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Talk the Talk: Understanding Consumer Behavior

"Knowing who your customers are is great, but knowing how they behave is even better" - Jon Miller.



Have you ever wondered why you purchase certain products? How do you come to a decision on picking out which of the 20 different types of shampoo to buy? Why does a recommendation from friend influence your decision to purchase a pair of sunglasses? According to Market Business News, "consumer behavior includes aspects that affect consumers’ search, selection, and purchase of products."


As a consumer and marketer, I find this topic very interesting. So I am going to analyze myself, why I chose a product, and how I consume. First, it is good to understand there are four types of consumers. Loyal consumers, discount consumers, impulsive consumers, and needs-based consumers. (Beyond the Hedge, n/d). Shopping is not one of my favorite things to do, so I would definitely say I am not a discount shopper. Although I am concerned about price, it is typically not the driving force behind my decision. Since I do not have endless amounts of money, I have to be aware of purchasing items impulsively. Yes, there are times when I purchase an item that I don't necessarily need, but will be used or consumed soon. At the end of the day, I feel I fall into categories of 'loyal' and 'needs-based'. When I shop for groceries, I am loyal to one grocery store. When there are times when I need something specifically, I will search out a store or product based on those needs.


Although I am a marketer and am aware of marketing techniques, I am not 'bullet-proof' to all marketing techniques. There are some websites which I have signed up to receive marketing emails, I can be enticed to open the emails and shop. The most influential decision to shop or purchase a product comes from referrals or testimonials. If I have a friend who loves a product and talks about it, I am more likely to purchase it. If I am looking for a service (for example, tree removal service), I am looking for reviews on Google to help influence my decision.


Have there been times that I have felt bad about purchasing something? Maybe I spent too much money, didn't really need what I purchased, or overspent my budget? Yes, absolutely yes. Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviors. (Mcleod, 2018). A conflicting attitude toward a purchase would be a sad feeling after being excited about a purchase. On the other hand, there are some items (especially those discount purchases) that make you really excited.


So how do you market to each of these consumers?


Loyal Consumers:

  • Personalized communication

  • Product suggestions based on shopping history

  • Continual marketing contact via social media, email, and traditional mediums

  • Example: receiving an email from a brand, announcing a new product


Discount Consumers:

  • Promoting discounts, sales, and specials

  • Radio advertisements, social media, television

  • Text messaging alerts, emails

  • Example: getting a text message when there is a sale, call to action



Impulsive Consumers:

  • Precisely placed product displays

  • Appeal to emotions

  • Example: the product displays that surround you when you are waiting in the checkout line


Needs-Based Consumers:

  • Advertising to those going through life changes (divorce, marriage, new baby, etc.)

  • Collaborative partnerships with other businesses

  • Example: lawyer partnering with an accounting firm when a client is going through major life changes


After this evaluation, it's a good time to assess yourself and determine your consumer behavior. What pushes you to purchase? In another aspect, it is also a good time to look at your business consumers and consider how you can market to your specific consumer.




References:



Market Business News. (n.d.). Consumer Behavior. https://marketbusinessnews.com/financial-glossary/consumer-behavior/


Mcleod, S. Simply Psychology. (2018, February 5). Cognitive Dissonance. https://www.simplypsychology.org/cognitive-dissonance.html

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