What Is the Relationship between Marketing and Consumer Behavior?
Target- Market Selection, this has to do with identifying distinct groupings of consumers Marketing strategy, understanding of consumer behavior is needed in .. Multiple regression analysis was used to assess the relationship between the. Consumer behavior in marketing is the response a target market exhibits . You' re looking for patterns and consistent comments among many. Consumer behavior is the study of how people respond to products and services, followed by their marketing. Some equate needs with a particular class of products. to determine which product or service would be successful in the target market. improve performance, facilitate attainment, or symbolizes a relationship.
Empirical demand models are economic models adapted to statistical analysis. They attempt to explain the variation in quantities demanded in terms of a set of causal factors. In an attempt to explain as much of the variations as much as possible, it is often necessary to render the demand model dynamic, sometimes by making allowance for delayed or distributed response to changes in the demand-influencing factors. This is a micro- economic type of study, because it tries to analyze the demand for locally branded rice in some part of Benue State in respect of the total market for the commodity f Nigeria.
The purpose is to confine ourselves to single-equation models involving the use of the ordinary least squares method of estimation. In this context, many functional forms can be used although the linear form is perhaps the most common. Within a narrow range of observations on demand variables, a linear function would often give a good fit. More generally, a nonlinear function would be more theoretically plausible. The demand function can be used mainly for two purposes: The former is obvious.
Relationship Between Consumer Behavior & Target Markets
The latter refers to the use of demand functions to determine the pattern of consumer response to changes in economic variables and to evaluate empirical results in the light of economic theory Olayemi and Olayide, Method and Materials a Sampling Framework: Quota sampling non- probability sampling technique was used by selecting 20 families from each settlement, which resulted to a sample frame of respondents for the study.
A self-structured questionnaire was developed to collect the required primary data from the families used in the study. To avoid stigmatization and putting each family on the spot, the questionnaire instrument was structured in such a way as to hide the family segmentation types.
Accessing and collecting data through questioner was carried out be friends scsrjournals scholarconsult. Demand Function Implications and relatives due to time constraints.
What is Consumer Behavior in Marketing and Why Is it Important?
Questionnaires were systematically distributed utilizing a convenience sampling from the various family members mostly in the evenings and at weekends. Even though the sampling method adopted in this study was convenient and contained some limitations in terms of generalisibility as compared to other probability methods of sampling, it was logically assumed that the sample in this study represented the whole population of families residing in Abuja FCT.
The critical components in this study had content validity because an extensive review of the literature was conducted in selecting the measurement items. A measuring instrument gives similar, close or the same result when different researchers under the same conditions use it. Reliability therefore, is the consistency between independent measurements of the same phenomenon. It is the stability, dependability and predictability of a measuring instrument. It is also the accuracy or precision of a measuring instrument.
The exogenous items used for this study were subjected to exploratory factor analysis to investigate whether the constructs as described in the literature fits the factors derived from the factor analysis. From table 3, five factors of the family market segment with Eigenvalue, 1. Our KMO result in this analysis is up to the threshold value of 0. Therefore, we are confident that our sample and data are adequate for this study.
Our result has strong construct validity, because the various sorghum value chain items were tested for correlation and it was found out that there was a high degree of measures between the measures of the same construct, indicating that correlation exists amongst them.
Thus the critical components in this study had content validity because an extensive review of the literature was conducted in selecting the measurement items. Demand Function Implications not form a composite score for the variable in question. All five items for this study appear to be useful and contribute to the overall reliability of family market segment variables. Data from the questionnaire instrument will be subjected to parametric measures, which makes specific assumptions about the distribution in the population.
A number of approaches to classifying people's lifestyles have been developed but perhaps the system most frequently cited is that of Plummer This approach involves presenting respondents with a lengthy questionnaire in an attempt to measure their activities, interests and opinions AIO as well as their demographics. The descriptive statistics data for the study will be collected, coded and analyzed using computer-based Statistical Package for Social Sciences SPSS version 21 for Windows.
Multiple regression analysis was used to assess the relationship between the dependent variable and a set of independent or predictor variables. In order to know the strength of the relationship between the highlighted inputs and outputs, further analysis will be conducted using the F-statistics to test for significance at a 0.
Coefficient of Multiple Determination tells us what percentage of variations in the dependent variable that can be predicted or affected by variations in the independent variables. Two models were designed for determining the impact of family market segments on consumer behavior dimension.
These models are highlighted below: Results and Discussion 4. Test of Hypothesis a Hypotheses one: The first hypotheses show that F calculated value 8.
Even though the t values for Income, Price of Local Rice Brands, Family Size and Influence of Advertisement do not show significant t values in the relationships in model 1, the overall F statistics does. The second hypotheses show that F calculated value For model 2, the t values for Price of Local Rice Brands, Family Size and Influence of Advertisement do not show significant t values in the relationships, but the overall F statistics does.
SPSS version 21 for Windows scsrjournals scholarconsult. Demand Function Implications 4. From table 4, the coefficient of multiple correlation R for model 1 is 0. The coefficient of multiple determinations R2 is 0. The regression coefficients of the double-logarithmic equation are the partial elasticity coefficients. Thus the partial elasticity of demand for local rice brands with respect to local rice brands prices is 0. This is less than unity and indicates an inelastic demand for local rice brands.
Consumer Behavior - Market Segmentation
The cross price elasticity is 0. The positive sign of the coefficient shows that exotic rice brands are indeed substitute commodities for local rice brands. The income elasticity of demand is The negative sign shows that demand for local rice brands does not change in the same direction as income.
The elasticity coefficient, being less than unity, shows that the demands for local rice brands are not income-elastic or, in other words, that a change in income leads to a less than proportionate change in the quantity of local rice brands demanded.
- What Is the Relationship between Marketing and Consumer Behavior?
- What is Consumer Behavior in Marketing and Why Is it Important?
- The Effect of Consumer Behaviour in Marketing of an Organization
In the case of model 2 see Table 5the coefficient of multiple correlation R is 0. The partial elasticity of loyalty for local rice brands with respect to local rice brands prices is This has the expected sign and, being less than unity, indicates an inelastic loyalty for local rice brands. The positive sign of the coefficient shows that exotic rice brands are substitute commodities for local rice brands.
The income elasticity of demand is 0. The positive sign shows, just as expected, that the loyalty for local rice brands changes in the same direction as income. The elasticity coefficient, being less than unity, shows that the demands for local rice brands are not income- elastic or, in other words, that a change in income leads to a less than proportionate change in the loyalty for local rice brands.
Conclusion The results show that market segmentation of the family influences consumer demand for local rice brands and on the long run influences the loyalty for same brands.
The impact performance of family market segment on loyalty for local rice brands on the long run overwhelms its short run demand. The largest demand for local rice brands came from the urban prosperity and comfortably-off family market segment, but second in terms of loyalty to the brand. The moderate means family market segment is second for short run demand for rice but surpassed all other segments in terms of brand loyalty for local rice, while the wealthy family market segment showed an uninspiring demand and loyalty for the consumption of local rice brands.
It happens that the advertisement variable influenced urban prosperity and comfortably-off family market segment more than moderate means family and wealthy family market segments. The partial elasticity of loyalty for local rice brands with respect to scsrjournals scholarconsult. Demand Function Implications local rice brands prices has the expected sign and, being less than unity, indicates an inelastic loyalty for local rice brands.
The cross price elasticity with its negative coefficient sign shows that exotic rice brands are complementary commodities than substitute commodities for local rice brands on the long run basis. Recommendations Certain advertisements are targeted to meet the needs of the segmented upper class families like the wealthy achievers, because marketers have an idea of the incomes, and likes through demographic studies and therefore, strategize to meet their needs and wants.Consumer Behavior and Marketing Strategy
Organizations conduct surveys in person, on the phone, through the mail and online. These surveys target specific population groups who share a similar set of characteristics.
Internet Research Companies, including small businesses, use the Internet to conduct much of their research, monitoring the Web-based behavior of consumers.
Based on their findings, organizations determine the right prices, attributes and sales promotions for their products. They also reveal the optimal places and market conditions in which to sell. The Internet is a cost-effective tool marketing research tool because it pinpoints target areas and is flexible enough to adapt to the changing demands of consumers.
Market Sensing Market sensing processes can help small businesses develop a competitive advantage by giving them a deeper understanding of customers. Whether they had bought any other music-related educational products How much time they have to devote to learning to play the guitar What motivates them to learn guitar How much money they can allocate to musical education What pain points they experience Whether they have any objections to learning the guitar online What questions they have about online musical education You can find the answers to all these questions, but only if you research consumer behavior.
What is Consumer Behavior in Marketing? Consumer behavior in marketing is the response a target market exhibits to marketing materials. For instance, if someone in your target audience views one of your Facebook posts, how does he or she react?
You already know that marketing and advertising are essential parts of running your own business. Nobody can force consumers to buy your digital products. Learning consumer behavior will help you build better marketing materials. In other words, you want every step you take in marketing your products to align with what you know about consumer behavior.
And since consumer behavior changes depending on the product, you have to dig deep into the data available to you. We all have intrinsic and extrinsic motivations when it comes to buying a product or service. Think about your last trip to the grocery store. Several factors might have influenced what wound up in your cart, including the following: Whether or not you brought and stuck to a list How hungry you were Whether you were devoted to following a specific diet The items available at a discount What the store had in stock Whether the sales people talked to you about specific products The people who are shopping for your Knowledge Commerce products are influenced by similar factors.
You just have to figure out what they are and how you can leverage them to sell more products. Psychology The first one is pretty obvious. How and what we buy depends largely on our psychological state before, during, and after a purchase. Psychological factors might involve regret. Personality Have you ever felt personally drawn to a brand or product?
Some brands, for instance, donate a portion of their revenue to charity. They feel strongly about a specific cause, so they use their businesses to help further the cause. Understanding these critical aspects of consumer behavior can make you a much better marketer. You just need to find a way to get your brand message in front of the people who are a good match for it. Other external motivators can be more fleeting. Maybe you see a product that a famous celebrity or industry expert has recommended.
Consumer behavior also comes down to buyer types. In one corner, we have a wealthy hedge-fund manager whose annual income exceeds seven figures. This person invests and saves wisely. In the other corner, we have a convenience-store clerk who also saves wisely, but whose income leaves no room for discretionary spending.
He has more disposable income than the convenience-store clerk, and therefore more freedom to buy what he wants. Unconflicted The unconflicted buyer is often the most difficult to anticipate. These buyers are neither spendthrifts nor tightwads; their buying decisions depend on their state of mind at the time of the decision, their desire for the product, and timing. Instead, he or she is more likely to be swayed by psychological, social, and personality factors.
You have to do lots of consumer research to reach these buyers. He or she wants to hang on to every last cent, so your product has to be super appealing to convince that person to open up the wallet.
Many people assume that tightwads either have no money or refuse to spend it on anything. Neither is actually the case.
A tightwad can have a negative bank balance or millions of dollars in investments and cash.
It all depends on his personality and upbringing. Many people who come from wealthy families and do well for themselves appreciate their money and spend it only when they want or need something badly. To convince tightwads to buy your product, you have to make it as appealing as possible. Overcome all possible objections, provide a bargain nobody can refuse, and make sure you live up to your brand promises. Spendthrifts On the opposite end of the spectrum, spendthrifts go through cash faster than a triathlete goes through water.
However, you have to consider the psychology of a spendthrift. People with this trait often make impulse purchases. Instead, they see something they want and buy it. This contrasts against the tightwads who does spend hours weighing options.