Marketing is much more than generating eye-catching content and using engaging advertisements. One of the sole aspects of marketing is understanding consumer behaviour to offer products according to their tastes and preferences.
What is Consumer Behaviour in Marketing?
Consumer behaviour, by definition, is the study of customers, their likes, dislikes, and their trends in purchasing specific products and services. It is about understanding what they are likely to buy, why, and when. Knowing consumer behaviour meaning and studying it has become even more critical in the last few years, helping companies devise marketing campaigns.
For instance, if you sell commodities of a higher price amongst customers with a lower per capita income, your products are likely to fail, and you would earn no profits. Or suppose you sell an item that is against the general purchase trends of the customers. Your articles/products would not sell well. Thus, studying consumer behaviour helps select your target customers and alter your products according to their needs and choices.
Why is Consumer Behaviour Important?
There are several benefits of studying the scope of consumer behaviour. While on the one hand, consumer behaviour can help you implement specific field marketing strategies for your customer base. It also enables you to trace the prevalent trends in the market: this, in turn, helps you understand the kinds of products and services you can sell to maximize your profits. The characteristics of consumer behaviour is also crucial to trace the mode of purchase amongst your customers.
Do they visit the stores? Or do they purchase most things online? For instance, if you are running a retail store and typically your customers buy products online, you can orient your marketing strategy to tackle this facet and enable the customers to visit the store. In such a scenario, the importance of understanding consumer behaviour cannot be overstated.
If you have enabled the customers to visit the store, it is crucial to deploy relevant retail merchandising strategies to engage them. Assessing the factors influencing customer behaviour is also pivotal in designing the store and orienting merchandise to suit their preferences and purchasing decisions. Thus, consumer behaviour helps you develop a rich insight into their tastes and preferences and understand strategies to maximize sales.
Types of Consumer Behaviour:
There are three factors affecting consumer behaviour in marketing and determining the extent of product sales. These factors include the following:
Psychological factors are the customers’ beliefs, perspectives, and thought processes. Customers are more likely to buy products whose message coincides with their ideologies. This inclusivity is one of the sole factors for the growing popularity of companies that adopt a sustainable business approach. Customers are increasingly becoming more aware and concerned about environmental factors and realize the need to protect the environment and prevent global warming. As a result, they are likely to buy products from companies that implement sustainable practices into business operations that include environment-friendly modes of production and much more.
Personal factors include the unique tastes and preferences of the customers and their choice of purchasing a specific product. These personal factors aren’t similar to other groups and communities. Instead, they are inherent within the individuals. These factors include the personal reasons behind buying a specific product. It would help if you remembered that the personal factors do not influence any other group or individual. These factors define particular and unique consumption patterns and purchasing trends. For instance, an aged customer would prefer buying specific products over the youngsters. Thus, if you sell fast food items, the younger generations are most likely to be your target customers, whereas the aged customers are likely to buy health products, food supplements, etc.
Social factors are the ones that are entirely developed in association with other groups, communities, or individuals. These factors are not inherent in an individual. Instead, they are imposed upon or reinforced into the customer. These tastes and preferences emerge as a result of interactions with other groups of people. For instance, children visiting a school are more likely to buy attractive stationery, a young adult may buy gym equipment or sports shoes, and so on.
Consumer behaviour plays a crucial role in merchandising. The amount of money a customer is willing to spend on a product also depends on their behaviour. It is these factors that determine your target customer base. Which customer base is ready to buy your products at a specific price? As a result, the nature of consumer behaviour plays a crucial role in determining marketing strategies. For instance, if you find your customers are unwilling to pay the price you fixed for your products, reducing it can cause a sudden increase in your customer base.
Remember that analysing consumer behaviour models is critical to offering products tailored to their interests and preferences. It is vital to match marketing techniques to client behaviour to reap maximum benefits from your marketing activities. Marketing your products can be expensive, so make the most of every action undertaken. Thus, it would be best to study consumer behaviour models before selecting a suitable market trend.