1. Discuss and explicate the cardinal factors act uponing consumer behavior. Why must administrations understand consumer behavior in order to optimize gross revenues? “Marketing is the activity. set of establishments and procedures for making communication. delivering. and interchanging offerings that have value for clients. clients. spouses. and society at large” ( AMA. 2007 ) . “Consumer behavior is the judgement of concluding consumers persons and families who buy goods and services for personal consumption” ( Kotler et al. . 1999 )
There are four cardinal factors act uponing consumer behavior. They are societal. cultural. personal and psychological factors. Consumer may be given to alter their purchasing behavior harmonizing to these factors. Cultural factors are described as people who react peculiar manner respect to religion ground. Different civilization response otherwise. how people behave with their purchasing determination. for case in Myanmar. bulk of people do non hold a wont of making athletics or utilizing addendum for diet intents. In United Kingdom. on the other manus. groups of work forces and adult females tend to emphasis on athletics and taking addendum. As a addendum concern prospective. they should non provide their merchandise or sell in Myanmar.
Social factors are chiefly influenced by household. close friend and personal attitude. They are besides known as ‘reference group’ . Reference group are of import as the merchandise are satisfied for their demands. the message with forward to another individual which is besides known as “word of mouth” . The communicating is powerful because we trust our friends’ and colleagues’ sentiments. For illustration. bulk of affluent people do non purchase a Primark merchandise. simple because of their position. they should be purchasing much more expensive merchandise such as Gucci and Chanel. If they do consumer Primark merchandise their friend may speak behind their dorsum which affect the position.
After taking cultural and societal factors into consideration. the following things people of course put things into history is personal factors. personal factors can be defined as a belief in which a individual think the peculiar trade name is valued to them. Personal factors consists of buyer’s age. business. economic state of affairs and life style. Depending on human life rhythm. buyers’ determination devising is altering in different phases. Therefore. marketer frequently section the market and aim the consumer life phases. As an illustration. it is an inappropriate for the seller to sell Samsung latest smart phone to senior citizen. they may merely desire to utilize simple computer keyboard phone. In term of business. people are refering about their position and image in their society. The merchandises that they consume are important to his or her position.
Psychological factors include belief. involvement and motive. Everyone has their ain belief in different manner. Often bulk of people are bias when purchasing a peculiar trade name. There is no right or incorrect reply. in fact. people learnt from past experience whether the trade name had met their demands or how they perceived the trade name. For illustration. Iphone 5. more and more people are acquiring the new Iphone 5. non because it is really particular. In fact Samsung s3. has better functionality than Iphone but still people buys it. This shows people value the trade name of Apple and how they perceived the trade name. Motivation factors are another factor that consumer think before they buy. Harmonizing to Maslow theory. different people has different demands. So. seller should cognize how to section the market and aim the right individual to maximize gross revenues.
In drumhead. administration should see how consumer behave for certain merchandise by looking at these four factors. moreover. pass oning with consumer are important to the market as they sent the message the consumer about the product’s characteristic. Therefore. seller has to be section the market and aim the right consumer to present the message across.