Consumer Behaviour In Retail Marketing – Consumer behavior is a branch of behavioral science that companies use to understand and influence buyers. Here’s what you need to know.
The average adult makes 122 informed decisions every day. Companies can anticipate many of these opportunities by considering common consumer behavior.
- 1 Consumer Behaviour In Retail Marketing
- 2 Consumer Behavior: Definition, Factors And Methods |
- 3 Triggers To Influence Customer Buying Behaviors
- 4 Online Customer Behavior: Perceptions Regarding The Types Of Risks Incurred Through Online Purchases
Consumer Behaviour In Retail Marketing
Once businesses gather the data they need, they can create customer segments, differentiate their offerings, and tailor business messages to promote benefits, solve problems, and ultimately close deals.
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In this article, we’ll define consumer behavior, look at common buying behavior, and discuss how you can use behavioral data to connect with potential customers and meet your revenue goals.
Consumer behavior is the study of individuals and groups to better understand the process they go through before making a purchase. This process usually consists of a series of actions that the buyer undertakes based on their needs, logic, beliefs, values and social factors.
Companies can collect data on consumer behavior to predict which products, messages and promotions will best resonate with their ideal audience and increase the likelihood of a sale.
A person’s personality, psychology, demographics, and environment often influence their behavior. Deciphering them can help businesses improve their offerings and create a meaningful customer experience (CX).
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Various theories of consumer behavior throughout history have combined ideas from disciplines such as anthropology, economics, sociology, psychology, biology, and chemistry. Here are the five major schools of thought that drive the theory of consumer behavior.
These theories look at different aspects of buyer behavior, but they all have the same goal of understanding how consumers behave. They also share some basic consumer principles that can apply to anyone.
Understanding consumer buying behavior is important because it helps businesses understand what factors influence customers. By cracking this code, your marketing, sales, service and product development departments can determine what customers want and tailor offers to each customer segment.
Consumer Behavior: Definition, Factors And Methods |
The bottom line is that understanding consumer buying behavior means businesses can succeed in selling their products and services. While each buyer is an individual with unique personality traits, emotions, and social makeup, there are trends that marketing teams can track.
When you collect customer data, you learn more about what they value and what they want to see before they make a purchase. You may use information about consumer behavior to:
Studying consumer behavior requires an understanding of both business and psychology. After all, everything from sleep quality to TikTok’s FYP can influence what and how people buy.
There are several types of consumer behavior. Buyer behavior can be divided into 11 clearly defined types:
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Complex buying behavior often occurs with high-stakes purchases, such as a new home, car, or computer. If a buyer is going to spend a significant amount of money and is choosing between brands with significant differences—Ford or Tesla, Apple or Android—they are likely to feel the need to do extensive research and thus be deeply involved in the process.
Dissonance-reducing buying behavior occurs when the buyer actively engages in the research and purchase process without many available options.
These purchases tend to be less frequent and more expensive, such as buying a music stand, coffee maker, or snow blower. The buyer is probably worried about whether he made the right choice – hence the discrepancy.
Factors That Influence Consumers’ Buying Behaviour
When a buyer notices few differences between brands and does not take much part in the purchase decision process, he is engaged in habitual buying behavior.
These purchases are usually for everyday items. Shoppers don’t really think about what sea salt or green tea they put in their shopping cart. They may choose based on convenience, affordability, brand loyalty, or lowest price, but regardless of their influence, they don’t spend much time researching their purchase.
Customers tend to diversify their purchases by exploring all the options, but it’s not necessarily because they’re unhappy with the product – it’s often because they’re bored.
Understanding how consumers fit into these variables will allow you to keep up with them throughout the customer journey. Meanwhile, your sales team can effectively respond to the behavior of your buyers.
Consumer Buying Behavior
Sometimes customers buy a product because of a lack of options. For example, a plus-size person may find that a store has a limited selection of clothing, forcing them to buy something in a style or color they don’t particularly like.
An impulse buy occurs when a consumer decides to make a purchase without spending much time – if any – on planning and research. People usually make these snap decisions based on:
These consumers may consider the price of the product, but it is not as important to them as the quality. You can influence these consumers through emotional marketing, social selling, and positive customer experiences.
Spending shoppers are also more likely to research a product’s features and benefits before purchasing and want to shop with companies that share their values. To win them over, you’ll need to offer more than just a great product.
Triggers To Influence Customer Buying Behaviors
Average spenders usually want to save money, but at the same time appreciate high-quality products. Most will have a monthly budget in mind, or at least a price tag for any large item they plan to purchase.
They are likely to do a lot of research before buying an expensive product to make sure they are getting the best bang for their buck. These consumers are known to shop around for the best price.
This consumer is looking for the most cost-effective product, even if that means sacrificing quality. They usually stick to a budget, whether by choice or necessity. While price is usually the deciding factor, these consumers may also be interested in the product’s features and benefits.
These consumers are logical and usually look at product features, data and reviews before making a purchase. They do extensive research to get the best product on the market. You can win over these consumers by demonstrating your value through case studies, surveys, white papers, testimonials and data-driven reports.
Key Consumer Behavior Trends (2023 2026)
These consumers care deeply about the relationship they have with the brand and how they experience the sales process. If you offer top-notch CX, they’re more likely to become repeat customers and contact support, giving your company more opportunities to help them and build a relationship with them.
Imagine you’re Leah, the founder of a tech startup. You’re building your company from scratch with no outside funding, but you’ll need office equipment to get started. Quality equipment is a must, but you have to stick to a budget.
In this case, Leah would be an analytical and wasteful shopper. As the person selling to them, you can increase the likelihood of closing the sale by:
Tip: Create buyer personas to better understand your audience and what barriers they may face in purchasing your products or services.
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No two customers are the same. Each consumer has individual beliefs, values, social influences, and lifestyles that together influence their purchasing decisions. Here are some of the major factors that influence buying behavior.
Consumers respond to marketing campaigns in different ways depending on their psychological makeup. This includes their overall outlook on life, motivation, relationships and perception. These factors are highly variable, often changing from day to day, making them particularly difficult to predict.
Personal identifiers can play a big role in modeling customer behavior because they can influence your interests, preferences, behaviors and values. Common demographic segments you can target include:
Consumers’ social groups also influence how they shop. Peer pressure or peer influence from close relatives, friends, classmates or colleagues can play a significant role in the purchase decision. Social factors extend to a person’s economic class and social media practices. A person’s presence on various social media platforms can expose them to fashion trends and trends that can influence their buying behavior.
Marketing campaigns and sales reports can also influence purchasing decisions. If you do it right, you can encourage consumers to buy more of your product or even a more expensive alternative.
The economy always plays a big role in how and what people will buy. When the economy is doing well, people are more likely to spend money on unnecessary goods. However, when job insecurity is high and inflation is higher, people are more likely to choose frugality over indulgence.
You can segment customers in any way that works best for your business. However, there are several popular ways to do this:
Once you’ve determined how to segment your customers, you can create a buyer persona to represent each group. A buyer persona is a semi-fictional, idealized version of your typical customer. This will help you understand:
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With information readily available, it will be easier to connect with customers, solve their problems and make the sale.
Identify trends and common consumer behaviors in the search and purchase process. You can use past buying behavior to determine the likelihood that a consumer will buy from you.
Define special opportunities on a universal, national or personal scale to determine when people will buy certain products, how much and how much they will be willing to spend.
For example, when giving gifts on holidays such as Christmas
Marketing Beyond Consumer Behavior
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