Why your customers are always right?
Understanding why the behaviour of your consumer is key to your offer?
Consumer behaviour is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers’ emotional, mental, and behavioural responses. Consumer behaviour incorporates ideas from several sciences including psychology, biology, chemistry, and economics. So in other words it is the science of why people buy.
Studying consumer behaviour is important because this is the way we can understand what influences customers’ buying decisions. By understanding how they decide on a product they can fill in the gap in the market and identify the products that are needed and the products that are obsolete. Studying consumer behaviour also helps us decide how to present our products in a way that ensures they get noticed. Understanding consumer buying behaviour is the key to reaching and engaging your clients, and converting them to buy from you.
A consumer behaviour analysis should reveal:
What consumers think and how they feel about various alternatives (brands, products, etc.);
What influences consumers to choose between various options;
Consumers’ behaviour while researching and shopping;
How consumers’ environment (friends, family, media, etc.) influences their behaviour.
Consumer behaviour is often influenced by different factors. Marketers should study consumer purchase patterns and figure out buyer trends. In most cases, brands influence consumer behaviour only with the things they can control; like how IKEA seems to compel you to spend more than what you intended to every time you walk into the store.
So what are the factors that influence consumers to say yes? There are three categories of factors that influence consumer behaviour:
1. Personal factors: an individual’s interests and opinions that can be influenced by demographics (age, gender, culture, etc.).
2. Psychological factors: an individual’s response to a marketing message will depend on their perceptions and attitudes.
3. Social factors: family, friends, education level, social media, income, they all influence consumers’ behaviour.
Types of consumer behaviour
There are four main types of consumer behaviour:
1. Complex buying behaviour
This type of behaviour is encountered when consumers are buying an expensive, infrequently bought product. They are highly involved in the purchase process and consumers’ research before committing to invest. Imagine buying a house or a car; these are an example of a complex buying behaviour.
2. Dissonance-reducing buying behaviour
The consumer is highly involved in the purchase process but has difficulties determining the differences between brands. ‘Dissonance’ can occur when the consumer worries that they will regret their choice. Imagine you are buying a lawnmower. You will choose one based on price and convenience, but after the purchase you will seek confirmation that you’ve made the right choice.
3. Habitual buying behaviour
Habitual purchases are characterised by the fact that the consumer has very little involvement in the product or brand category. Imagine grocery shopping: you go to the store and buy your preferred type of bread. You are exhibiting a habitual pattern, not strong brand loyalty.
4. Variety seeking behaviour
In this situation, a consumer purchases a different product not because they weren’t satisfied with the previous one, but because they seek variety. Like when you are trying out new shower gel scents.
What affects consumer behaviour?
Many things can affect consumer behaviour, but the most frequent factors influencing consumer behaviour are:
1. Marketing campaigns
Marketing campaigns influence purchasing decisions a lot. If done right and regularly, with the right marketing message, they can even persuade consumers to change brands or opt for more expensive alternatives. Marketing campaigns can even be used as reminders for products/services that need to be bought regularly but are not necessarily on customers’ top of mind (like insurance for example). A good marketing message can influence impulse purchases.
2. Economic conditions
For expensive products especially (like houses or cars) economic conditions play a big part. A positive economic environment is known to make consumers more confident and willing to indulge in purchases irrespective of their personal financial liabilities. Consumers make decisions in a longer time period for expensive purchases and the buying process can be influenced by more personal factors at the same time.
3. Personal preferences
Consumer behaviour can also be influenced by personal factors, likes, dislikes, priorities, morals, and values. In industries like fashion or food personal opinions are especially powerful. Advertisement can, of course, help but at the end of the day consumers’ choices are greatly influenced by their preferences. If you’re vegan, it doesn’t matter how many burger joint ads you see, you’re probably not going to start eating meat because of that.
4. Group influence
Peer pressure also influences consumer behaviour. What our family members, classmates, immediate relatives, neighbours, and acquaintances think or do can play a significant role in our decisions. Social psychology impacts consumer behaviour. Choosing fast food over home-cooked meals, for example, is just one of such situations. Education levels and social factors can have an impact.