I’ve always been curious about why people do the things they do. So I did some research into consumer behavior.
- Marketing Campaigns
Advertisement plays a crucial part in persuading the purchasing decisions made by consumers. They are even known to bring about a great shift in market shares of competitive industries. Regular campaigns can influence the consumer purchasing decision to the point that they may opt for one company or brand over another. Or even indulge in petty shopping. Marketing campaigns help remind consumers to shop for less flashy products such as, say, insurance.
- Price
The price you set for a product has a significant effect on how a consumer behaves. A high price will often send your consumer heading for the lower priced alternative. Alternatively, consumers equate high prices with superior quality products. The best advice would be to research the cost set by competitors. What is best for your brand? Are you looking to sell below or above market price? Take this into careful consideration.
- Product
Consumers generally buy to meet a need, not the product. It’s really surprising why people really buy things. Sometimes they buy for personal growth and sometimes the buy for power and influence. Ultimately, people want to be popular and to be liked by other people. One of the most shared articles last year was shoppers are buying clothes just for instagram. This shows the great lengths people will go to be adored.
- Self Concept and Lifestyle
Products are expected to have a personality driven by physical appearance, packaging, and price. The consuming behavior of an individual will be directed to enhancing self-concept through consumption of goods and symbols. Consumers can be defined in terms of the products they purchase or use. Or in terms of what those products mean for them according to M. Joseph Sirgiy.
- The Cost of Zero
In the book Predictably Irrational, Dan Ariely suggests that most transactions have an upside and a downside. But a free offer gives us a feeling that something is more valuable than it truly is.
“There’s no visible possibility of loss when we choose a free item. “ – Dan Ariely
- Seeking something new
Consumers are no longer loyal to brands like they used to be. There is something called Brand Fatigue. People are so overwhelmed and easily distracted. What that means, for example, is instead of sticking with Starbucks someone may opt for the neighborhood coffee shop. Loyalty is short lived nowadays.
Consumers try to seek new brands not because these brands are any “better” but rather they want a “change.” They now become loyal to the engagement and experience that a particular brand offers.
“The consumer has changed dramatically. There’s a shift in consumer behavior and brands need to adjust accordingly.” – brand marketing firm las vegas”
- Attitudes and beliefs
Consumers form a certain attitude towards a product. They’ll have a certain feeling and belief towards an object. For example, we’ve formed a belief toward Apple products. They are sleek, fluid, easy-to-use, user-friendly, and smart. This forms a customer to brand relationship.
A consumer will also hold both positive and negative beliefs. “Apple is a great company but ever since iPhone ___ nothing much has changed.”
“You have to start with the customer experience and work your way back to technology” – Steve Jobs
- Word of Mouth
Information is passed from individual to individual about products. Word of mouth is extremely powerful. Your brand and reputation are on the line and online through what other people say. Many frustrated customers take to Twitter to display their frustration with a service or product. Flight delays can be frustrating. Jet Blue ensures customer loyalty by responding to frustrated customers.
- Technology Adoption
Marc Andreessen, the American Entrepreneur, is quoted as saying “technology is eating the world.” From smartphones to social networking apps. Technology has changed the way we interact with our world.
- Personal Preference
Consumer behavior influences various shades of likes, dislikes, morals and values on a personal level. In certain industries like fashion and personal care, the consumer’s personal view and opinion can become the influencing factor. Nevertheless, advertisement can help in influencing these factors to a point, ultimately the likes and dislikes have more influence on the purchasing decisions.
Summary
As societies, culture, and technology continue to advance, we’ll begin to see slight changes in consumer behavior.