What is consumer behaviour? What affects consumer behaviour?
Understanding what consumer behaviour is can help you create a sales and marketing plan that will appeal to your target market.
Have you ever looked at a product or advertisement and it made you act or feel a certain way? Or looked at the price and depending on your budget, either went to a competitor or bought it?
This is all part of consumer behaviour! Consumer behaviour helps influence our buying decision without us knowing.
Today we’ll break down and explain what consumer behaviour is and what affects it!
What is consumer behaviour
Consumer behaviour refers to the activities of individuals or groups during the purchasing process. This includes the emotions, attitudes, and preferences that influence the buying behaviour of the customer, both conscious and unconscious.
Many marketers try to understand consumer behaviour so they can use it to their advantage. Once they can understand how exactly a consumer reacts, they can use this information to help influence the customer to make a purchase.
There are 3 key elements of Consumer behaviour:
- Analysis of the factors which influence behaviour
- The role of motivation and attitudes
- Consumer behaviour models
As buyers, every day we subconsciously decide on what products to buy based on personal and social preferences. We are influenced by marketing campaigns and personal views. That’s why it's important to understand customer behaviour as this can influence or shape how customers react to your brand, marketing campaigns and product or service. An estimated 90% of purchasing decisions are made instinctively.
What affects consumer behaviour
Now that you understand consumer behaviour and the importance of it, let's discuss the factors that affect consumer behaviour:
- Personal
- Social
- Cultural
- Psychological
Personal
These effects will vary from customer to customer. As these are more personal will be different for everyone. These include variables like:
- Demographics
- Purchasing power
- Lifestyle
- Personality
For example, a customer with low income and purchasing power will look for products or services that will save them money or at discounted price. This group of customers may have a negative reaction to more expensive items.
Social
Social effects are more external or the customer's surroundings. This includes family, friends and reference groups. Have you ever purchased an item because a friend told you how amazing a product was? Since this is a person you trust, they helped influenced your purchasing decision to buy that product.
Customer behaviour is influenced by external factors like friends and family. This is what is referred to as social influences.
Physiological
Psychological factors are the consumer thoughts likes:
- Motivation
- Perception
- Learning
- Beliefs
- Attitudes
Say a customer wants to get into shape or live a healthier lifestyle. Since they are motivated to get into shape, they may make purchases like gym memberships, equipment and clothing. Since their mindset is motivating them to get into shape, this influences their buying behaviour and purchase more health-related items.
Psychological factors can have a positive and negative influence on consumer behaviour. Customers may not always agree with your company’s beliefs. They may be in your target market and have the perfect product, but if they have a negative perception of your brand, they won't buy from you.
Cultural
This refers to the culture, subculture, and social classes that are related to the consumer. Mooij defined culture as “the whole that includes knowledge, beliefs, morals, customs, and any other capabilities and habits acquired by humans as members of society”. Cultural influence can set limitations and restrictions on what consumers buy.
What may be considered appropriate in one culture may not be in another. There are cultural norms that will make marketing campaigns and products not be appropriate to the consumer.
Closing thoughts
Understanding consumer behaviour and how you can use it to gain a better understanding of your customers can help grow your business.
Understanding the way they think and interact with your products, brand, and marketing campaign can influence consumer behaviour to make a purchase subconsciously. That’s why many marketers take the time to figure out the target market and how they think and behave.
How will you use consumer behaviour?