Marketing Decisions in Terms of Consumer
Behavior
Assoc. Prof. Dan NASTASE PhD.
Master Student Cristian STOICIU
Student Denisa OPREA
„Artifex” University of Bucharest
Abstract
On the market, the consumer is defined as the main element, element
of reference, as the market is unable to take independent existence without
it. Modern marketing concept assumes that all economic activity should be
directed towards meeting the requirements of actual and potential
consumers with maximum efficiency. Basically the whole complex of
marketing activities is designed to ensure goods and services that
consumers require, appropriate merchandise, in the right quantities at the
right price, at the right place, at the right time.
Key words: marketing, consumer, behavior, study, reference,
economics, market, model, factors, system.
Study results shows that there are various application for the
behavior of consumers. Segmenting markets today are characterized by a
multitude of theoretical approaches, and practical approaches targeting
various products and services.
Basically, even if market segmentation and types have the same
objective, their starting point is quite different: the segmentation of
fragments from their whole markets generate typology classifications based
on individual cases, consumers and businesses.
In terms of market segmentation and target segments, there is a wide
variety of approaches, characterized by two key elements: the variables and
criteria for segmentation and segmentation model or models.
Many researchers have proposed a general set of variables for
quantification and segmentation, geographical, demographic, economic and
behavioral, that can be used in any market. From this point of view,
although there are a lot of approaches, marketing science models have not
generalized in delivering projects for more markets.
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Other authors have proposed criteria and analytical models that have
worked in some markets, but should be tested in other markets because it
contains generalized valences.
For market segmentation based on lifestyle, a number of researchers
have used seven demographic variables: social class, sex, age, last school
graduated, position in the family, marital status and children in the family,
to which sixty-six lifestyle variables have been attached, resulting in seven
segments, described with clarity. Unfortunately, the model is useful
approach, but can not be generalized as lifestyle variables are not the same
in every area and in every market.
Applying the model based on the theory of finite distribution
structure, they conducted a market segmentation for durable goods, using
seven core variables: family income, number of adults in the family, the
presence of children in the family under 18 years of presence in the family
children under six years, if the wife works, the length of employment and
current residence, if the family uses a credit card. Although, by this method,
there were identified segments of families that were studied as consumer
concern replacement, this can not be generalized as it keeps strictly to
market customization. Based on responses to price and promotion
conducted to a market segmentation for yogurt, groups of families identified
by decisions on the brand, purchase frequency and quantity. This approach
allowed the sales to be broken by choosing brand purchase behavior,
frequency of purchase and buyer calitation.
Of those shown, it follows that market segmentation can be done by
various categories of consumers or associated features of products and
services.
Any analysis and the study of consumer behavior must integrate, in
one way or another, the specific marketing research because the marketing
decisions studies based on consumer behavior takes consistency.
Therefore, it is considered that the results of studying consumer
behavior is integrated into marketing decisions, if it complies with the
following triad: specific marketing problem formulation and design of
appropriate studies consumer behavior, the actual implementation of
research study for consumer behavior and the development of marketing
tools to be implemented in market practice.
• Formulating marketing problem is a result of marketing policies,
the marketing strategy, the research tools offered by martketing,
specifying the necessary information and data required to
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substantiate the decision obtained by studying consumer
behavior etc.
Marketing research and study of consumer behavior are closely
related to how the categories relate to economic efficiency and
effectiveness. The concept of efficiency among these studies is expressed
synthetically by profit, the concept of efficiency refers to the achievement of
objectives (goals) marketing without necessarily making reference to the
efforts, often representing measure actual sales effectiveness.
• Formulation of the problem is dependent on the achievements of
marketing research. This should be consistent with the
objectives, defining the problem that needs to be solved. It must
be such that the conduct and performance of research to be
impeccably designed, meaning that if any correction is applied,
it does not require changes likely to alter the substance of the
problem of marketing. As such, it requires thorough grounding
in relation to: the number of individual interviews; scale group
discussions; sample size; length of the questionnaire; scale
processing; location of expansion to be achieved etc.
• The pinnacle of genealogical dimension associated research is
given by the effective integration of the results of the study of
consumer behavior in marketing decisions.
Like any decision related to solve a marketing problem, it has the
following components: possible strategies, market variables, market
variables prediction, the consequences of marketing and decision criteria.
Marketing strategies have alternative constructions, the combination
of controllable factors in terms of the market, which can be known by way
of studies offered consumer behavior.
Uncontrollable market variables cover the market, but are involved
in different areas of management decision.
Market variables prediction is made, usually in the form of
probabilities of occurrence, as evidenced both as punctual as well as the
probable ranges can enter variables in question. To assess probabilities,
there are market variables that assumes system stability, which is a key
concept for all decisions of the management team of the company.
Consequences of marketing actions express the results that are
expected when applying a specific marketing action when there is a certain
ambience.
Decision criterion covers the principle of selecting a choice,
according to the amount of information available to the decision maker to
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get the best solution. As in many other fields, developing marketing
decisions can be made in conditions: certainty, risk, uncertainty total, partial
uncertainty, conflict, etc.
The risk arises in situations where normal course of development is
known, which is based on some regularity, but that does not exclude chance,
which may occur with a certain probability, and the state that express
uncertainty on given decision is not a known law acting, so it wold be
possible to determine a probability for possible events.
Marketing decisions with certainty assume that every possible
marketing action will generate a particular result, so the strategy that
produces the best result is to be selected. In these cases, the marketing
decision is simple. The difficulty posed by such a decision lies in the large
number of strategies.
Marketing decisions under risk imply a formal analysis of decision
alternatives and their consequences; while the effects of decisions are not
known for sure, the best action is the one that maximizes the anticipations.
The early results of a random process (random variables) form the
weighted value of all variable values, each of which is weighted with its
own probability of occurrence. In general, in a decision-making situation,
the risk is perceived as a psychological reality, but for various marketing
activities risk can be quantified and measured by probabilities; so if the
chance of success is 0.8 then the risk is 0.2.
The process by which policy makers that integrates results of
studying consumer behavior in leading companies processes perceive the
risk as extremely complex and involves both the probability of a
combination of marketing actions and market variables (risk increases with
increasing negative effects) and preferences for certain outcomes, and as
man increases the likelihood of extreme outcomes (positive or negative) the
risk is perceived to be higher. In marketing practice, for risk measurement,
there is calculated the mathematical expectation of financial results and
losses.
Marketing decisions in terms of total ignorance assumes that
alternatives are decisions who lead to consequences with unknown
probabilities. Most cases are attached to new products.
In marketing research, uncertainty refers to the probability of the
consequences of alternative actions. If uncertainty is seen as lack of
information, the whole issue should be considered in such cases uncertainty,
it occurs in all phases of the decision, from problem definition of marketing.
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The marketing decisions taken in terms of total ignorance criteria
decision-maker's attitude may be:
1 Maximin (Abraham Wald) and pessimistic conservative principle, because
the market minimize results and the decision maker will choose the
maximum possible.
2 Maximax (Hurwicz) completely optimistic principle; recommended action
to produce maximum results.
3 Coefficient optimist (Hurwicz) optimistic or pessimistic criterion; to give
by considering the first two criteria, the decision maker takes into account
both the highest and lowest results, weighting their ignorance with a
constant related to the attitude of the decision maker.
4 Minimax (Savage): the principle of regret; decision maker minimizes the
regret of having selected an action that is most appropriate.
5 Laplace (principle of sufficient reason): the principle that transforms
uncertainty risk by assigning equal probability to all market variables.
Marketing decisions in conditions of partial ignorance are very
common in marketing, as this area is rarely characterized by total ignorance.
In almost all situations, decision makers have more information, but they
must always be completed, because the decision must have a scientific
basis.
Using their experience with integrating new information finds a
large illustration among these decisions, by using the analysis buyesiene.
Decisions under conditions of conflict are taken from one or more
competitors real, apart from the hypothetical market conditions and
decisions for general situations of risk and uncertainty. Therefore, these
decisions are delimited according to the number of competitors and the
degree of opposition to their interests, the most common variant of this kind
of decision the game with two competing and sum zero. What a player wins,
the other loses, as illustrated by the matrix representation of decision
outcomes or rewards.
In all cases, integrating the results of studying the behavior
consumer marketing decisions is shown to be based on systemic vision
problem formulation of marketing, conducting research and proper
settlement of the situation in which the decision-makers.
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