that it is the responsibility of a marketer to determine the extent to which different environmental factors such as culture, the media and the socialization process contribute to the behaviour adopted by consumers (Samli 2010, p. 62). An effective understanding of consumer behaviour also provides a platform upon which different brands can strategize on how to improve on the content of their promotional messages. This is because consumer behaviour include the ability of the consumers to interpreted messages for their intended purpose. The level of simplicity, complexity of creativity of any promotional messages will be influenced by consumer knowledge or information processing abilities (Quester and Cathy 2007, p. 55). A highly knowledgeable consumer population will require intuitive and creative messages that will inspire them into perching products. This means that any promotional strategies or messages initiated by consumers must focus on the ability of these consumers to comprehend the content (Jodl 2010, p. 44). The process of understanding consumer behaviour in an organizational setting is important for nay business enterprise since it involves the study of the attributes about the most important element in business, the customer. The decisions involved in consumer behaviour often attempts to understand the factors that trigger consumers to purchase a product or service over another. Failure to understand consumer behaviour increases the likelihood that organization will fail in the realization of its business objectives (Quester and Cathy 2007, p. 59). Consumer behaviour and Apple Inc. Apple is considered as one of the most successful brands in the world today due to its ability to manipulate its consumers into purchasing its products and accessing it services. This has been made possible since the marketers from the company already understand consumer behaviour towards portable technological devices such as smartphones. The study of consumer behaviour, from the perspective of Apple involves an attempt to understand the decision making process that customers must undertake in the process of selecting the types of products or services to purchase (Nagarkoti 2009, p. 10). Apple like other smartphone companies such as Samsung, has been active in the production of different but improved models of its products. In the recent months for instance, many consumers have been undergoing the process of making decisions on the type of product to purchase with regard to Apple phones, IPhone 6 and iPhone 6 plus (Ferrell 2014, p. 60). Customers often begin this process by asking question son the differences between iPhone 6 and the previous mobile phone devices produced by the company. This is has been considered as an approach that consumers use to justify an upgrade. The second step in this process is whether to purchase iPhone 6 or iPhone 6 Plus. The ability of the company to understand this approach to making to purchasing decisions can be used in explaining why the sales of iPhone 6 plus produces a higher profit margin for the company (Ferrell 2014, p. 62). The success of Apple Company can also be associated with the ability of the company to integrate brand awareness as part of its marketing initiatives. A successful brand is that which has the ability to attract more customers into the purchase of the said brand (Nagarkoti 2009, p. 15). Brand awareness can only be made successful in situations where a company has over the years been involved in the production of quality products and the use of existing media platforms to create promotional messages that are relevant to the products and services. The iPod was an innovation by iPod, which led to the creation of “Apple fanboy.” These are a group of customers whose technological devices are all for Apple company. This is because such individual are often led to believe that Apple provides the best products in the market (Nagarkoti 2009, p. 18). One of the ways through which the company was able to influence the behaviour of the customers towards the company and its products was because of the high quality of the iPod. Apple is a dominant brand in the United States because of the first and lasting impression that it created on its consumers in terms of the quality of its devices (Ferrell 2014, p. 60). The MP3 market is populated by products that are of the same quality as the iPod. In addition, there are other products that are better in terms of features, design and price but the iPod is dill the most dominant portable music player (Carlson & Moren 2014, p. 17). This means that an effective approach in the understanding of consumer behaviour increase the possibility that a company will gain in terms of consumer loyalty. Extensive research in consumer behaviour can also be used in explaining the success of Apple Company. This is because through such levels of research it is easier for three company to understand the desire of its customers and produce products and services that are tailor made in accordance with the desires of the customers. The research initiatives by the company can be used in explaining recent innovations by the company to introduce an app that can be used in tracking consumer behaviour (Ferrell 2014, p. 61). This is bound to keep the company informed of the areas that interests different consumers. In addition, this is also an indication that company puts less focus on the revenue and more focus on the consumer. Apple operates on the belief that consumer behaviour can be influenced by the reputation that a company provides to its customers. Consumers are more attracted to products that serve their interests rather than those that create the impression that accompany will improve on its profit margins. Inasmuch as the new app may generate security and privacy concerns, it is also a way through which the company can convince customers on the essence of tracking their activities to give information to their developers while designing the next generation and models of technological devices. The success of any brand in matters related to consumer behaviour is therefore only possible in situations where the said brand this the ability to influence customers into developing a positive attitude towards its products and services (Ferrell 2014, p. 62). Factors affecting consumer decision process Product features The ability of a company to influence consumers into purchasing its products or services is highly on the features of the said products and services. The features can be likened to the quality of the product. Customers are often attracted to high quality products irrespective of the prices. This is because such products are more durable and more effective in satisfying customer needs. Product features can also be associated with the packaging of the products (Samli 2010, p. 64). In the case of Apple products, these brand is more likely to attract more customers due to the ability of the designers of the product to develop devices that are protected from harsh weather conditions such as rainfall. The packaging of Apple products is also attractive in terms of the beauty of the design and the ability of the company to provide similar products in variety of colours and sizes (Ferrell 2014, p. 59). This makes it easier to consumers to select products according to their taste and preferences. The ability of the company to provide variety of products is not only based on the colour and design of the product but also on the purpose that the product is expected to perform. For instance, through the provision of different products such as the iPod, iPhone and the iPad, the company has been able to influence the decision making process of consumers who have been inclined into believing that Apple is the best destination for technological devices (Ferrell 2014, p. 62). Promotional appeal One of the ways through which Apple Company has been able to influence consumer behaviour towards its brand is through the development of effective marking messages to communicate marketing messages. Through promotional appeals, the brand has been to provide customers with information concerning any form of improvement in their products and services. In addition, customers are also made aware of the changes in process including the justification for such alterations. The man objective of such appeals is often to convince the customer that the products by the company are the best in the market (Samli 2010, p. 66). Competitive advantage For Apple to secure and maintain its competitive advantage in the highly competitive technological world it has the responsibility of maintaining a high competitive advantage. One of the ways through which the company has been able to maintain this advantage is by securing brand loyalty (Ferrell 2014, p. 63). This has been realized by the provision of high quality products in the market. In addition, the company has also been able to popularize its profits within its target market by facilitating the ability of the customers to receive customized devices in terms of colour. Other than the provision of customized products, Apple has also been involved in constant production of updated and sophisticated machinery that has been considered relevant with the demands of the society. This has helped the company tin the creation of positive reputation as the destination for technologically relevant devices (Carlson & Moren 2014, p. 18). Marketing implications Effective understanding of consumer behaviour is one way through which an organization is able to ensure that the development of its marketing strategies are founded on the ability to work in accordance with the desires of the customers (Samli 2010, p. 67). This means that through consumer behaviour, it will be easier for the company to develop understand the members of their target audience in terms of what they want, the location of the products and the probable reactions that they will generate from interacting with the promotional strategies (Belk 2010, p. 194). In the case of Apple, understanding consumer behaviour allows the company through its marketers and product developers to work in different research initiatives aimed at producing devices that meet the demand of the consumers. In addition, through different research initiatives, Apple has been able to predict possible behaviour of their consumers when they interact with different innovations (Ferrell 2014, p. 66). The introduction of the Apple watch in 2014, for instance had a positive implication on marketing considering that Apple is already an established brand that attracts customers based on quality and creativity of its products. The company did not have to engage in intensive marketing campaigns due to the positive relationship between consumer expectations and the ability of the company to deliver in accordance with these expectations (Carlson & Moren 2014, p. 22). Understanding consumer behaviour is also an essential aspect for any company considering the possibility of forecasting on the sales within a specific duration. Consumer behaviour inspires this aspect based on the understanding that sales forecast cannot exceed the market potential considering that in most cases it falls short of expectations (Belk 2010, p. 198). There are different techniques by which consumer behaviour can facilitate the process of sales forecasting. Most of these techniques revolve around the ability of the marketers to first-hand information from the buyers. There are additional methods that are characterized by qualitative and quantitative approaches. The use of quantitative approach in sales forecasting derives its assumptions from past results while qualitative forecasting helps in the prediction of sales based on expert opinion in the field (Samli 2010, p. 69). It is important to note that the only way by which past results of prevailing market conditions can be used in forecasting of sales is largely based on the ability of the said marketers to understand and predict customer behaviour in the respective markets. Market sensing is another effect that arises from consumer behaviour. Market sensing is a process that helps businesses develop some form of competitive advantage considering that such businesses have the ability to develop a deeper understanding of their customers. Marketers within an organization engage in different approaches in studying consumer behaviour (Belk 2010, p. 202). This inspires a process by which the marketers can compile data and develop comparison measures that facilitate management information database. Through the available database, marketers are able to develop a framework that facilitate effective integration of information. This information also informs the decisions of the management in terms of the procedures that they can use in boosting their market share and customer base (Samli 2010, p. 67). Conclusion and future research directions Recommendation Effective understanding of consumer behaviour is important for the success of any business initiative. However, this success is often dependant on the ability of the management through its marketers to deliberate on the dynamic nature of consumer interest. The desires and demand of consumers are often influenced by different environmental factors that define the situation in the market (Burrow & Jim 2012, p. 156). This is an indication that marketers must always be engaged in a process of collecting data on the preferences and tastes of the consumers in relation to their products. This process will ensure that the said businesses remain relevant in terms of their ability to satisfy customer interest. There is need for marketers to shift their focus to virtual platforms. This is one way through which they can gauge and understand consumer behaviour online. Online platform have become the meeting point between consumers and the marketers. Through established websites and social networking sites it has become relatively easier for marketers and consumers to engage in interactions that necessitate instant feedback (Burrow & Jim 2012, p. 156). These feedbacks often provide the marketers and their companies with the ability to integrate their promotional strategies with the desires of the customers. In addition, through instant feedbacks it is possible for customers to align their desires with the company that shows some form of concern in terms of the fulfilments of the said desires. This is therefore a technique through which companies can ensure customer loyalty (Burrow & Jim 2012, p. 157) Further research directions There is need for more studies to be conducted in trying to understand the relationship between consumer behaviour and consumer socialization. This is because the socialization process play an essential role in the determination of the behaviour that consumers develop towards a specific brand. In addition, through research on consumer motivation it will be easier for a company to develop some level of understanding on the factors that motivate consumers in relation to the prevailing social conditions (Burrow & Jim 2012, p. 166). There is need for addition studies on matters related to the type of consumers that are targeted. This is based on the realization that different consumers are often encouraged into action by different factors. For instance, class differences can be considered as contributing factors to the choice of product or brand by consumers. There are consumer who conduct purchases while assessing the quality of the product and there are also consumers who focus on the price of a product as the chief determinant of their purchasing behaviour. Such consumers often compromise on process and the quality of the product. Studies on class differences can also be inspired by assessing the types of shops and companies that are available in a specific location. This will provide an understanding of the preferences of the consumers in the said locality (Burrow & Jim 2012, p. 177). References Belk, Russell W. 2010. Research in consumer behavior. Vol. 12 Vol. 12. Bingley: Emerald. Burrow, Jim, and Jim Bosiljevac. 2012. Marketing. Mason, Ohio: South-Western Cengage Learning. Carlson, Jeff & Moren, D. 2014, The Connected Apple Family: Discover the Rich Apple Ecosystem of the Mac, iPhone, iPad, and Apple TV. Peachpit Press: New york Ferrell, O. C. 2014. Marketing. Australia ; Mason, OH: South Western Cengage Learning. Jodl, Florian. 2010. Understanding participative consumer behavior: insights from motivation theory and three empirical studies in the context of user-generated content. München: FGM-Verlag Nagarkoti, Bishal. 2009, Factors Influencing Consumer Behaviour of smartphone users. Arcada. http://theseus32kk.lib.helsinki.fi/bitstream/handle/10024/70466/Nagarkoti_Bishal.pdf?sequence=1 Quester, Pascale G., and Cathy M. Neal. 2007. Consumer behaviour: implications for marketing Strategy. North Ryde, N.S.W.: McGraw-Hill. Samli, A. Coskun. 2013. International consumer behavior in the 21st century: impact on marketing strategy development. New York: Springer. Read More