Influential areas of my consumption patterns

My consumption patterns have majorly been influenced by the reference groups which have impacted by buying decisions through a variety of means. The norms set up by these reference groups have changed my mindset and perception regarding a particular product. My values and attitudes have mainly changed by being a part of these reference groups. My reference groups have brought about a specific set of thoughts and perseverance for looking at products differently, which have impacted my ideas (Bardhi and Eckhardt, 2017). My reference groups have exhibited similar social characteristics. As a result, all the members of the group have started reflecting such features and have changed their buying habits and patterns. I have derived substantial psychological and material benefits from being a part of my reference groups. Therefore, I follow all the influenced of my group for deciding on my consumption habits and patterns.

My different levels of group involvement have been compliance, identification, and internalization. Through compliance, I have reflected an overt behavior abiding by the beliefs and thoughts of the group without any demand on personal perceptions. Through identification, I have complied to maintain a social relationship with my reference groups. This process has further reinforced my self-perceptions. Through the third stage, that is, internalization I was bound to the values of my reference group even in their absence and has shown my sense of commitment (Koos, 2017). The different types of reference groups that have an immense contribution towards my purchase behavior are membership groups, formal and informal groups, primary or secondary groups. These groups include my family, friends, peers, business associates, shopping groups, club members, and my sports group, both professionally and personally. The brands endorsed by celebrities have less impact on my buying behavior and consumption patterns.

Changing habits of consumption and response of the companies

Looking over my consumption patterns over the years, I have observed that my consumption habits and trends have changed drastically over the past few years. The factors that have been responsible for this changing behavior are the income level of my family, change in my perceptions, change in my lifestyle, and change in my demographics (Sanlier et al. 2018). The income level of our family has increased, which has provided me the opportunity to opt for luxurious goods once in two months. Due to the increase of my age and education level, I have been engaged in buying more shoes and jewelry than stationery items.

One of the best ways adopted by companies to cope up with the current trends in the market is through extensive market research. Through surveys and similar methods, the companies have taken the initiative of understanding the current tastes and preferences of the customers (Seo and Park, 2018). The companies then have taken several measures to modify the products according to the current lifestyle and changing needs of the customers. Technology has played a vital role in this process when people are more engrossed in digital products. The companies have increased the manufacturing of such products at a tremendous rate.

Part 3

Recommendation for an advertising agency regarding the analysis of consumption activities

Any advertising agency should study individuals, groups, and organizations for determining consumer behavior. This is an integral part of understanding the needs and choices of the customers. Knowledge of customers is an influential factor for building up suitable marketing activities in a variety of social fields (Hua, 2019). Advertising agencies can collect information about particular users who are involved in marketing decisions. It is necessary for these agencies to get a more comprehensive picture of the needs and demands of the customers, and stay updated with the current trends. A questionnaire can be prepared for getting consumer’s opinions regarding the products of the company and also the competitors for understanding their motive of the purchase at a later stage (Pererva et al. 2018). The questions should not have a subjective or a much detailed answer. The answers can be either objective or one-word responses, which will attract more customers to provide their opinions.

The questions can also include feedback of customers regarding product improvements and the ways they are likely to consume benefits from the products. The reactions and responses of the consumers can be collected regarding the current products of the market, and their level of satisfaction can be realized accordingly (Reiner et al. 2016, September). Due to the rapid fluctuation of the market trends, consumers tend to buy goods or products that are marked as trendy and cool. The marketers should point out these stylish or cool products and add better features to them to attract the customers towards them. Through the analysis of these behavioral patterns, the marketers can follow five important techniques for improving their marketing activities.

1. Improvement of branding – In this technique, the marketers should take into account three important factors, that is, brand awareness, competitive comparisons and personification. Through brand awareness, the marketers should focus on the point whether the customers are aware and familiar with the advertising brand (Shaban et al. 2019, September). Through comparative comparisons, the marketers can analyse the position of their brands in the minds of the customers in comparison with the competitors. Through personification, the marketers can analyse the characteristics and traits that the customers tend to associate with the brand or its products.
2. Understanding of the personal details of the customers – The marketers should possess better information of the size of the market, target consumers and the most effective way to reach the customer base. The marketers should focus on the age, gender, marital status of the consumers, which are the basic demographic details. Further, the marketers can search out the number of members in the families of the targeted customers, their place of residence, level of education and the type of social media used by them (Patti et al. 2017). Through this way, they can stress on the product specifications according to the changing consumption patterns of these consumers.
3. Measuring the effectiveness of marketing techniques – The marketers can do a lot more than only promotion of the brand or generation of sales. Suitable studies can be designed for getting the feedback of the customers regarding the marketing messages transmitted to them through the marketing activities. The customer awareness and their reactions to particular marketing campaigns and activities can be collected and measured quantitatively (Revilla‐Camacho et al. 2020). Through the collection of this kind of data, the companies can maximise their marketing budget by designing marketing activities that would suitably reach and resonate with the targeted audience.
4. Identification of new opportunities – Market research is an efficient tool in marketing activities as the marketers will be able to understand the new market opportunities that are available to their companies. This will also help in gaining insights about the current conditions of the market such that the company can identify geographic regions of expansion and launch new products or services. The marketers can get specific data regarding the market size, demographics, market share statistics, industry dynamics, key competitors, major industrial suppliers, general data from industry and the geographic distribution of the firms.
5. Product features – The marketers can understand the amendments that are required to be developed within the products such that their values can be enhanced. The companies may also opt for replacing their existing products with new ones such that they can have the right features and packaging as demanded by the customers. Proper refining of products is necessary to cater to the changing demands of consumption patterns of the customers in the market (Pepe and Bournique, 2017). Innovation will play a major role in creating creative promotional contents that will be both catchy as well as beneficial to the customers and will automatically build up the sales of the company.