What is the meaning of consumer behavior?
Decisions made by consumers in their search, selection, purchase, use, evaluation, and disposal of products and services that are expected to satisfy their needs are referred to as Consumer Behaviour.
When it comes to purchasing and using goods and services, consumers’ behaviour can be defined as their actions when it comes to deciding how much time and money they’re willing to invest in doing so.
Personal, psychological, situational, and social factors are all examined in the study of Consumer Behaviour, which aims to understand why people buy and use products and services. Consumers’ feelings, attitudes, and preferences are all influenced by this model.
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Types of Consumer Buying Behavior
The type of product a customer needs to purchase has a significant impact on the consumer’s purchasing behaviour. To put it another way, consumers’ shopping habits vary based on the product; for example, buying milk is very different from buying a laptop.
What is the source of this disparity, and where does it come from? Purchase frequency, quality, features, and most importantly ‘price’ all play a role. When a product is expensive, the consumer is more involved in the purchase, whereas when the product is less expensive and is purchased frequently, the consumer’s involvement is lower.
In terms of consumer behavior, there are four broad categories that can be categorized along two axes:
- Level of Commitment
- Differences in the perception of brand differences.
Consumer Behavior # 1: Complex Buying Behavior
When the product is pricey, rare, self-expressive and risky, people act this way.
A lot of time and effort is put into buying a product because the buyer doesn’t know much about it, so they do a lot of research and get advice from friends, experts, and acquaintances to make the right choice.
In this way, the consumer takes a long time to think about what other products are out there, and then decides which one to buy and how much to invest in it.
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Consumer Behavior # 2: Dissonance Reducing Buying Behavior
The consumer may be dissatisfied when he or she finds out that the same product from another brand is better in terms of quality and durability. When the product is pricey, less-often bought, and high risk, dissonance, or dissatisfaction, may happen.
Because of the dissatisfaction caused by the previous purchase, this kind of behaviour is mostly about reducing post-purchase dissonance.
Customers are very involved in the purchase, but it can be hard to tell the difference between products from different brands, and there isn’t a lot of choice, which also makes it hard to make a decision. To do this, he collects information from different sources and compares the options before deciding which one to buy, which takes time.
Further, the product is chosen based on its price, features, availability, and ease of use.
Psychological Factors affecting Consumer Behavior(Opens in a new browser tab)
Consumer Behavior # 3: Habitual Buying Behavior
This happens when the product is cheap and is bought often, but the consumer doesn’t care as much about which brand of the product he or she is buying. So, there isn’t much to think about before making a purchase, because it’s mostly because you know the brand and it’s available.
Many people buy these things because they like the way they taste, not because they have a lot of faith in the brand.
Consumer Behavior # 4: Variety Seeking Buying Behavior
In this case, the customer doesn’t switch brands because they didn’t like the previous one, but because they want to try something new and avoid getting bored.
As soon as they think about the product, they decide to buy it. At the time of consumption, they think about what they think about it.
When we talk about “Consumer Behaviour,” we don’t only think about what happens when someone buys a product and how they do it. We also think about the different roles that different people play and how they affect the decision to buy.
What factors influence Consumer Behavior?
Consumer behaviour can be influenced by a variety of factors, but the following are the most common ones:
Promotional campaigns
Marketing campaigns have a significant impact on purchasing decisions. They can even persuade consumers to switch brands or opt for more expensive alternatives if done correctly and consistently with the right marketing message.
Marketing campaigns, such as Facebook ads for eCommerce, can also serve as reminders for products/services that need to be purchased on a regular basis but aren’t always top of mind for customers (like an insurance for example). A well-crafted marketing message has the power to influence impulse purchases.
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Economic circumstances
Economic conditions play a significant role in the purchase of expensive goods (such as houses or automobiles). Consumers are known to be more confident and willing to make purchases regardless of their financial obligations when the economy is doing well.
For expensive purchases, the consumer’s decision-making process is longer, and it can be influenced by more personal factors at the same time.
Individual preferences
Personal factors such as likes, dislikes, priorities, morals, and values can also influence consumer behaviour. Personal opinions are especially powerful in industries like fashion and food.
Advertisements can certainly influence behaviour, but at the end of the day, consumers’ preferences play a big role in their decisions. If you’re a vegan, no matter how many burger joint advertisements you see, you’re not going to start eating meat as a result.
The power of the group
Consumer behaviour is also influenced by peer pressure. Our decisions are influenced by what our family members, classmates, immediate relatives, neighbours, and acquaintances think or do.
Consumer behaviour is influenced by social psychology. One of these situations is when people prefer fast food to home-cooked meals. Social and educational factors can have an impact.
Spending power
Last but not least, our purchasing power has a significant impact on our decisions. Unless you’re a billionaire, you’ll think about your budget when making a purchase.
The product may be excellent, and the marketing may be spot on, but if you don’t have the funds to purchase it, you will not do so.
Consumers can be segmented based on their purchasing power, which will aid marketers in identifying eligible customers and achieving better results.
