At the same time, marketers are resorting to new promotional campaigns in order to remain competitive and gain consumer attention in the face of this current economic downturn. Food and technology Statistics indicate that six in 10 consumers have reduced the volume of frequency as it pertains to eating-out in restaurant environments (Bainbridge 2010). As a result, especially noticeable in the pizza restaurant industry, marketers have changed their promotional activities to include vouchers with significant pricing discounts (Bainbridge). Where once major companies in this industry, such as Pizza Hut, used psychographic segmentation and targeting to gain attention and loyalty, they are finding it more difficult to compete especially when their products carry high price tags over competition. Companies like Pizza Hut once had well-established consumer segments that were devoted to the brand and were able to use rather low-cost marketing and higher price methodology to ensure positioning in terms of quality. Today, however, the recession has created price wars that continue to erode profitability especially with more consumers eating within the home and avoiding the high costs of restaurant eating. This is also noticeable in the fast food industry with new promotions being added to traditional menus, such as McDonald’s with its dollar menu variety. However, this marketing effort is not bring the type of profit results marketers had once experienced early in the recession. Today, new freebie offers and Internet-based incentives coupons are becoming the norm for many consumer segments (Glazer 2009). This shows a shift in consumer behaviour toward active searching in the consumer search process to identify coupons before they will frequent even their favourite restaurants. There is clearly a value-driven methodology in consumer groups that change their buying behaviours and choices. This is even apparent in how grocery stores market their food products, with the new value-based consumer searching for low-cost products. Statistics indicate that 53 percent of today’s recession-minded consumers are buying fewer organic products and 50 percent are even turning toward generic or private label brands (Frozen Food Age 2008). Organic products and well-known product brands used to be the driver for significant profitability in the grocery industry, however the recession is changing the supply chain to identify new value for consumers in order to sustain their business. Morrisons, one of the largest grocers in the UK, has control over much of its supply chain and is therefore able to ride out the recession successfully by using new promotional tactics. The store is able to provide fresh food options at a much cheaper price than competition and uses this fresh quality positioning to sustain higher profitability than other markets without control over their purchasing system (Mortimer 2009). However, it shows that the consumer propensity to change from their loyal and trusted brands to generic and private label brands and how it has affected total marketing and purchasing/distribution strategies. The grocery industry has identified that 44 percent of shoppers now consider private label products to be on par or even better than long-standing trusted brands (just-style.com 2009). This is a danger to
Discussion of the impact of the recession on consumer behaviour and on marketers BY YOU YOUR SCHOOL INFO HERE DATE HERE Discussion of the impact of the recession on consumer behaviour and on marketers Introduction The recession is causing numerous changes in consumer behaviour, especially in relation to their brand loyalty and their cost-conscious methodology when selecting products…
“The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy” (Consumer Behavior, 2010).
Despite the changes in customer perceptions, some conventional rules are strictly followed even in this modern era. Evidently, even today, consumer behavior is affected by some conventional views which are highly associated with religion and culture.
This helps to amplify the potential gains from the market in the form of increased sales and market share. Studies have shown that there are mainly four different factors that are involved in consumers’ buying decisions. These include cultural factors, social factors, personal factors and psychology factors.
According to marketers, consumers’ internal psychology characteristics which reflect in their response towards a new products or services of a company can be defined as consumer personality (Schwarz and Hunter, 2012, p.15). Perception is all about the interpretation of something after the information search.
This essay discusses how different adverts are manipulated or designed to appeal to consumers. Answer Sheet A. According to Claudia (2012, 58), adverts are directed to different steps of consumers’ buying decision power. The first step that this paper will focus on is the need recognition.
This essay discusses many themes, that surrounds consumers, their types, behavior and markets. It also explaines media markets, different consumption subcultures, demographics and principles of consumers and mentiones many strtegies that are used to understanding and predicting the behavior of modern day consumer.
Various methods have been applied correspondingly, in order to understand such factors. For example, various secondary sources have been evaluated in order to gain information about the factors that influence
12 pages (3000 words)Essay
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com