Consumer Psychology in the Development of Marketing Strategy and Planning - Essay Example

Consumer psychology and analysis of database s are important part of market strategy which helps one to know the changing preferences of the customers in the rapidly changing times. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals. The market strategy should be totally focused on the needs and requirements of the people and make continuous efforts to update its products line with that of the changing public demands. Understanding of consumer psychology, therefore, plays a vital role in the development of marketing strategy and planning. The behavioral pattern of the people, in the decision making process of buying products and services, helps provide important clues for preparing appropriate market strategies so that maximum mileage could be garnered for the products. The paper is an attempt to study the consumer psychology that culminates in purchase of goods. Two consumers, who had bought cars, were studied for the learning processes that led to their buying decision vis-à-vis five major factors: need recognition; information search; evaluation of alternatives; purchase; and post purchase dissonance. The consumers had come from diverse socio-economic background and their purchase psychology would significantly provide a wider spectrum of important clues for marketers. The interviews consisted of same set of questions regarding their pre and post purchase psychology and the factors and issues that had considerable impact on their decision making process. Consumer A belonged to an affluent class and was working in a multinational company as a System Analyst. He had bought a Mercedes’ Benz. Consumer B was a Teacher in a semi urban locality and belonged to a middle class society. He had bought Honda City. As per their responses, it was found that both the consumers had different need recognition that was driven by their beliefs, attitude and lifestyle imperatives. Consumer A was conscious of his social status and wanted a car that would add value to his lifestyle. He therefore, wanted a high end, flashy car that would also give good return vis-à-vis his investment. Consumer B’s requirement was primarily need driven because of the long and time consuming public transport to his workplace. He, therefore, required a sturdy, low investment and comfortable family car that would be economic as well as reliable. He was, therefore looking for a medium range, practical and comfortable car. The information search for car by the two consumers also differed. Consumer A was hi-tech executive, he was able to get huge information from the internet as well as from friends and colleagues. While he was able to get a wider range of brands, he was stuck between the Mercedes and BMW and needed to come to a decision about the final selection. Consumer B, on the other hand, had more relied on the feedback from his friends, relatives and colleagues because they were coming from the same background and their socio-economic compulsions would facilitate right choice for Consumer B also. He was therefore, faced between the choice of Honda City and Rovers, both of which looked attractive to him and suited his budget. The evaluation of the alternatives was difficult for both the consumers because both of them were swayed by the plethora of informed choices. Hence, both the consumers decided to evaluate their alternatives vis-à-vis four criteria: budget; Value addition to lifestyle; special offers and discount; and investment. Consumer A’s priority comprised of value addition to status, investment and budget. He was highly ambitious person and was fast moving upwards in social arena and therefore, he felt that his car should reflect his rising status in the society. Consumer B arranged his priority based on investment, discount, budget and social status. His major compulsion for buying car was low investment in the long run and which would also not constrain his budget. He was practical where his finances were concerned. He was therefore looking for a comfortable car which would reduce his stress while driving to his workplace and at the same time, it would also serve as family car when he would be able to take out his family for outing on weekends. After evaluation, the final decision was comparatively easy to make. The final thrust, of course came from their immediate family members, wife and children who were much influenced by the advertisements of the car. Family of Consumer A voted for Mercedes Benz and the family was thrilled with the purchase. Interestingly, the family of Consumer B was also significantly impacted by the advertisements of the car and they were more impressed by Honda City. Consumer B made final decisions for purchasing the Honda City. His family was much enthused over the purchase because they could now have a regular family outing at weekends and vacations. The post purchase behavior of both the consumers was almost similar. The changing economy and trends of the market were major issues which become a matter of slight regret with both the consumers. While the lowering of prices would have given option to buy yet higher end of Mercedes to Consumer A, the difference in the prices would have given better bargain to the Consumer B. The post purchase dissonance is natural human failing that the buyers feel. These are temporary setbacks for the buyers which are forgotten in the near future. The positive information that has come out of this survey is that consumer’ buying decision is significantly swayed by the visual and textual content of the advertisements. Advertisements and media play a very crucial role in the strategy planning and are often used to define company’s position vis-à-vis the market strategy for non market factors. A well defined market strategy is the key to success in any new market. The various media in the region are important tool to popularize the company and help establish its brand among the masses. The results of the survey are important for the organization because it shows that advertisements significantly influence general public’s buying decision. Fast changing environment of advancing technology and rapid globalization has made business more competitive and spreading awareness about the various products and services amongst the massed becomes vital for the organizations. Dissemination of information and creating demands for different products and services through effective advertising therefore, has become crucial for companies to maintain a competitive edge over their rivals. Consumers are the mainstay of any business and therefore, efforts must be made to develop better understanding with customers with regard to consumer demands and correlate it with the product so that appropriate advertisement strategy could be developed. In the present market scenario a more aggressive approach to advertise its goods and services need to be adopted to meet the challenges of the changing time. Indeed, it is important to understand the compulsions of the emerging new dynamics in the global businesses that necessitate people-centric policies. The strategies and plans must meet the challenges of the changing social patterns and its changing demands. The organizations need to improvise techniques and skills to encompass traits and behavioral pattern that facilitates better perception and understanding of people. Reference Company and marketing strategy. Pages; 57, 151 and 157. Read More