This calls for the use of simpler methods to get satisfactory solutions. An example of this is the application of heuristics. Heuristics refers to experience-based techniques for discovery, learning and solving problems. Heuristics can also be described as simplifying strategies or rules of thumb that help people in their reasonable judgment and make guesses more quickly. Therefore, they are informal shortcuts or rules used to make daily judgments and get satisfactory solution since organizations cannot afford to spend large amounts of resources like energy, time and money on every single judgment or detail of life (Kahneman et al, 1982). Consumer behavior theories also give a good understanding of the behavioral trends among consumers and the factors that affect their decisions. Marketers combine information from these theories with heuristics so as to attain strategic marketing. The consumer behaviour theory gives a practical application of understanding the behaviour trends in consumers and thus providing a way of strategizing to influence them. The theory explains the psychological, mental, emotional, non-utilitarian or subjective aspects of consumer behaviour in making buying decisions. ...
It is also important to understand that there are consumers who are always after brands of high value hence they seek a lot of information on available brands before making any purchase (Engel et al 1995). Other consumers have habitual buying behaviour whereby they purchase products as a habit whereas others are variety seeking. Howard (1989) states that variety consumers always shop around to get a different brand of a product just to have variety. Variety seeking consumers are the best targets for advertisements since it brings the existence of the brand into their attention so that they can seek it. When they have got used to it, the manufacturers can make slight changes to re-advertise it as a new or improved product once again. Another consumer behaviour theory that explains the trends in consumer behaviour is the neoclassical consumer theory. This theory is a branch of microeconomics that deals with understanding consumer behaviours through the application of classical models of economics. These models are based on the perception of consumers as people who are very rational in their decision making. In this respect it views them as people who always seek to maximize their satisfaction and benefits with purchases through informed and reasoned analysis of utility and value. When the neoclassical consumer theory is applied to consumer behaviour, it assumes that the utility or benefit of a product describes their behaviour over a life time. The utility maximizing rule states that for consumers to maximise satisfaction, they should allocate their finances so that the last amount of money spend on each product yields the same utility. The neoclassical theory factors in the issue of elasticity. If a product is highly elastic, its consumption will reduce if its price
Heuristics and Print Advertising Heuristics and how they can be used by marketers to influence consumers Understanding the psychology or the behavior of consumers is key in marketing. This is because an understanding of when, where, why and how people buy or do not buy a certain product is important in making developing strategic marketing plans that will make a product get larger market…
BMW is one of the few luxury automakers that has successfully managed to capture the minds of potential buyers and propelled its brands to record sales through promotion strong branding and product identity. For example, the above average sales made by the German automaker in 2012 were particularly attributed to the company’s consistent marketing campaigns and effective product branding efforts that specifically targeted the more affluent customers.
The integration of the Internet into the newest print technology enables companies to further increase their reach and create new businesses. Web links, email marketing, and other internet-based applications are helping businesses to be more in command of their marketing.
There are cases when the biases of a person may severely alter the manner by which he comes about a decision. More importantly, biases or heuristics in decision-making may lead to the wrong or inappropriate decisions in particular situations. There are various ways by which biases or heuristics may influence decisions.
Advertising has become necessary in business or any endeavor these days. Businesses and organizations need to get the attention of the mostly busy 21st century citizens of the world. Advertising strategies have to be well planned in order for it to be successful in
The author states that excitement for the product is generated with the use of words like ‘excitement’ and ‘discover’ as the ad indicates how an ordinary woman, ‘Ashley’, is able to make a worldwide ‘difference’ for the benefit of the ‘environment’ as well as serving her own needs by reducing her bill.
It can be useful when people do not have complete data and they decide based on their biases that in turn was derived from their daily experiences. In other words, heuristics can be pretty much of a subjective exercise in decision making (Tversky & Kahneman 1124). The
could attempt to identify the amount of impact that stereotype-based heuristics on their own practice by obtaining second opinions from other professionals, especially those who are likely to have been exposed to a different cultural background. In order to mitigate this issue,
This is recommended primarily on the basis of the fact that currently Darla is facing the recognition issues. She expects that her services of cooked food would be well accepted by her customers. However, reaching to the target market is the most