FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS.) MARKETING

MKT535 UNDERSTANDING CONSUMER

ARTICLE REVIEW

PREPARED FOR: MADAM INTAN SYAFINAZ BINTI MAT SHAFIE

PREPARED BY: NUR RIDWANA EVA BINTI ROSLAN
(2022592881)
MUHAMMAD ILYAS BIN ISMAIL
(2022350715)

SUBMISSION DATE
14th JANUARY 2024
Title of article: The Importance of Consumer Behavior in Marketing

Article date: January 24, 2020

The Importance of Consumer Behavior in Marketing

January 24, 2020 •DJ Team
Long-term sales stability is not just about having a great product. It's about meeting consumers'
needs, understanding what makes them tick, and speaking to them in the ways that make them
want to engage. In order to do this, marketers turn to a variety of reports, surveys, and tools to
understand one thing - consumer behavior. It's a marketer's gold. And as we've seen time and
time again, those who use it best, and align their marketing decisions to what the data tells
them, are those who win. But what exactly is consumer behavior, and why does it matter to
your business?
What Is Consumer Behavior?

In general terms, consumer behavior is a psychologically-based study of how individuals make

buying decisions and what motivates them to make a purchase. Several facets of consumer
behavior exist, such as:

● How a consumer feels about certain brands, products, or services

● What motivates a consumer to pick one product over another and why
● What factors in a consumer's everyday environment affect buying decisions
or brand perceptions and why
● How consumers make decisions in groups or when they are alone
Multiple factors exist that determine buyer behavior. We discuss four of them below.
What are the 4 Factors Influencing Consumer Behavior?

There are several factors that influence consumer behavior, but four of the most important are
cultural, social, personal, and psychological factors. Let’s take a closer look at each.

● Cultural Factors - Culture consists of the practices of a particular nation, people, or

group. It might be determined by nationality, religion, location, or associations. What
does this look like? An example of a consumer making decisions based on their culture
could be a Midwesterner who buys ranch for their pizza—or their french fries, onion
rings, or chicken fingers.
● Social Factors - These are the parts of a person's environment or background that
affect their purchasing behaviors. These factors include family and friends as well as
other social groups whose acceptance the consumer desires. When purchasing an
item, a consumer might choose a brand or a company based on what their parents
bought for the family growing up.
● Personal Factors - These include someone's age, occupation, finances, marital status,
lifestyle, and values. A good consumer behavior example would be a parent in their 20s
choosing to purchase an SUV instead of a minivan. Why? Because personal
perception might indicate that a minivan is a vehicle for a middle-aged family.
 ● Psychological Factors - The way someone sees a product or service, as well as their
personal beliefs and motivations, affect the way they purchase. For example, a
consumer who enjoys working out will probably spend more money on fitness classes
or dumbbells for home than someone who dislikes working out.
What is the Importance of Marketing to Consumers' Behavior?

We can all agree: The best marketing educates people, helps them make informed decisions
about their purchases, and ultimately drives their buying behavior. In other words, marketing
makes the world go around—at least for businesses that are trying to sell a product or service.
And therein lies the key importance of marketing to actual customers and their behavior—it
sells.
Too often, marketing teams have been forced to rely on hypotheticals or historical data to build
out marketing strategies. And while this approach can certainly work for some companies, the
best marketing takes into account what consumers actually want and need right now.
By using consumer behavior (and the four factors discussed above) marketers can target what
consumers are searching for, what their behavior looks like, what their pain points are, and
more. Doing so can help you prove to consumers that you’re a business that understands what
they want, why they want it, and why you’re the best option around. All of this is essential to
your bottom line.
Why Is Consumer Behavior Important to Business?

According to a Salesforce report, 66% of consumers expect companies to understand their

needs and expectations. This means that if you don't understand what a consumer wants
before they can tell you, they're probably taking their business elsewhere.
Successful organizations build their marketing strategies with consumer behavior insights as
the foundation. They're not generating products and marketing plans based on their ideas
alone; they are bringing external information into the fold to find out what customers want and
how they want it, then interacting with them accordingly. This is the essence of creating a
positive customer experience (CX), and CX means everything to fostering a loyal customer-
base. Consider this stat from Qualtrics:
What Is the Role of Consumer Behavior in Marketing?

The organizations that not only solve, but best communicate that they solve, real consumer
problems are the ones that win in the market today. Therefore, consumer behavior insights can
be used to inform almost all areas of your marketing strategy. This may include what content
you should be creating within your blogs and other content mediums, the types of stories you
tell in your video and display advertisements, or even how you adjust your product lines to
deliver what the consumer wants.
As an example, let's consider the content your marketing teams could create in the coming
months. If you're a brand that specializes in products for men (like cufflinks, watches, or ties, for
example), you might have a plan to create a bunch of blogs about gifting for men around
certain holidays. Easy, right? Well it certainly can be with the right information.
When analyzing consumer search behavior, you might find that there are a lot of searches
around anniversary gifts for husbands. But what exact keywords are consumers typing into
google? Will “gifts for men on anniversary” receive more hits than “ideas for husband
anniversary gift?” This subtle tweak
in the way you use titles and keywords in your content could mean the difference between
getting almost 10,000 site visitors or just above 1,000 from this content.
Sources of Consumer Behavior Data for Marketers

Consumer behavior insights can be derived through a variety of ways. They may come from
analytics provided by your marketing or sales platforms, they may be a result of surveys, or
they may come from your own analysis of publicly available data (such as search engine data).
The more you understand your ideal customer, the better you can tweak your marketing efforts
to woo those individuals.
In an increasingly digitally-driven world, many components of consumer behavior can be
captured by analytics provided by the marketing channels you already use. For example,
display ads, search ads, and website content contain a treasure trove of data. In these cases,
clickthrough rates, page views, and site conversion activity can tell you a lot about what
consumers do and don’t like…and what marketing content actually works.
But there's a large amount of consumer behavior data that is outside of a marketers' readily-
accessible view, such as how consumers are engaging with competitors' websites–and how
those sites' content influences consumer behavior in-turn. Analytics solutions that leverage
competitive intelligence in combination with search behavior data have the ability to guide
marketing strategies in a variety of
ways. That’s exactly where DemandJump comes in. We save you time by automating the SEO
keyword and competitive research based on consumer behavior.
To conclude, marketers who leverage the power of consumer behavior data automatically take
giant steps forward in their race against competitors to reach their audience. If consumer
behavior is not currently driving your marketing strategy, you may be missing out on important
marketing opportunities right in front of you.
 Article Review: "The Importance of Consumer Behavior in Marketing"

Summary:

The article "The Importance of Consumer Behavior in Marketing" explores how important it is to
comprehend consumer behavior in order to develop marketing strategies that work. It highlights
how understanding consumer preferences, motives, and decision-making processes may help
marketers develop more successful and targeted advertising.
Key Points:

The piece of writing starts out by explaining how important it is to analyze customer behavior
while developing marketing tactics that appeal to target demographics. It draws attention to how
complex consumer behavior is, considering the psychological, social, and cultural aspects that
affect consumers' decisions to buy.
The article also addresses how the digital revolution has affected customer behavior, highlighting
the necessity for marketers to modify their approaches to succeed in the digital sphere. It
investigates how to use AI, machine learning, and data analytics to understand more about the
preferences and behavior of consumers.
The article also emphasizes how consumer behavior affects brand positioning and product
development. It goes into detail about how innovation and brand relevance may be increased by
having a deep grasp of consumer wants and habits.

Evaluation:

The importance of consumer behavior in guiding successful marketing initiatives is conveyed in

the article with effectiveness. It provides a thorough introduction to the subject, making it suitable
for both novice and experienced marketers.
Its practical approach, which offers insights into utilizing technology and consumer behavior data
to improve marketing campaigns, is one of its strong points. To make the material more
accessible and concrete, it would be helpful to provide case studies or instances that show how
these ideas are applied in actual situations.
A wide range of audiences may easily understand it because of the straightforward and
approachable language employed. To enhance the conversation, a more thorough examination
of the moral issues and difficulties raised by the gathering and use of customer data may be
conducted.

Conclusion:
Finally, "The Importance of Consumer Behavior in Marketing" skillfully shows how important it is
to analyze consumer behavior in order to develop successful marketing strategies. The essay
offers insightful analysis and helpful suggestions for marketers; nevertheless, it could be more
applicable and thorough if it addressed ethical considerations and included examples from real-
world situations.
This review highlights the primary topics discussed in the paper, assesses its merits and makes
recommendations for enhancements, and ends with a consideration of the article's importance in
highlighting the critical role that customer behavior plays in marketing tactics.
Reference

Team, D. (2022, August 30). The Importance of Consumer Behavior in Marketing. Demand Jump.

https://www.demandjump.com/blog/the-importance-of-consumer-behavior-in-marketing