Did you know all humans have reasons behind why we make a purchase?
Some reasons are conscious, and some remain in our subconscious. This thinking means we make purchasing decisions but don’t actively know why.
In this episode of Work Wife Wine Time, I explain what consumer behaviour is and what factors influence our reasons around why humans make purchases.
Listen to the episode below.
What’s consumer behaviour?
It’s the study of people’s reasons for buying things.
Believe it or not, we all have emotional and mental behaviours before and after making a purchase, no matter who we are.
We’re all human, right?
All human brains have emotional responses around purchasing goods, and of course, services.
There are many stages we go through before making a purchase.
And various factors affect these stages.
Such as cultural, social, personal, and psychological.
These factors mean consumer behaviour makes up a big part of marketing and the marketing process to understand people.
People’s demographics can influence an individual’s interests and opinions.
The above demographics affect why people buy something. It can go down to childhood, or it can be cultural. It doesn’t matter.
Psychographics also affect purchasing decisions.
-A person’s response to a marketing message
-Social media influence
What are the types of consumer behaviour?
Marketers break this up into four types of consumer behaviour.
The first two have what we call a ‘high involvement’ which means there is a lot of thinking and actions involved with making this purchase decision.
And the second two have a ‘low involvement, which means there’s not much thought going into buying this product or service.
Let’s look at the four types of consumers behaviour
· Complex buying behaviour
· Dissonance reducing buying behaviour
· Habitual buying behaviour
· Variety seeking buying behaviours
What determines the difference between these four types is the level of the decision and the amount of risk.
For example, higher-priced goods tend to have a higher risk, so people have a higher involvement level with the purchase. Such as buying a car or house.
Complex buying behaviour
Consumers are buying an expensive product. It’s an infrequent transaction. And as people, we’re highly involved with the purchase decision. So, we do tons of research. Because this is a significant investment with a high risk involved as humans, we consult with friends, family and experts for their opinions before making the decision.
Dissonance reducing buying behaviour
Consumer involvement here is high. And this might be due to high price and infrequent purchase, or it could be because there’s low availability of choices and not much difference among brands or businesses. So, consumers are forced to buy goods or services where the options are scarce in this stage.
So even though it’s quite a high investment in this stage, the decision making can be limited. Marketers often create after service offerings to help their consumers purchase from them rather than their competitors.
Habitual buying behaviour
We all habitually buy things. As consumers, we have low involvement in a purchase decision. Purchasing is almost routine, so we don’t put a lot of thought into it.
We either buy our favourite brand, or one we use regularly, one our parents used one that’s available in the shops or even the one that costs the least at the time.
There is low brand loyalty, and we don’t seek much information before making the purchase. Factors affecting this purchasing decision are television ads, Facebook ads and what our friends use. Such products include chewing gum, cleaning products and cat food. As marketers of these products, it’s up to them to make their campaigns compelling, so consumers remember one product over the other when standing in a shop.
Variety seeking behaviour
Consumer involvement here is low, but there are significant differences between brands and businesses. As consumers, we often don’t brand switch, but when they d the cost and risk are low. You may have bought a loaf of bread 20 times, so you try a different one for fun without putting much thought into the decision.
What affects the above types of consumer behaviour?
– Marketing campaigns
– Economic conditions
– Personal preferences
– Social group influences
What’s the role of consumer behaviour in marketing?
Apart from everything, right?
As a business owner, you must understand why your customers and consumers make purchase decisions.
So once you understand the behaviour of how people are deciding to purchase things, you can influence their behaviour so they buy from you.
Understanding their reasons helps.
What do they feel about your business and industry?
Do they have concerns or trust issues?
And then, their belief systems tie in with their intimate surroundings and further affect their decisions.
How does understanding consumer behaviour help your business?
You’ll feel more confident in your marketing strategy.
And you’ll begin to write better copy because your material is on the right path to influence purchasing decisions.
You’ll make more informed decisions about what to try in your marketing and what to do next.
Understanding consumer behaviour helps you act strategically, and make clever, informed decisions.
As well as communicate more powerfully with your target audience by helping them understand why they should buy from you.