Answer to Question #113048 in Macroeconomics for taimoor

Question

How far ahead do people typically look in making market decisions?
Provide examples of different forms of market behaviour in this regard.

Answer 1

Factors to consider when making market decisions.

1. Price-The organisation must first make a decision on what price they are going to sell their product in the market before introducing it to the consumers.
2. Product-The company should also consider what product/services they are going to be dealing with or making.
3. Place-Place is also very important because you will come up with where your product will sell and also help situate your business.
4. Promotion- Promotional decisions are also very important because it helps establish channels that are going to be used to promote the product. i.e make it known to the intended consumers.
5. People- It is important to first establish what people you are targeting in the market. The age is also vital to consider in this situation.

Examples of different forms of marketing behaviors.

There are four main forms of marketing behaviors as discussed below with examples:

1. Awareness-This happens when a product is introduced in the market and consumers see it for the first time, this can be through the televisions, radios any other advertisement media.The consumers now have to make decisions about the product. For example Company x introduces product y in the market, at this point the consumers will be aware of existence of product 'y' in the market. The decision-making at this point is broad and general.
2. Preference-One the consumers become aware of the product in the market, they now start making preferences in regards to other similar products in the market. This helps them choose what they feel will satisfy their needs. For example Burger king and McDonald's, the consumers will choose what they feel its best foe them. Also consumers have different preferences.
3. Engagement- This is the mos important behavior from consumers. Here they get to use the product and decide whether the information they got initially about the product are true or not.
4. Advocacy- This is the process whereby after the consumers use the product that has been introduced in the market, they then decide to share information whether positive or negative about the product. This information will help the owner to determine whether his/her consumers like the product. He can make changes to the product to improve its performance in the market.