Consumer Behaviour Report: Analyzing Marketing Strategies

This report provides a comprehensive overview of consumer behavior, emphasizing its significance in marketing. It delves into the core components of consumer behavior, including psychology, communication, sociology, and anthropology, and explores various models like the EKB and Howard Sheth models. The report highlights the practical applications of consumer behavior in marketing activities, such as market opportunity analysis, target market selection, marketing mix decisions (product, price, promotion, place), and the development of effective marketing strategies. The role of social media in understanding consumer behavior is also discussed, providing insights into how marketers can leverage social media channels to connect with and understand their target audiences. The report concludes by underscoring the importance of understanding consumer behavior for achieving marketing objectives.

Consumer Behaviour

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK.........................................................................................................................................3
Consumer Behaviour..............................................................................................................3
Importance of consumer behaviour........................................................................................4
Components of consumer behaviour......................................................................................4
Uses of consumer behaviour in marketing activities.............................................................7
Range of social media channels relevant to each market segment/consumer demographic 10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
Books and Journals:.............................................................................................................12

INTRODUCTION
Consumer behaviour is the process that helps organisation to understand customer’s
behaviour and the reason of their behaviour. It is necessary for the company that they have to
use the study of consumer behaviour in order to achieve their goals and objectives (Ulph,
Panzone and Hilton, 2017). Every organisation has an ultimate objective that they have to
satisfy their customer needs and wants. It can be only possible when company e understand
the potential buyers taste and preferences. Consumer behaviour is the study in which a
company tries to identify and analyse the nature and behaviour of their target i.e. customers.
For that purpose, marketers use many important activities that help them to understand
consumer behaviour. It is identified that social media becomes an important element that
helps organisation to understand consumer behaviour. Every type of organisation is
especially small organisation is now focusing on social media which connects people for
understanding their wants. This report is focusing on that how social media helps marketer to
understand consumer behaviour.
MAIN BODY
TASK
Consumer Behaviour
Consumer behaviour is the study of human nature in which every company wants to
understand the perception and behaviour related to the particular product. Continuous
fluctuations in customers taste and preferences becomes a major problem for organisation
that how they can understand their behaviour (Rioux and et. al., 2017). It becomes more
difficult in retail industry because customers expectation get rises day by day. Customers
become more demanding from the retail industry which gives challenges to companies. There
are number of companies that always focus on understanding of their potential buyers so that
they can achieve their objectives. Those organisations are Tesco, Sainsbury, Unilever, etc.
These organisations are facing many challenges due to the rising customer expectations. It is
identified that consumers are influenced by many factors such as social, situational,
psychological, marketing and personal factors. These factors should be analysed by company
in order to satisfy their wants and needs. For example, marketer of Tesco identify that their

customers wants sustainable products with low prices. That's why Tesco adopt cost effective
strategy in which they provide durable goods at reasonable prices. Due to the understanding
of their customers’ expectations, Tesco is able to forecast their strategy which helps them to
satisfy consumer’s wants and needs.
Importance of consumer behaviour
Consumer behaviour plays a very crucial role in today's marketplace where the act as
information provider, user and disposal of products, etc (Krajina and Mladenović, 2018).
Consumer behaviour is very important for a marketer which can be better understood from
the following points:
 A marketer can understand the factors which influence consumer buying decisions. It
assists them to make production services accordingly. For example, Sainsbury
identified that their customer get influenced by current trend of fitness (Tompodung,
Tulung and Pandowo, 2021). Due to this, Sainsbury producer’s products which are
suitable for fitness. It helps them to attract their potential buyers.
 For a marketer, study of consumer behaviour becomes very important as it helps them
to decide the way which gives some great impact on customers.
 It is the key element or a secret which helps marketers to reach to their potential
buyers of clients in order to engage with them so that they can generate purchase.
Components of consumer behaviour
Consumer behaviour has four important components that are sociology, psychology,
communication and anthropology (Žák and Hasprová, 2021). All these four components
make a consumer nature or behaviour that can be understand from below points:
Psychology: It is related to a mind process that produces human behaviour.
Companies try to understand those sensations which influence consumer decision. Marketing
helps organisation to attract consumers with the help of using some importance answers
through their ads (Agarwal, 2019). For example, McDonald statement is "I am loving it"
which creates a memory in the mind of consumers. These types of ads give an emotional
touch to the customers.

Communication: It is identified that communication gives a great impact on a
person's mind. Communication is the two ways process that always focused on understanding
of other's point of view. Marketing activities always try to communicate with customers.
Sociology: It is the process that focuses on connecting with people through socially.
Now organisations use social media for the purpose of connecting with people. This helps in
understanding of consumer's wants and needs.
Anthropology: It is the study in which a company is able to understand the
customer’s behaviour and nature. Salesman of organisations uses their pitch in order to attract
customers.
Theories of consumer behaviour
Engel, Kollet, Blackwell (EKB) Model
Engel, Kollet, Blackwell (EKB) Model is the model that consists mainly four stages
which helps to understand consumer behaviour (Spence and et. al., 2019). It is identified that
all four stages play a crucial role in understanding of behaviour that are mentioned below:
 Need recognition: In the first stage of EKB model states that a consumer identify
their need that what they want. Here customers wanted to identify their needs and the
products which can be satisfy their needs and wants.
 Information search: This is the stage where consumers find products which can be
fulfil their needs. It is necessary for organisations that they have to understand
customer’s wants so that they can producer’s goods and services accordingly. It is the
stage in which customers are searching for production services that which company
can satisfy their wants.
 Alternative evaluation: It becomes necessary for the consumers that day evaluate
each alternative which they search in the previous stage (Sroka, 2020). Once the
customer has identified that what will satisfy them so they begin to find out the best
deal. For that purpose they are looking forward to the products in which they focus on
their price, quality and other factors which they have to be considered.
 Purchase decision: After evaluating each alternative it is the stage where consumers
take decision. That means after telling all factors in the products now customers take

decisions that what they have to be purchase and from where. They get information
through advertisements and marketing strategies of different organisations.
 Outcome: The consumer decision process is not end with the selection stage because
once they purchase the product de evaluate that their decision is a good or a bad. That
means in this stage they are continuously trying to make an evaluation about the
products and services which are adopted by consumers.
This theory is based on consumer decision buying process which should be
understood by organisation so that their marketers identify their needs and wants. It becomes
easy if marketers use this model.
Howard Sheth model
This model is focused on four important variables which helps organisation to
determine consumer behaviour. Four important sets of variable are mentioned below:
 Stimulus- It is the input variable that focuses on three types of stimuli such as
symbolic stimuli, social stimuli and significative stimuli. Where symbolic stimuli is
concerned with persons perception towards characteristics of product (Sangroya and
Nayak, 2017). Significative stimuli states that a consumer focused on physical or
tangible characteristics of the products and services. The last social stimuli are
concerned with the consumer behaviour which was influenced by their family, social
groups, friends, etc.
 Internal variables- In this variable it shows state of the buyer such as buyer's
attitudes, motives, expectations, perceptions, experiences, etc.
 Exogenous variables- In exogenous variables it indirectly effect to buyers which
include culture, social class, financial status, time pressure, etc. of buyers.
 Response- It is the variable that comes out after interaction of above three variable
set. That means all four variables should be linked in a logical and systematic manner
so that consumer behaviour can understand because it always repetitive.
With the understanding of all four variables a company is able to know the behaviour
and nature of consumer. It is identified that consumer behaviour is almost repetitive and it
becomes very beneficial if organisation get consumers information through stores and their
decision making process.

Uses of consumer behaviour in marketing activities
It is necessary for every organisation that they should understand the application of
consumer behaviour in marketing activities. For that purpose a company should analyse
market opportunity (Gbadamosi and Oniku, 2021). Analysing market opportunity can be
done with the help of study consumer behaviour as it assistant identification of unfulfilled
needs and wants. The application of consumer behaviour in marketing activities understands
with the help of four major steps.
Analysing market opportunity
For analysing market opportunity, a marketer is required to examine in the conditions
in marketplace where they have to be considered consumers income level, lifestyle and
energy influence. Marketers should focus on revealing of unsatisfied wants and needs of
customers (Kriel, 2018). If a marketer can successfully identify the unsatisfied needs and
wants of customers then they are able to produce that type of goods. It is identified that it can
be possible when marketers can connect with their customers. For that purpose, they have to
use some important tools and techniques to reach their clients. For example, McDonald's
found that the customers of India does not like beef burgers. Identification of customers
behaviour helps McDonald that what they have to produce. They are now producing aloo
tikki burgers which become very famous in the country. One important tool that identify by
marketers is social media. That means social media is one of the key element which can be
used by companies in order to connect with their customers so that they can analyse their
market effectively.
Selection of target market
Consumer behaviour plays a very important role in the selection of target market. For
example, Unilever tries to identify customer’s behaviour in order to segment the market
according to their needs and wants (Marriott, Williams and Dwivedi, 2017). For that purpose,
identify groups which have a similar nature of purchase decision that enables marketer for or
designing the products as per the demand of customers. A company can segment the market
only on the basis of consumer behaviour.
Marketing mix decisions

Marketing mix is the model which focused on four important elements that our price,
product, promotion and place. It is the set of marketing tools which assist organisations to
complete their targets by uses of marketing mix. When organisation use marketing mix
strategy then they is decide some important decisions according to the consumer behaviour.
They take decision regarding price, products, promotion and place (Mavrina, 2017). This
decision depends on the consumer behaviour which can be understood if a company can
connect to the customers directly. It can be done if company uses social media which
becomes very popular that access by every person in the world. In the context of price,
company need to identify that consumer is able to purchase their expensive product or not.
For example, Apple provides smart phones at very high prices still they are standing at the
top. They are identified that their target rich people who can afford their products prices.
Similarly one more example that shows price is depending on consumer behaviour. In the
case of durable goods, no one single person want that they can purchase at high prices. It can
be effectively understand by Tesco so that they provide goods at very low price. So consumer
behaviour is very important for marketing mix decisions.
Marketing strategies
It is identified that every organisation designs some important marketing strategies for
the products and services. The objective of any organisation is to sell their products in the
market with the help of making marketing strategies (Ogiemwonyi and Harun, 2020).
Meaning of marketing strategies is also depends on consumer behaviour. To study the human
nature it becomes helpful for marketed that in which way consumer get impact so that they
can make strategies.
Social media and their importance
From the discussion of application consumer behaviour in marketing give the clear
idea that a marketer needs to connect with people. That means if a marketer wants to
understand consumer behaviour then they firstly should be connect with the people. Day to
day use of social media is increasing at high speed. It shows that how much consumers are
connected with social media. Their nature is reflecting on the post of consumers on social
media platform (Bartková, Šramková and Veselovská, 2019). This is the main reason that

why marketer using social media other than any marketing tool. It becomes one of the best
tools that it gives many benefits to marketer. Importance of social media is mentioned below:
 It is identified in the report of Deloitte that consumer are mostly influenced by social
media. Consumers are influence by social media which can be seeing from their
purchase decision. That means most of the customers get attracted with the help of
social media marketing strategy of a company which uses content, promotions,
visuals, influencers and discounts. These things have an ability to influence
consumers buying behaviour. This is one of the main reason that why companies uses
social media. Cadbury is the best example of using social media. It is identified that
they are effectively use social media in order to provide content and visual ads which
attract customers to purchase their products.
 With the use of social media companies' creativity is increasing day by day which
attract customers.
 It is identified that LinkedIn becomes one of the great example that how people uses
social media for increasing the networking. Companies and candidates are directly
connected with LinkedIn which assist to both parties in order to find and giving job.
 Social media gives many choices to customer in whom they are allowed to explore
more organisation products and they can reject without any fear.
 Facebook become one of the most preferred social media platform in which they have
more than 2000 million subscribers or users that actively participate. It can be clearly
seen that every organisation is connect with some social media platforms such as
Facebook, Instagram, Twitter, LinkedIn, etc.
So from the above importance of social media, it is clear out that social media
becomes one of the platform which attracts consumer in order to purchase products and
services. The number of companies that run their business is only on the basis of social media
marketing. The investing social media marketing which is less expensive as compared to
other marketing methods such as advertising campaign. It is the best tool that interacts with
customers which can be easily accessible by any person. With the help of social media
organisation can influence consumer decision process as companies provide special
promotions if their customers like and subscribe social media pages of their company. They
are providing lots of benefits to organisation as it makes their website visible or available. It

helps in targeting their audience. Companies are able to review the performance of their
products with the help of engaging in product reviews.
Range of social media channels relevant to each market segment/consumer demographic
In social media marketing there are number of social media channels which assist to
marketer for choosing best channel according to the market segment. Social media channels
are the platforms which helps marketer to link with their target audience. There are a number
of social media channels available in the market place such as Pinterest, Facebook,
Instagram, Twitter, etc. Its social media channel is used according to the market segment. It is
identified that mostly company uses demographic market segmentation method and which
day characterized there population on the basis of age, gender, education, income, household,
etc. Each market segment is suited a particular social media channel that is mentioned below:
Facebook: It becomes one of the most popular social network which have already
over 2 million users. It is one of the best channel for organisations that doing b2c businesses.
It is identified that approximately 60% of b2c is connected with the Facebook. Facebook uses
many types of contents which include images, traditional text, videos, stories, etc. There are
number of company uses Facebook. Cisco uses Facebook in order to increase their brand
recognition. Unilever Philippines used messenger which transformed their retail operations in
digital marketing. They focus on the household members who generally purchases goods that
are used in their house. It is identified that Tesco Malaysia uses Facebook Messenger for
weekly catalogues and customer services.
Instagram: It is the channel that focuses on small business which cannot afford high
expenditure on advertisements. It is identified that it is the digital marketing method that used
by small organisations in order to make their place in front of their potential buyers. With the
maximum followers they can increase interactions with customers. The main reason that why
small business retailer should choose Instagram is that they can attract a large number of
audiences, high visibility, drive traffic to site and it's free. It targets income based customers
which have low incomes.
LinkedIn: It is basically for young generations that provide job opportunities with
best company. For that purpose LinkedIn involved a resume which is socially e access by any
professional who wants to approach to the client. It becomes very popular platform for B2B

marketers. The reason behind this is the audience comprises some important business
professionals. LinkedIn is the best social network which leads generation in the survey of
hubspot.
From the about discussion of social media channels, it is identified that organisations
can use these channels according to their market segment. Such as if it is a small business
retailer then they should look forward to Instagram. For job seekers or young generation
LinkedIn become the best social network. Whereas on large organisation that have a great
share in the market can be used Twitter and Facebook.
CONCLUSION
It can be concluded from the above discussion that social media plays a very crucial
role in order to understanding the consumer behaviour. It does not just understand the
consumer behaviour but also it helps marketer to take right decisions. A customer is the
ultimate goal of any organisation in which they are focusing on the activities to satisfy
customer’s wants and needs. The marketing strategy of any organisation depends on the
consumer behaviour. So that's why consumer behaviour should be understood by every
marketer. It becomes easy if they use social media which helps in connecting to the
customers directly.

REFERENCES
Books and Journals:
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