Table of Contents
Discussion of Findings
Definition of Consumer Behavior
Factors Influencing Consumer Behavior
Effective Advertising and Inactive Advertising
Definition of Advertising
Impacts of Advertising on Consumer Behavior
Planning Campaign Strategy Around Consumers’ Behavior
What is the right budget for a company to spend on advertising and marketing is always a sophisticated question that not every business owner can come up with an answer. To survive and continue to drive through the market, companies, especially infant corporates, is supposed to focus most of their resources on creating their way to meet the demand of consumers. Many young companies simply do their best to ensure customers with better products/services and hope that they will come to them; this model of business is called the “build a better mousetrap” syndrome. (McKee 2009.) Nevertheless, in a brutally competitive market, without any marketing tools or strategies, company’s products are unlikely to appeal to consumers (Mikoluk 2013). The statistics in 2016 presents that two percent of revenue of leading corporations in the USA is often spent on advertising as they understood the importance of advertising and marketing in the businesses’ development. For instance, Amazon was reported to distribute 7.2 billion USD, while Microsoft’s expenditure on advertising was 11.5 billion USD. (Blythe 2016.)
However, it does not imply that the bigger budget a company plans on advertising, the more profit the company get in return. The business’s traits such as industry, size, life cycles and other factors vary the amount of money spent on advertising activities varies accordingly (Cheong et al. 2013). Hence, researches and guides were developed to assist firms in making the right decisions; the rules of thumb for budgeting (Shimp 2010), analyzing the ROI ratio (return on investment), or CPM impressions (cost per thousand) (Fisher 2013) are examples. Even though being capable to define advertising allowance is essential to a business association, an undeniably crucial and foremost step that marketers or companies should bear in mind is to fully grasp consumers behavior, their needs and desires (Arens & Weigold 2011). Why consumers decide to stick with a certain brand but not the others, how consumers are affected by the surrounding environments, and what influences their decision-making process are topics that have created various difficulties to many marketers.
The definition of consumer behavior and advertising require sufficient amount of time to of investigating in order to be fully understood. Fascinatingly, they do not exist independently but rather have a correlation between them. Being aware of the importance of these two aspects and their impacts on each other can help marketers and companies identify their opportunities and threats, strengthen their advantages and overcome weaknesses, as well as forming optimal strategies.
The main objectives of this research are to provide the insights into consumer behavior and how to generate suitable advertising campaigns based on its foundation.
Discussion of Findings
Main research findings: How can a company generate its advertising strategy based on the knowledge of consumer behavior?
To answer this question, some definitions need to be explored:
- Definition of consumer behavior
- Consumer behavior drifting factor
- Definition of advertising
- The influence of consumer behavior on advertising and vice versa
- Definition of advertising strategy
Definition of Consumer Behavior
Because consumer behavior is not a strange topic to researchers and they have been conducting many research papers on this topic, there is no unified definition of consumer behavior. In fact, comprehended with the evolution of marketing and social factors, new meanings of consumer behavior are conceived by adjusting and supplementing previous ones. (Bray 2008, 2-3.) Following are some contemporary definitions of consumer behavior:
“Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.”
Hoyer et al. went with a much alike approach in defining consumer behavior:
“Consumer behavior reflects the totality of consumer’s decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experience, people and ideas by (human) decision-making units (over time).”
(Hoyer, MacInnis, & Pieters 2013, 3)
Despite various definitions interpreted in alternative ways, consumer behavior possesses main patterns in a whole. Thus, the writer would like to adopt definition of Hoyer et al. as the basic dynamic of this academic paper. The figure below illustrates Hoyer’s idea of how customer behavior operates.
FIGURE 1. Definition of Consumer Behavior (Hoyer, MacInnis, & Pieters 2013)
From figure 1, the definition can be extracted with five main points:
Consumer behavior presents a step-by-step process. In many early studies of the consumer behavior, researchers have concluded that consumer behavior introduces the transaction between buyers and sellers at the time of purchase. In addition, after a long time of analyzing, researchers realize the concept also includes what happens before, during and after the purchase. To be more specific, the process consists three stages: pre-purchase, purchase and post-purchase. During each stage, different problems appears on both consumers’ and buyers’ ends.
Consumer behavior involves many decisions.
Acquisition, usage and disposition are demonstrated under consumption activities of consumer. Acquisition is the operation of sealing an offering (product, service, activity, experience, or idea) by a consumer. More, consumers’ decisions about accepting an offering also involve authority appeal, such as watching movies starring certain actors/actresses, or buying digital songs of certain artists. Acquisition combines buying, leasing, sharing and trading. On the other hand, usage is the procedure of accepting an offering. Consumers reject of a deal during deposition phase.
Consumer behavior process consists many actors, including information gatherer, influencer, decider, purchaser and user. Nonetheless, in real life situation, the factors will not be functioning at the same time. In fact, some factors fuse into one, for instance, a purchaser can be treated as a user.
It is extremely important to recognize that consumer behavior can be driven by customer’s self-reflection and emotion. The Association of American Marketing states “the dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives” is, indeed, the core of consumer’s reaction towards a product (Bennett 1995, 59). Affect reflects buyer’s emotions and attitudes of about specific events or stimuli, while cognition reveals their thoughts and beliefs. If a product does not hold up to the expectation, user will give it up eventually. Hence, it is safe to say that buyer’s affect and cognition influence the way they behave during the whole buying procedure. (Peter & Olson 2008, 22.)
(Hoyer et al. 2013, 3-9; Solomon 2009, 33-34.)
Factors Influencing Consumer Behavior
FIGURE 2. Four Factors Influencing Consumer Behavior (Kotler & Amstrong 2012)
Culture and individuals are inextricable and individuals’ behavior is strongly affected by their culture. (Mooiji 2011, 33.) Therefore, to fully grasp the concept of consumer behavior, researcher need to take cultural factors into account. Considering cultural elements, three main aspects that should be analyzed are culture, subculture and social class.
A culture possesses several different attributes. Schiffman and Kanuk points out culture is a combination of learned beliefs, values, meanings, rituals, norms, traditions and customs that serve to regulate the consumer behavior of members of a society (Schiffman & Kanuk 1991, 329). To be precise, the idea of culture is created by the population. A community is responsible to invent and preserve its own culture. Secondly, people are not born with culture but rather obtain it through learning directly or indirectly, consciously or unconsciously. Thirdly, the range of acceptable behavior is limited while expressing cultural belief. One’s tradition is not always applied for another’s. Moreover, culture is vast whereas people’s knowledge of it is confined. Hence, people can have a hard time adapting to a new culture or even to their own. Finally, culture is adaptable over time. Depending on the rate of societies accept changes, cultures could develop itself accordingly. For instance, the American culture has experienced rapid change since the 1950s, while some other cultures may not. (Hawkins & Mothersbaugh 2010; Chandrasekar 2010.)
The author would like to use Hoftede’s six dimensions (the 6-D model) to examine and evaluate a particular culture. This method includes measuring power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, long-term versus short-term orientation and indulgence versus restraint.
Power distance refers to the way in which power is distributed and the extent to which the less powerful accept that power is distributed unequally
Individualism versus collectivism: It is a measure of culture that captures the extent to which a person is regarded as an individual rather than a member of a group. For example, the cultures of Germany, the USA, and Britain are considered individualism, while the cultures of some Asian countries are collectivistic.
Masculinity versus femininity: It is a measure of culture relating to assertiveness and competitiveness, or modesty and nurturance. A masculine culture is associated with assertiveness, competitiveness, and showing more ambition, such as the American culture or Swiss culture. On the other hand, femininity is linked with modesty and nurturance. Feminine societies are concerned with social welfare, such as the cultures of Finland or Denmark.
Uncertainty avoidance is a measure of culture relating to capturing the degree to which people worry about the future.
Long-term versus short-term orientation: People within a long-term oriented culture focus more on the future. In particular, they value perseverance, persistence and saving. People within a short-term oriented culture, meanwhile, care more about the past and the present. They value tradition and pay more attention to immediate gratification rather than fulfillment in the long run. A good example of a short-term oriented culture is the Mexican culture.
Indulgence versus restraint: it is the extent to which a person within a society has a tendency to control his/her gratification of desires. Societies with low control are called indulgent societies, whereas societies that highly control their members’ gratification by social norms are called restrained societies.
Alongside Hoftede’s method, marketers also consider the theory of high-context versus low-context cultures developed by the anthropologist Edward T. Hall. In a low-context situation, words are precise and remain their original meanings at all time. In contrast, in a high-context culture, words are abstract and their meanings can be altered depending on different contexts and communicators.
(Gillespie & Hennessy 2010; Hofstede et al. 2010.)
Subculture consist cultural groups whose norms and beliefs are distinct from of the more popular groups within a culture or society, and people within a subculture experience the same value system (Hornby 2000; Kotler & Amstrong 2012). Each culture covers of a variety of smaller subcultures, including nationalities, ages, genders, religions, and so on. Examining subcultures allows researchers to narrow their markets, and target the right segments. (Kotler & Amstrong 2012, 136.)
Consumer behavior is also driven by social factors. In this section, social factors, such as family, reference group, social class, are illustrated in detail.
Variety of elements affect purchasing decision. A buyer’s family is one of the most important factors because a family helps form an individual’s character and behaviors. Classifying the decision maker for a purchase is one method to recognize the family’s impact on consumer behavior. A husband, wife, or even a child can be a buying decision maker, and occasionally decisions are made in collaboration. In most case, the decision maker changes up to the type of transaction or the size of transaction. A new laptop, for example, is likely to be a single-side decision, while a new sofa might be selected by many members of the family.
Families influence purchases in many ways. Firstly, the most significant influence is from parents because of how parents lead their offspring to develop social and religious beliefs, lifestyle dynamic, and consumer habits. A spouse and children, however, are able to obtain an even more outstanding effect on a consumer’s purchases. Contact between spouses and the number and ages of children play a particularly powerful role on buying behaviors. These family influences affect how consumers look at purchases more directly than most other social influences on consumer purchasing. (Dransfield et al. 2004, 548; Kotler & Amstrong 2012, 141-144.)
2/ Reference Groups:
Sociologists define any group that individuals use as a standard for evaluating themselves and their own behavior a reference group (Kotler & Amstrong 2012, 139-141). In business term, reference groups function as groups that consumers will seek to for help in making purchasing decisions. If a product is promoted by a reference group, either through use or announcements about the product, those that adore the group will usually buy that product. On the other hand, if a reference group is not fond of a merchant, those that link with that group will probably not purchase it.
Reference groups can be either formal or informal. Examples of informal reference groups are school, friends, and colleagues. Clubs, associations, and religious organizations represent formal reference groups. In addition, celebrities are typical parts of reference group. A company might employ a celebrity that is suitable with its target market to boost their revenue. For example, Cristiano Ronaldo is endorsing Nike because Nike felt he represented the essence of their soccer cleats brand.
Reference groups play a crucial in purchasing decisions. Based on the reference group we belong to, we are supposed act to behave in a certain way. Cultivated with this idea, people will often adjust their own behavior to match with group norms. Opinion leaders, who influence what others do, act, and buy, also control the communication among reference group. In the consumer world, this means that if a reference group purchases a product, those that associate with the group likely will as well. (Dransfield et al. 2004, 548; Kotler & Amstrong 2012, 139-141.)
3/ Social Class:
Social class in which one defines him or herself generates a major impact on their purchasing patterns. Marketers classify social class as an external influence on consumer behavior since it is not rooted in feelings or knowledge. Social class is challenging to construe; many people disbelieve in the existence of social classes in America. In theory, people are allocated into in social classes according to income, wealth, education, or type of occupation. Perhaps a three-tiered approach that includes the rich, the middle class, and the poor, clarifies the definition of social class better. Same social class population often share similar attitudes, live in similar neighborhoods, dress alike, and shop at the same type of stores.
Social class can create major influence on costumer spending habits. Its greatest effect illustrates the level of disposable income of each social class. Commonly, the rich are able to consume more products than those with less income, and those goods contain higher quality. A distinction in the type of goods purchased also appears among social class construct. For instance, the upper class are believed to be the primary buyers of high-end jewelry and designing clothes. The lower class, in comparison, do not spend much money on luxuries; they make necessities their priorities. (Kotler & Amstrong 2012, 144.)
Figure 3. Personal Factors Affect Costumer Behavior
Personal Factors are the individual factors to the consumers that affect their buying behaviors significantly. These factors vary from person to person, resulting in a different set of perceptions, attitudes and behavior towards certain goods and services.
Age: The consumer decision to buy a product is relevant to his age, i.e. the life cycle stage in which he falls. At different stages of the life cycle, people tend to consumer different types of goods. Such as the purchase of confectionaries, toys are more relevant when an individual is a child and as he grows his preferences for the products also changes.
Income: Ones buying patterns are also under influence of their income. Income represents the purchasing power; hence, the more the personal income, the more will be the expenditure on other items and vice-versa.
Occupation: Costumer behavior is also under control of their profession and role in the society t. For example, the buying patterns of the doctor and lawyer will be different from the other groups of people such as blue-collar workers, teacher, student, etc.
Lifestyle: Individual’s lifestyle plays crucial on their buying patterns. The lifestyle means individual’s interest, values, opinions and activities that reflect the manner in which he lives in the society. Such as, if the person has a healthy lifestyle then he will avoid the junk food and consume more of organic products.
Consumer Behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs; and the impacts that these processes have on the consumer and society. There are many elements that influence customer behavior. These factors are categorized into four groups: cultural, social, personal and psychological factors. Culture and individuals are inextricable and individuals’ behavior is strongly affected by their culture. Therefore, to fully grasp the concept of consumer behavior, researcher need to take cultural factors into account. Moreover, a buyer’s family is one of the most important factors because a family helps form an individual’s character and behaviors. Reference groups are groups that consumers compare themselves to or associate with. Each social class has distinct characteristics and approaches to consumer purchases. A marketer should understand the dynamic of the social class he or she is targeting.
In the next chapter, the definition of advertising and the interrelationship between consumer behavior and advertising will introduced.
Effective Advertising and Inactive Advertising
Definition of Advertising
Advertising consists of all activities involved in presenting to a group a non-personal, oral or visual, openly sponsored identified message regarding a product, service, or idea. The message, called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor (Fahy& Jobber 2012).
Globalization has changed the world. It generates much more dynamic, competitive, and consumer-oriented market. Marketing process prioritizes consumers’ satisfaction more than ever. This goal can be achieved by acquiring information from market and addressing information to the market. Advertising dominates over market promotion elements to become the best method to inform about company’s total offers.
In particular, advertising prioritizes big groups of audiences over individuals; hence, advertising is non-personal. An ad includes newspapers, magazines, radio, television, billboards, transit cards, sandwich boards, skywriting, posters, anything that aids communicating in a non-personal way.
The priority of advertising is to define and distinguish one product from another to influence consumer behavior towards that product in preference to another.
The prices of creation and time or space in the media must be accounted for when creating an ad. Advertising distinguish itself from public relations in this major area.
Without having to pay for the time or space, PR try to allocate information about companies and/or products in the media. Hence, companies are not guaranteed that the media will publish any PR material. Advertising does not have face that challenge. As long as the ad is legal and paid for, it will be presented.
The word Controlled separates advertising from personal selling and publicity. A door-to-door salesperson indulges in an uncontrolled exercise of his imagination at many times when giving publicity to a product if personal interest involves. In contrast, advertisers have the ultimate control over their creation. Advertisers have to be decisive about all perspectives of their advertisement regarding what and how much the public should know about a product or service.
Mass Media goes along side with advertising. Mass communication is exposed to large, heterogeneous and anonymous group of people. The receivers’ sense gets bombarded by several messages from different sources every hour. For that reason, advertiser’s goal is to generate unique and easily memorable messages, so at least a part of the message is perceived by the potentials.
Impacts of Advertising on Consumer Behavior
Most consumers do not have the time to seek for ads. The marketing and creative department corporate to create ads that scratches an audience’s curiosity. A good ad will likely lead to better sales and brand awareness. On consumers’ perspectives, they do not really need advertisements; nonetheless, an ad is considered a gateway for consumers to know more about the products or services they do need. Marketer make stronger, more memorable ads when they fully understand the ways in which advertising affects consumer behavior.
Studies show time after time that the more aware consumers are of your brand, the more likely they are to purchase your product. People are more likely to work with or buy from companies they’ve heard of and trust (Sunderland 2009). Advertising draws the attention of specific audiences and increases brand awareness so that they become more interested in the adverted product.
Brand awareness is a composure of Exposure, Influence and Engagement. When the consumers keep being exposed to those advertisements, they automatically preserve product’s related information in their memory and recall it when they are in need; and simultaneously, their interest are maintained and developed gradually to the extent that they desire to possess the product. On the contrary, when the attitude of the consumers toward the brand is negative, they will definitely refuse to the buy the product. Advertising is the tool that companies use to build brand awareness, deliver their messages and establish brand attitude. (Rai 2013, 74-79.)
Behavioral Effects of Features:
Consumers respond to advertising rationally when their eyes catch the features of a product or service. This feed-back is heavily based on a reasonable listing of all the practical aspects of the deal. This is an intellectual response, rather than an emotional one.
Weighing The Benefits:
When customers calculate benefits, advertising and promotion influences them emotionally. Consumers list out ways the product or service can satisfy them and enhance their personal life style. This part of the consumer response is irrational and can lead to impulse buying and competition to obtain the product.
Reminders and Ad Repetition:
Repeated advertising messages influences consumer buying patterns. Consumer’s mind is cultivated by a reminder by this repetition. Thanks to technological innovation, tracking allows online advertisers to reach the right audience. Behavior that stems from reminders includes suddenly thinking of a product while shopping and making a decision to buy it, as if it had been on the consumer’s “to-do” list.
Companies’ marketing departments know that advertising is the key to success brand; however, it does not mean that an ad successful only because people are fond of it. To truly appraise the effectiveness of an advertisement, audience resonance and strategic relevance should be optimized.
Audience resonance present a functional advertisement which is able to generate the attention of its audiences and leave great impression on their minds. Strategic relevance suggest that advertisement should be align to the corporate strategy and product’s nature. A lot of marketing organizations either fail to grasp this or don’t know how to relocate themselves to acquire relevance within their business. These two factors are sophisticated and hold a vital role in creating an effective ad. (Arens & Weigold 2011, 339-341.)
Every single day, brands and businesses bombard people with million advertisements on TV and social media, but not all of them are capable of striking consumer’s curiosity. Creativity is, indeed, the deciding element that make an ad stand out. A research done in Germany from January 2005 to October 2010 suggest that promotions with more creative material attract more people to purchase their products. An inventive advertisement follows these qualities: connectedness, appropriateness, and novelty.
Connectedness is a structure to evaluate intimation level of a brand with its audiences. In other words, an ad is only truly creative when it could link with its targets. For instance, H&M is fast fashion brand for young generation and they always cast models in age range of 18-30 years old, so consumer would feel relevant to their product.
Appropriateness focuses on the message which marketing professionals want to send out with their ads. Their work must be sensitive to any pressing issue and deliver a coherent and cogent content. One of many brand’s biggest fears is that people mistaken their ads because it usually results in law suit.
Novelty means that the advertisement leave unique impression on buyers’ memory. A truly creative advertisement, must preserve the information and emotional connect that the brand wants to deliver to its target consumers (connectedness) and announce its value proposition (appropriateness). Therefore, a bizarre and unethical promotion is not considered as a creative one since it violates novel core.
(Reinartz & Saffert 2013, 106-112; Shimp 2010, 209-210.)
Planning Campaign Strategy Around Consumers’ Behavior
In this sub chapter, the definition of advertising strategy and steps in building an advertising strategy will be introduced.
Definition of Advertising Strategy
Advertising strategy is a plan of an advertising campaign developed by a company that stimulates consumers to purchase its good or service. When forming an advertising strategy, advertisers should pay attention to four key elements, which are target audience, product concept, advertising message, and communications media (Clow & Baack 2014; Shimp 2010).
There are five steps in forming an advertising strategy: conducting advertising research, setting advertising goals, formulating budgets, creating advertising messages, and selecting media.
Conducting Advertising Research
Conducting and reviewing research should be considered before initiate any advertising strategy. This act’s purpose is to gather and evaluate critical information for creating an advertising. Identifying the right target groups of consumers for a brand is its most important goal. During this phase, companies acquire consumers’ attitude towards the products, what they want to purchase, what they expect from the products, and the insights into their buying behavior. Through this step, brands recognize that consumer’s choice is not entirely based on products’ attributes. For example, when buyers shop for laptops, they may not only choose a particular brand because the technology advances it offers but also its design and popularity. Moreover, researching also shows a company’s position against its competitors; what gives them the advantage on the market and what limits them from growing (Clow & Baack 2014, 143; Arens & Weigold 2011, 230).
Selecting Advertising Goals
An advertising is created to achieve three main goals, regarding establishing brand awareness, providing information, persuading, supporting other marketing functions, and stimulating consumers to make buying decision.
As mentioned in the last sub-chapter, brand awareness is the core of effective advertising as it is the starting point of public view about the product’s concept. Brand awareness occurs when a consumer chooses a brand on top of his/her mind when he/she is in need.
Advertising is also responsible for providing consumers specific information about the product, including store working hours, location or its specifications. By doing this, advertisement helps simplify the decision-making process.
The nature of advertising is to persuade people to purchase products or services. Therefore, an advertisement is considered effective only when it is successful in persuading consumers to choose the advertised brand.
(Clow & Baack 2014, 145-146.)
Formulating Advertising Budget
The next step that to build a strategy is formulating an advertising budget. Depends on business models and financial foundation, there are various way to allocate a marketing budget. In this research, the author would like to introduce four basic budgeting rules of thumb, which are the percentage-of-sales, the competitive parity, the affordability, and the objective-and-task methods.
The most common budgeting method is percentage-of-sales approach. This calculation has its foundation based on a company’s current or anticipated revenue. Hence, the accuracy of this approach is companies using this method usually authorize to cut back advertising expenditure when their sales decrease vice versa.
The competitive parity method is the second option on the list. It is used when company sets their budget by observing and matching its competitors’ expenditures on advertising or utilizing the same percentage of sales figure as its strongest competitor. As expected, this technique is not trusted as it misleads that the competitors’ budgeting method is the optimal choice, and makes the company ignore other factors influencing its advertising budget.
Affordability method gives a company the option to spend money on ads after its financial foundation is strengthen and the firm only pay to price that they can afford.
Finally, objective-and-task appears to be the most effective method. This approach focuses on the importance of advertising on company’s sales numbers. The companies pay more attention on their communication objectives and use completing tasks related cost to formulate the budget.
(Arens & Weigold 2011, 286-295; Shimp 2010, 166-175.)
Creating Advertising Messages
The message behind an advertisement presents a company’s value proposition through verbal and visual effect that are linked to target audience. Specifically, an advertising message is formed by three components: advertising appeals, value proposition, and slogan (Sharma 2009, 210-211).
Advertising appeal is the theme of an advertisement that can attract the attention of the target audience (Kotler 1997, according to Lin 2011). Advertising appeals are presented in 7 forms: fear, humor, sex, musical appeals, rational appeals, emotional appeals and scarcity appeals. Most of the time, only one of them will be used as the theme of an advertisement and ad must be consistent with chosen appeal to achieve the advertising goals.
In addition, two other components of a message are value proposition, and slogan. The company illustrate its value proposition though the perks and benefits they promise to provide (Kotler & Amstrong 2012, 212). Slogan is a memorable phrase used to accompany a brand’s logo and enclose the value proposition of the brand (Sharma 2009, p. 211).
After generating a meaningful for the ad, business owners need to find optimal media gateway to deliver it. Relevant media requires a company to understand the habits of the target consumers in using media, and to combine that information with the profile of the audiences using that kind of media. (Arens & Weigold 2011).
There are two main types of media: traditional and digital media. Traditional media consists of print media (newspapers and magazines), electronic media (television and radio), out-of-home media (billboards; street furniture – bus shelters advertisements; transit – advertisements at airports or on the bus; and others), exhibitive media (product packaging), and supplementary media (specialty advertising – promotional products with an advertised brand, message, or logo; and others). Digital media are any types of media that exist in a machine-readable format (Arens & Weigold 2011; Clow & Baack 2014).
Consumer Behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs; and the impacts that these processes have on the consumer and society.
There are many elements that influence customer behavior. These factors are categorized into four groups: cultural, social, personal and psychological factors. Culture and individuals are inextricable and individuals’ behavior is strongly affected by their culture. Therefore, to fully grasp the concept of consumer behavior, researcher need to take cultural factors into account. Moreover, a buyer’s family is one of the most important factors because a family helps form an individual’s character and behaviors. Reference groups are groups that consumers compare themselves to or associate with. Each social class has distinct characteristics and approaches to consumer purchases
Advertising strategy is a plan of an advertising campaign developed by a company that stimulates consumers to purchase its good or service. Building an advertising strategy involves conducting advertising research, selecting advertising goals, formulating budget, creating advertising messages, and selecting media. Conducting and reviewing research should be considered before initiate any advertising strategy. This act’s purpose is to gather and evaluate critical information for creating an advertising. Identifying the right target groups of consumers for a brand is its most important goal. The next step that to build a strategy is formulating an advertising budget. Depends on business models and financial foundation, companies four basic budgeting rules of thumb, which are the percentage-of-sales, the competitive parity, the affordability, and the objective-and-task methods. Creating the message is vital to advertising since it reflects the company’s value proposition and the product’s concept. Deliver the message with the right media tool requires a company to understand the habits of the target consumers in using media, and to combine that information with the profile of the audiences using that kind of media.
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