Do you want to understand what actually consumer behaviour is? How it for real affects a customer? Here in this article, we have comprehensively discussed everything related to consumer behaviour including how it influences a customer, what role it plays in marketing, why even companies need such data and more.
In simple words, the broad concept of consumer behaviour can be summed up as a study of the behaviour of the consumers at a given point. It does sound easy in a way but is complex in nature. Understanding a human mind was never easy, nor is it now.
But yes, you can study behaviour to understand the pattern and how consumers make a final buying decision.
Again, being a broad human concept, you need to be really careful about how you want to carry out consumer research or understand it. To start with, you need to have a detailed understanding of your customers and their motivations.
- 1 So, What’s Consumer Behaviour?
- 2 What’s Consumer Behaviour In Marketing?
- 3 Which Factors Affect Consumer Behaviour In Marketing?
- 4 How Should You Carry Out Consumer Behaviour Research?
- 5 Importance Of Consumer Behaviour: Why Studying Consumer Behaviour Is Really Important?
- 6 Consumer Behaviour Impact: What Influences Consumers Behaviour?
- 7 How To Collect Consumer Behavior Data
So, What’s Consumer Behaviour?
To define, consumer behaviour can be stated as a study of individuals and organizations and how they behave and use products and services. Here a study is carried out to understand the intentions of a group of customers while they choose to buy a product or service.
The study of the behavioral pattern of consumers mainly deal with the customer’s psychology, their motivations to buy a particular product and what makes them take a final buying decision.
What’s Consumer Behaviour In Marketing?
So, you have definitely need to have a purpose of why you are carrying out a certain consumer behaviour research. This could either be related to understanding your target market and how you should improve. This directly is related to marketing.
With the study of the behaviour of consumers, you get a better idea of how people make decisions about what they buy or want or need or how they act to a certain product or service or how they perceive a particular brand or company.
In marketing, consumer behaviour is used to understand how potential customers will react to a new product or service.
You also have the opportunity to identify the gaps and what expectations are not currently met.
Which Factors Affect Consumer Behaviour In Marketing?
Consumer actions and marketing are primarily related to three factors that affect purchase decisions: psychological, personal, and social.
A. Psychological Factors
Physiological factors play a major role in how consumers make a final buying decision. This could be related to the perception of a need and an individual’s attitude. We are unique in nature, everyone will respond to a common marketing message in different ways, as each has their own perceptions and experiences.
Psychological factors are given prime importance during creating marketing campaigns and brand messages.
B. Social Factors
Apart from personal phycology, social factors also play a vital role in marketing. This could be about how a person has grown up in a family, social interaction, culture, communities and the social environment the person stays in.
Marketers often consider a person’s social class to target certain groups. It may be based on income, living conditions and sometimes even education.
While there could be thousands of social factors affecting a marketing campaign, it’s really important to analyze most of the important factors during developing any sort of marketing plan.
C. Personal Factors
Finally, coming to the third and another vital factor, personal characteristics. These are very specific and may not at all relate to other people, even within a group. Such personal characteristics include how an individual is making a buying decision, the particular habits, interests, and opinions.
Well, most marketers ignore them, it’s better to consider a few general personal factors like decisions made based on gender, age, culture, personal characteristics, and background.
How Should You Carry Out Consumer Behaviour Research?
There a few commonly used consumer behavioral models followed in marketing. These are not exactly research processes, but mere models on how consumers should be observed.
1. Black Box Model
Here the observation is done based on external stimulus-response. So basically you need to note down what triggers the consumers to make a final buying decision. What is influenced by? Like what factors make them buy that product or service.
This could include social media campaigns, marketing messages, product availability, promotions, and price.
2. Personal Variable Model
Here, consumers are observed while they are decisions based on internal factors. In the personal variable model, researches obverse what internal factors trigger them to buy a particular product or service.
This may include personal characteristics, opinions, belief systems, values, traditions, goals, or anything internal which is motivating them to do so.
3. Complex Model
Coming to our third and final consumer behaviour model, the complex model considers both internal and external factors. It’s a more comprehensive approach to understanding how consumers make a final purchasing decision.
The complex model evaluates all the related factors which influence a buying decision.
Importance Of Consumer Behaviour: Why Studying Consumer Behaviour Is Really Important?
The study the consumer behaviour plays an important role in shaping up better marketing strategies and taking decisions. If you don’t know anything about your target market, it’s foolish to market something.
Having vivid knowledge about the consumer will help a company take better marketing decisions by targeting the right set of potential customers.
Let’s check out a few points about why consumer behaviour is really important.
Studying consumer behaviour helps in production. This includes scheduling, designing, pricing and positioning.
Consumer behaviour helps to segment a target market for advertising and other promotional activities.
To understand the potential future problems and how to improve the current set of offerings.
Understanding consumer behaviour helps to develop a product that will actually be useful to consumers solving real-life problems.
Consumer psychology helps a brand to understand buying and purchase decisions. Thus it can identify the factors which influence consumer behaviour.
Consumer Behaviour Impact: What Influences Consumers Behaviour?
There are different factors which impact consumer behaviour. This could be related to attitude, perception, buying power, priorities and more.
Let’s understand what are the important factors which deeply influences a consumer buying decision.
1. Economic Conditions
Buying decisions are highly influenced by economic conditions. Negative conditions often affect purchases due to financial limitations.
2. Group Influence
Buying decisions of a consumer are also affected by group influence. Be it, family members, peers, classmates or friends, they often have a subduing effect on the purchasing decisions of a consumer.
3. Personal Preferences
Personal preferences influence consumer behaviour the most. Your likings, dislikings, priorities, values often affect the buying decisions of a consumer.
4. Marketing Campaigns
Marketing has a vital impact on several consumers. Good advertising often pays off. Purchasing decisions are very much influenced by strong marketing.
5. Purchasing Power
Purchasing power plays an important role in influencing consumer behaviour. A consumer generally purchases something within his capacity and makes a decision based on the pricing.
How To Collect Consumer Behavior Data
While there are different ways of how consumer behaviour and buying decisions can be observed, collecting such data can also be carried out in a number of ways. Different factors influence consumer behaviour.
So, a researcher should also be diverse in terms of collecting consumer behaviour data from multiple sources.
These are some of the most cost-effective methods of procuring consumer behaviour data.
Social Media Trends
Facebook Twitter Viral Trends
Using a mix of such methods help to obtain a variety of data from different sources.
Successfully understanding consumer behaviour can help a company create affluent marketing campaigns and retain a position eminently in a marketplace!
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.