Behavioral Marketing

Author: L. Eloy

Definition

“Science of studying consumers actions in order to determine what products, topics, or conditions influence their decision to purchase a new product”

Description

Behavioral Marketing investigates what conditions will incentivize consumers for a new product (what aspects will entice consumers to a product). It is basically a study of psychology and behavioral patterns; it is a study of how consumers (the public) select the products they buy and the reasoning behind their decisions.

Explanation and application

The aim of behavioral marketing is to establish a target audience, so that marketing strategies has the greatest influence on those consumers most likely to purchase the product. In doing so, it has to examine various aspects including age, gender, wealth class, etc. The relevance to supermarkets is that each store will want to investigate what draws consumers to certain products, how the positioning and display of a product will improve its purchase value, the type of products sold due to the average age group of an area (children, young adults, adults, seniors).


Links to Social and Ethical Issues


Please note that not all issues need to be addressed. Please add the URL or source of any examples to support your suggestion. It may be helpful to RANK the issues in the THIRD column.

Social & Ethical Issue
Examples that specifically link to the concept and/or definition in the Case Study
Ranking
1.1 Reliability and integrity
- if an employee incorrectly inputs data (whether unintentionally or intentionally), the changes that the supermarket makes in marketing their products will be directly reflected in their total revenue. Hence, incorrect data inputs can have major financial effects.

1.2 Security
- since this is a study of consumers, there is always the risk of infinging the consumer's privacy in his purchase of product. There is also the possibility that the consumer's personal information is hacked and released into the public, exposing all the consumer's purchases (possibly most frequent, most recent, most expensive purchases)

1.3 Privacy and anonymity


1.4 Intellectual property


1.5 Authenticity


1.6 The digital divide and equality of access


1.7 Surveillance


1.8 Globalization and cultural diversity


1.9 Policies


1.10 Standards and protocols


1.11 People and machines


1.12 Digital citizenship





References and resources




"Behavioral Marketing." Behavioral Targeting Blog. 22 Apr. 2011. Web. 15 Oct. 2014. <http://behavioraltargeting.biz/behavioral-marketing/>.