Who Is the Consumer?
The consumer is the economic agent, an individual or group of individuals who consume, use or purchase products produced in the market to maximize his utility. Utility is the satisfaction one receives from the consumption of these products. To feel satisfied, the consumer will consume the products till the point where it is maximized. A consumer in marketing or economics is the one who is channelized to react based on this utility maximization theory (Murdock 2016). The economic entity will be the final consumer of the finished goods, while in marketing theory, the consumer is the buyer of the goods produced by the firms or the organizations. In economic theories, the consumer can also consume the intangible items to get the intangible utility, while in marketing, the consumer consumes tangible goods to have the intangible utility or satisfaction. The consumer can be an individual and a business entity governed by the utility maximization theory in both fields. Consumer theory in economics is all about the maximization of social welfare as economics is a social science; in marketing, we find it is the theory through which firms can sustain their do my homework business as the supply of goods is determined by the demand in the market.
Different types of consumers in marketing
The five different types of consumers in marketing are as follows:
- Loyal customers: They are the most important part of the business; loyal customers form the base of customers who are very satisfied with the product and will remain committed to its consumption. However, the company cannot overlook their behaviour towards these loyal customers; they have to keep up with the customers’ quality and needs. Loyal customers keep the business alive in the long run.
- Bargain hunters: these customers always look for the least cost products and the best deals available. They demand any product in the very short run period, only when the price offers are low. They are not swayed by any other form of marketing except for lower prices. They, although, can become potential loyal customers who are highly satisfied with the product. They raise the sales of the company in the short-run (Mothersbaugh et al. 2020).
- Impulse customers: impulse customers are those who buy products out of impulse. These customers are not looking for any particular goal but consume products randomly. Apart from loyal customers, these customers form a good source of revenue for retail firms.
- Need-based customers: these customers always have a specific need in mind and buy products that specifically meet their demands and desires. As they look for a specific product, they make quick purchases when they find their need fulfilled. These customers are the most potential loyal customers (Trudel 2019) .
Marketing Research in term of Sale
Market research is done to get the viability of a new product or in the new development of an existing product. It is done by directly asking or surveying the customers. Market research helps the company to sell more as through research of the market, the company comes to know the customers’ needs, reviews, and feedback. Through market research, expansion of the business on foreign soil is also possible. The target market is the market that forms the customer base, and hence through research, target markets are known. Market research is done via third party organizations, in-house research or population research by the company itself (Zeithaml et al. 2020). Since the population is diverse and needs are variable, there needs to be market research to more about how the company should launch the product; now, the product is to be designed or make available to any particular segment of the population. Market research is important in the decision making of the firm. Through a thorough analysis of consumer behaviours and demand, the priority qualifications needed in the product can be known. For example, the company finds out for any health drink product it wants to launch (Farzin et al. 2020), the customers are highly concerned about the sustainability aspect. The company thus needs to make sure that the product is vegan and environmentally harmless to make the customers buy the product (Kotler 2017).
Can marketing influence consumers decisions?
Yes, marketing can influence consumer decisions. The factors that ensure marketing is successful are given below
- Consumer reactions: marketing leads to consumer reactions. The reactions give rise to a discussion about the product that is campaigned. When customers are comfortable or can discuss any product, they will reveal their dislikes and likes about their needs. Marketing provides the customers with a chance to discuss the products.
- Usage of appropriate methods to attract: market research helps firms learn more about any new market segment or target customers. If the company knows the trend of attracting customers, they would know more about its methods. For example, the Generation Z is more comfortable with digital innovations within any product. The firms can offer such technologies to attract the Gen Z; they can also improvise new marketing ideas through memes and short informational videos, making the Gen Z attracted to the product (Ioanas 2020).
- Psychological influence: any product can be unique if related to the consumer group’s culture, customs, emotions, and psychological features. Write my assignment Companies triumph with their marketing strategies if they can tap into these features and connect with the customers. Human beings are social organisms, and society has one of the greatest influences on their behaviour. If the product related to the customer base’s traditional and emotional background, their sales increases rapidly in the short-run (Mathras et al. 2016).
Consumer behaviour and marketing strategy
Consumer behavior is related to the marketing strategy. Looking at the definition of both, we find that marketing strategy should be based on Consumer Behavior. When firms know about their consumers, their reactions to the product, their likes and dislikes, priority needs, and preferences, the marketing strategy is easily understood and the product design, the pricing strategies, and the ultimate selling of the product. Many parts of consumer behavior are linked with how the firms should look into the marketing of the product. For example, the revealed preference theorem shows that when customers are highly satisfied with the product, they reveal their choices by buying those products matching their preferences, and they do not try to switch easily, forming the loyal customer base of the firm.