Consumer Groups and Behavior (Essay Sample)

Barbarito capote
American Intercontinental University
Consumer groups and behavior
Project Type: MKTG310 Unit 5 Individual Project
MACROBUTTON DoFieldClick Date of Submission
Abstract
The paper below explains in detailed manner about the consumer behavior. The federation of American consumer and travelers is chosen as a consumer group for the study. It also explains on the ways which the company can use to increase its sales and the post purchase dissonance in a detailed manner.
Consumer groups
Federation of American Consumers and Travelers also known (FACT)
Introduction
In an economy, consumers align themselves with various types of groups. They can either associate themselves by forming a specific group with the same needs and lifestyles or be against each other. Consumers that are friends, like minded and those who trust on a particular brand align themselves and relate to each other. At that point, they form a consumer group thus a target market for that particular brand.
Historical background
The Federation of American Consumers and Travelers also known as FACT would form the basis research regarding the consumer groups and behavior. The federation is a nonprofit organization formed by the citizens so as to address consumer problems and their relationship with the government. Demographically, the federation has grown in a number of years with few members offering services to a few American consumers to now offering benefits to more than one million citizens in all fifty states that are life changing. (FACT Website)
FACT is a nonprofit organization formed under nonprofit corporation laws that’s main aim is to offer services to the members not based on interest making or financial benefits. They are perfect avenues to consumers who want to save money on some essential needs. They offer services such as insuarance.travel savings and discounts, scholarships, health discounts and shopping discounts. The federation tries to maximize the quality of lives of the Americans while significantly lowering the cost of living. (FACT Website)
Demographics, psychographics of FACT
Physiographic is the attributes that relate to beliefs, norms, values that a particular set of people show. American consumers under the federation have a unique buying style In that they have similar buying styles. They are people of the same class with the similar needs thus they came up with the union that could meet their demands by offering the services at an affordable rates and prices. The federation was able to rationalize and reduce the prices charged on commodities making the people benefit together from all the states.
Most consumers that were targeted by the federation when it was formed is the middle income earners. They entail a class of the people who form the highest population of the US government. They are those who spend most and are mostly affected by the price crises in almost all aspects. In order to care about their needs the federation was formed. It resulted to reducing the travel and healthcare charges and making their lives affordable and comfortable.
Historically the federation has been on operation for the last and in the period of formation, it consisted of a small group of Midwesterners who did not have a lot in common and they just depended on themselves on their provisions. Afterwards the started knowing that they could solve their problems and get access to the services at a affordable prices by forming a group of likeminded individuals. The group was not to be defined by religion politics age or religion. As a result, they could make a difference in their lifestyles. (FACT Website)
A person a culture goes a long way to determining individuals’ behavior patterns, values and believes. The American middle income earners strongly believed in individualism also known as capitalism. This came to determine why and how individuals purchased goods and their purchasing behaviors’ the American culture of individualism acted as an influence forcing the middle income earners to form groups as they felt the pain of doing things alone. After the moment, they realized that there was the need to bargain as a group by forming the initiative of coming up with a federation. (FACT Website)
Role of group dynamics for the federation of American consumers
Human consumption behavior and preference are greatly influenced by those are majorly influenced by those of their reference groups. Peers or higher status group tries to identify themselves with their groups when making purchasing decisions. However the dynamics of these groups are affected by different factors such as their relationships, technology change and product brands.( Harthman,2009)
When it comes to FACT, as technology change and more issues come up, the federation tries to absorb them and find the solution on how they could offer assistance to its members. Issues such as the consumer complaints insurance polices and travel policies have propped up. Initially these issues were nonexistent but due to technology and risks the occurrences they came up and there was need to address them.
Many Americans of the middle income earners category came together with similar needs and product preferences. They formed an organization that will spearhead their needs to be taken into consideration by linking up with the government. Due to their closeness and the group they formed their problems could easily be solved. They were able to enjoy high living standards in spite of the higher cost of living and their complaints could easily be solved.
The group’s decision-making process
Group decision making process entails finding the best option form a feasible set where more than one individual participate. It’s always done in a critical situation which a particular option must be taken into consideration in order to execute an idea. It takes place in a risky situation where constraints and consequences are not known.
In relation to federation of American consumers and travelers, the application of group decision making process played a critical role. The citizens to come together and by forming a forum which all citizens could air their complaints on the economic matters. In addition the federation is able to bargain for the rights of its members. They also help individuals to pursue legislative cases such as criminal activities and safety. (Harthman, 2009)
Strategies that a company can do to improve sales
In order for a company to improve sales, it should adopt different strategies that complement each other to increase sales volume and revenue. The main strategy is to increase the marketing. This will boost the sales to a maximum point of the company desires. The company would improve the marketing by conducting a proper market research and communicating to the target market. (Edmunds, 2014)
By reviewing the pricing strategies and checking what the competitors offer then the company would decide on the levels they can fix their prices. When the company lowers the revenues that would make for the lower margin also the prices are raised they create a higher perceived value in the customers’ minds thus increasing the profit margins. Raising prices of the products can also can increase revenue when sales are kept constant.(Edmunds, 2014)
Diversification of the products offered by the company increases the sales. The company will be able to grow exponentially especially for a mature business. This is by the company offering products that feel their consumer also needs them. After a careful study by (Edmunds, 2014) he noted that in order to increase sales, replacing old products with the ones will work that is if the new products are of higher price.
The company can develop customer relationships and partnering with different societies. This would make the product brand to be known and stand out. Formin...