What is consumer behavior?
Consumer behavior is the study of how people select and use goods, services, events, and concepts. It is crucial because it enables companies to comprehend the needs, wants, and desires of their customers and develop products accordingly. The study of consumer purchasing behavior is crucial for vendors because it helps them understand what customers expect from them. Understanding what prompts a consumer to purchase a product is useful. In order to introduce a product to the market, it is critical to determine the types of products that consumers prefer.
Marketers can comprehend what consumers like and dislike, so they can design their marketing strategies accordingly. Consumer buying behaviour examines a variety of situations, including what consumers purchase, why they purchase it, when they purchase it, how frequently they purchase it, and many other factors. Consumer researchers, for instance, study consumer purchasing patterns with the goal of understanding why women purchase moisturizers (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 (weekly, monthly). It’s instructive to hear some of the first-cut consumer opinions about what they think about various brands and what they anticipate from electronic devices and gadgets.
Consumer behavior. is important in marketing
For a business to be successful with both the launch of new products and its current lineup of products, it is imperative to comprehend consumer behaviour. Every customer approaches purchasing a specific product with a unique thought process and attitude. There are many chances for product failure if a company doesn’t comprehend how a consumer will react to a product. Consumer behaviour changes as a result of evolving fashion, technology, trends, lifestyles, disposable income, and similar other factors. To align marketing efforts appropriately, a marketer must be aware of the factors that are changing. What significance does consumer purchasing behaviour have? In this article, we list a few of them.
1. Differentiation of the Consumer
Consumer differentiation is a technique used in marketing to set one consumer apart from a group of related consumers. This aids in creating a target market of customers who exhibit the same or comparable behaviour. Despite having a specific customer demographic in mind, there may still be differences between particular clients. Each consumer group is unique, and each group’s needs 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 group of consumers. Your strategies 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.
2. Retaining customers
“Consumer behaviour is of most importance to marketers in business studies as the main aim is to create and retain customers.” In addition to attracting new customers, consumer behaviour is critical for retaining existing ones. A satisfied customer is more likely to make the same purchase in the future. Therefore, it is important to market the product in a way that encourages repeat purchases from customers. Therefore, it is obvious that acquiring customers and keeping them is crucial. Only by comprehending and paying attention to the consumer’s purchasing behaviour can this be accomplished.
3. Create a programme for relevant marketing
You can develop successful marketing campaigns by understanding consumer behavior. Based on their behaviour, each campaign can speak specifically to a distinct group of customers. For instance, when marketing to children, you may need to keep an eye out for media like TV ads, school programmes, and blogs that cater to young mothers. You’ll need to use various messaging strategies for various consumer groups. Marketers can better understand what drives consumer behavior by studying consumer behaviour. Additionally, the same motivation can be used in advertising media to increase consumers’ interest in making a purchase. Additionally, marketers should base decisions on consumer behavior when it comes to the brand logo, coupons, packaging, and gifts.
4. Market trend prediction
An analysis of consumer behaviour will be the first to point to a change in market trends. For instance, healthy food and environmental friendliness are currently popular trends among consumers. Many brands, including McDonald’s, have noticed this shifting market trend. They introduced new products based on consumer behaviour. A company can avoid spending a lot of money and resources on making a product that won’t be profitable by instead conducting a consumer behaviour study. For instance, a company won’t squander resources creating a product in the summer that won’t sell. The business chooses a production strategy based on consumer behaviour that will reduce marketing and warehouse expenses.
5. Competition
One of the most important reasons to study consumer behaviour is to find answers to the following questions:
- Does the client purchase from your rival?
- Why would a customer choose your rival over you?
- What qualities of your competitors’ products draw customers in?
- When comparing your products to those of your rivals, where do customers see gaps?
Understanding and dealing with competition are made easier by studying consumer behaviour. Your brand may have a competitive edge based on consumer expectations.
6. Create novel products
According to the industry, an estimate of new product failures ranges from 33% to 90%. Businesses consistently work hard to increase the likelihood that their novel ideas or new products will succeed. One of the most crucial methods is to carry out a thorough and careful study of consumer behaviour. Nike discovered through consumer behaviour analysis that while the majority of its target market does not consist of competitive athletes, many of them aspire to be more like them.
Therefore, Nike launched the “Find Your Greatness” campaign to promote athletics at the London Olympics in 2012. It was intended to encourage people of all physical abilities, not just elite athletes, to pursue their aspirations of becoming athletes. Many consumers were motivated by this message, and target consumers found it to be very appealing.
7. Stay relevant in the market
The biggest challenge we all face is remaining relevant to our target market in a world where change is occurring as quickly as it is right now. And do you know what the primary cause of these sudden changes is? It is the consistently shifting behavior of our clients. Consumers today have more options and opportunities, which makes it easier for them to switch to a business that provides better goods and services. The company will only lose market share if it becomes irrelevant. Have we not seen how the Sony Walkman struggled to remain relevant in the digital music era and how the taxi industry failed to prepare for the rise of Uber?
8. Enhance your customer service
Consumers needs different levels of customer service, and knowing how your customer base differs from one another will help you deliver the best service possible. If you run an electronics store, for instance, high school or college students purchasing a new laptop are more likely to know what features they want than someone purchasing his first computer. With the first group, your service goal will be to tell customers about the latest technological trends. With the second group, you’ll need to spend more time educating the customer, finding out what his specific needs are, and even showing him how to use the features of his new electronic device.
Also Read: ChatGPT: The Future of Education or the End of MBA’s?
Conclusion
Leading businesses like The Coca-Cola Company and Barclays have enhanced their current products while concentrating on creating new ones. The Coca-Cola Company conducts market research to identify consumer behavior in order to align its corporate strategy, which is to “refresh everyone who is touched by our business.” In a similar vein, Barclays carried out a consumer behavior study to learn more about this target market’s requirements. Analyzing consumer behavior has become a crucial tool for comprehending your target audience. Companies can create new products, market campaigns, and boost profitability by examining consumer psychology and the factors that influence consumer purchasing behavior.
