The study of consumer buying behaviour involves analysing the steps that customers do while deciding whether or not to buy a product that satisfies their requirements. It is an inquiry into the habits of consumers as well as the factors that influence their decision to buy and make use of specific products.
The study of consumer purchasing behaviour is essential for marketers because it enables them to understand what their target audience anticipates from them. It is helpful to have an understanding of the factors that influence a consumer’s decision to buy a product. In order to successfully launch a product onto the market, it is essential to first establish the types of things that consumers are interested in purchasing. Marketers are able to gain an understanding of the things that customers like and dislike, allowing them to tailor their marketing campaigns appropriately.
The study of consumer buying behaviour involves looking at a number of situations, such as what customers buy, why they buy it, when they buy it, how frequently they buy it, and many other characteristics.
Consumer researchers, for example, study consumer purchasing patterns with the objective of understanding why women purchase moisturisers (to reduce skin problems), the most preferred brand (Olay, L’Oréal), how frequently they use it (twice daily, thrice daily), where they prefer to purchase it (supermarkets, online), and how frequently they do so. Specifically, the goal of this research is to learn why women purchase moisturisers to reduce skin problems (weekly, monthly).
The Importance of Consumer Behavior
It is essential for a company to have an understanding of consumer behaviour in order to achieve success with the introduction of new items as well as the products that are already in their lineup. Every single consumer goes into the process of buying a certain item with a distinct mental framework and train of thinking. If a company is unable to anticipate how a customer would respond to its product, there is a significant possibility that the product will be unsuccessful.
Variations in consumer behaviour are caused by a variety of reasons, including but not limited to changing styles, technologies, lifestyles, trends, and levels of disposable money. In order to properly align marketing efforts, a marketer needs to be aware of the parts of the industry that are undergoing change.
What kind of relevance does the behaviour of consumers have while they purchase?
Differentiation of the Consumer
Consumer differentiation is a technique used in marketing to set one consumer apart from a group of related consumers. This makes it easier to create a target market of customers who exhibit the same or comparable behaviours.
Despite having a specific customer demographic in mind, there may still be differences amongst particular clients. Each consumer group is unique, and each group’s requirements and desires are different from those of other groups. A marketer can create unique marketing campaigns when he is aware of the differences between each set of consumers.
Your plans can be adjusted to meet the needs of various customer groups with the help of consumer differentiation. You can increase the depth and breadth of your services once you’ve differentiated your target audience. You’ll be able to assist a larger number of clients successfully.
Keeping current consumers on board
“Consumer behaviour is of utmost relevance to marketers in business studies as the main objective is to create and retain customers,” says Theodore Levitt, a business professor (Kumar, 2004).
The actions of existing customers are just as important to the survival of a business as are those taken to bring in new customers. When a consumer is happy with their purchase, they are more likely to make that buy again in the future. For this reason, it is essential to ensure that the product is sold in a manner that motivates clients to make further purchases.
Therefore, it should come as no surprise that obtaining new customers and retaining the ones you already have is extremely important. It is impossible to achieve this goal without first gaining an understanding of, and then paying attention to, the purchasing behaviour of consumers.
Establish a Plan for the Most Appropriate Marketing
Understanding how customers behave is essential to developing marketing strategies that are successful. Each advertisement has the potential to speak specifically to a different group of clients based on the behaviours that they exhibit.
When marketing to children, for instance, you may need to keep an eye out for certain forms of media, such as advertisements on television, activities at schools, and blogs that are geared at young mothers. You’ll need to employ a few different messaging tactics in order to appeal to the various types of customers.
Through the study of consumer behaviour, marketers can gain a deeper understanding of the factors that drive consumer behaviour. In addition, the same incentive can be employed in advertising media to excite the interest of customers in making a purchase, which can lead to increased sales. In addition, marketers should form their opinions regarding the company brand, coupons, packaging, and gifts based on the behaviour of customers.
Forecasting the Market’s Direction
An examination of customer behaviour will be the first indicator that there has been a shift in the patterns of the market. For example, people are currently gravitating toward trends that emphasise environmentally friendly products and cuisine as well as nutritious food options. This altering market tendency has been brought to the attention of a number of brands, including McDonald’s. As a direct response to customer demand, McDonald’s introduced a variety of healthier food options.
Instead of investing a significant amount of time and resources into the creation of a product that won’t be profitable for the company, the company should conduct research on consumer behaviour. For instance, a business will not waste resources by developing a product in the summertime when there is a high likelihood that it would not be purchased. The company decides on a production strategy that takes into account consumer preferences in order to cut costs associated with marketing and warehousing.
Create New and Innovative Products
Some of the most well-known brands include New Coke, Crystal Pepsi, Colgate Kitchen Entrées, Earring Magic Ken Doll, and Wheaties Dunk-a-Balls Cereal. We are all familiar with these products. Are you able to identify the parallels between these two products? They have all been a complete failure!
The unfortunate reality is that the vast majority of new ideas and new products are doomed to failure. There is an estimate of the percentage of new products that are unsuccessful, and it varies from 33% to 90% depending on the type of sector.
Companies make a concerted effort to improve the percentage of their new goods or new ideas that are successful on a regular basis. Conducting a reliable and in-depth study on customer behaviour is one of the most vital approaches to approach this problem.
Nike, with the assistance of consumer behaviour analysis, came to the realisation that the majority of its target audience is not comprised of professional athletes, but that a significant number of them aspired to be more like professional athletes. ‘Find Your Greatness’ was the name of a campaign that Nike debuted at the Olympic Games in London in 2012 in an effort to inspire more people to participate in sports.
It wanted to promote the goals of becoming an athlete, not just with high-performing athletes, but with all individuals regardless of their physical capability. This was done with the intention of including everyone. The campaign was meticulously organised and, of course, was data-driven. All of the available information was carefully reviewed before any action was taken. This message moved a great number of consumers and resonated strongly with the consumers we were targeting.
Conclusion
The Coca-Cola Company and Barclays are just two examples of successful companies that have continually worked to improve their existing products while also focusing on developing brand-new ones. The Coca-Cola Company performs market research to investigate consumer behaviour in order to align its corporate aim, which is to “refresh everyone who is touched by our business.” In order to achieve this alignment, the company’s corporate goal is to “refresh everyone who is touched by our business.” In a similar manner, Barclays conducted a consumer behaviour study in order to have a better understanding of the requirements of this particular target market.
The practice of analysing the behaviour of consumers has emerged as an essential tool for getting to know one’s intended market. By studying consumer psychology and the elements that drive customer purchase behaviour, businesses have the opportunity to develop new products, expand their marketing efforts, and increase their profitability.
Consultation with customers is essential, as is keeping an eye out for customer complaints; nevertheless, determining customer desires and expectations is of the utmost importance.
