We're excited to announce that we're changing our name to Study.com! Learn more
Copyright

Consumer Behavior Theory and Marketing Strategy

  • 0:05 Predicting Consumer Behavior
  • 1:03 What Is Consumer Behavior?
  • 2:30 Marketing Strategy and…
  • 4:36 Lesson Summary
Create An Account
To Start This Course Today
Used by over 10 million students worldwide
Create An Account
Try it free for 5 days
Lesson Transcript
Instructor: Kelly Roach

Kelly earned her Master of Mass Communication from Arizona State and has taught consumer behavior and communication courses at the undergraduate level.

Watch this lesson to find out how marketers can use predictions about our behavior to create a strategy that helps them reach out to us and influence our decisions to buy.

Predicting Consumer Behavior

Did you know that marketers are able to predict the future? Well, maybe not really, but by studying our habits as consumers, over time they can begin to predict our behavior and even anticipate things like seemingly random shopping trips induced by late-night cravings for our favorite food.

Once marketers have enough data about our shopping habits and preferences, they can use that information to help them make predictions about our shopping behavior. Then, once they've made predictions about how, when or why we might buy, they take it a step further and attempt to influence our buying behavior through marketing strategy.

For example, have you ever noticed how baking supplies like sugar, flour or butter all seem to go on sale around the holidays? Through many years of research, stores have come to understand that November and December bring the urge to make Grandma's gingerbread or Aunt Mabel's maple-pecan bars. To sweeten the deal, marketers put these items on sale and even distribute coupons to reinforce our decision to buy.

What Is Consumer Behavior?

Before we get into more detail about how consumer behavior can affect marketing strategy, let's step back and define exactly what consumer behavior is. Simply put, consumer behavior is the study of all consumers and the process they go through to satisfy needs.

A few points about this definition: one, consumers can be individuals, groups or even organizations. Two, consumers may be able to satisfy their needs in a number of ways - through the acquisition of goods or services, by discovering ideas or experiences or something else entirely. These all count as consumer behavior. Finally, the process goes beyond just buying something. It involves the search for, acquisition of, use of and disposal of whatever was found to fulfill the need.

For example, let's say after watching Lady and the Tramp late one night, you have a sudden craving for spaghetti. You run to the nearest grocery store that's still open, grab spaghetti noodles and a jar of sauce, along with some ground beef and an onion to doctor it up. When you get home, you snip some basil and oregano from your herb garden and get to work in the kitchen.

This is all consumer behavior, from the movie that triggered your sudden 'need' for spaghetti, to your choice of store, to the idea that you decided to fix up the sauce with other ingredients - even whether or not you decide to recycle the jar your sauce came in. As you can see, consumer behavior is a very involved process including much more than the moment you make a purchase decision.

Marketing Strategy and the Four Ps

Okay, so now that you see what consumer behavior is all about, let's talk about how it impacts marketing strategy. A company's marketing strategy is driven by their ability to fulfill consumer needs. By anticipating and reacting to needs faster and better than competitors, they provide a greater overall value for the consumer.

You may recall that the company's marketing strategy is fulfilled through the four Ps: product, price, promotion and place. Once marketers understand their target market's behavior, they can use that knowledge to help them develop a more effective strategy using the four Ps. Let's go back to our spaghetti example to see how this works.

You may not have realized, but during the movie, a commercial for your favorite pasta sauce, Luigi's, came on - right after the scene where Lady and the Tramp share their romantic moonlit meal. That commercial counts as part of the promotion 'P' of the marketing mix.

By having Luigi's at your nearest grocery store, place comes into play.

To unlock this lesson you must be an Education Portal Member.
Create your account

Unlock Your Education

See for yourself why 10 million people use Education Portal

Become an Education Portal member and start learning now.
Become a Member

Already a member? Log In

Start Your Free Trial To Take This Quiz

As a member, you'll also get unlimited access to over 8,500 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Free 5-day trial
It only takes a few minutes to set up and you can cancel at any time.
Already registered? Login here for access

Practice Chapter Exam


Practice Final Exam

Earning College Credit

Did you know… We have over 100 college courses that prepare you to earn credit by exam that is accepted by over 2,900 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Education Portal has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.