Demonstrate an Understanding of Consumer Behaviour as a Result of Marketing Strategies

Demonstrate an understanding of consumer behaviour as a result of marketing strategies

In this essay I will demonstrate an understanding of consumer behaviour as a result of marketing strategies. Specifically, I will be looking at various pricing and promotion techniques which influence consumer behaviour within the fashion industry. It is important for marketers to understand the needs of the consumer as well as the social, psychological and personal factors in order to persuade a person to buy a product/service. [1] 

Social factors depend on the status of the consumer. Whether they are single, married or have a family. Being in a family plays an important role in influencing buying decisions of an individual. E.g. the mother will be more interested in buying products for the children instead of her. Psychological factors could mean the way the consumer perceives the products and the motivation of why they want to buy that product. Personal factors would include a consumer’s age, occupation, personality, economic condition and lifestyle. These factors are what influence consumer behaviours. Therefore firms will need to look into this of their target audience in order to produce efficient marketing strategies. [1]

Pricing strategies is a technique that could lure in customers in order to generate sales and create customer loyalty. One pricing strategy is penetration. This is when a business sets a relatively low price, usually with strong promotion to generate high volume demand and thus high market share. Primark could be an example that uses this method as the dresses are sold at low prices and are in trend. This will then create price and trend loyalty consumers because they would be attracted to the in trend dresses that are sold at a low price. [2] The consumer’s behaviour of this store also depends on the personal factors of the consumers. Teenagers are more likely to be interested in bold, bright colours which Primark offer, as well as the low prices because they are most likely not earning much money. Furthermore, young adults whose occupation wouldn’t lead them to buying expensive clothes will be interested in the clothes the store offers as the dresses are targeted at them. This shows that the age and the economic condition a person is in affect buying habits. Primark may have used market research to understand their target audience behaviour and see which strategies would make customers want to buy their products in order for them to be successful.

However by using penetration as their pricing strategy may not be effective in the long term. If another store opens where they offer even lower prices on clothes that are in fashion, consumers may go to that shop instead. In contrast to low prices, customers may be more attracted to high quality products, therefore may not mind buying shoes that have premium prices (adding value). This is because consumers will know that the product that they have bought will last long, as the quality is good, therefore worth buying. Furthermore, the brand of a product e.g. Rolex watches, will make consumers want it as it is very popular and has high status. This will be targeted at consumers who have more disposable income as their watches are very expensive and are luxury products.