The consumer behaviour characteristics also known as consumer personal factors include lifestyle, age or the stage of the consumer in life cycle and the consumer’s personality.
These are factors that affect the consumer interaction with the brand to be purchased in the market and even in usage.
Lifestyle
This simply means the way a consumer lives his or her life. How a consumer lives his/her life includes how he/she buys a product, the usage pattern and what he/she feel about the product. It is obvious that an individual consumer exhibits very distinct behaviour from one another. A person’s lifestyle is determined by some conscious and unconscious behaviour and decisions. We hear of ‘outdoor person’, ‘devoted parents’ and ‘easy going’. This is linked with a consumer self-concept which is all a person thinks and feels about himself/herself.
Age and Life Cycle Stage
The product a consumer buys is influenced by his stage in life. He eats different kinds of food products at each stage in life. This also applies to the clothes and dresses he wears. Buying behaviour changes as one moves from one stage to another in life.
Personality
Personality is explained as traits that are consistent and enduring in an individual. These traits are exhibited as responses to environmental stimuli of the individual. The personality characteristics affect consumer purchase behaviour. Examples are charming personality, loving, confident, friendly etc.
Consumer Behaviour Theories
There are several theories of consumer behaviour, Here we examine some of them:
Marshallian Model
This theory simply leans on utility or economy of goods and services. It states that the marginal utility of money is constant. This theory has two key pillars:
i. Buying of goods and services is the outcome of a rational economic decision.
ii. A person will spend his income on goods and services that will offer the most utility or satisfaction.
Modern utility theory focuses on the economic man. It explains how the individual is always insisting on maximizing the utility of a product bought. He does so by consciously calculating the benefits or consequences of any purchases made.
Pavlov Model
This model is known as the classical conditioning approach. It has to do with stimulus and response. A stimulus is something in the environment that elicits responses. Consumer behaviour in purchasing of products is a clear reflection of this model. Marketing professionals and advertisers have tapped in to this model by using some cues that will drive consumer response in the form of purchases in the market place.
Sigmund Freud Model
This model is about an individual’s desire and the dictates of his/her conscience. Freud explains that it is a structural model that has three sets of forces called the ld, the Ego and the Superego.
The id is driven by impulses and is characterised by wishful, illogical and associative thoughts. It is the reservoir of strong desire and urges.
The ego is the structure that balances desire, reality and morality. It serves as the conscious planning point for finding outlet for the drive.
The superego acts as a conscience and source for ideals. Super ego channels distinctive drives into socially approved behaviour to avoid pains of guilt and shame.
Veblenian Model
This model put forward by Thorstein Veblen explains that, man as a social animal conforms to the general forms and norms of the larger culture. It further explains that an individual’s wants and behaviour are largely influenced by his present group membership and the ones he aspires to. In following this model, marketing practitioners look at which of these groups influence the consumer more and target such.
Hobbesian Model
This model is focused on group or corporate buyer. It recognises the fact that there are buyers who are paid to buy goods and services for others. Such buying is carried out for production of other goods and services.
In this type of buying, there are some important factors which industrial buyers will always consider and these are cost, . quality, dependability and service after sales.
Corporate buyers are usually interested in doing the best for their organisations. However, these buyers are sometimes guided by both corporate goals and personal interests which could lead to conflict of interest.
Discuss the contributions of Mashal and Sigmund Freud to the theories of consumer behaviour.
Marshallian Model
It states that the marginal utility of money is constant. This theory has two key pillars: Buying of goods and services is the outcome of a rational economic decision; and a person will spend his income on goods and services that will offer the most utility or satisfaction.
Modern utility theory focuses on the economic man. It explains how the individual is always insisting on maximizing the utility of a product bought. He does so by consciously calculating the benefits or consequences of any purchases made.
Sigmund Freud Model
Freud explains that it is a structural model that has three sets of forces called the Id, the Ego and the Superego.
Market Segmentation
Definition of Market Segmentation
Marketing is the business of meeting consumers’ needs. Every consumer is unique. The best way to meet a consumer’s needs would be to tailor products to the individual although it is very expensive, hence, the need to group consumers.
Segmentation in marketing is the grouping of consumers who are homogenous in some way and then differentiating the products or brands to meet the groups’ needs. It can also be defined as the identifying of specific market segments in a marketplace, then developing different marketing offerings which will be attractive to each segment.
Reasons for Segmentation
The following are some of the reasons why market segmentation is carried out:
i. It is easier to meet the needs of a group than to meet the needs of the individuals in a whole market. That will mean to produce for all the people according to their unique needs.
ii. If the marketer meets the group’s needs better, there will be greater loyalty, instanced trial and higher perceived quality.
iii. Segmentation helps the marketer to have a target advertising group in mind. This helps to develop a more cost effective advertising.
iv. Identifying and covering off the main segment can help keep competition out from the market.
v. An unmet need of any individual that is identified can provide entry into the market if the segment the need belongs to is huge and is seen to be profitable.
Bases of Segmentation
Segmentation of consumers is hinged on the profile of the consumers. The profile of consumers is made up of the following:
(a). Demographics of the consumers: There are elements that make up the demographics of consumers. These include (1) age, (2) income, (3) marital status and (4) geography or location. Grouping of the consumers are based on these elements which will give the marketer a focus to target in terms of producing the product and communicating with the consumers.
(b). Physical needs: Segmentation is also carried out on the bases of physical needs of the consumers which include things such as your skin needs a particular type of cream due to its oily nature or its sensitive condition. The physical need could be due to consumer taste so the consumer could have a need for salty / sweet product. When such a need is identified, the focus will be on product performance and delivery.
(c). Lifestyle: Consumer immersion provides better understanding of the lifestyle needs. Lifestyle needs could be; (1) busy career woman, (2) diet consciousness and (3) caring parenting. When these are identified, they are likely to result in focus on product performance and delivery by the marketers.
Effects of Segmentation
The effects of segmentation are on consumers, the brands in the market place and on the marketers.
The Consumers: Segmentation helps to provide an easy and clear choice of product in the market. The consumer easily identifies the class of consumer he/she belongs to and therefore makes purchase decision in line with that class of people.
The Brands: The brands in the market place are produced to meet the different needs of the different classes of consumers. We see brands that will have variants such as ‘mild’, ‘strong’ or ‘smooth’, or ‘extra’.
The Marketer: Segmentation gives the marketer the benefits of having a focus in planning marketing activities and communication / advertising. He will know his target market and will design all the marketing strategies and efforts towards the target.
Summary
1. You have learnt that marketing is a major managerial function of an organisation and it is critical to the success of the organisation. This function has its objectives set out in specific, measurable, achievable, realistic and time-bound standards. Setting marketing objectives is part of marketing planning which is carried out by conducting a situation analysis, analysing market opportunities, researching and selecting target markets, setting marketing programmes, and implementing and controlling marketing efforts.
2. Marketing research is very vital in the operations of marketing functions in an organisation. It is the systematic process of identifying a problem, collection of data, analysing the data, interpreting it and presenting it for decision making. Marketing research is important because it provides information for market analysis. It provides a platform for consumer understanding and insights. It offers opportunity for continuous monitoring of marketing activities. It establishes a pillar for eliciting product innovation and it is used as a check on competitors’ marketing activities. The process of conducting marketing research is simply by defining and establishing the marketing problems, determining the objectives and information needs, designing the research, collecting the data, processing and analysing the data, and preparing or writing the report.
3. Buying behaviour is influenced by motives and intra and inter-personal characteristics of the buyer. The buying decision of a consumer is also influenced by the price of the product, the situation as at the time of purchase, culture and reference group of the buyer. It is important to understand that there are some underlying theories upon which buyers’ behaviour models are based. Such theories include Marshallian, Pavlov, Veblenian and Sigmund Freud models.
4. Marketing segmentation is a tool used in understanding and meeting the needs of various categories of consumers in the market. The bases for segmentation are consumers’ physical and emotional needs, demographics of the consumers and their lifestyles.