Consumer behavior is one of the most important and influential topics for marketing. It is frequently used to help brands better understand their target market, create more effective commercials, and ultimately increase sales. Here, we’ll discuss how behavior of consumer impacts brands and what it takes to be an effective marketer. This article discusses the concept and importance of behavior of consumer for brands and why a brand or company cares about consumer behavior.
The concept of consumer behavior
Consumer behavior is the study of factors that influence buying decisions, including perception, learning, attention, beliefs, and attitudes. Buyer behaviors are influenced by personal factors such as demographics, personality, motivation, social influences, perception of brands/products/services, etc., while considering other environmental influences. Therefore, marketers need to realize that behavior of consumer is related to the product or service itself and depends on environmental factors.
Marketers must remember that brands are selling products and services to people at the end of the day. Therefore, to market effectively, marketers must understand their target market and how they think about the products and services they are selling. Marketers need to know who their consumer is to understand what motivates them to market to them effectively.
Importance of Consumers Behavior for Brands
1. Brand Awareness
A brand is something consumers recognize. If you don’t have your brand recognized, there is no way to get any business from it. In this digital age, companies should be aware that today’s customers want “to be seen.” They expect to find information easily online, and if they can’t find it, they won’t buy from that company. Therefore, companies need to ensure that their brand has recognition.
2. Customer Loyalty
Customer loyalty involves customer retention. Once customers become loyal to a brand, they will keep coming back to purchase products and services. Customer loyalty ensures that customers become repeat customers, which is essential for businesses.
3. Trust Factors
Trust affects how much a person is willing to trust another party. Trust generally refers to confidence and reliance. A significant amount of research shows that trust can lead to higher satisfaction levels, increased productivity, improved performance, enhanced health, lower stress, and increased life expectancy. It helps drive employee relations and the workplace environment, too. However, trust issues can cause mistrust within organizations and relationships among team members. For example, if you have a trusted colleague who suddenly acts suspiciously, it might cause you to question yourself and stop trusting them. Or, if you had a good relationship with someone before, it may turn into distrust when they start behaving unprofessionally toward you. Therefore, organizations need to make sure that employees trust each other.
4. Product Selection
Segmentation is an important aspect of marketing because it lets us identify our audience based on various demographic and psychographic factors. The more we segment our audiences, the better we tailor our messaging to specific groups. This is crucial for success in modern marketing. While there are many ways to break down segments (age, gender, income levels, etc.), one useful approach looks at lifestyle attributes like hobbies, interests, values, lifestyles, etc.
5. Purchase importance
Purchase importance indicates how valuable a particular item is to a certain individual. Consumers usually make purchases for different reasons. Some purchases are made due to necessity, some satisfy whims, and others value the items.
6. Lifetime Value
LTV represents the total potential revenue of a product over its lifetime. Many marketers believe that it correlates highly with profitability. In addition, it is widely used by advertisers to predict future sales and profitability.
In conclusion, behavior of consumer plays a critical role in determining the outcome of branding campaigns. Hence, understanding it well is important for every marketer!
