Based on one cited definition, how would you define consumer behavior? How do economic, social, psychological, and cultural factors relate to consumer behavior development of marketing programs?
When a consumer undergoes a decision-making process and physical activity involving the acquisition, evaluation, use, and disposal of goods and services, it is referred to as consumer behavior (Consumer Behavior, n.d.). Buyers usually consume what gives them maximum satisfaction at the lowest price possible. A company has to undertake market analysis and research to know what to produce. It also considers economic, social, psychological, and cultural factors that relate to human behavior. This is very important because it enables the company to attain its set out goals and objectives.
Culture affects consumer behavior development of market programs. It defines how a product will be consumed by the buyer. A company has to consider the norms and values of those they are targeting. For example, selling pork in a Muslim environment implies low income for the seller because Muslims do not consume pork.
Economic factors may affect the consumer behavior development of market programs. In order to provide superior customer value, certain strategies are formulated to win the target market. They include product, price, promotion, and place (Consumer Behavior, n.d.). This implies that with high income the consumer will pay more, whereas, with low income, he or she purchases less.
How can a company acquire knowledge of competitors’ marketing techniques?
Companies usually compete for customers to make more profits. If a company does not achieve its objectives, it has to come up with solutions to solve the problems. The most important thing a company can do is to acquire techniques and skills used by its competitors. To acquire such skills and techniques, teamwork is encouraged and reviewing certain factors that determine consumer satisfaction. An effective example is consuming a competitor’s goods/services while looking for the slightest difference of their product with that of its competitor.
Developing product knowledge for competitive advantage by a company is essential if the company wants to achieve its goals. This will help a company acquire knowledge of products or services to support sales and marketing strategies, to evaluate products or services to understand their strengths, weaknesses, and potential benefits to customers, and finally to evaluate competitors’ products or services against the company’s products/services (Developing product knowledge for competitive advantage, n.d.).
If all the above are taken into consideration, then that company will produce competitive products. A company’s organizational ability and teamwork are equally important to enhance the quality of products. Finally, refreshing courses should be studied by the employees and the employer to acquire new production skills.
Which is more important, the consumer or the product? Explain your answer. Do consumers drive the development of products, or do products drive consumer behavior? Explain your answer.
The consumer is more important than the product. When a producer studies consumer psychology, he will know what to produce and at what time to produce it. Research shows that, if a producer can systematically measure a consumer’s response and motivation in a scientific manner, then, certain accurate predictions on such things as, identifying key ingredient levels of a product, pricing points, marketing platforms, and brand positioning can effectively be addressed (Foster, 2007).
The consumers determine the products to be produced. Culture, social status, and economy are the key factors considered by manufacturers. If these are ignored, the organization may produce what it likes but will not get enough consumers. To examine consumer’s attitudes and behavior around products, various techniques like in-depth interviewing, language profiling, observational behavioral studies, and group dynamics must be considered (Foster, 2007). When all these are put into consideration, the consumer’s demands will automatically be met.
References
Consumer Behavior. (n.d.). Web.
Developing product knowledge for competitive advantage. ( n.d.). Web.
Foster, P. (2004). Consumer Research. Web.