Marketing is the activity, collection of institutions, and procedures for developing, conveying, delivering, and exchanging value-added solutions for consumers, clients, partners, and society at large.
How many times does one make decisions throughout the day?
What should I wear today?
Perfume should I put on? What am I getting to have for lunch?
If you think about it, we make many buying decisions a day without giving them much thought.
These decisions, as insignificant as they could seem, keep marketers up in the dark. Because decoding the processes behind customers’ decisions means we will use that info to spice up revenue.
What is the meaning of consumer behavior?
Consumer behavior is the study of consumers and therefore the processes they use to settle on, use (consume), and eliminate products and services, including consumers’ emotional, mental, and behavioral responses.
Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry, and economics.
In this guide, we’ll take a glance at the various aspects and facets of consumer behavior, and we’ll discuss the foremost effective sorts of customer segmentation.
Why is consumer behavior important?
Studying consumer behavior is vital because it helps marketers understand what influences consumers’ buying decisions.
By understanding how consumers choose a product, they will fill within the gap within the market and identify the products that are needed and therefore the obsolete products.
Studying consumer behavior also helps marketers decide the way to present their products in a way that generates a maximum impact on consumers.
Understanding consumer buying behavior is the key secret to reaching and interesting your clients and converting them to get from you.
A consumer behavior analysis should reveal:
What consumers think and the way they feel about various alternatives (brands, products, etc.);
What influences consumers to settle on between various options;
Consumers’ behavior while researching and shopping;
How consumers’ environment (friends, family, media, etc.) influences their behavior.
Consumer behavior is usually influenced by various factors. Marketers should study consumer purchase patterns and find out buyer trends.
In most cases, brands influence consumer behavior only with the items they will control; believe how IKEA seems to compel you to spend quite what you intended to each time you walk into the shop.
So what are the factors that influence consumers to mention yes? There are three categories of things that influence consumer behavior:
Personal factors: an individual’s interests and opinions are often influenced by demographics (age, gender, culture, etc.).
Psychological factors: an individual’s response to a marketing message will depend upon their perceptions and attitudes.
Social factors: family, friends, education level, social media, income, all influence consumers’ behavior.
Types of consumer behaviour
There are four main sorts of consumer behavior:
Complex buying behaviour
This type of behavior is encountered when consumers are buying an upscale, infrequently bought product. they’re highly involved within the purchase process and consumers’ research before committing to a high-value investment. Imagine buying a house or a car; these are an example of posh buying behavior.
Dissonance-reducing buying behaviour
The consumer very involved within the purchase process but has difficulties determining the differences between brands.
‘Dissonance’ can occur when the buyer worries that they’re going to regret their choice.
Imagine you’re buying a lawnmower. you’ll choose one supported price and convenience, but after the acquisition, you’ll seek confirmation that you’ve made the proper choice.
Habitual buying behaviour
Habitual purchases are characterized by the very fact that the buyer has little or no involvement within the product or brand category. Imagine grocery shopping: you attend the shop and buy your preferred sort of bread. you’re exhibiting a habitual pattern, not strong brand loyalty.
Variety seeking behaviour
In this situation, a consumer purchases a special product not because they weren’t satisfied with the previous one,
but because they seek variety. Like once you try out new shower gel scents.
Knowing what sorts of customers your e-store attracts will offer you a far better idea about the way to segment customer types.
What affects consumer behavior?
Many things can affect consumer behavior, but the foremost frequent factors influencing consumer behavior are:
Marketing campaigns influence purchasing decisions tons. If done right and frequently, with the proper marketing message, they will even persuade consumers to vary brands or choose costlier alternatives.
Marketing campaigns, like Facebook ads for eCommerce, can even be used as reminders for products/services that require to bought regularly but aren’t necessarily on customers’ top of mind (like insurance for instance ). an honest marketing message can influence impulse purchases.
For expensive products especially (like houses or cars), economic conditions play an enormous part.
A positive economic environment is understood to form consumers more confident and willing to enjoy purchases regardless of their financial liabilities.
The consumer’s decision-making process is longer for expensive purchases and it is often influenced by more personal factors at an equivalent time.
Consumer behavior also can influenced by personal factors: likes, dislikes, priorities, morals, and values. In industries like fashion or food, personal opinions are especially powerful.
Of course, advertisements can influence behavior but, at the top of the day, consumers’ choices are greatly influenced by their preferences. If you’re vegan, it doesn’t matter what percentage burger joint ads you see, you’re not gonna start eating meat due to that.
Peer pressure also influences consumer behavior.
What our relations, classmates, immediate relatives, neighbors, and acquaintances think or do can play a big role in our decisions.
Social psychology impacts consumer behavior. Choosing nutriment over home-cooked meals, for example, is simply one among such situations. Education levels and social factors can have an impression.
Last but not least, our purchasing power plays a big role in influencing our behavior. Unless you’re a billionaire, you’ll consider your budget before making a sale decision.
The product could be excellent, the marketing might be on point, but if you don’t have the cash for it, you won’t pip out.
Segmenting consumers supported their buying capacity will help marketers determine eligible consumers and achieve better results.
Customer behavior patterns
Buying behavior patterns aren’t synonymous with buying habits.
Habits developed as tendencies towards action and they become spontaneous over time, while patterns show a predictable mental design.
Each customer has his unique buying habits, while buying behavior patterns are collective and offer marketers a singular characterization.
Customer behavior patterns often grouped into:
Place of purchase
Most of the time, customers will divide their purchases between several stores albeit all items are available within the same store. consider your favorite hypermarket:
although you’ll find clothes and shoes there also, you’re probably buying those from actual clothing brands.
When a customer has the potential and therefore the access to get equivalent products in several stores, they’re not permanently loyal to any store, unless that’s the sole store they need access to. Studying customer behavior in terms of choice of place will help marketers identify key store locations.
Analyzing a handcart can give marketers many consumer insights about
the things that purchased and the way much of every item purchased.
Necessity items often bought in bulk while luxury items more likely to purchased less frequently and in small quantities.
The amount of every item purchased influenced by the perishability of the item,
the purchasing power of the customer, unit of sale, price, number of consumers for whom the item meant, etc.
Time and frequency of purchase
Customers will shop consistent with their feasibility and can expect service even during the oddest hours; especially now within the era of e-commerce where everything is merely a couple of clicks away.
It’s the shop’s responsibility to satisfy these demands by identifying a sale pattern and matching its service consistent with the time and frequency of purchases.
One thing to stay in mind: differences due to the season and regional differences must even accounted for.
Method of purchase
A customer can either walk into a store and buy an item right then and there or order online and pay online via Mastercard or on delivery.
The method of purchase also can induce more spending from the customer
(for online shopping, you would possibly even charged a shipping fee for example).
The way a customer chooses to get an item also says tons about the sort of customer he’s.
Gathering information about their behavior patterns helps you identify new ways to form customers buy again, more often and better values.
Think about all the info you’ve already collected about your customers.
the acquisition patterns are hiding in your e-store’s analytics and you’ll either search for insights manually or integrate a tool with your
eCommerce platforms like Shopify or WooCommerce to urge automated insights about behavior patterns.
Four factors determine the characteristics of consumer behavior: personal, psychological, social, and cultural.
All factors have a serious impact on a consumer’s behavior and therefore the characteristics that outline a customer will change as her/his life changes.