Factors Influencing Consumer Behavior

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Consumer Preferences The factors influencing consumer behavior: There are many factors that influence consumer preferences. In order for businesses to be successful, they need to understand what drives consumers to what they buy and what influences them. Businesses need to educate themselves when it comes to this as it will help them meet consumers’ expectations and improve their marketing strategy. (Perreau, 2014) Below is a table summarizing what influences consumer behavior and preferences. Social Personal Psychological Cultural - Reference groups - Family - Roles & status - Age & lifecycle stage - Occupation - Economic situation - Lifestyle - Personality & self concept - Motivation - Perception - Learning - Beliefs & attitudes - Culture…show more content…
Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning.” (www.businessdictionary.com/) Advertisement Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement. Advertising is a method of mass promotion as a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market and therefore may be an inefficient use of promotional funds. But, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted…show more content…
Companies hire celebrities because they feel as if it will benefit their brand very well. Celebrities are also eye-catching. Majority of people stop and look at an advertisement because they recognize the celebrity. This is very effective to many companies. Celebrities are paid for these endorsements, and customers usually know this, consumers often feel as if the celebrity wouldn’t take the money if he or she didn’t like the product. The problem is that celebrities are human which do make mistakes. The risk of taking on a celebrity is you can’t control that person. More companies these days come up and make up their own celebrities. Take the Hippo from Hippo Insurance, for example. The Hippo won’t be getting arrested or cheat on a spouse. Customers can still develop an emotional connection with these characters, and the company is taking less risk. More and more, companies are reconsidering their celebrity endorsements. As much as businesses can write moral clauses in their contracts with their chosen celebrity the damage is usually done by the time those clauses are revisited. (Clark,

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