Consumer behavior has a great impact on the marketing strategy and marketing mix developed by a company. Critics and researchers in consumer behavior (Schiffman and Kanuk 2003) are greatly concerned with the antecedents, activities, and outcomes of consumer actions. They have investigated the purchasing procedure, buying decisions, and consumption situations. By analyzing and classifying consumers according to several variables, these researchers attempt to predict the outcomes of consumer decisions. The variables studied deal with both the consumption setting and the characteristics of the consumers themselves.
Consumer Perceptions and Learning
Following Schiffman and Kanuk (2003), marketing research on consumer behavior has taken many ways. Some of the methods have been aggregative, including analysis of total expenditures by the consumer as members of social groups and total expenditures for different classes of items. Other researches have focused on individual customer decisions, dealing with both static and dynamic methods of consumption.
Whereas some research studies focus on behavior at a point in time, others focus on behavior over a definite period. Several critics (McDonald and Christopher 2003) underline that the elementary descriptions of behavior, which are most unrealistic and superficial, but still useful for purposes of analysis. Other research projects employ quantitative models and simulations or use qualitative models to relate attitudes, expectations, and motives with purchase incentives, perceptions, and structures. In general, “consumer behavior is considered to be the consequence of patterns or constellations of stimuli” (Schiffman and Kanuk 2003, p. 2).
Among the most relevant investigations of consumption patterns are those that focus on behavior as part of the sweep of problem-solving methods. These methods are concerned with cognitive issues, families, and households, and segmenting markets by attitude and actions rather than solely on a demographic basis. “It is important to recognize that the world in which consumers behave is, in reality, extremely complex, filled with continual commercials, pretty packaging, and confusing choices” ” (Schiffman and Kanuk 2003, p.3).
Product Description
iPod opens a new millennium in technology and games. Regular sales of 1.5 million products have made the company one of the popular brands in the world. The accomplishment of the product under analysis is explained by different issues which have a great influence on the digital market and potential buyers. The history of the iPod goes back to 2001. Today, the company sells different types of iPods: the hard-drive-based, the touchscreen, the video-capable, and the screenless.
Before the iPod, Apple sold other digital devices including digital cameras, camcorders, and organizers. The reason for the product’s popularity is innovation. For the innovation of new approaches to the digital age to be winning a high degree of addition is needed between all involved.
Fill in the article Innovation Processes uses the term “creative innovation” to depict Apple’s product and service growth. In this case, Apple iPod can be characterized as an innovation that is built into their method of doing products, a ‘passion for integrity’ which applies to the staff, buyers, suppliers, and other stakeholders such as the global society. The trendy product has a lot of accessories designed by the company to attract potential consumers (Paley 2006; Bearden et al 2004).
Consumer Behavior and Prediction of Marketing Treads
The example of the iPod suggests that consumer behavior and perception of the product have a great impact on product development and marketing strategies. (Perception is defined as the psychological processing of information received by the senses” (Schiffman and Kanuk 2003, p. 6).
Marketing analysis of iPod factors affecting consumer behavior and the prediction of trends is applied by Apple. Much of the research on consumer purchases and consumption deals with the statistical correlation of variables associated with consumer behavior, or with probabilities of other brands. Such marketing research recognizes that iPod consumption units properties of their own that affect the relationships between buying antecedents and consequences. Furthermore, these properties change over time (Paley 2006).
The case of the iPod portrays that innovations should be based on creative ideas, should be available for a large target audience, and proposes unique solutions to daily problems without additional spending (such as free downloads). iPod combines these features and proves the success of these strategies. Apple follows so-called creativity circles as the most popular method in order to improve innovation culture that is usually unfavorable to market and demand issues. Increasingly today, Apple’s project team is managed by financial and marketing strategies to respond effectively to customers’ needs (Bearden et al 2004; Crawford 2003).
Learning Experience
The buying process followed by iPod can be described as customer learning that influenced and is influenced by buyer’s awareness. In this case, awareness has an impact on the choice and understanding of management data, brand messages, and ideas. Because buyer awareness influences the opportunity of probable outcomes from a variety of buyer choices, it is a significant issue in the personal and social approach to the product.
In general, buyer awareness determines how the product message is understood and perceived by the potential audience of consumers. Both theorists and marketers are interested in consumer behavior. iPod, marketing is concerned with changes in group behavior — those changes that affect many people in a similar manner over time. Theorists are concerned with explaining individual behavior, sometimes on a clinical basis. Their research focuses either on the extremely simple forms of behavior or on the change in behavior of a person through clinical techniques not wholly applicable to groups.
iPod, on the other hand, concerned with complex changes in consumers and consumption, has often adopted naïve methods of explaining behavior (Paley 2006). Applied to such products as Apple iPod, buying behavior can be seen as usual, which includes careful considerations and analysis of the product and its qualities. The product demands reflection and assessment over a definite time; from purchases made by the person to those actions approved by the company (Doyle and Stern 2006).
The desires for making purchases vary among consumers. The example of iPod brand image portrays that such features as personal self-image, social position in society, usefulness, wealth, cost, repair, and securities may be important to diverse customer audiences of the market. Motivation, though significant to consumption and supportive in explaining consumer motives, need not be the only governing force. It refers to only one means by which consumer behavior is initiated or aroused. Some behavioral reactions are not motivated in the ordinary sense of seeking need gratifications (Kotabe and Helsen, K. 2005).
The triumph of the iPod is a result of a unique and outstanding company’s ideology which takes care of fast, simple, and low prices. The case of the iPod vividly portrays that this method of marketing is based on the product’s unique understanding of the issue of music, also, the payback the product proposes and issues it follows. As modern buyers become more sophisticated in their preferences and demands related to price, flexibility, and product uniqueness Apple iPod is the best selection for this buyer segment (The Guts of a New Machine 2003).
The product under analysis not only permits this market segment to save precious lifetime, but it allows the people to decrease the usage of such old-fashioned products as tapes and CDs. Today, free downloads are the main issue of Apple’s popularity and market dominance. The music downloads are free of charge, with the costs covered through advertising profits (Bearden et al 2004).
Motivation Factors in Consumer Behavior
Motivation is defined as the stimuli inducement, purpose, or a need behind an action. The drivers of motivations are various factors including the primary needs, such as hunger, thirst, air-getting, sex, and temperature and psychological needs, such as exercise, rest, preservation, and novelty; aesthetic factors of motivation are such as color, tone, and rhythm; and emotional factors include fear, rage, and repugnance.
Applied to iPod, it is possible to say that an effective marketing tool to the study of motives is followed by the company, with motivations perceived as the main psychological needs (Paley 2006). Customers’ motivations and personal needs persuade them to make a purchase without an “adequate” analysis of the opportunities and threats of the product. Brand image and uniqueness of iPods lead consumers to careful analysis of the purchase, but because of such reasons as product image, color, brand, and product fashion, consumers are motivated by the factors of pride, personal belonging, and aspiration.
For iPod, rational motivation and emotions are related to reasonable and sound behavior patterns and are inspired by the uniqueness of the product, exceptional service proposed by Apple, toughness, and functionality of iPod (Evans et al 2004).
From the consumer’s point of view, iPod advantages depend on what a consumer thinks and feels. If a consumer acts to achieve his objectives effectively, his behavior is rational regardless of what manufacturers, retailers, or social critics might believe. Wisdom applies self-approved reasons for purchasing or not purchasing — those that the consumer feels to be right and reasonable because they are in line with his own expectations and image of himself (Kotler and Keller 2005).
For instance, the need to possess a well-styled car, exceptional design in equipment, or delicious food may not be economic and useful. Such a need may be well balanced, but as a result, what might come into view of a buyer to be an irrational acquisition object because the stimulating action is sensitively based. Motivations and emotional actions of customers are approved by the marketers and well-designed by advertisers, who want to satisfy the psychological demands of potential consumers, even though issues for buy may disagree with what marketers feel should be done or are not willingly apparent to critics.
Applied to iPod, motivation research tends to disclose the psychological basis for consumer choice, which is certainly not the most economic course. Another approach allows to say that the motivational wish used by Apple iPod is a collective one, and consequently, the basic motive and implementation of its promotion and positioning are international. The modern music market is influenced by increasing capital injections, so the next 5-10 years will be marked by increased sophistication of iPod consumers and new competition threats (Fill, 1999).
Conclusion
The analysis and evaluation of the iPod show that consumer behavior has a great impact on purchases and marketing strategies introduced by the company. Physiological needs are considered the most important of all. All other factors and needs are either pushed into the background or become nonexistent for apple. When the internal needs of consumers are satisfied, other higher needs emerge and start to dominate the consumer’s mind.
When these needs and desires are satisfied, newer and still higher needs keep emerging, and so on. The innovative approach followed by iPod vividly portrays this process of consumption. After seeking satisfaction, Apple’s consumer becomes a safety-seeking person. Apple satisfies needs through such devices as innovations, unique brand image, and packaging. When the emotional and personal needs are well gratified, the need for a unique personal image, including affection and belongingness, emerges.
These unique needs and motives will be keenly felt as never before. Consumers will be apt for affectionate relations with other people — for a place and unique personal image proposed by iPod. As a result, different social statuses and product symbols emerge as a means of satisfying such needs. Consumers are motivated to achieve various conditions through which satisfaction of basic needs will be achieved. The example of Apple shows that marketing organizations today are operating in a different environment, which is different from the one they operated in 20 years ago and will also be in the increase in the future as a result of competition in the service industry and the customer becoming more demanding requiring value for their money.
One of the changes is a fiercer and more intense competitive rivalry. Companies have understood that they cannot use price only to maintain and increase their market share in a competitive market and many have focused on customer service in order to develop a competitive advantage. Another change is that customers are more demanding.
Today customers expect more than a high-quality product and competitive price they expect a high-quality service. the economic situation of Apple and iPod shows that many retail companies fail to meet increased economic pressure and new social changes which lead to profits decline. The example of Apple and iPod allows us to say that service today has become a vital element for the hearts, minds, money, and support of the customer; it also drives customer loyalty and repeats business. This is now more important to an organization’s survival.
Quality management is the process by which a business can improve its customer satisfaction, customer loyalty, competitiveness, and profitability. As companies strive to compete with each other to provide quality customer service, an area in which it has become a focus for the business is the food retail industry Apple and iPod’s core purpose is to create value for customers to earn their lifetime loyalty.
One of the reasons for Apple and iPod’s success is the continuing pursuit of its mission. Another reason has been the implementation of its customer loyalty card. Though, in order to keep its competitive position in a competitive market, Apple and iPod must concentrate their attention on improving customer service and investing in their staff through ongoing innovation, development, and growth facilities.
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