What do you mean by ‘Consumer Behaviour’ ?
Consumer Behaviour, as the term suggests, is the theory of how a specific customer, different groups or organizations choose, purchase, utilize, and deal with ideas, products and services for satisfying their basic demands and needs. It includes all the activities and behavioral patterns of the consumers and the motives behind them.
Consumer behaviour also mentions about the factors that influence his/her buying decisions which are:
- Lifestyle
- Social trends
- Working patterns
- Motivation to purchase
Every business across the globe spins around consumers for their sales, yet most of them turn a blind eye to the fact that it is more vital to understand and analyze behaviour of the consumers. Observing consumer psychology and the forces behind customers buying goods helps the companies expand their range of new products, promote them more effectively, eventually increasing their revenue.
Why is it important to understand consumer behaviour in the market?
Be it in the business world or in the digital marketing space, understanding consumer behaviour is of utmost importance in order to get to the root of why people decide to buy your product, or what influences their decision of buying a specific product or service. If a company is planning on creating a customer base or retaining their old customers with newer production, the best way they can apply is by taking decisions based on the behaviour of the consumers. That might also help them in marking a point of huge profit in the market.
Marketers building up campaigns for addressing their target audience’s primary concerns and queries is their chance to earn a hefty number of customers and most importantly, their trust and loyalty.
The importance of consumer behaviour and their psychology can be understood better by peeping into the “Maslow’s Hierarchy of Needs” Theory. The theory talks about human psychology and how people satisfy their needs in a proper sequence, which is arranged in a ranking order that starts with the most basic/physiological needs of humans at the very bottom, then at the next level is the safety needs, then at another level up comes their needs for relationships and belonging which follows the customer’s needs for strength and esteem, until he/she reaches to the first level, to need for self-actualization, being all satisfied.
How is the theory applicable in business practices ?
Maslow’s hierarchy of needs gives a proper framework, an idea to marketers on how a certain product or service fits into a consumer’s life and what force actually makes him/her so inclined toward it always. It is often seen to be mentioned in business classes as organizational behavior and human resources. The study of this theory gradually increases the overall conduct of any business.
Conclusion
Nowadays with the increasing number of startups in the analog and digital world, consumer behavior is the first most important fact to understand because it helps marketers understand what influences consumers’ buying decisions and design the products as per their needs, which would also fill in the gap in the market. The most important thing for a customer is to fulfill his basic needs that include food, shelter, and safety. Consumer Behaviour helps in understanding which product is wanted and which is obsolete. For example, a person who is in need of food will never look out for a posh clothing centre first.