A theory of low involvement consumer behavior is emerging in the marketing literature, challenging a number of traditional theoretical and strategic assumptions. The traditional view of consumer behavior is based on the cognitive psychologist's assumption that consumers "think before they act". The low involvement perspective suggests that consumers may act based on the cumulation of communication exposures with little thought, and may evaluate brands afterwards. This perspective questions advertising's role as a means of influencing brand evaluations and enhances the importance of price and in-store stimuli in gaining competitive advantage. This article describes a theory of low involvement consumer behavior and cites the strategic implications of such a theory.
This paper reports on a relatively new basis for segmenting market by elasticity of consumer response to a change in a marketing stimulus. Segmentation by elasticity seeks to analyse change in consumer responses to changes in price, deal or advertising levels. This basis for segmentation is strategically important because it can aid management in determining the right price, deal or advertising level to direct to specific segments through the utilisation of basic microeconomic principles. The purpose of this presentation is to report on a relatively new basis for segmenting markets; by elasticity of consumer response to changes in a marketing stimulus. The concept is not new but the applications to market segmentation is new, logical, and strategically important.