The relationship between consumer behavior and market segmentation reflects the interaction between a marketing program and consumer psychology. Marketers seek to identify large population groups known as 'market segments', and then understand consumer behavior within these market segments in order to develop a marketing campaign.
Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments.
Consumer behavior
To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:
• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)
Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.
Market segmentation
Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:
• Age
• Income
• Gender
• Ethnicity
• Religion
In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.
To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.
Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments.
Consumer behavior
To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:
• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)
Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.
Market segmentation
Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:
• Age
• Income
• Gender
• Ethnicity
• Religion
In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.
To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.
Integration of consumer behavior with segmentation
In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.
Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.
This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1) This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.
• Attitude
• Intention
• Reasoning
• Mood
• Activity
In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.
In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.
Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.
This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1) This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.
• Attitude
• Intention
• Reasoning
• Mood
• Activity
In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.
Sources:
1. http://bit.ly/cwRX7X (Federal Highway Administration consumer research)
2. http://bit.ly/acrFFa (USC Marshall: Lars Perner: Consumer behavior)
3. http://bit.ly/9Har7j (Library of Congress: Market Segmentation)
4. http://bit.ly/bh2kfA (Wisconsin School of Business: Bill Shepard)
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