Consumer Behavior Report Effects of Consumer

Question: Describe about the Consumer Behavior Report for Effects of Consumer. Answer: Introduction Changes in the demography and consumer buying behavior is significantly affecting the manner in which the marketers are targeting their consumers and selling their products. The purpose of this report is to identify the changes in buying patterns of the target markets as a result of such shifts and changes in the attributes, lifestyles and perspective of the generations. Finally, recommendations on addressing the marketing and consumer behavior issues arising out of shifting demography are presented. Literature Review Consumer choices are affected by a number of internal and external factors. However, internal factors like demographic features including age, gender, marital status, income, education and occupation, exercise greater influence on buying behaviors as opposed to external factors like trends, peer pressure, etc. Moreover with rapid changes taking place, major shifts in demography in terms of educations, income, age preferences, etc. can be observed that are changing the rules of marketing and influencing marketing strategies (Alooma and Lawan, 2013). Numerous studies have been conducted in the recent years to understand the implications of demographic shifts and the changes in the buying patterns of the consumers. As observed in the market research conducted by International markets Bureau (2012), individuals are re-defining the way they think about their own age which is leading to down-aging, age blurring and agelessness. As a result, consumers are often found acting in a manner that would be expected of their younger or older counterparts that lead to similarities in the buying patterns across different age groups. This in turn is impacting the marketing mediums that influence them and their buying behaviour. Various studies conducted over a period of time are unanimous on the fact that demographic factors, especially age, sex and income are major factors contributing to changes in consumers buying patterns i.e. a shift from tradition shopping to online shopping (Kacen, et al., 2013; Passyn, et al., 2011; Williams, et al., 2010). However, Passyn et al. (2011) found that women of all ages are more inclined to shop in stores while men prefer to shop online. Similarly Javadi et al. (2012) noted that demographic shifts become a crucial factor in consumer behavior. Due to increase in educational qualifications of the consumers and advancements in medical science, there is increase in life expectancy and reduction in birth rate in almost all the major economies of the world. As a result, there is imbalance in age distributions and rapid addition of aging population (Deloitte, 2011). This has also shifted the buying behaviour. Thus, online consumers tend to be older with better education qualifi cations, high income and more tech-savvy (Javadi et al., 2012). Additionally, the gender of the consumer also impacts the buying behavior to a certain extent as men and women differ in their web buying patterns. While men prefer straight forward information to their queries, women like to explore and engage by seeking detailed information and entertainment while buying (Richard, et al, 2010). Other study conducted by Parment (2013) suggests that buyers behavior can be analyzed through generational cohorts. Generational cohorts refer to people born during same timeline and whose life course corresponds to one another. Similarly Williams, et al. (2010) in their study divided the consumers into five groups, namely, Pre-Depression, Depression, Baby Boom, Generation X, Generation Y, and Generation Z, and found that consumers needs change with life stages and every group had certain values that influenced their consumption behavior. Synthesis of Findings Based on the finding, it can be clearly interpreted that the consumers buying behavior is moving in favor of online shopping as opposed to traditional brick and mortar stores. Consumers of all age groups are moving towards online shopping owing to the ease and convenience of shopping sitting at home and getting product delivered. Moreover, information provided on internet influence the purchase decisions of younger generations as compared to older ones. But safety and security concerns related to online shopping can be found in all age groups (Passyn, et al., 2011; Kacen, et al., 2013). However, if gender is considered, males are more inclined to shop online as compared to their female counterparts. Women are more attached to traditional shopping and find it more fun and enjoyable experience. However, men find online shopping more relaxing and easier (Javadi et al., 2012; Passyn, et al., 2011; Richard, et al, 2010). Considering generation cohorts, pre-depression, gen Y and gen Z often shop online and find it exciting, fun and stimulating while depression generation, baby boomers and gen X find traditional shopping more exciting and providing better social experience (Parment, 2013; Williams, et al., 2010). Recommendations It is the duty of the marketers to know their target markets and design their marketing strategies based on the shifts in demography and analysis of the generation specific preferences. As such, following are the recommendations that the organisations may use to address the demographic influences: The marketers should make use of the internally and externally generated information to identify generation specific behaviors and then adopt appropriate marketing approach. Women are responsible for a large part of consumer spending (almost 83%), marketers should try to link to social media sites or provide chat rooms to customers. This will help them to catch the attention of their female shoppers as they could benefit from the simplicity of online shopping and still get the experience of socializing with others. Organisations can adopt multi-generational marketing strategies. Marketers should try to identify the consistent characteristics among generations and add those elements into their marketing strategies so gain wider target market appeal (Williams, et al., 2010). Card and information security is the top most concern for all the buyers. Hence, marketers should adopt and promote easy to use online security systems that store and retain confidential data, to tap the online shopper segment. Marketers should also try to engage and involve customers based on their gender. They should try to engage female customers by providing profuse information in detailed format and through social interactions while for male customers they should try to provide specific answers, limit the information to key issues thereby providing to the point interaction (Richard, et al, 2010). References Alooma, A. and Lawan, L. (2013). Effects of Consumer Demographic Variables on Clothes Buying Behaviour in Borno State, Nigeria, International Journal of Basic and Applied Science, 1(4), 791-799. Deloitte (2011). Consumer 2020: Reading the Signs. Retrieved from: https://c.ymcdn.com/sites/www.newonline.org/resource/resmgr/research/consumer_2020_4_jan_2011.pdf International Markets Bureau (2012). Global Consumer Trends: Age Demographics. Retrieved from: https://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/6217-eng.pdf Javadi, M. H. M., Dolatabadi, H. R., Nourbakhsh, M., Poursaeedi, A., and Asadollahi, A. R. (2012). An analysis of factors affecting on online shopping behavior of consumers. International Journal of Marketing Studies, 4(5), 81-98. Kacen, J., Hess, J. and Chiang, W. Y. (2013). Bricks or clicks?: Consumer attitudes toward traditional stores and online stores. Global Economics and Management Review, 18(1), 12-21. Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing, Journal of Retailing and Consumer Services, 20(2), 189-199. Passyn, K., Diriker, M. and Settle, R. (2011). Images Of Online Versus Store Shopping: Have The Attitudes Of Men And Women, Young And Old Really Changed?, Journal of Business Economics Research, 9(1), 99-110. Richard, M. O., Chebat, J. C., Yang, Z., and Putrevu, S. (2010). A proposed model of online consumer behavior: Assessing the role of gender. Journal of Business Research, 63(9), 926-934. Williams, K., Page, R., Petrosky, A. and Hernandez, E. (2010). Multi-Generational Marketing: Descriptions, Characteristics, Lifestyles, and Attitudes, The Journal of Applied Business and Economics, 11(2), 21-36.