What is Consumer Behaviour: Defining, Significance, and Function
What is Consumer Behaviour: Defining, Significance, and Function,Sep 06, 2023
Sep 06, 2023
What is Consumer Behaviour: Defining, Significance, and Function.
Are you a business professional or an entrepreneur dedicated to your business growth? Then, you may know about the concept of “Consumer Behaviour”. If not, it’s vitally essential to acquaint yourself with the idea of “Consumer Behaviour” to understand your business growth.
This blog post will help you understand the crucial facts of the business world - Consumer Behaviour. You will understand the behaviour of customers or consumers by getting insights into this subject which will enable you to tailor your services or products to customers' needs and lead to the ultimate growth of your business or startup.
Defining Consumer Behaviour
Attaining consumers’ satisfaction is the mainspring of a business’s persistent success, regardless of industry or sector. To achieve success, it is vitally important to understand your targeted audience. Customers’ behaviour depends on how good your products or services are. It will decide the growth trajectory of your business growth in the contemporary market. You can refine your services by using the knowledge of profoundly understanding the insights of your customers. This helps in attracting new customers and retaining existing ones.
Imagine you run a product-based business. Consumer behaviour refers to the way consumers react to these products, encompassing an examination of the following factors:
- Whether purchasing the product be worth it or not?
- Do they intend to repeat the product in the future?
- Are customers going to purchase the product or not?
If you have reckoned these fundamental apprehensions from a customer’s way of thinking, then you will get a clear idea of a more significant customer approach.
Business Management has included the study of consumer psychology to understand customer feedback clearly.
Principles of Consumer Behaviour
Seven principles help Business Professionals and Market Specialists get extensive consumer behaviour apprehension.
- Objects: Offers are the services or products that urge consumer’s attention.
- Occupants: This term refers to a service or a product.
- Organisations: An organisation puts together specific missions and Visions to gain insights into how a customer behaves concerning a particular product or service.
- Occupation: Social events, including festivals, birthdays, marriage anniversaries, etc. These are the
- occasions that impact consumer buying actions.
- Outlets: Outlets are the stores, retailers, or shops where consumers can easily enjoy desired products and services.
- Operations: Operational tactics help an organization serve its customers more efficiently.
- Objectives: Objectives define the purpose carried out in the inhabitant’s life.
Significance of Consumer Behaviour
Whenever we come across a commercial on social media or TV, the primary thought that comes to our mind is whether the product is worthwhile for us or not. For instance, a teenager may not be interested in an ad for sarees. Likewise, a 60-year-old may not pay consciousness in the latest smartphone releases.
The aim behind the above examples is to understand who is your targeted audience in your business field. After marking the targeted audience, the next step is to investigate the reciprocation towards your products or services.
Models of Consumer Behaviour
Specific tools have made the study of consumer behaviour simpler. The Consumer Behaviour Tools are used widely to investigate customer feedback towards their products and services. Such Tools have been listed below:
- AIDA Model: There are four different stages of the AIDA Model that analyse consumer behaviour. These stages are Attention, Interest, Desire and Action (AIDA). The AIDA model is a marketing model that seizes the consumer’s attention through promotions, commercials, or campaigns for an organization. This makes the consumer aware of the product.
In the contemporary marketing environment, top firms, including Apple, Adidas, Nike, Netflix, etc., use the AIDA model for marketing.
- Consumer Lifestyle: Consumer behaviour aims to focus on and study a long-term alliance between an organization and its customers. It works on Awareness, Consideration, Purchase, and loyalty. This model encourages the customer to know more about your organization's services and products and remain loyal to your product.
- The Purchase Funnel Model: This model makes an organisation understand the thinking of customers while purchasing a product. A four-step process helps consumers through Awareness, interests, Evaluation, and product purchase. This generates awareness among the customers about your product, makes them study to research more about your product and compare it with other available options and, at last, makes them purchase your product.
The outcome of this blog post is that customer behaviour is the exposition of thoughts that come to a consumer's mind while investing or purchasing a product. The growth of any business depends on picking up the targeted audience by doing consumer behaviour research. Several factors dominate the decision-making ability of customers. Those who are running the business need to focus on their targeted audience..
Frequently Asked Queries
The study of Consumer behaviour helps a business know its targeted audience, which ultimately helps any organisation save time, money, and resources and grow.
Some external factors influence consumer behaviour, such as the opinions of friends and family and their religious needs.
It refers to the deep study of the consumer's process while selecting, purchasing, or investing in the services or the products according to their needs and desires.