Key elements in consumer behavior and why it is relevant to marketing Term Paper

Key elements in consumer behavior and why it is relevant to marketing - Term Paper Example Further, the article discusses some of examples wherein the companies had addressed individualism in consumer behavior Theory Consumer behavior can be described as â€Å"The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.† (Perner, 2010) Understanding of consumer behavior would help firms improve their marketing strategies, by addressing the issues like how consumer’s reasoning and selection between different alternatives, level of consumer knowledge, how to improve marketing campaigns to effectively reach out to consumers Consumer behavior and preferences has changed over the period of time and would continue to evolve in the future also. We can analyze some of the key elements of consumer behavior globally. For example, today’s consumers place considerable value on self -expression and their individual identity. This also includes exerting their power and control as consumers. This element of consumer behavior represents consumers’ desires to be themselves and to be recognized as having personal needs rather than being part of the mass market. Accordingly, consumers value products and services that complement their individuality—providing them with a sense of personal and social identity. This trend represents values such as â€Å"being me†, â€Å"trusting myself†, â€Å"finding my own answers† and â€Å"making my mark on the world† in a world of opportunity and freedom. The desire for individuality is not new. It has just become more attainable for more people due to rising prosperity in society and the fact that technological advances facilitate easier, more cost effective personalized products and services. With rising prosperity there has also been a growth of post-materialist societies where values emp hasizing self expressing and individuality have grown. Let us see some of the drivers, particularly from marketing perspective, which are driving individualism in consumer behavior: 1. There are several database methods of consumer research such as store loyalty programs which is strengthening more personal forms of marketing 2. Supply side: manufacturers are increasingly tapping into the desire for more personalized products as a point of differentiation (increasingly to help offset the escalating private label threat). Individualized value added services are increasingly becoming the norm 3. Brand hegemony, particularly in the context of private label growth and copycat innovations, has contributed to the demand for personalized goods that offer genuine points of differentiation Key take-outs and implications: the growth of individuality creates a more engaged, confident and vocal consumer 1. Self-expressive contemporary consumers will increasingly choose brands that offer compell ing platforms for expressing one’s individuality. 2. In emerging economies, the desire for self expression/individuality is more complex. Emerging economies are typically more collectivist consumer cultures that have been ‘muddied’ by the growth of more self expressive values that have typically accompanied economic prosperity. 3. Research has documented that people who exhibit more individualistic tendencies are more assertive, more