Comparatively speaking, consumer behaviour is a relatively recent area of study that emerged just after World War II. The seller’s market has disappeared, and the buyer's market has popped up. Due to this, the manufacturer's interest has shifted from the product to the consumer, with a special emphasis on consumer behaviour. Buyer behaviour has emerged as a separate field due to the evaluation of marketing concepts from simple selling ideas to consumer-oriented marketing.
The significance placed on the consumer is highlighted by the rise of consumerism and consumer regulation. Consumer behaviour is the study of how people choose to spend their time, wealth, and labour, as well as other aspects of consumption like What they buy? When do they buy it? How do they buy?
Did you know? Clients feel they are being served accounts for 70% of the purchasing process. A business should ensure customers have an exceptional buying experience throughout the customer journey, and this is where consumer behaviour comes into action.
What is Consumer Behaviour?
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Consumer behaviour studies how individuals, communities, and organisations choose, acquire, utilise, and dispose of ideas, products, and services to fulfil their needs and desires. It relates to consumer habits in the market and the root reasons for that behaviour.
Marketers anticipate identifying which products are necessary for the marketplace, which is old-fashioned and how best to offer the commodities to consumers by knowing what drives people to purchase specific products and services.
Types of Consumer Behaviour
A consumer's buying nature is influenced by the kind of products they require. When purchasing a coffee versus a car, buyer behaviour is very different.
It is evident from observations that more complicated and expensive purchases require greater consideration and include a larger number of players.
The amount of commitment a consumer makes to a purchase decision influences their purchasing habit. The degree of risk associated with a transaction also affects consumer behaviour. Higher prices usually come with a higher risk, making consumers more involved in purchasing.
There are four types of consumer buying behaviour:
Complex Buying Behaviour
Consumers often exhibit complex buying habits while purchasing expensive goods, and consumer involvement is significant in this occasional transaction. Consumers will do extensive research before making an investment.
Consumers respond quite differently when purchasing a costly product or a product they are unfamiliar with. A consumer seeks advice from friends, family, and professionals before purchasing a purchase when the risk is very high.
For instance, when a consumer purchases a house for the first time, it is a significant decision because it carries a high level of financial risk. A lot of consideration is given to how it seems, how his friends and family will respond, how his social status would alter after purchasing the house, and other factors.
Habitual Buying Behaviour
A consumer exhibits habitual buying behaviour when they play a minor role in making a purchase. The consumer is only able to distinguish a small number of distinct variations across brands in this scenario.
Customers do not care much about the things they purchase while making daily purchases. They either purchase their preferred brand, the one they frequently use, the one that is readily accessible at the store, or the least expensive option.
For instance, when a customer buys a bread loaf, he typically does it without studying or spending a lot of time on it. Many items fall under this category. Products that are used frequently, including salt, sugar, and biscuits, fall under this category.
Variety Seeking Buying Behaviour
Consumer involvement is low in behaviour that seeks diversity. The variations between brands are substantial, and consumers frequently swap brands in this area. Customers can wish to test new products out of curiosity or boredom because switching products has a cheap cost. Consumers in this country typically purchase various goods out of a desire for variety rather than unhappiness.
For instance, a buyer may choose a brand of potato chips without giving it any attention. The same customer could select a different brand the next time if they want a different flavour. Brand swapping happens frequently and unintentionally.
Dissonance-reducing Buying Behaviour
Consumer involvement is very high in dissonance-reducing purchasing behaviour. This may be the result of exorbitant costs and occasional purchasing. Additionally, there aren't many options available, and brand differences aren't as noticeable. In this case, a customer purchases readily accessible goods.
Customers will be pushed to purchase products for which there are few options, which will leave them for making decisions within that fewer options. Consumers make snap decisions about which things to purchase based on readily available products, time constraints, or financial constraints.
For instance, a customer searching for a new foldable table that they can bring camping easily selects the item based on a few brands offered. The function and characteristics of the collapsible table, as well as the available funds, will be the key determining factors in this case.
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Nature of Consumer Behaviour
Consumer behaviour revolves around the individual and organization or how they choose or use products and services. It emphasizes psychology, motivation and behaviour. The phenomena help to understand how buyers choose, use and dispose of products and services along with various stages that individuals go through before any purchase.
Numerous Factors Affecting Consumer Behaviour.
a. Marketing elements, including packaging, placement, cost, promotion, and distribution of the product.
b. Individual characteristics like age, gender, degree of education, and income.
c. Psychological elements include reasons for purchasing, how people view the product, and how they feel about it.
d. Contextual elements, such as the physical environment at the time of purchase, the social environment, and the passage of time.
e. Social elements, including family, friends, and social position.
f. Cultural elements, including caste and subcaste systems, religion, and social status.
Undergoes a Constant Change
Consumer behaviour changes throughout time. Based on the characteristics of the products, it changes gradually over time. For instance, young people enjoy trendy footwear, whereas youngsters and adolescents prefer colourful and extravagant footwear, and middle-aged and elderly people choose more sober footwear. Many other factors, such as an increase in income level, education level, and marketing considerations, may also contribute to the shift in purchasing behaviour.
Differs From Consumer to Consumer.
Different consumers act differently, and distinct shoppers exhibit different behaviours. Individual characteristics, including consumer nature, lifestyle, and culture, are to blame for the variations in consumer behaviour. Some consumers, for instance, are technophiles, and they go shopping and spend more than they can afford.
Depends From Product to Product.
Varied products have different consumer behaviour. Some customers might purchase larger quantities of some products while purchasing little to no amounts of others. Teenagers, for instance, might spend a lot of money on branded clothing and cell phones for snob appeal but not on research and academic readings. A middle-aged individual might spend less on apparel, but they might put money in pension plans, insurance, and other types of investments.
Reflects Status
The position of a consumer not only affects but also shows in their behaviour as consumers. Luxury automobile, watch, and other item owners are regarded as having higher social positions, and the expensive products increase the owners' pride.
What Makes Consumer Behaviour So Crucial?
Understanding consumer behaviour is crucial for marketers because it enables them to communicate better with customers.
They can close the market gap and pinpoint the required items and products that are no longer in use by knowing how consumers choose a product.
Marketing professionals can display their goods in a way that has the greatest influence on consumers by researching consumer behaviour. Understanding consumer purchasing behaviour is the key to connecting with, involving, and convincing potential customers to make a purchase from a business. An analysis of consumer behaviour should show:
- Consumer perceptions and feelings about other choices (brands, products, etc.)
- What factors affect customers' decision-making.
- How do consumers behave while exploring and shopping?
- How do the surroundings (mates, family, media, etc.) affect how customers behave?
Five general factors influencing customer behaviour are as follows:
- Personal factors: Demographics can impact a person's interests and attitudes (age, gender, culture, etc.).
- Psychological aspects: A person's perceptions and attitudes will determine how they react to a marketing message.
- Social factors such as family, friends, income, level of education, and social media all affect consumer behaviour.
- The purchasing decisions of consumers are significantly influenced by economic factors as well. Some significant economic factors are Family and Personal Income, Income Prospects, Purchaser Credit, and Liquid Assets.
- A person's underlying beliefs, values, desires, and behaviours that they have learnt through their families and other significant institutions play a major role in how they behave. Consumers navigate a complicated social and cultural landscape every day. The broader cultural setting in which they develop as individuals can have an impact on the kinds of goods and services they choose to purchase.
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Conclusion
We hope that this post has improved your understanding of consumer behaviour. You need to realise that your consumers are driving your company's development. By understanding market behaviour, you can direct your customers toward the market that is centred on them.
You can work toward achieving customer satisfaction by researching the purchasing trends and favouritism variables influencing your customers' ability to make decisions. When purchasing a car compared to purchasing chips, there are significant changes in customer behaviour.
Marketing to various consumer behaviour types requires marketers to use careful judgement. These judgments must be drawn from knowledge of the types, influences, and general categories of characteristics that affect customer behaviour.
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