Consumer Behavior, Term Paper Example

The success of a business is certainly based on the merit of the product that they sale or the service that they provide. With that being said, it is also crucial to understand that the most important aspect of the buying process is the consumer. In order to understand and anticipate the type of purchases that a consumer will make is typically conducted through consumer behavior research or studies. This not only helps the marketer make predictions, it also assists in understanding why consumers make the decisions that they make. Without that basic understanding the company may inappropriately market a product that actually never sparks the consumer’s interests or gets attention, which could result in a decrease in sales.

Consumer behavior studies attempts to understand and help explain the buying decisions of consumers. This is conducted through uncovering what attracts and motivates consumers to make certain or particular purchases. Armed with that information, a marketer or company can then base their marketing or product on what consumers want. This is invaluable information for companies and those that market because they are better able to reach their target market. They are more aware of what consumers are looking for as well as what their interests are. After all people are not going to buy what they do not want or is not valuable to them. Research provides those answers to questions such as what motivates consumers, what they are looking for and how to best deliver information to them about a particular product or service. The data collected through consumer behavior studies also assists in founding new products or services, which is tailored to the most pressing consumer needs or desires.

Product Selection

Gaming is a very popular product amongst all ages, however is primarily aimed at the “youthful” crowd. This is especially true of products that are based on game systems, such as the PSP, Xbox and Wii. These gaming devices are convenient and allow players to play a variety of games that have either been purchased from store or downloaded from the internet. The systems are also capable of streaming videos, television shows, searching the internet and sharing pictures amongst other users. The game systems are quite popular with teenagers and rightfully so as they are marketed toward the ages between 10 and up. The majority of the games for the system are those that are consistent with interests of teenagers and young adults. Many of the games are centered on war games, driving, racing, hunting and sports. These activities are most commonly engaged in or interesting during the ages of 13 years of age and up. The primary market is geared toward teens up to about 50 years of age. Consumer marketing has given game makers and producers the ability to understand what is most interesting and important to that particular age group. One of the reasons that the gaming systems are so important to the youth is the understanding that these kids are developing their own independence and have an interest in wartime, cars and sports is the most effective tool as marketing game systems. The secondary market for video games is young children, between the ages of 5 and 9 years of age. There are several games that are geared toward the younger kids and even educational games that this age group can enjoy. It does become however apparent that the older age group is the primary target market based on the games. This can be seen through the rating of the game and age groups listed on the label

Gaming Demographics

Reference: Hira & Mugenda, 2000

Culture Impacts Of Consumer Behavior

Cultural influences have a varied, yet distinct effect on consumer spending. There are a variety of differences between cultural spending based on beliefs and desires. The mere differences in beliefs, customs and attitudes can greatly influence the way that individuals make purchases. These purchasing differences can range from food products, clothing, technology and so on. These differences are commonly based on the different teachings and beliefs of that particular cultural society. For example, it is not important for the Amish culture to engage in a great deal of technology purchases. Their beliefs and customs are that individuals are too dependent on technology and should live a more naturalistic life. In this case purchases such as makeup, designer clothing and technology products would likely not be a priority purchase. Other factors that are commonly seen in the difference in cultural purchases is beliefs based on moral convictions or religious teachings.

Differences In Buying Behavior

Consumer research has shown and noted the many differences in purchasing power. There are a number of differences between genders, ages and even socio-economic status. Men tend to spend more on dining, entertainment and travel than their female counterparts. Women are more likely to engage in emotional spending and purchase more beauty products or clothing. Just as there are differences between male and female spending patterns, the same stands true for young and older shoppers. Those that are younger are known to spend more money and while they identify debt as stressful, they have a more optimistic view of owing money to others. Older individuals are more likely to spend conservatively and see debt as more detrimental, perhaps because they are nearing retirement age and will not have the same income level in the years to come. Children are more likely to desire toys or games, while teens are more interested in self-serving needs. While teens typically spend a great deal of money on electronics, they are also more worried about their appearance and how others see them. This leads them to desire more clothing, shoes and “visible” products. Younger children are more dependent on their parents and more likely to identify products that are based on fantasy play. Of course there is a great deal of difference in spending between the rich and poor. While both groups make purchases, those that have more money are more likely to make larger purchases. While both socio-economic groups make large purchases, those with larger sums of money tend to make more purchases than those with lower socio-economic statuses.

Poor individuals are typically more concerned with spending money on survival, while those that are rich, focus more on entertainment and personal desires.

How Marketers Using social Media

Social media has become an important tool for marketers in today’s retail environment. With the vast popularity of social media, marketers can advertise their products to millions of people around the world. There are no geographical boundaries that separate their product from potential consumers. In years past, consumers could only make purchases from their local retailers, which limited their options greatly. With the new options created by the internet, these same consumers can find specialty products from the comfort of their homes. Social media also provides the opportunity for marketers, as well as product manufacturers to interact on a more personal level with potential consumers. Interacting with consumers creates a more personal level of rapport and assists with potential purchases. Remembering that consumers are oftentimes driven by emotional purchases; social media provides the ability to create that “emotional” need. This sparks purchases and therefore creates a lucrative market for marketers, companies and product manufacturers. Another positive of social media that creates a positive for companies is the fact that social media allows them to target particular groups or individuals. For example, a product manufacturer can target young females between the ages of 20 and 30 on Facebook, simply by setting advertising guidelines. This creates an extremely effective manner of marketing and has proved financially feasible for many.

Works Cited

Hira, T.k. & Mugenda, O. (2000). Gender Differences in Financial Perceptions, Behaviors and Satisfaction. Journal of Financial Planning, 13(2), 86-89.