Understanding Consumer Behavior

The assignment delves into the significance of consumer behavior theories for marketers in developing effective business and marketing strategies. It examines various factors influencing customer decision-making, such as product assessment, price comparison, personality traits, and lifestyle choices. The document emphasizes that understanding these factors is crucial for businesses to cater to customer needs and achieve organizational goals.

Running head: CONSUMER BEHAVIOUR

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Table of Contents
Introduction......................................................................................................................................3
Meaning and concept of consumer behavior...................................................................................3
Role of consumer behavior in marketing and business strategy......................................................4
Theoretical concept underlying consumer behavior........................................................................6
Generic Theory of Buying Behavior............................................................................................6
Cultural Theory of Buying Behavior...........................................................................................7
Internal Theory of Buying Behavior............................................................................................7
Conclusion.......................................................................................................................................7

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Introduction
Consumer behavior is significant for any company before introducing the products and services.
When an organization fails to assess how a customer will react towards specific products and
services then the company could face losses. Consumer behavior is very complex as each
customer has different attitude and mind with respect to consumption, purchase, and disposal of
products. Along with this, understanding about theories and concept of consumer behavior aids
to the marketing of product and services. In addition to this, studying consumer behavior could
be effective in terms of different aspects. There are constant changes in the fashion, technology,
living standard, attitude of consumers and trends with respect to purchasing of products and
services. Understanding about these factors is significant because the marketing of products is
highly depending on these factors (Armstrong, Kotler, Harker, and Brennan, 2015). Therefore,
consumer behavior is an efficient technique which enables the marketers to meet the sales
objectives. This report describes the role of consumer behavior in marketing and business
strategies. It also applies different concept and theories to understand the consumer behavior.
Meaning and concept of consumer behavior
Consumer behavior is defined as the buying tendency of consumers. An individual who goes for
purchasing the products and services does not require that they will purchase it. There are
different phases of consumer purchasing decision that he follows before finally purchasing the
products and services in the market. At the same time, there are different factors which may
affect the purchasing decision of consumers such as personal, cultural, social and psychological
factors. Marketers should understand the consumer buying behavior with respect to particular
products and services (Solomon, 2014). Hence, there is a need for marketers to comprehend how
a consumer buys particular products and services and what stops him from purchasing. It is

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analyzed that marketing is a procedure to find the needs and wants of customers, building
products and services solution to match and endorsing the advantages of products to targeted
more customers. It is stated that understanding of consumer buying behavior and steps which
followed by the consumer to make a purchasing decision is significant to develop a marketing
plan (Papadopoulos, and Heslop, 2014).
Role of consumer behavior in marketing and business strategy
The understanding of consumer buying behavior aids marketer to address and estimate the
purchasing decision of consumer when they made purchasing decision. The consumer buying
behavior aids the marketers to gain knowledge about what customer’s purchase but also aids to
comprehend why they buy it. In addition, consumer buying behavior enables the company to
understand where, how and when customers buy products and services and also responded. The
consumption and causes behind disposition of that specific products and services aids marketer
to assess the awareness of products and services which is marketed (Gummesson, Kuusela, and
Närvänen, 2014). The consumer behavior studies aid marketer to increase their knowledge about
the post-purchase behavior of the customers. Therefore, the marketers become aware regarding
each stage of consumption procedure such as pre-purchase behavior, customer’s behavior during
purchase and post purchasing behavior. It is assessed that each customer behaves differently for
same products such as they purchase the products and services for different pays, prices, reason,
different emotional attachment with products and used the product differently (Baker, and Saren,
2016).
It is assessed that a marketing plan defines market segmentation and targeting strategy which
enables the company to target the customer and conduct market research. In addition,
understanding about consumer behavior is essential to endorse the product and services and

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attract the customers towards them. Need recognition is a significant element of consumer
decision making the process as a marketer can use this element to influence the consumer buying
behavior. Marketer addresses how to conduct research and uncover the desires and preferences
of targeted consumers. It also aids in the business development and helps to make effective
advertising strategies. The company should make effective public relation and sales efforts to
convince customers for their brand (Zhao, Gao, Wu, Wang, and Zhu, 2014). Further, the
marketer should facilitate best brand offer and combination of benefits to customers to meet their
needs.
Information search plays an important role to make marketing and business strategies. Company
outlines the marketing plan and makes communication with customers by using information
search process. Competitive assessment is a significant strategy to comprehend what competing
brands are offered by competitors in the market. It allows the marketer to focus on core strength
and get product benefits in advertising and another endorsement (Veit, Clemons, Benlian,
Buxmann, Hess, Kundisch, and Spann, 2014). There are different companies which usually
create and endorse the product by considering needs and preference of customers.
Consumer behavior is influenced by the marketer to retain the customer in long-term and helps
to improve the customer loyalty. Marketer outlines the approaches to retain the customers and
create the loyal association with them. These approaches are implemented during and
immediately after buying decision of customers. There are certain companies which facilitate the
customer rewards plan to attract the customers. In this way, these companies facilitate the
discount or benefits for frequently purchase the products and services. A marketer also outlines
the technique and strategies which are used for follow up and ensuring the customers that they
have uses good experience (Strauss, 2016). A marketer can address the products and service

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related concern by conducting market research as it would be beneficial to influence the
consumer’s behavior for future purchase.
Consumer follow estimated decision-making pattern in virtually buying condition. Initially,
consumer addresses an emotional and function requirement like transportation, hunger, and
desire for excitement. A marketer should find information to meet the needs of customers.
Further, the company should consider the set of products and evaluates the decision-making
criteria to influence the consumer towards company’s product. Consumer behavior
understanding is also beneficial for marketers to make a selling decision. To influence the
behavior of the consumer, the company facilitates a mix of benefits such as quality products and
services at the affordable price (Erevelles, Fukawa, and Swayne, 2016).
Theoretical concept underlying consumer behavior
There are several theories regarding buying behavior of customer and business who constantly
analyze the customers and companies. These theories define that how to influence the customers
to buy their products and services. However, different customers make a different buying
decision as per different factors such as cultural influences, environmental element and own
personality (Testa, Iraldo, Vaccari, and Ferrari, 2015).
Generic Theory of Buying Behavior
As per this theory, the consumer uses a generic model of decision making by using the procedure
to make a decision. The customer addresses their need to make buying decision such as pricing
and product quality initiates them to purchase that product. For instance, the decision to purchase
a washing machine might come after the old one damage and requires a costly maintenance cost.
In such situation, the consumer can invest in the new washing machine on the market and assess
pricing, features, and benefits to make a buying decision. The company might face a challenge to

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identify how the consumer perceives about the products and services after buying it. In this way,
if he is satisfied with the products and services then they will be more demand to buy that
products and services in the future (East, Singh, Wright, and Vanhuele, 2016).
Cultural Theory of Buying Behavior
The cultural factor may influence the purchasing behavior of the consumers. A culture of person
is set of belief and values which are learned by the community. These belief and standard can
lead to buying behavior. It is assessed that social class relies on the income, occupation,
education and it could influence the buying behavior of customers. Consumer behavior is
influenced by the membership of friends and family at work. There are certain opinion leaders in
the group that can persuade the buying decision of customers due to specialized knowledge and
personality (Schiffman, O'Cass, Paladino, and Carlson, 2013).
Internal Theory of Buying Behavior
As per this theory, it is evaluated that there are certain people who love to shop and takes buying
decision by assessing each product and compare pricing before making a judgment. Customers
have a different personality to choose a product for purchase. Hence, a product could be good for
one but the same product could be not good for others in terms of features and price. The
lifestyle of the customers can affect the buying decision of customers (Lovelock, and Patterson,
2015).
Conclusion
From the above interpretation, it could be concluded that consumer behavior theories and the
concept is significant for a marketer to make business and marketing strategies. It could be
summarized that products are made to cater the needs and demand of customers hence products
and services should be cautiously marketed for attaining the organizational goals. The

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understanding about consumer behavior aids the company to assess the different factors which
can influence the decision of customers. In could be evaluated that if the marketers are unable to
understand the factor then they will not be able to attain the target.

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