The importance of consumer behaviour in the world of marketing is significant, so it is important to see things through the lens of consumers.
It is rightly said “Take care of consumer needs, and the consumer in return, will take care of your needs”
Know The Importance of Consumer Behaviour in 2024
In this blog, we are going to discuss consumer behaviour in marketing, what is the importance of consumer behaviour and the type of consumer behaviour.
What is Consumer Behaviour in Marketing?
Consumer behaviour studies how customers will behave while buying, using and disposing of a product or service to satisfy their needs and wants. The study looks at everything from determining the needs and wants of customers for a product to seeing how consumers feel about repeat purchases.
Marketers expect that by understanding what, how, and why consumers buy a product or service, they will understand the status of their product in the marketplace. They will be able to determine which products and services are needed in the market, which are obsolete products and what is the best way to present the goods in the market.
Importance of Consumer Behaviour
It is vital to understand the importance of consumer behaviour as it plays a prime role in marketing and affects overall decision-making.
1. Retention of Consumers
The importance of consumer behaviour is not limited to attracting new customers, but it is also important to understand how we can retain the existing customer.
When customers buy and use your product they have some expectations, if you match that expectation, the customer will feel satisfied and he/she will repeatedly purchase the product. Therefore, it is important to understand the behaviour and market the product in a way that will convince them to buy the product again and again.
2. Differentiation of The Consumer
One of the importance of consumer behaviour is consumer differentiation, which is a key marketing principle.
Every customer is unique, the study of consumer behaviour will help you understand the different behaviours of consumers and differentiate them into several groups.
Each consumer group is unique, and their needs and wants are different from those of other groups. When marketers are aware of the differentiation of each group of consumers, they can tailor the approach to the needs of varying customer groups.
3. Improved Marketing Strategies
Another example of the importance of consumer behaviour is improved marketing strategies.
A study of consumer behaviour helps marketers identify the most efficient marketing techniques and channels to reach their target audience. Each strategy should speak specifically to a group of consumers based on their behaviour.
Understanding consumer behaviour will also help marketers to create strategies related to the product price, design, promotion or distribution. Additionally, it will give you insights into what motivates consumers to buy your product.
4. Predicting Marketing Trend
Next on the list of importance of consumer behaviour is predicting marketing trends.
Imagine consumers are shifting their preference from one product to another product. For example, the recent trend of consumers is towards mindful eating and quality food. Analysing this shift in consumer behaviour, helps marketers understand the changing market trend.
Predicting marketing trends from consumer behaviour helps you make cost-effective strategies to maximise the profit. These predictions will also help you modify the current product or introduce new products that are in demand among customers.
5. Competitive Advantage
Let’s look at the next importance of consumer behaviour – Competitive advantage.
It takes a lot of effort from businesses to outshine their competitors, and the most difficult part is to survive the existing competition.
A study of consumer behaviour will help marketers find answers to questions like :
– Do consumers already buy from your competitors?
– What features of your competitor’s consumers are attractive?
– What are the challenges consumers identify in your product when compared to your competitors?
– Why are consumers buying from your competitors?
– What features do they not like about your competitors, which you can avoid in your product?
Studying consumer behaviour helps you understand your competitors better and gain a competitive edge.
Type of Consumer Behaviour
We understand the importance of consumer behaviour and it is equally important to understand the type of consumer buying behaviour.
1. Complex Buying Behaviour
This type of behaviour occurs when customers are highly involved in the purchasing decision and are aware of the significant differences between brands. Usually in this type of consumer behaviour customers before making a purchase decision, do extensive research, gather information and compare your product with alternative options.
This type of behaviour occurs when consumers are buying an expensive product, such as purchasing a car or a house
2. Dissonance-Reducing Buying Behaviour
In dissonance-reducing buying behaviour, consumer involvement is very high. This might be due to high prices, risky products or infrequent purchases. In addition, there is a low availability of choices with few significant differences between brands.
In this type, a consumer buys products that are readily available and seeks feedback, to reduce confusion.
3. Habitual Purchasing Behaviour
Habitual buying behaviour is depicted when a consumer has low involvement in purchasing decisions. In this case, there is not much of a difference among brands.
In this type, a consumer buys a product that they use in their daily routine, they do not put lots of thought.
They either buy their favourite product, which they use regularly, or buy the product which is easily available near the store, or the one that costs the least money.
This kind of behaviour demonstrates zero brand loyalty.
4. Variety-Seeking Behaviour
The last type of consumer behaviour is variety-seeking behaviour, this type has a low consumer involvement. There are significant differences between brands. In this scenario, consumers do a lot of brands switching not because they are unsatisfied with the previous one, but because they seek variety.
The cost of switching between products is low, hence customer wants to try out new products out of boredom or curiosity.
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Conclusion
Consumer buying decisions depend on the consumer buying behaviour. There are great differences between the thoughts of consumers when buying a car or buying chips. Marketers have to exercise careful judgement in marketing products to different kinds of consumer behaviour.
Alisha Limichana is a seasoned growth marketer and part of the MCG team at EnR Cloud, specializing in driving business growth through innovative strategies. She has a proven track record of delivering impactful marketing campaigns. Outside of work, Alisha enjoys exploring the mountains, travelling, and staying active and fit.
