The Impact of the Recession on Consumer Behaviour and on Marketers
The Impact of the Recession on Consumer Behaviour and on Marketers - Essay Example
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Extract of sample The Impact of the Recession on Consumer Behaviour and on Marketers
This paper illustrates that once predictable behavior is now being replaced with a new type of consumer that is constantly seeking value in nearly all elements of product variety. This is making the process of marketing and advertising significantly difficult in an environment where competition is high, especially in areas of food consumption and technology consumption. 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. Statistics indicate that six in 10 consumers have reduced the volume of frequency as it pertains to eating-out in restaurant environments. As a result, especially noticeable in the pizza restaurant industry, marketers have changed their promotional activities to include vouchers with significant pricing discounts. 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 the 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 to 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. This shows a shift in consumer behavior toward active searching in the consumer search process to identify coupons before they will frequent even their favorite restaurants. There is clearly a value-driven methodology in consumer groups that change their buying behaviors and choices.
This research is being carried out to evaluate the impact of the recession on consumer behavior and on marketers. The recession is causing numerous changes in consumer behavior, especially in relation to their brand loyalty and their cost-conscious methodology when selecting products…
This paper deals with the objective to analysis how emotions affect the behaviour of the consumers. The role of emotions in processing the information has been acknowledged and it has been found out that in order to understand the value that product and services have for the consumers it is necessary to understand emotions and the reasons behind it.
The study concludes the materialism and consumerism should not be promoted through advertisements directed at tweens. The appropriate marketing technique should contain relevant and important information about the product, its benefits and the potential adverse impact. Recommendations for further studies were made and limitations highlighted.
Lush Cosmetics is a company in Australia that deals with the production of cosmetics, which include body lotions, deodorants, body oils and skin tones. Men’s body lotion has not been in the company’s production list in the past. The company has finally decided to include it in the product line as a diversification strategy.
Consumer behaviour is the activities which people undertake when obtaining, consuming and disposing of products and services (Blythe, 2008, p. 56). The fundamental basis of marketing should be that the customers are at the centre of everything the firm does.
Due to the fact that marketing involves symbols, such as written words and pictures, it is very necessary to ensure that those symbols match real-world human behavior. In this case, semiotics comes to great help. In addition, semiotics examines how people constitute perceptions that are the products of the surrounding culture in which people live and participate.
Once predictable behaviour is now being replaced with a new type of consumer that is constantly seeking value in nearly all elements of product variety. This is making the process of marketing and advertising significantly difficult in an environment where competition is high, especially in areas of food consumption and technology consumption.
The marketer uses different marketing strategies in order to win the hearts of consumers For a company to sustain, participate and thrive, it is essential that the marketer sees these needs and wants, and supply products and services more successfully as compared to the other competitors.
Aside from the health benefits that cycling can give to the city’s population, using an e-bike can also contribute in lessening the carbon fingerprint of the whole city and also greatly reduce their need for fossil fuels (Jamerson and Benjamin, 2009; Lamy, 2001).
The Market Situation Analysis implies the various factors that affect the growth & development of a business, these factors also helps in planning & strategy making. The Market Situation Analysis basically consists of the firm’s internal, external & customer environment (Ferell & Hartline, 2010, p.
Although, the product itself has an importance but the consumer behaviour can be affected by various psychological and environmental factors (Hitt, Hoskisson and Ireland, 2008). The consumer development
12 pages (3000 words)Literature review
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