Understanding Consumer Behavior and Factors that Influence

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Consumer behavior is essential for marketers as it makes us understand what influences consumer buying decisions. This way, we can understand what products in demand in the market and what are obsolete and new ways to repurpose the products.

It also helps us understand how to develop marketing campaigns or promotional activities to have maximum effect on consumers and engage them in a way they buy our product. Suppose you closely look at how supermarkets are designed or why there are candies at the checkout counter. In that case, you will understand it is all strategically placed to influence a customer’s decision to buy more things that they wanted to buy. But consumer behavior insights are not only for quick wins. It also builds long-term relationships that last for generations.

Consumer behavior is affected by

  1. Advertising and marketing activities- It reminds consumers to buy or even persuades them to change brands. Consumers often think of buying a specific product that they haven’t bought before by learning from ads. E.g., while watching an advertisement about cord cell bank, a pregnant woman might think about having the service for the baby.
  2. State of the economy- To buy big-ticket items or luxury goods, economic conditions play an essential role. Even if the personal financial situation is not right, people feel confident buying these items considering the overall situation will be the same.
  3. Company matters- The people with whom you are associated plays a significant role while buying things. It matters what cars other people in your group have, how big their house is, do they prepare food at home or eat out, etc.
  4. Personal preferences- Lifestyle choices, morals, beliefs, likings greatly influence buying behavior. A person who believes capitalism is not moral might not buy from big corporates and choose to go to a mom and pop shop, or a health-conscious person will not eat a greasy burger from a chain restaurant even if they have been watching ads of baconator all day long.
  5. Purchasing power- Financial situation of a person dictates buying behavior quite significantly. That is the reason companies segment their consumers based on household income.

Other factors to consider here are life stage, occasion or season, motivation, culture, and sub-culture that affect buying behavior.

There are many facets of understanding consumer behavior, and a holistic view of all gives marketer insights and empowers them to make decisions backed by data rather than by intuition.

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