Consumer markets
| Consumer markets |
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| See also |
Consumer markets are markets where the products and services available to the general consumer are predominant and purchased for consumption, not resale. The generally accepted categorization of products on this market is food, transport products, consumer products, and retail products. Consumer markets are an increasingly important part of the market as world trade develops (E.Kaynak, S. Hassan, 2014, p. XIX)
Due to a large number of buyers and discrepancies in their purchasing preferences, product requirements or tastes, market segmentation is applied. It is aimed at grouping customers in such a manner that they have similar needs and similar patterns of behavior during shopping and selection of products or services. The distinction may be made, for example, on the basis of demographic or psychological characteristics. This process includes stages such as market definition, segment profit determination, segmentation base selection, but also market deficit and marketing strategy implementation (V. Jadczaková, 2013, p.1215)
A strong impact on the consumer markets has marketing practice which is called branding. Branding is about creating a brand that is recognizable to all buyers, through elements such as, for example, a distinctive logo or a name. These components make the brand stand out from the competition which has a positive impact on consumers purchasing behavior (S. Mudambi, 2002, p. 525-526).
Characteristic of consumer markets
Consumer markets are characterized by certain features relating to the buyers, sellers, relationships between buyer and seller, to available products or to the way in which products are advertised (S. Mudambi, 2002, p.527).
- The products available on the consumer markets is normalized and comparatively simple
- In this type of market, the connections between consumer and vendors are impersonal
- The main type of advertising that consumer markets rely on is advertising on the mass market reaching the largest number of potential customers
- When making a purchase decision, the emphasis is placed on the tangible product and intangible assets
- Costumers on the consumer market, as a result of the development of the global economy, have more and more demanding demands on the quality of available products and are more sophisticated, which affects the competitiveness of sellers
- Consumer markets are highly competitive. Many of the same or similar products and services are offered by different companies. Customers who are constantly gaining experience in buying usually expect high quality at a relatively low price. Therefore, sellers must take care to create a brand and gain the trust of customers so that it is their products that enjoy the greatest popularity
- An important issue for the sellers on these markets is also the risk related to the fact whether a given product or service will be popular in the future.
References
- Chi-Man Hui E., Lo. T. K. K, Chen J., Wang Z., (2012), Housing and consumer markets in urban China, "Construction Management and Economics", vol.30, p.117-131
- Jadczaková V., (2013), Review of segmentation process in consumer markets, "Acta universitatis agriculturale et silviculturae mendelianae brunesis", p. 1215-1224
- Kaynak E., Hassan S., (2014), Globalization of Consumer Markets: Structures and Strategies, Routledge, London
- Mudambi S., (2002), Branding importance in business-to-business markets: Three buyer clusters, "Industrial Marketing Management", vol.31, p.525-533
- Ramsay I., (2012), Consumer Law and Policy: Text and Materials on Regulating Consumer Markets, Bloomsbury Publishing, Oregon
Author: Gabriela Jopek
