The Importance of Understanding Consumer Behavior in Building a Successful Business
Understanding consumer behavior is vital to the sustenance of a business. As marketers, we all need to know the patterns of how consumers buy and why they gravitate to specific brands so that we can build successful businesses.
This article identifies three factors that can help marketers discover the traits of consumers, gain their trust, and be successful.
What is Consumer Behavior?
Consumer behavior relates to how one buys and consumes things for their satisfaction.
Marketers must, therefore, tap into the minds of consumers to understand why consumers make certain buying decisions to successfully develop and market the right products and services to their customers.
One Size Does Not Fit All Scenario: Know Your Consumers!
Different people elicit different behavior. Mike was once a business person—a true professional who likes to be organized and get his work done quickly using reliable office tools. He was mindful of what he spent on work tool but would expend more to make his workday flow smoothly and enhance his professional style—making him look good.
On the other hand, Sue and John are business partners who grew up in a casual and laid-back environment. They didn’t see the need to spend a dime to equip themselves with additional tools to make their work process less burdensome. They grew up in a small family business where they see their parents working very hard and would use whatever is at their disposal to get their work done.
Addressing the Needs of your Consumers and Providing Value
When you’re able to identify what influences the behavior of your consumers, you will understand why consumers make selected choices in their buying decisions. This is a fundamental business process that every marketer should fathom.
Are your consumers identical to Mike? Or Sue and John? Knowing what impels the buying decision of consumers will help you to provide the right products and services, thus delivering more value and addressing the needs of your consumers.
3 Factors Affecting Consumers’ Behavior
Recognizing these factors can help you build consumers’ trust and gain repeat customers.
Cultural relates to culture, subculture, and social class. It determines the wants and behavior of a person. Different countries and groups have different values, opinions, etc. Therefore, marketers need to examine the values of countries and groups so that they can market products more effectively and increase sales.
Personal – this is impacted by the age of the individual, stage in the life cycle, their occupation, personality, economic circumstances, lifestyle, etc.
Social – with social groups, the buying behavior of individuals is similar, thus making it attractive for marketers to promote and identify new opportunities.
Now, can you identify the factors that will influence Mike, Sue, and John in their buying decision?
In understanding these factors, marketers can devise strategies to develop products and services to better meet the needs of their consumers. Mike adores efficiency and being classy. If his workday consists of opening lots of mail and he needs to get these open in a jiffy, then a razor-sharp letter opener beautifully packaged may be the answer for Mike, while Sue and John may decide to use their fingers to rip the envelopes open! The product suggested for Mike would probably address his needs and provide value. On the other hand, this might not be ideal for Sue and John.
Identifying and understanding these factors and how they affect consumers’ behavior will save marketers a lot of stress and provide the opportunity to build a thriving business.