BUS502: Strategic Marketing

3a. Explain the importance of consumer behavior for developing marketing strategies

• From a marketing perspective, why is it important to understand consumer behavior?
• How can consumer behavior be studied?
• How is consumer behavior related to marketing?

In marketing, consumer behavior is important to understand because it will give you a better understanding of how a product or service is being used, and this information is useful when developing a marketing plan for that product. Conducting research to observe or understand consumer behavior is an important part of the marketing process.

Part of understanding behavior is identifying the consumer's wants and needs that may lead to a purchase. Wants and needs will influence the consumer to make or refuse a purchase. A marketer may determine wants and needs by interviewing consumers or conducting a focus group of potential customers for a specific product or service.

To review, see Consumer Behavior.

 

3b. Assess cultural, social, and personal factors that influence consumer behavior

• How might cultural influences affect consumer behavior?
• Why would social and personal factors influence consumer behavior?
• Is timing an influence on buying a product?

Many factors may influence a consumer's behavior when it comes to making a purchasing decision, and these may include cultural differences, social aspects, and personal influences. In addition, timing, reasons for a purchase, the social situation involving the purchase, and their lifestyle may also influence if the consumer makes or does not make a purchase.

For example, when deciding to purchase a new phone, a consumer may be having problems with their current phone, their friends may have purchased the latest version of the phone, and the consumer wants the same phone, they may not have enough money at the time of purchase and may decide on an older or refurbished model, or they know they need to finance the new phone. As you can see, many factors may influence consumer behavior. Understanding the factors that may affect consumer behavior is important when putting together a marketing plan.

To review, see Influences on Consumer Behavior and Social Influences.

 

3c. Relate the motivation theories of Freud, Maslow, and Herzberg to consumer behavior

• How can Maslow's motivation theory be applied to consumer behavior?
• What is an example of how Freud's work can be applied to consumer behavior?
• Why is it important to understand motivation theories as it relates to consumer behavior?

Motivational theories are another way to better understand consumer behavior. Maslow's Hierarchy of Needs may influence consumer behavior as basic needs are met and make room for higher-level needs, which include buying products. Herzberg's Two-Factor Theory may include how satisfied or dissatisfied a consumer is with their job, and this may have an impact on their employment motivation level. This theory can be used to relate to the consumer buying process.

Another motivational theory is Freud's motivational theory. He believed that unconscious factors may shape the behavior of the individual. An example of using these motivational theories may be when a salesperson focuses on the safety factor for first-time homeowners when they purchase furniture for their new home. This feeling of safety may be met when they purchase furniture that is comfortable and homey.

To review, see Psychological Influences.

 

3d. Explain the five steps in the consumer buying decision process

• What are the five stages/steps in the consumer buying process?
• How can the five steps in the consumer buying process be used in marketing?
• Why is it important to understand the five steps in the consumer buying decision-making process?

There are five stages/steps in the consumer buying decision-making process. These steps include recognizing that there is a problem, completing research about the problem, reviewing potential alternatives, making a purchasing decision, and evaluating the product after purchase. Depending on the consumer and the expense of the potential solution, these stages may take place quickly (choosing a soda flavor) or may take months (car buying process).

From a marketing perspective, these steps are important to understand because a marketer may be able to influence the buying decision by focusing on one of these stages in the consumer buying decision process. For example, if a product that might solve the consumer's problem shows up higher in an online search, then the consumer may be more likely to buy that product.

To review, see The Buying Process.

 

3e. Differentiate low, limited, and high levels of consumer involvement in the buying process

• Why is it important to understand the level of consumer involvement?
• How can you better understand the level of consumer involvement in the buying process?
• What are the low, limited, and high levels of consumer involvement?

Consumers may have different levels of involvement based on their needs and the possible expense of the product that may solve their needs. These levels may include low, limited, and high levels. From a marketing perspective, it is important to understand this level of involvement and any risks associated with the decision-making process.

For example, if the consumer needs a product that may cost $20 or less, then the level of involvement may be low because of the cost and risk incurred in making that purchase. But when the consumer is deciding to buy a home, then a high level of involvement will be required. The more risk involved in the decision-making process, a higher level of consumer involvement will be needed. Another type of involvement is limited, and this falls somewhere in between low and high consumer involvement. For example, a limited involvement might include buying a higher-priced vacuum cleaner. A consumer might spend several hours of research before committing to a specific product, and while it cannot be compared to purchasing a car, it would demand more time than a $20 low-involvement item.

To review, see Situational Influences.

 

3f. Recommend four marketing strategies for influencing consumer behavior

• What are some marketing strategies that a marketer may use to influence consumer behavior?
• Why do you need to influence consumer behavior?
• From a marketing perspective, what is an example of influencing consumer behavior?

From a marketing perspective, it will be important to determine why and how you might influence consumer behavior. There are a few marketing strategies that may be useful, and by using these strategies, a company can better service the consumer and build loyalty.

These include engaging with the consumer (targeted ads, solving a problem they have), understanding needs (here is a resolution to your problem), using visually appealing marketing, starting with a small request (completing a survey, asking for more information), or ensuring your company is available to quickly respond to consumer questions.

To review, see Influences on Consumer Behavior.

 

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• consumer behavior
• consumer buying decision-making process
• Freud's motivational theory
• Herzberg's Two-Factor Theory
• influence
• levels of involvement
• Maslow's Hierarchy of Needs
• motivational theories