Consumer behavior is closely associated with individuals’ needs and wants. This is of particular concern to consumers’ buying decisions that are motivated by various factors, including cultural values, economic level, social status, climate, and geographical location. All these components influence significantly the marketing decisions because this sphere is specifically interested in analyzing and evaluating meaning and role of customer in shaping the advertising policy and the production policy.
Moreover, consumer behavior identifies supply and demand, consumer retention, personalization, and customer relationship management. Hence, regarding a range of consumer wants and needs is essential for marketers striving to meet those needs according to the existing marketing concept. Therefore, greater integration into the consumer behavior, including psychology, economics, and theoretical perspectives allow to take advantage of the buying behavior and take control of supply and demand at the market.
Consumer behavior lies is based on various external factors as well, including geography, climate, advertising trends, and various consumption modes. For examples, there is a tendency in consuming American products because they symbolize higher, privilege status in society (De Mooij, 2010).
For instance, the symbolic function of such brands as Nike, McDonalds, and Coca-cola are in high demand among the customer because of consumers’ being subject to the process of globalization (De Mooij, 2010).
By manipulating the consumer behavior and analyzing the convergence theory, the marketers makes the buyers all over the world choose similar products, although they do not always coincide with their tastes and actual needs. The given trends are specifically applicable within the context of globalization where various tastes are exchange and consumer behavior gradually becomes homogeneous.
Despite similar trends in supply and demands, consumer behavior is still affected by cultural values, and climatic conditions. Place and type of product are closely independent when it comes to consumers living in specific areas. Their needs directly depend on cultural and social factors. In particular, product distribution concept will heavily rely on consumer’s needs, as well as availability of the products (Lantos, 2010).
Marketers are aware of the fact that place play a pivotal role in consumer demand because buyers will likely to choose the product that is within easy reach of their homes rather than the ones located much farther (Lantos, 2010). At the same time, place also involves such factor as climate and seasonal peculiarities that influence consumer behavior as well. In particular, buyers will likely to consumer ice cream in summer rather than in winter.
Countries with tropic climate are in more needs of refrigerators for preserving perishable goods, such as diaries, vegetables, and fruits whereas, countries with cold climate focus on consuming conditioners and heaters. In this respect, such components as product, price, promotion, and place are important tools that can control of consumer’s behavior and decisions.
As an example, when purchasing such diary product as milk, the consideration of the four Ps is paramount. For instance, considering place concept in the marketing mix, I would prefer buying milk in a shop that is not far from my house because I consume milk regularly. Therefore, I do not need to go on the other side of the town to buy milk because this product is a frequently used by me. Despite the location, I am in the habit of buying one brand of milk because I believe it is a perfect combination of price and quality.
I realize that brand is important, but in case this brand is not available to me, I am not going to go to another shop to but this product because I am more concerned with the time spent on buying goods. I also have other good brands at my disposal that can serve as a decent substitute. So, brand is not so important for me, in case place comes to the forth.
I believe that price identified the quality of the product. This is why, if milk is cheaper, it is of poorer quality. However, I can afford to try milk of another brand of a cheaper price because sometimes, higher price for the product is predetermined by its famous brand. Because I buy milk in small quantities, I am not interested in the proposition offering lower prices for more packages of milk bought.
In general, the main factor that affects my decision is place, product manufacturer, and price. I am not interested in experimenting with brand in case I am satisfied with the quality I have while buying milk. So, brand is of secondary importance for me.
Regarding the above presented assumptions, consumer behavior significantly influences marketing strategies for manufacturing, distributing and promoting products. Marketers consider it important to conduct an in-depth analysis of consumer behavior to take control of demand and supply rates at a specific market segment. It also contributes to the competitiveness of a product. In addition, due to the globalization processes, the consumer behavior is also largely affected by symbolic representation of commodities, which distorts the actual range of their needs.
De Mooij, M. (2010). Consumer Behavior and Culture: Consequences for Global Marketing and Advertising. US: SAGE.
Lantos, G. P. (2010). Consumer Behavior in Action: Real-Life Applications for Marketing Managers. US: M. E. Sharpe.