Discussion question should be of a 2-3 paragraph response to the initial post. Then, you must respond to two of your peers with meaningful responses.  At least 1 paragraph.  (Links to an external site.)

What are some methods of predicting consumer behavior? Why do you think so? Please Respond by 6/23/2021 so I can post my original post and see my peers posts and I will send them to you. 

Lesson 5 Reading Material Below

Reading: Lesson 5

Prof. Christina Inge. (2017, July 10). Understanding Consumer Behavior Week 1 Buzz [Video]. YouTube. 

Investigate consumer’s influences

Consumer’s behavior is a procedure which consumers follow to buy goods and services.

The analysis of consumer behavior is a very complicated work researching its wants, desires, needs, choices, financial possibilities.

Consumer behavior blends elements from psychology, sociology anthropology, marketing and economy.

It examines how emotions, attitudes and preferences affect buying behavior.

Consumer’s behavior is the result of marketing activities, through the people involved in buying and using products.

It is considered that all the people have not the same needs, desires and economic abilities. The differentiation depends on the social class they belong to, the family they come from, the education they have, the society they live in, the profession, the personality, the civilizing values, and the life style.

The study of the consumer’s behavior investigates the influences on the consumer, from groups such as family, friends, sports and society in general.

Despite the successful progress in understanding human behavior, the scientists continue to be unable to explain exactly the way of thinking and acting of the consumer’s behavior.

Different social and psychological theories have been developed about consumer’s behavior and they arrived at a conclusion that human behavior is a chaotic behavior, and many times there is not any sense.

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How Does Globalization Affect Customers?

by Thomas Metcalf

Consumers have more purchasing choices than ever before thanks to the globalization movement. The Internet has opened new opportunities for browsing from the comfort of home, and there are products available from all over the world. Globalization has changed consumer buying behavior in ways that could never have been anticipated.

Globalization Defined

Globalization is the economic trend that began in the latter part of the 20th century. Southeast Asia embraced the free-market system, trade barriers were dismantled and free trade allowed competition to spread around the world. The benefits of globalization have been an increase in product variety for consumers, lower prices and improved quality of products, although some might debate the last benefit. The drawbacks have been a loss of U.S. jobs and manufacturing industries. Concerns remain about Third World worker safety and environmental conditions.

Consumerism

In a consumer-driven economy, people vote with their dollars. The level of U.S. imports is testimony to the consumers’ acceptance of foreign-made goods. While many consumers give lip service to the desire to buy American-made products, most do not. Some consumers express concern about the working conditions of overseas workers. The fair trade movement is the result; fair trade items are produced by workers who receive larger and fairer compensation for what they produce. The internet, of course, is one of the driving forces of globalization. Consumers can bypass the local merchant and search the world to find the products the desire.

Rebirth of Local Industry

One of the interesting effects of globalization that bodes well for small businesses is the rebirth of local industry, Product labeling that identifies a product’s country of origin has heightened consumer awareness of the extent to which foreign-made goods have replaced those made in America. Coupled with a concern about loss of jobs, cottage industries have ridden a “buy America” movement. Even some grocery stores are touting locally grown food products. While not making a major impact on imports, the localization movement has raised consumer awareness and is creating demand for niche products.

Globalization Drawbacks

While the globalization trend has benefited consumers in many ways, it is not without drawbacks. Competition generally tends to create better-quality products, but that is not always the case. Also, foreign-made goods may not be subject to the same standards as American-made goods. And while the growth of product availability has given American buyers many more choices, the loss of jobs due to globalization has made stretching the consumer dollar very difficult for many.

About the Author

Thomas Metcalf has worked as an economist, stockbroker and technology salesman. A writer since 1997, he has written a monthly column for “Life Association News,” authored several books and contributed to national publications such as the History Channel’s “HISTORY Magazine.” Metcalf holds a master’s degree in economics from Tufts University.

What drives political consumption.pdf download

Professor Wolters. (2019, September 26). Decision Heuristics: How Customers Decide What to Buy [Video]. YouTube. 

Lesson 6 Reading Material Below

Reading: Lesson 6

Why Is Social Responsibility Important in Marketing?

By Investopedia (Links to an external site.)

Updated Mar 10, 2019

The concept of social responsibility (Links to an external site.) holds that businesses should be good citizens, balancing their money-making operations with activities that benefit society, be it on a local, national or global scale. Social responsibility in marketing involves focusing efforts on attracting consumers who want to make a positive difference with their purchases. Many companies have adopted socially responsible elements in their marketing strategies as a means to help a community via beneficial services and products.

Interestingly, the philanthropic practice can be a good business tool as well. “Some 52% of U.S. consumers factor values into their purchase choices,” seeking brands that “proactively promote beliefs and values aligned with their own,” noted a 2017 presentation “The Power of a Values-Based Strategy (Links to an external site.),” by Forrester Research, a market research company that advises corporate clients. “The Sustainability Imperative (Links to an external site.),” a 2015 report by Nielsen that surveyed 30,000 consumers in 60 countries, found that 66% of consumers were willing to pay more for goods from brands that demonstrated social commitment. And a 2017 “Corporate Social Responsibility (Links to an external site.)” study by public relations and marketing firm Cone Communications indicated that 87% of Americans will purchase a product because its company advocated for an issue they cared about.

How Social Responsibility in Marketing Works

Recyclable packaging, promotions that spread awareness of societal issues and problems, and directing portions of profits (Links to an external site.) toward charitable groups (Links to an external site.) or efforts are examples of social responsibility marketing strategies. For example, a clothing company’s marketing team may launch a campaign that encourages consumers to buy a bundle of its socks versus one pair; for every bundle sold, the company donates a bundle of socks to military personnel overseas or to local homeless shelters. As a result of these donations, (Links to an external site.) the company brands itself as socially responsible and ethical, which ultimately attracts customers who are engaged in socially responsible commitments and who want to support the welfare of the community.

Corporate responsibility (Links to an external site.) goes hand in hand with socially responsible practices. For example, administrators, executives, and shareholders and stakeholders must practice ethical behaviors and join the community in promoting responsible marketing efforts. Putting on appearances or greenwashing (Links to an external site.), the practice of promoting deceptively environmentally friendly processes or products indicates to customers that the company is not committed to social responsibility; such behaviors can ultimately hurt the brand and the company’s success. Consumers often can see through gimmicks, slogans, or efforts that are not genuine or ineffectual. In fact, 65% of the Cone study respondents say they’ll research a company’s stand on an issue, to see if it’s being authentic.

Real Life Example of Social Responsibility in Marketing

Some critics question the concept of social responsibility in marketing, noting that these highly publicized, expensive campaigns are colorful but highly limited (both in scope and in duration), and do little to eradicate the root sources of problems. They wonder if it wouldn’t be more efficient if companies—or consumers, for that matter—just contributed funds directly to charities or philanthropic causes.

Certainly, the strategies that seem the most effective are those in which a company finds a way to link its core product directly to its socially responsible endeavor, and also to broaden its efforts. The popular Toms label is a case in point. The shoe and sunglasses maker began in 2007 with its “one for one” campaign: For every pair of slip-ons or boots bought, Toms donated a pair of shoes to a child in need; for every pair of glasses, it paid for an eye exam and treatment for an impoverished person.

Although it has furnished millions with shoes and eye care, and the buy-one-donate-one model has been adopted by other trendy brands, Toms’ founder Blake Mycoskie decided it wasn’t enough. To address more underlying issues of poverty, he committed to manufacturing shoes in areas around the globe where he donated them—Cuba, India, Kenya. As of 2019, Toms has created more than 700 jobs. The company also has its eye on improving infrastructure (Links to an external site.): Having expanded into coffee, Toms donates proceeds of its sales to building clean-water systems in the communities where the beans are grown.

The Bottom Line

Although an initial investment may be involved to share profits or donate to those in need, social responsibility in marketing promotes a positive company image, which can significantly impact profitability and even productivity (Links to an external site.) favorably.

Wharton School of Business. (00–01-00). Models of Consumer Behavior [Video]. YouTube. 

What Are the Different Models of Consumer Behavior?

By: Marcus Paine

Reviewed by: Elisa Shoenberger, M.B.A.

Updated November 21, 2018

In order to successfully sell your goods or services, you need an idea of why consumers behave the way they do when they make purchases. For example, knowing how much your customers have to spend and what their most important needs are can help you create product selection and pricing strategies that lead to more sales for your business. Additionally, learning about the psychological and sociological aspects of your customer’s buying choices can give you insight on how they see your brand and how loyal they are to it.

There are several models of consumer behavior including the economic model, the learning model, psychoanalytical model, and the sociological model.

The Economic Model of Consumer Behavior

The economic model of consumer behavior focuses on the idea that a consumer’s buying pattern is based on the idea of getting the most benefits while minimizing costs. Thus, one can predict consumer behavior based on economic indicators such as the consumer’s purchasing power and the price of competitive products. For instance, a consumer will buy a similar product that is being offered at a lower price to maximize the benefits; an increase in a consumer’s purchasing power will allow him to increase the quantity of the products he is purchasing.

Maslow’s Hierarchy of Needs

This model is based on the idea that consumer behavior is governed by the need to satisfy basic and learned needs. Maslow stated that people base their actions based on fulfilling certain needs and that they have to satisfy the lower level needs before reaching for the higher ones. Lower level needs include food, clothing and shelter, while higher ones include having a feeling of prestige. Thus, a consumer will have a tendency to buy things that will satisfy their needs and provide satisfaction. A hungry customer may pass up on buying a nice piece of jewelry to buy some food but will later go back to purchase the jewelry once her hunger is satisfied.

The Psychoanalytical Model

The psychoanalytical model takes into consideration the fact that consumer behavior is influenced by both the conscious and the subconscious mind. The three levels of consciousness discussed by Sigmund Freud (id, ego and superego) all work to influence one’s buying decisions and behaviors. A hidden symbol in a company’s name or logo may have an effect on a person’s subconscious mind and may influence him to buy that product instead of a similar product from another company.

The Sociological Model

The sociological model primarily considers the idea that a consumer’s buying pattern is based on his role and influence in his society. A consumer’s behavior may also be influenced by the people she associates with and the culture that her society exhibits. For instance, a manager and an employee may have different buying behaviors given their respective roles in the company they work for, but if they live in the same community or attend the same church, they may buy products from the same company or brand.

Consumers will buy goods based on a number of different types of behavior. Knowing these behaviors is key when developing marketing strategies for your business.

Psychological Factors That Influence Consumer Buying Behavior

By: Annie Sisk

Reviewed by: Jayne Thompson, LLB, LLM

Updated November 08, 2018

If you want your business to be successful, you must first understand what drives your targeted customers in their purchasing decisions. How do they decide which product to buy, or when? What makes them choose one company over another? To maximize your sales revenue and grow your business, it’s important to leverage the four key psychological factors that influence consumer purchasing: motivations, perceptions, experience and beliefs.

Motivation Describes the Customer’s Willingness to Buy

A consumer’s motivation is the basic degree of the psychological drive behind a specific purchase. If the consumer’s motivation is high, that basically means that the level of need, or the consumer’s perception of that need, is fairly strong. Given a high degree of motivation, the individual will actively seek to satisfy that need by making that purchase.

Consumer motivation is related to the “Hierarchy of Needs” proposed by psychologist Abraham Maslow. This theory states that human beings actively seek to satisfy physical needs first, followed by safety, social, esteem and self-actualization needs, in that order. Businesses that successfully speak to these needs, and fill them, will motivate consumers to buy their products.

Perception Influences the Way a Consumer Sees the World

Perception is essentially the way a person selectively views, processes and interprets the larger world or any part of it. It’s basically how we as human beings organize and make sense of information to form some sort of worldview.

Consumers also have perceptions of themselves that may affect a particular purchase. For example, people who view themselves as having exquisite taste are willing to pay more for a specific brand or product that is perceived to be “the best.” By the same token, consumers who pride themselves on being great bargain hunters may choose a lesser-priced product, even though they might otherwise prefer the pricier option.

It’s human nature for consumers to make all kinds of associations, both conscious and subconscious, from their experiences. Once a brand has established itself as having a certain personality – for example, Walmart and other similar stores’ low-cost positioning – it’s difficult to overcome that in the marketplace. The consumer perception is that products from these stores are cheap and on a subconscious level, the products are therefore lower quality.

By the same token, a diamond dealer may be quick to point out their stones come from Antwerp instead of Sierra Leone– where the stigma of “blood diamonds” prevails – in order to avoid negative consumer perceptions.

Experience Describes the Impact of Familiarity on Decision Making

Consumers are above all human beings, and all human beings are products of their experiences. We catalog each experience we have as either good or bad. Then we recall that experience and how we categorized it when a similar situation arises. These experiences influence a shopper’s behavior by changing the way the consumer reacts to products similar to those they’re familiar with. For example, many consumers choose to buy Toyota cars because they have had good experiences with their previously owned Toyota cars.

Companies that focus on the consumer experience earn repeat business from those customers. The consumer doesn’t need to look anywhere else to solve that specific problem or meet that need. Prior experience often outweighs the fact that the competition may be cheaper or even better in some cases.

Belief Describes the Consumer’s Attitude Towards a Brand

A consumer’s beliefs and attitudes greatly influence the buying decisions that consumer makes. Beliefs are the way people think about a particular product or brand, while an attitude is the individual’s consistently favorable or unfavorable evaluation, tendency or feeling about a product or brand.

These beliefs and attitudes shape the consumer’s perception of the product. It can be tough for a business to overcome or change those beliefs and attitudes. That’s because they stem from the individual’s personality and lifestyle. They’re inherently personal and connected to the consumer’s sense of self.

Consumers often block out or ignore information that conflicts with their beliefs and attitudes. They tend to selectively retain information or even distort the information to make it consistent with their previous perception of the product.

https://bizfluent.com (Links to an external site.)

Alanis Business Academy. (2012, October 23). The Consumer Buying Process: How Consumers Make Product Purchase Decisions [Video]. YouTube. 

First peer below

There are many methods of predicting consumer behavior based on offering the customers the best experience when visiting stores online or physically. Some methods of predicting consumer behavior are increasing customer engagement, do this is can help learn more about the customer’s motives and the customers can engage in their experiences with the brand. Improving customer satisfaction, to know your customers are can be tough for many companies, but the point of building your brand is to satisfy the customer, if you can do that your brand with being essential to success. Tracking your brand’s health meaning when your brand could be going below the surface or it is above the surface you always need to check how the brand is doing. The task of understanding your supporters is never over involving the expectations, platforms, and constantly making changes for the customer’s needs. Using product feedback, getting feedback from customers can be really helpful for your brand because it allows you to make the adjustments you need to satisfy the customer’s needs. Listening to your customers is crucial and it can show trust to the customer. These are just some ways of predicting consumer behavior, but being aware of your platform is important based on your customers, data, feedback, and many other factors.

Second Peer Below

The Economic Model of Consumer Behavior is one way to predict consumer behavior. Basically, it is the idea that consumers want the most benefits while minimizing costs. Based on this, it can be predicted what a consumer will do based on consumer purchasing power and competitor’s products. This is an accurate model to use to predict behavior, especially in these current recovering economic times because just about every household is trying to save or make more money. As a result of the pandemic conditions for lockdowns and stay-at-home orders, many adults lost their job. This has a huge impact on households and their ability to make a living and survive. It makes sense then that many people are looking to get the most for their money and avoid scams.

Another way to predict consumer behavior is with The Sociological Model. This explains that a consumer’s buying patterns are based on their role and influence on society. A person is influenced by others in the society, as well. This model is useful when businesses are trying to target by groups of people. Groups of people, both in interest or purpose AND geographical region, will tend to want/need similar items. For example, living on an island like Oahu means it’s very sunny most of the year. As an island climate group, everyone needs sunglasses or a bathing suit.