Consumer behavior is the study of how consumers make decisions to buy, use, or dispose of goods and services. It considers where consumers spend their time, what they spend their money on, what influences them to buy one product over another, including feelings and attitudes, why people buy products in particular quantities, and the media used to create a marketing campaign.
Benefits of Studying Consumer Behavior To a Brand
1. Learning what drives your consumer
Brands must understand what motivates their consumers. If you can understand why people choose your brand over another, you will be able to use that information to reinforce your brand’s purchase intent and hopefully drive growth.
2. Learning how to get inside the consumer’s mind
Understanding how consumers make decisions and what they think helps develop the marketing strategy, communications messages, and channel selection. This information allows brands to stay relevant in the ever-changing choice set consumers have available to them today.
3. Finding out how to grow your business
Tracking consumer purchase behavior, attitudes, and other related demographic information provides insight into what is and is not working with your brand. Learning from consumers allows you to make critical decisions on best positioning your brand for growth.
4. Learning if you are meeting consumer expectations
Understanding if you are meeting the needs and wants of your consumers is key to creating brands that are recognized as the best in their categories-this will directly impact sales and profitability for any brand.
5. Tracking how competitive brands are performing
Using consumer-derived information lets you know if your brand is a champion or challenger in the marketplace. It also gives insight into how you can use consumer insights to make adjustments and drive growth.
6. Learning what other brands are doing right or wrong
Monitoring competitors will give you an idea of opportunities or threats in the marketplace. It allows you to see what consumers respond positively or negatively to and provides an opportunity for brands that are not currently winning in the market to gain traction with consumers.
Importance of Consumer Behaviour
1. Measuring Business Performance
Having the correct information and knowledge on consumer actions will allow businesses to know how they are performing compared to the competition and what they need to do differently to win with their consumers. It is a critical component in this area of measurement.
2. Brand Strategy and Positioning
It provides insight into how to develop the brand strategy, message, and position that will resonate with targeted consumers. It allows brands to change their statement, position, or communications strategies based on their insights.
3. Channel selection
A good understanding of consumer actions will allow brands to select the right channel for each product to reach their target audiences where they want them to be called. It helps to ensure that you are spending your marketing dollars where they will get the most significant return on investment.
4. Strategic Marketing Planning
Marketing plans need to be based on firm consumer insight to be successful. It can assist in strategic planning by providing the required information and ideas on the following possible actions.
5. Marketing Communications
Marketing communications are designed to impact consumer behavior. It is used to change attitudes, beliefs, and, ultimately, behavior. A firm understanding of consumer behavior will allow a brand to develop its message and the way it is communicated in a way that its target consumers will positively receive.
The primary purpose of consumer behavior is to find out what consumers are looking for in a brand and how they feel about it. It will help you make decisions on what your brand is offering and how you will communicate that to consumers. Brands that understand their consumers and what motivates them will be more successful in getting the attention of their target market.