Q.
a) Explain 'Consumer Market'. (5 marks)
b) Elaborate four (4) major factors that influence the behaviour of a consumer. (20 marks)
(25 marks, 2013 Q3)
A.
a) 'Consumer Market'
Markets dominated by products and services designed for the general consumer. Consumer markets are typically split into four primary categories: consumer products, food and beverage products, retail products, and transportation products. Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services.
Ref:
Businessdictionary.com, 'consumer market' available at
http://www.businessdictionary.com/definition/consumer-markets.html
b) 4 factors influencing consumer behaviour.
A consumer’s buyer behaviour is influenced by four major factors:
1) Cultural;
2) Social;
3) Personal;
4) Psychological.
These factors cause consumers to develop product and brand preferences. Although many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix strategies can be developed to appeal to the preferences of the target market.
When purchasing any product, a consumer goes through a decision process. This process consists of up to five stages:
- Stage 1: problem recognition,
- Stage 2: information search,
- Stage 3: evaluation of alternatives,
- Stage 4: purchase decision,
- Stage 5: post purchase behaviour.
The length of this decision process will vary. A consumer may not act in isolation in the purchase, but rather may be influenced by any of several people in various roles. The number of people involved in the buying decision increases with the level of involvement and complexity of the buying decision behaviour.
Consumer’s buyer behaviour and the resulting purchase decision are strongly influenced by cultural, social, personal and psychological characteristics. An understanding of the influence of these factors is essential for marketers in order to develop suitable marketing mixes to appeal to the target customer.
CULTURAL factors include a consumer’s culture, subculture and social class. These factors are often inherent in our values and decision processes.
SOCIAL factors include groups (reference groups, aspirational groups and member groups), family, roles and status. This explains the outside influences of others on our purchase decisions either directly or indirectly.
Example: Malay social norm is to be married young and stay together on property given by parents, at times by own construction.
Example: Fear of being robbed, or break-in would drive a young pretty business woman buying up an expensive gated guarded property for security.