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Marketing Management/Consumer Behavior

It has been stated that "marketing management rests upon some conception or other of how consumers behave (Foxall 2001)." I will proceed to demonstrate, beginning with an overview of consumer behavior as it relates to the psychological factors that cause one to comply with a given request, through to an examination of the various trends in marketing which are reflective of consumers changing demands as they respond to world events and societal evolution, why it is vital that marketers understand and evaluate consumer behavior. I will also demonstrate, through the use of examples, how various organizations are employing specific strategies based upon their understanding of consumer behavior to produce record growth and profitability in the marketplace.

Psychological Factors Affecting Consumer Behavior

As one social psychologist has termed the "weapons of influence," there appear to be certain driving forces in human nature, or automatic psychological triggers, that propel individuals to respond in predictable ways to given requests (Cialdini 1993, p.3).

One such force is the principle of Reciprocation, whereby one feels obligated to return a favor that has been provided him (Cialdini 1993, p.17). This principle is most cle


An example of this principle at play is witnessed through the offering of testimonial contests by such big-name companies as Proctor & Gamble and General Foods (Cialdini 1993, p.39). In these contests, the companies ask participants to write short essays, often for large prizes, which include praise for the companies' products. Usually no purchase is required; what is more important is that by forcing potential customers to record, in writing, praise for the company's product, the company relies on the psychological drive of the individual to believe what he has written (Cialdini 1993, p 40).

With Southwest Airlines and JetBlue leading the pack, these airlines have achieved success and profitability responding to consumers' changed needs, mainly by cutting maintenance, operating and labor costs, such as by offering a single-plane platform and an open-seating policy (Plunkett Research 2005).

Though the gross domestic product in the United States has largely been generated by consumer spending since 1929-a full 60 to 70 percent of it- "the way consumers [generally] spend their money has changed significantly over the past 70 years (Danziger 2004, p.3)." It is claimed that, "today, over 40 percent of consumer spending is discretionary... based on wants, not needs (Danziger 2004, p.4)."

Apart from the psychological triggers that persuade individuals to comply with given requests, marketers must seek to understand the equally intriguing psychological processes at work in the unconscious mind that cause consumers to choose one particular course of action, or product, over another (Zaltman 2003, p.53). One example of such an unconscious process can be seen in the overwhelming tendency of customers to choose a product offered for $9.99 over an identical one offered for $10.00 (Zaltman 2003, p64).

The response was overwhelming, and a testament to the extraordinary power of reciprocation. The individual, aware that he had been given a gift and feeling the pressure to reciprocate, was often compelled to respond with a donation (Cialdini 1993, p.24).

In the meantime, of course, as full-service airlines have struggled to compete with the burgeoning success of the discount model, some, like Delta, have begun d

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Approximate Word count = 1505
Approximate Pages = 6 (250 words per page double spaced)


  

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