Factors Influencing Consumer Behavior and Bases of Segmentation

This article explores the factors that influence consumer behavior and bases of segmentation in marketing principles. It discusses Roy Morgan's research on early intenders and early adopters, social and personal factors that influence purchasing, and the importance of location, demographics, and behavior in segmentation. The article concludes with the significance of these factors in marketing and how they can help brands reach their target market efficiently.

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Factors that influence consumer behavior
Roy Morgan explores the mindsets and attitudes going behind consumer behavior. Roy Morgan
is an Australian company which researches independently on market overview in Australia,
United States, and the United Kingdom.
The owners of smartwatches in Australia were expected to increase according to Roy Morgan's
research. The company found out that in 2015, 2.7% Australians said they intended to buy a
smartwatch (Hall et.al, 2009 p.71). At that time 3.6% of Australian's said that they would buy an
apple phone. Similarly, those asked if they wanted an apple watch or a different brand was
equivalent to the iPhone users. Roy Morgan research identifies and tracks early intenders as well
as early adopters; these are social and personal factors which influence purchasing. Social factors
depend on relatives, friends and referrals. This predicts the early uptake of technology and how
fast such technology will grow. Also, the 2015 research showed that the figures matched the
initial ownership of 1.2% initial owners. The similarities between the apple and the smartwatch
show the early intenders and the numbers of those who intend to buy. This can also be influenced
by cultural values, where the culture or a set of value affects the buying decision. Such cultural
values could be the status, where people using the smartwatch are mostly those want to be seen
as wealthy or classy(Murphy, 2004 p.26). 08050342
Bases of segmentation
The behavior of consumers goes beyond psychological behavior and demographics. Location is
considered an important factor considered by shoppers. Psychographics segmentation according
to Roy Morgan depends on social lifestyle and personal characteristics. Such segmentations are

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like socially aware, traditionalists and conservatives. The socially aware are those young
consumers who are long-term thinkers. They have plans on their career advancement and have
self-fulling experiences. They work as hard as they play. The other segmentation is based on
behavioral factors of those who want to make real investments, they believe in quality products
(Murphy & Murphy, 2004 p.54). This group only spends their money on brands which are
known to them and they will always prefer well-established brands over new ones. The
smartwatch consumers can be placed on this category because purchase depends on user
behavior, consumption and purchase frequency. Core customers also influence purchasing, this
are those shoppers who are die-hards and loyal who believe that a brand has a unique value and
even a competitor would not sway their beliefs. This is true to most iPhone users. The other
bases for consumption is demographics where the characteristics of a population can be
quantified. This will depend on income, socio-economic factors and gender. Lastly, also
geographical factors affect segmentation, where the physical location determines the
consumption; urbanites will not have the same preferences as inner-city dwellers or people in the
remote areas. Other BEST segmentation on what influences a product includes light-poor
prospects, those who will never buy a particular brand or product (Baker et.al, 2008 p.179).
Conclusion
To sum up, Roy Morgan's perspectives show that the placement of a brand greatly influences
consumer behavior. Other factors include geographical location, demographics and behavior.
This includes prominence of a brand, how a brand is placed in the market, how the consumer
perceives the brand. The Roy Morgan factors are key to marketing, which help in giving brands
information on how to best carry out their marketing in order to reach their target market
efficiently.

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Bibliography
Baker, M., Graham, P. and Harker, D., 2008. Marketing: managerial foundations. Macmillan
Education AU.p.179
Hall, C.M., Sharples, L., Cambourne, B. and Macionis, N., 2009. Wine tourism around the
world. Routledge.p.71
Murphy, P.E. and Murphy, A.E., 2004. Strategic management for tourism communities:
Bridging the gaps (Vol. 16). Channel View Publications. p.26
Murphy, P.E. and Murphy, A.E., 2004. Strategic management for tourism communities:
Bridging the gaps (Vol. 16). Channel View Publications.p.54