Consumer Behavior and Marketing Channels

Topic: Marketing
Words: 2311 Pages: 8


The aspect of consumer behavior is significant in organizational marketing. Before developing a given strategy to promote the products, marketers are tasked with the responsibility of evaluating the possible conduct of the target customers in the market. Companies with proper knowledge of its potential clients in the market have added advantages when it comes to formulating marketing messages. The focus of the report is to examine and evaluate Dollar Shave Club (DSC) and the impacts of different aspects of marketing in the industry. Furthermore, the analysis will cover different types of market segmentation that a company may use to separate various markets. Intensive details on the DSC advertisement, taking into consideration the social and physical environment and how they influence consumer behavior, will be incorporated into the report.

Background Information

The DSC Company was formed in 2011 by Michael Dubin and his colleague Mark Levine. The headquarter of the DSC business organization is located in Venice, California, US. The firm delivers personal grooming commodities such as razors to its consumers via mail. The products are provided to the customers on a monthly basis. Currently, DSC is operates in countries including Canada, the United Kingdom and Australia (O’Brien, 2018). The organization gives its clients a membership plan with the option of upgrading or downgrading whenever they choose to. In the market, the most significant percentage of DSC consumers is men, while women buyers consist of the most minor portion. The plans include Executive (six blades and four razors at $10), Humble Twin (five razors a month, two blades per razor, $4 monthly) and the 4X (four razors, four blades, $7) (Bischof and Rudolph, 2021). When delivering the subscriptions, the firm provides a comfortable handle to its subscribers. Apart from the razors, the business organization expanded its line of products to cover the hair care commodities, which are termed the ‘Boogies’. Some of the goods are hair paste, hair fiber, hair clay, hair gel and hair cream.

The company use video ads for marketing their products to the customers. Furthermore, it uses the website to promote its brand in the market. The firm uploaded a YouTube video content made by the chief executive entitled ‘Our Blades Are F***ing Great.’ The information captured the attention of potential customers, which made the organization register record-breaking sales of about 12,000 orders within a span of two days after the release of the promotion. The mechanism facilitated the industry to be the best among other firms using the videos to advertise their products. Similarly, its second marketing video called “Let’s Talk About #2” gained popularity on social media. It, therefore, implies that DSC is dependent on an online platform to showcase its products to potential customers in the consumer packaged goods industry. DCS marketing techniques have made the company evolve and become one of the renowned in the market (Martins, 2019). Consistent brand marketing, operative omnichannel scaling, and having good brand rivalry are vital aspects that have effectively promoted the business organization.

Literature Review

Generally, consumers are rational beings that make choices of what products and brands to purchase by first evaluating them from the available alternatives in the market. In most cases, customers value buying goods from the company that offers and communicate the products that will provide relevant solutions to the needs of clients. A number of factors play a significant role in influencing the need of consumers to purchase the commodity. According to the work of Soroka and Wojciechowska-Solis (2019), the motivation of a customer to buy a product is determined by the nature of the lifestyle they are having. The factor is essential for the DSC company since it is the motive of clients that will prompt them to purchase the commodities it offers in the market. Therefore, it is necessary for marketers to effectively evaluate and analyze various motivations that impact the choices consumers make in the industry.

Similarly, the need to attain consumer goals is a critical aspect that determines consumer motivations. DSC firm should be at the forefront to represent the prestige and status of the clients in their products. According to the research work by Shao, Grace, and Ross (2019), the consumption of luxury commodities depend on the ability of the goods to meet the goals of respective consumers in the market. In other words, consumers are self-monitoring and thus require products that are expressive. Based on the perspective of the study, the consumption of some types of products are individualistic, which implies the business organization should take into consideration the satisfaction of each client.

The process of consumer decision making is complex and entails several aspects that marketers have to consider. For instance, DSC should evaluate social and group forces such as culture, social class and reference group. In addition, it should examine sources of information and psychological aspects, including perception, attitude and personality of potential buyers in the market. Situational considerations, which entail conditions, why and when individuals buy, should be effectively incorporated into the marketing plans to enable business organizations to succeed in their operations. Based on the research work of Kumar et al. (2018), the presence of multiple choices for consumers makes their decisions impact businesses. It, therefore a challenge for companies to predict their patterns since they keep changing following the emerging issues in the market. Factors such as quality and innovativeness are critical in influencing the motives of consumers to buy a product or to purchase from a given brand in the industry (Kumar et al., 2018). It is necessary for DSC to value trends in order to meet the needs of customers.

Consumer behavior is significant in influencing the marketing strategies of business organizations. For instance, it enables the company to determine the nature and type of product to produce in order to meet their expectations. It makes marketers evaluate the practical approach to communicating and advertising their brand. Furthermore, the conduct of customers defines the prices, services and even distribution of the goods in the market. Moreover, DSC marketers should consider the type of information they provide to clients during the promotion. Since customers do not have unlimited time, their decision to purchase can easily be influenced by the clear, short and straight information they receive regarding the importance of the products (Sofi, Mir and Baba, 2020). Furthermore, the overall perception and attitudes toward the given commodity is a critical determinant of the reaction of customers to the items. These aspects shape the process and strategy of conducting marketing activities in the industry.


Marketing requires the right approach to pass the information to the target customers. Since there are varieties of potential consumers, it is essential for the business organization to group the clients differently based on various elements. Having direct focus enables companies to channel their energy to potential buyers making the firm have a large market share (Cortez, Clarke and Freytag, 2021). Aiming broadly, the campaign might only reach a few people who, in the end, become clients, while the majority of individuals who obtained the message are not interested in the brand. Lack of focus may make the firms spend more capital on advertising yet yield no value to the respective company. By dividing the market into smaller positions, the firm will be able to efficiently reach and meet the various unique needs of the sections.

In the industry, having adequate information about market segmentation is significant for the success of an organization. When DSC have a well-defined classification of its customers, it will be easier for the company to meet the needs of the respective group (Saleem, Eagle and Low, 2018). Having grouped the market into different strata allows the marketers to effectively understand the behaviors and intentions of the given division. In order to practically apply the aspect to the advertisement, business organizations can categorize the consumers into four distinct classes. The calcifications include demographic, geographic, behavioral and psychographic segmentation. By utilizing the aspects of dissection, DSC will be able to synchronize its advertisement operations in an effective way.

Demographic Market Segmentation

Demographic market segmentation is the grouping of markets based on variables such as income, education, age, gender, occupation, nationality, race, family size and religion. Based on this perspective, DSC should group its market into gender, age, occupation, income and religion of the consumers (Stefko et al., 2022). In relation to gender, since most of the products are for males, DSC marketers will directly target men between the ages of 18 – 50 years who shave continuously. Furthermore, depending on the prices of the commodities, the company should focus on both low and high-income earners because they both have the potential to purchase the products considering their costs. The named elements are easier to measure; thus, the company will be able to evaluate them accordingly.

Geographic Market Segmentation

Geographical segmentation is the division of consumer markets into regions, countries, cities, rural, urban and suburban areas where the markets vary. In the case of DSC, the company should determine places where its products can be sold effectively. For instance, it should focus on cities, countries and other regions that have potential consumers (Dolnicar, Grün and Leisch, 2018). The approach will enable the business organization to use different techniques to capture the attention of consumers.

Behavioral Market Segmentation

Behavioral market segmentation is an essential aspect of dividing consumer markets based on the uses, attitudes, knowledge and responses customers have to the product. The buying decision of clients is influenced by the conduct of customers. Therefore, it is significant for the DSC to establish various elements that it can apply to categorize the potential buyers (An et al., 2018). The practice will allow the firm to effectively and efficiently meet the unique needs of varied consumers in the market. Marketers are required to properly understand the patterns and behaviors of the clients. After comprehending the traits, it will be easier for DSC to tailor its commodities to satisfy the needs of consumers. Furthermore, subdividing the markets allows companies to use advertising personalization to ensure the demands of customers are met.

Psychographic Market Segmentation

Psychographic consumer market division is the classification of clients based on their psychological features. It is important for DSC to categorize its consumers in social status, interests, opinions, attitudes and personality. These aspects are key drivers that determine the decisions of a buyer concerning the products presented to them (Gomez, Loar and Kramer, 2018). The approach allows business organizations to comprehend what clients need, their perception of the goods and possible opportunities for engagement. DSC can use the method to capture the demands of various buyers hence focusing on meeting them.

Social and Physical Environment

The social environment is an essential consideration for the growth of any business organization. It plays a significant role in shaping the viewpoints of customers; therefore, it requires keen attention. DSC should consider changes in the households, cultural aspects, population structure and beliefs. These factors contribute massively to the behaviors of consumers. In order to remain relevant during marketing, the company should employ the aspects that match the needs of various social groups to meet their needs. Diverse cultural perspectives such as religion, education, way of living and norms are critical to the marketers (Brown, Foroudi and Hafeez, 2019). Understanding the cultures allows DSC to use strategies that fit different social groups. If the sub-cultures are not considered, they have the potential to impact the business negatively. For instance, assuming DSC advertise its products to male Islamic adults aged 60 years, they might see it as an offence since their religion requires them to have beards.

The physical environment of a business organization plays a significant role in the marketing mix of the company. The physical evidence positions the firm and makes it tangible to clients. In order for the DSC to have a proper image in the minds and eyes of consumers, it should have a proper display that can distinguish and show its marketing development (Mandal, 2022). Some of the key components include space planning, signage, ambiance, artifacts, interior design and other facilities. DSC should ensure that its physical environment creates a unique experience for the customers. For instance, having a proper store layout enables customers to have a clear picture of the products and possible directions to various sectors of the room.

Conclusion and Recommendation

The report indicates that marketing is a critical part of business operations that requires management to consider arrays of factors before implementing the right strategy. The availability of various product providers in the market enables consumers to have options during purchasing products. These aspects make consumers utilize behaviors that determine their buying decisions. However, for the firms to meet the needs of different clients in the market, they are required to group them into subsections. For instance, DSC should place its customers on the basis of demographic, behavioral, psychographic and geographic. The segmentation of consumer markets will enable business organizations to focus their resources on the right target, making the best outcome from the advertisement expenditure incurred. Similarly, social and physical environments are essential to marketers because they enable organizations to understand the need of various people and make the company position itself effectively in the minds of consumers.

Based on the analysis of DSC, the company should focus on the attitudes and perceptions of the customers about its product. The behavioral aspects of customers have more impact on their spending habits. If the business organization can be able to make customers have a positive attitude concerning the products they offer, the likelihood of developing loyal customers will be higher. Lastly, the enterprise should use its physical environment for advertising its brand. DSC management should ensure the display of the firm’s facilities is attractive and can make consumers have an enjoyable shopping experience. This will enable the entity to position itself as one of the best brands in the market.

Reference List

An, J., Kwak, H., Jung, S.G., Salminen, J. and Jansen, B.J. (2018) ‘Customer segmentation using online platforms: Isolating behavioral and demographic segments for persona creation via aggregated user data,’ Social Network Analysis and Mining, 8(1), pp.1-19.

Bischof, S. and Rudolph, T. (2021) Consumer Goods Subscriptions: How to win in retail in the 21st century. Walter de Gruyter GmbH & Co KG.

Brown, D., Foroudi, P. and Hafeez, K. (2019) ‘Marketing management capability: the construct and its dimensions: An examination of managers’ and entrepreneurs’ perceptions in a retail setting,’ Qualitative Market Research: An International Journal.

Cortez, R.M., Clarke, A.H. and Freytag, P.V. (2021) ‘B2B market segmentation: A systematic review and research agenda,’ Journal of Business Research, 126, pp.415-428.

Dolnicar, S., Grün, B. and Leisch, F. (2018) Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.

Gomez, A., Loar, R. and Kramer, A.E. (2018) ‘The impact of market segmentation and social marketing on uptake of preventive programmes: The example of voluntary medical male circumcision,’ A literature review. Gates Open Research, 2.

Kumar, A., Mangla, S.K., Luthra, S., Rana, N.P. and Dwivedi, Y.K. (2018) Predicting changing pattern: Building model for consumer decision making in digital market,’ Journal of Enterprise Information Management.

Mandal, P.C. (2022) ‘Promotion of sustainable marketing: Strategies and initiatives,’ International Journal of Social Ecology and Sustainable Development (IJSESD), 13(1), pp.1-11.

Martins, P.M.M.D.S. (2019) Shaving as a subscription: analysis of Portuguese male consumers interest on buying razors and blades by subscription (Doctoral dissertation).

O’Brien, J. (2018) Disruptive shave technology: Considering the Dollar Shave Club model for a UK Launch. SAGE Publications: SAGE Business Cases Originals.

Saleem, M.A., Eagle, L. and Low, D. (2018) ‘Market segmentation based on eco-socially conscious consumers’ behavioral intentions: Evidence from an emerging economy,’ Journal of cleaner production, 193, pp.14-27.

Shao, W., Grace, D. and Ross, M. (2019) ‘Consumer motivation and luxury consumption: Testing moderating effects,’ Journal of Retailing and Consumer Services, 46, pp.33-44.

Sofi, S.A., Mir, F.A. and Baba, M.M. (2020) ‘Cognition and affect in consumer decision making: Conceptualization and validation of added constructs in modified instrument,’ Future Business Journal, 6(1), pp.1-20.

Soroka, A. and Wojciechowska-Solis, J. (2019) ‘Consumer motivation to buy organic food depends on lifestyle,’ Foods, 8(11), p.581.

Stefko, R., Bacik, R., Fedorko, R. and Olearova, M. (2022) ‘Gender-generation characteristic in relation to the customer behavior and purchasing process in terms of mobile marketing,’ Oeconomia Copernicana, 13(1), pp.181-223.

Nilgai Foods Case Study: Positioning Packaged Coconut Water in India
Paw Palace: Strategic Marketing