IMPLICATIONS OF CONSUMER BEHAVIOR ON MARKETING STRATEGY

SUMMARY

Introduction
1. Consumer Behavior – Basic Notions and Concepts
1.1. The Concept of Consumer Behavior
1.2. The Structure of the Consumer Decision – Making Process
1.3. The Principal Influe nces on Consumer Behavior
1.3.1. Direct Observable Influences
1.3.1.1. Demographic and Economic Factors
1.3.1.2. Marketing Mix Factors
1.3.1.3. Situational Factors
1.3.2. Sociological Influences
1.3.2.1. Culture and Subculture
1.3.2.2. Reference Groups
1.3.2.3. Social Classes
2. Psychological Influences on Consumer Behavior
2.1. Perception
2.2. Learning
2.3. Motiva tion
2.4. Personality
2.5. Attitude
3. Methods and Techniques used in Consumer Behavior Research
3.1. Approaches to Consumer Behavior Research
3.2. Practical Research Modalities of the Consumer Behavior Dimensions
3.2.1. Motivational Research
3.2.2. Preferences and Buying Habits Research
3.2.3. Attitudes and Intentions Research
3.2.4. Image Research
4. Implications of Consumer Behavior on Marketing Mix Adaptation and
Differentiation
4.1.Significance of Consumer Behavior for Product Strategy
4.2. Significance of Consumer Behavior for Pricing Strategy
4.3. Significance of Consumer Behavior for Distribution Strategy
4.4. Significance of Consumer Behavior for Promotion Strategy
5. Consumer Behavior Research for a Category of Products – Laundry Detergents
5.1. The Methodology of Marketing Research
5.2. The Principal Results of the Buying and Consuming Behavior for the Laundry
Detergents
Conclusions
Bibliogra phy
Annexes

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Key Terms: consumer behavio r, buying behavior, consumer behavior research, consumer
decision making, set of evoked alternatives, situational factors, culture, subculture,
perception, motivation, learning, personality, attitude, intention, brand image, brand
loyalty, consumer satisfaction, marketing mix, marketing strategy, product strategy,
pricing strategy, distribution strategy, promotional strategy.

Syntheses on the Thesis Principal Parts

The structure of this thesis pursues the approach of its subject from the general
aspects concerning consumer behavior to the particular ones concerning the Romanian
consumer behavior for a category of products, established after a marketing research.
At the beginning of chapter 1, the consumer behavior is emphasized on the basis
of a wide range of definitions found in the specific literature. Generally, consumer
behavior is the dynamic interaction of affect and cognition, behavior, and the
environment by which human beings conduct the exchange aspects of their lives.
An important role in this thesis is detained by the subchapter which describes the
structure of the consumer decision – making process. A consumer purchase is a response
to a problem. The consumer realizes that he wants to make a purchase and he must to go
through a series of steps in order to make it. These steps can be described as: problem
recognition, information search, evaluations of alternatives, and product choice. Because
some purchase decisions are more important than others, the effort we put into it differs.
Sometimes the consumer decision - making process is almost automatic, at other times, it
is long and complex. As a consequence, there are some types of buying behavior: a
behavior for the extended problem solving, for the limited problem solving and for
habitual decision making.
In the same time, consumer purchases are influenced by a range of factors like
direct observable factors (economic and demographic factors, situational and marketing
mix factors) and sociological factors (culture and subculture, reference groups and social
classes).
The principal aim of the first chapter is to emphasize the characteristics of the
decision – making process and the influences on the consumer behavior in order to
analyze their implications on marketing strategy.

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 Chapter 2 highlights the fact that in the marketing strategy elaboration it is
necessary to consider the psychological factors, too which cannot be totally controlled by
the firm, but they have an important role on consumer behavior. The most important are>
perception, learning, motivation, personality and attitude.
Perception is the process by which the consumer selects, organizes and interprets
sensations. The study of perception focuses on what the consumer add to these
sensations, when he is exposed to the sensory stimulus, in order to give them meaning.
Learning is a permanent change in behavior caused by experience. Learning is an
ongoing process, human beings knowledge is revised constantly as they are exposed to
new stimuli. Understanding the process of learning is important to marketers, because
basic learning principles are at the heart of many consumer purchase decisions.
Motivation refers to the process that leads a consumer to adopt a specific
behavior, a process which occurs when a need has been activated. Once a need has been
activated, a state of tension exists that drives the consumer to attempt to reduce or
eliminate the need. Marketers try to create products and services that will permit the
consumer to reduce this tension.
Personality is a person’s unique psychological makeup which influences the way
a person responds to the environment. The research concerning personality had not a
fully success but it is obvious that personality has a very large role in determining
behavior.
Attitude is a lasting, general evaluation of an object – people, products,
advertisements, actions (behaviors). Consumers have attitudes toward a wide range of
attitude objects, from very product-specific behaviors to more general consumptions -
related behaviors.
Chapter 3 presents a range of methods and techniques used in consumer behavior
research. A better understanding of consumer behavior requires the use of these methods.
The first subchapter emphasizes the principal approaches on consumer behavior
research: interpretive approach, traditional approach and marketing science approach.
The interpretive approach is relatively new in the field and has become quite
influential. It is based on theories and methods from cultural anthropology. It seeks to
develop a deep understanding of cons umption and its meanings. Studies involve long

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interviews and focus groups in order to understand what products and services mean to
consumers and what consumers experience in purchasing and using them. Other studies
might concern how art reflects consuming meaning, or how possessions influence self-
image. Although these studies typically are not designed to help marketers develop
successful strategies, implications for strategy development can be inferred from them.
The traditional approach is based on theories and methods from cognitive,
social and behavioral psychology and sociology. It explains consumer decision making
and behavior. Studies involve experiments and surveys to explain information processing,
decision processes and social influences on consumer behavior.
The marketing science approach is based on theories and methods from
economics and statistics. It involves developing and testing mathematical models to
predict the impact of marketing strategies on consumer choice and behavior.
All three approaches have value and provide insights into consumer behavior and
marketing strategy in different ways and at different levels of analysis.
The second part of the chapter highlights the principal research methods which
can be used in studying consumer behavior dimensions. So, the methods used for
motivational research are depth interview, focus groups and surveys. Preferences
research is realized by using the method of observation. The buying habits research
uses efficiently the method of observation. In order to measure attitudes, we can apply
Fishbein -Rosenberg model, but surveys. Buying intentions are studied using consumer
panels and the brand / store / firm image with qualitative methods – interviews, focus
groups – and surveys.
As a conclusion of this chapter, marketing research provides the necessary
methods for consumer behavior research. The choice of a certain methods depends on the
aims of each consumer behavior research. Sometimes it is useful to combine methods
because of the complexity of that situation.
Chapter 4 presents some implications of consumer behavior on marketing mix
adaptation and differentiation.

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 The previous analysis in product strategy implies: consumer satisfaction or
dissatisfaction, consumer behavior – product contact and brand loyalty and the product
attributes.
Concerning pricing strategy, we must consider four basic types of consumer
costs: money, time, cognitive activity and behavior effort. The literature offers a model of
pricing strategy which emphasized the consumer analysis and the four types of consumer
costs. In this case, to analyze the consumer behavior means to answer the following
questions: How does the product benefit consumers? What does it mean to them? Does it
have any special psychological or social significance to them? What is the product
destination? How much is the consumer willing to pay for that product?
Regarding the distribution strategy, consumer actions at the retail level
determine the success or the failure of marketing strategies and have an important impact
on the selection of the future strategies. Two major variables of managerial concern at the
retail level are store image and store atmosphere.
The choice of some promotional strategy depends on the understanding of
consumer characteristics. In this case, we cannot talk about a strong influence of the
consumer behavior toward promotional strategy. The influence is rather from the strategy
to the consumers. In fact, the objective of promotional strategy is to persuade consumer
to buy products and services. All promotions are perceived by consumers as information
in the environment which influences their beliefs, values, attitudes and buying behavior.

Chapter 5 focuses on a marketing research – a quantitative survey – aimed to

emphasize the specific characteristics of consumer behavior for the category of laundry
detergents and, on the other hand, their implications on marketing strategy of a firm that
wants to be present on this market.

Concerning the implications of buying and consuming behavior of laundry

detergents on marketing strategy of a firm that wants to be present on this market, some
of the research conclusions are: on the whole, the laundry detergents market is not
affected by great changes; this product ha s changed, from the phase of a „no name ”
product to the stage of a branded product whose choice implies identification, persuasion,
attitude and decision – making; the most appropriate approach of this market is, firstly, as
a distribution position because of a lower prices than those in a production position; the

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future offer for Romanian market must be adapted to the profile of Romanian consumer,
this research providing enough information about it; the price variation will be
influenced by the attributes of this product (detergent), as well as by the pricing strategy
of that firm; regarding distribution, the best strategy is to distribute the product in big
store retailing which provides good conditions for product sale; the promotional mix
must be focused on the own offer identification, encouraging consumers to try the new
brand using the wide range of promotional techniques.

As a final conclusion, we can appreciate that the laundry detergents market, stable
apparently, still offers opportunities for the firrms to approach the four qualitative
segments of consumers, consumers being willing to try a new brand or variant of
detergent. But the offer must be adapted to the Romanian consumers. Any firm will be
successful if it, firstly, forms a segment of loyal consumers and, secondly, if it specifies
its offer.