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Promotions Project: Consumer Behavior and Competitive Insights
BUSI 612: Marketing Promotions
Week Four
23 July 2023
Author Note
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Charity Abiemo
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Consumer Behavior and Competitive Insights
(Marketing Promotions, 2023) states, “consumer behavior is the study of
individuals, groups or organizations and the process they use to select, secure, dispose
of products, services, experiences, or ideas to satisfy needs and the impact these
processes have on society.” In other words, the theory of consumer behavior is to study
the consumers on how they purchase and use the products they acquire and how they
spend their money; this is seen more during challenging times such as the COVID-19
pandemic when finances are low due to businesses shut down. Trying to understand
what goes on in a consumer’s head and what makes them buy what they buy and how
often, is a goal of every business or industry. The only way to do this is by closely
studying the buying patterns and building theories and models. (Kornbluth, 2019).
Gathering such information is how businesses get to know their customers and can
provide what the customers want and need versus items that will stay on the shelves
because it is not required. Most stores offer coupons for membership as a form of
marketing and ensuring to keep their customer base by providing you an insensitive to
keep you coming back. These incentives come in the form of discount prices for
membership. As many other businesses offer the same services to the consumer, the
gym industry must stay focused on its customer base and strive to retain its customers
and attract new ones. That can only happen if the industry remains focused on what it
does best and is not consumed by what others are doing.
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Some consumers are impulse buyers who purchase items for many reasons,
such as grief or sadness, joy, or the most common sales. That is why many shops for
holiday gifts and home essentials during the off-season to get them on sale compared
to the original prize. When businesses market their goods to consumers based on fear,
this can be very dangerous in that, once the fear wares off the consumer, the fear factor
that caused them to join membership will cause them to unjoin and probably never
again come back or go anywhere near such establishment and even worst case
scenario, these consumers will spread negative comments about the industry and will
cause them to lose customers.
"The theme that "more expensive" necessarily means "better" is often
mentioned" (Kalman, 1968). This term is used numerous times by consumers to justify
buying name-brand items. That is not the case with the gym equipment. The
international trade results from IBISWorld show that exports are high and decreasing
while imports are high and increasing to $4.2bn. (IBISWorld, 2023). That is to say that
many consumers are going for the cheaper equipment verses. This imported equipment
is more inexpensive due to the minimal coof of labor. IBISWorld also noted that COVID19 impacted the high rise of imports as they are cheaper and more affordable
consumers. Before COVID-19, when most consumers did not have to worry as much
about their finances and how they spend knowing they could afford to, it would be
easier for businesses to track consumer behavior. After COVID-19, though, Industries
can track consumer behavior as to why they prefer cheaper products if it does not fall
into the theme of "more expensive means better." That means consumers are willing to
pay a low price for the same products they normally pay more for even if they know the
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item would only last for a short period if they could save a few dollars for another meal
or for something else. In other words, consumers will opt for cheaper products
knowingly that it will not last as long as the more expensive item if they choose to
believe that theme. The same goes for athletic and sporting goods. These products also
have a high import value of $11.4bn, which is elevated and increasing compared to
$1.7bn at a medium rate. As many businesses offer coupons for discount pricing, with
the gym equipment industry and manufacturers, they can also provide discounts on
some of the equipment or, as some already do, offer discounts for new membership
sign ups. That will attract more even if it is only a three to four months discount.
Many consumers are intentional about their purchases and do not buy
impulsively; therefore, the coupon may not work for them as most items offered for sale
may not be something they need now. Even online shopping offers these perks to
consumers as well. Companies like Amazon have Prime membership that offers free
shipping to their customers on certain items based on sellers willing to participate. With
the ease of online shopping, many websites have figured out how to track their online
customers by monitoring their online browsing behavior. That is how consumers are
offered items either on sale or accessible if they have accumulated it to purchase that
item. The competitive insights learned from consumer behavior is that many consumers
do not mind purchasing expensive products or services if they can afford them. Still,
when things get tough, they quickly find alternative routes to accommodate their lifestyle
as much as possible. Gym users did not mind paying their membership fees to use the
equipment. Still, once the company presents alternative ways to the consumer, many do
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not hesitate to choose these alternatives even if they had to go outside the country or
wait weeks to receive purchased products.
Marketing is always tricky because businesses must strive to gain and retain
customers with new ideas. Having a big picture is the ultimate in doing so. The big idea
with the gym equipment industry is to strive and produce noteworthy advertisements
that remind the new customers why they need the gym and its services and to remind
the current members why they cannot do away with their membership because, then
again, they need the gym and its equipment and what it has to offer. With the world on
social media today, the gym industry needs to seize that opportunity and grasp
whatever social media must contribute to the industry. Although there are not many new
ideas for gym marketing, the same ones can be applied and utilized as long as it keeps
giving results.
Some current gym campaign ideas include membership rewards programs,
discounts, and referral rewards programs. Some big ideas that can be applied to stand
out from the competition include having community events either solely or partnering
with another gym or neighborhood health facilities to introduce healthy living habits to
the public. Many customers are inclined to remain with the same company if the
company is seen in the public eye doing something to benefit the public.
A new big idea for the gym industry is to hold a summer fun run/walk/bike
supporting a local charity. That will be a great time to invite the whole town, primarily if
held when school is out; that will be an engaging idea for the teenagers and maybe
even middle schoolers to join the fun.” In Japan, dishwashers are not a common item
because they have no space, and many residents feel guilty using the machines;
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therefore, the dishwasher makes made ones that fit in their smaller spaces and
marketed as a use for good hygiene.” (Marketing Promotions, 2023). With that, the gym
industry can sell itself to bias users that it is more than a place to lose a few pounds but
has a slut of programs and fun items for all customers.
Something else the industry could do is offer sports icons a one-day training
session with the customers. It could also provide fitness challenges and encourage
members to bring someone to join the challenge. That will be an encouragement for the
members and the newcomers. And have new members offers for those who participate
through the fitness challenge.
As a consumer considers many factors before joining a gym, the marketing team
must do everything possible to ensure that all marketing efforts capture the customers'
intention. “Traditional marketing encourages growth, promotes an endless quest for
satisfying needs and wants, and seems to view resources as ever abundant” (White,
Habib, & Hardisty, 2019). As mentioned earlier, marketers need to ensure their
marketing advertisement has a direct message to the current and potential customers.
White et al. suggest that helping customers form a habit is helpful in the marketing
process. These habits help them to stick to their goals through incentives,
encouragement, etc. Building positive emotions in consumers will also help. It is
essential for the industry to research and use all necessary means to strengthen its
customer base.
(Cox, Ganong, Noel, Vavra, Wong, Farrell, Deadman, 2020) acknowledges that
the COVID-19 pandemic did affect consumers financially. That led to calculated
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spending. After the pandemic, though, things started to rebound after the pandemic,
which saw many consumers begin to spend in nonessential categories.
References
Cox, N., Ganong, P., Noel, P., Vavra, J., Wong, A., Farrell, D., ... Deadman, E.
(2020). Initial Impacts of the Pandemic on Consumer Behavior: Evidence from
Linked Income, Spending, and Savings Data. Brookings Papers on Economic
Activity 2020(2), 35-82. doi:10.1353/eca.2020.0006.
IBISWorld, Inc. (2023). Industry market research, reports, and Statistics. IBISWorld.
https://www.ibisworld.com/
Kornbluth, H. (2019, November 28). Consumer behaviour theory - why consumer
behaviour matters. Consumer Behaviour Theory - Why Consumer Behaviour
Matters. https://fastpayltd.co.uk/blog/consumer-behaviour-theory-how-has-itchanged/
Kalman, P. J. (1968). Theory of consumer behavior when prices enter the utility
function. Econometrica: Journal of the Econometric Society, 497-510.
White, K., Habib, R., & Hardisty, D. J. (2019). How to SHIFT Consumer Behaviors to
be More Sustainable: A Literature Review and Guiding Framework. Journal of
Marketing, 83(3), 22–49. https://www.jstor.org/stable/26973065
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