Why Is Consumer Behaviour Important?
Studying consumer behaviour can be the answer to all your questions when it comes to increasing sales or improving the product propaganda and works as a guide for your company to progress into the right direction.
Some variables are known to influence the consumer behaviour. To undertake & possess a thorough knowledge of such a fact makes it easier not only to consider the desires and needs of the consumers; but also, helps to launch product offers into the market in an appropriate way.
When setting up a new business, the reasons leading to success and failure are equally essential. It’s not just about what can bring you profit, but also, how to build a consistent and growing consumer base.
To keep the customers interested in your business, you must take into account the most important point- the customer service; followed by the quality of products and the employee attitude towards customers.
We know that a business cannot continue without a customer, that’s why the relationship between a client & a firm must be highly prioritised, well-understood, formidable, & consistent.
What Is Consumer Behavior?
Whether you intend to create a business plan or make a viable change in your relationship with the customers, you need to understand the meaning of consumer behaviour.
Definition of Consumer Behaviour:
It is based on the study and analyses of the reasons that lead customers to choose a product or a service.
Even with other options in sight, they turn to what you have to offer, resulting in something quite significant for both sides. Your offer is what makes a difference in the consumer’s life. As such, it should be treated as a treasure and carefully understood to gather valuable information.
The collected data can be applied to improve the relationship between a business and its clients, with effective marketing campaigns. The process leading to the decision making, however, can occur as much individually as in a group.
The consumer behaviour is analysed in 3 steps:
- The use of a product or service
How To Conduct A Consumer Behavior Study?
The study of consumer behaviour is based on four different factors as listed below:
#1 Cultural Factor
A Cultural Factor is related to the consumer’s conviviality with other people. This is a phase when a satisfied customer spreads the word about your company’s good service, willingly. In common terms, it’s also regarded as “word of mouth.”
Such a culture is what fundamentally shapes the view and gives a tremendous boost to the consumption of commodities, and guides a company to reach its targeted audience on a large scale.
Additionally, an entrepreneur can use this information to fix internal or external problems and develop protocols to stimulate the client into making a purchase.
#2 Social Factor: Client References
A Social Factor is highly relevant to consumer behaviour in a social ambience. The references may come straight from friends, relatives, colleagues, or groups in which he/she is associated or, in some cases, even dissociated. Questions need to be raised around these circles of ‘influencers.’
#3 Personal Factor
Many intentions shape the preferences of people, especially when picking a product. Also, their individual experiences play a major role in leading them to buy a merchandise.
To correctly identify which of the personal factors influence your consumers, it’s recommended to perform a research with survey questions which enables your client groups to respond in accordance with their respective point of view about your products/services offered.
Importantly, the point of view refers to the personality which leads to a purchase. But, doesn’t mean that you can’t divide your audience into groups.
Individuals may list different personal enablers for acquiring your product which indicates that the certainty of creating a marketing campaign is more assertive and efficient.
#4 Psychological Factor
Understanding the consumer’s psychology is a powerful tool in influencing your entire customer outreach strategy. It’s essential because these circumstances make it easy for the client to accept a promotional offer that combines with their needs & preferences. Consequentially, maintaining the quality, customer satisfaction, and ultimately developing loyalty to your brand.
The underlying cause or the ‘Influencers’ can be defined as a good or a bad detail that motivates a customer to make a decision to buy or to not buy your product. Both are equally important to examine.
There is always a reason, including the time people no more use your product. By figuring out the influencers and its reasons, a business can develop a more stable base and implement an action to turn the situation in its favour.