Consumer behaviour
What is
consumer behaviour?
Consumer behaviour is the study of how individuals, groups, or organizations make decisions to purchase, use, and dispose of goods and services. It encompasses the psychological, emotional, and behavioural responses that influence these decisions, as well as the external factors like culture, social norms, and economic conditions that shape them.
Key takeaways
Focus on decision-making
Explores why and how consumers make purchasing decisions.
Influencing factors
Includes purchase, usage, and disposal activities.
Influencing factors
Shaped by psychological, cultural, social, personal, and economic factors.
Business relevance
Helps businesses design targeted marketing strategies and improve customer satisfaction.
Dynamic nature
Consumer behaviour evolves with trends, technology, and societal changes.
How can consumer behaviour guide product innovation and customer relationships?
Consumer behaviour is a multidisciplinary field combining insights from psychology, sociology, economics, and marketing to understand what drives consumer decisions. It examines:
- Purchase activities: How consumers search for information, evaluate alternatives, and decide what to buy.
- Usage activities: How consumers use products or services and derive value from them.
- Disposal activities: How consumers discard products or packaging (e.g., recycling or reselling).
Consumer responses can be categorised into:
- Emotional responses: Feelings or moods associated with a product or brand.
- Cognitive responses: Thought processes like evaluating product features or comparing prices.
- Behavioural responses: Observable actions like purchasing or recommending a product.
By studying consumer behaviour, businesses can:
- Identify customer needs and preferences.
- Develop effective marketing campaigns.
- Innovate products based on market demand.
- Build strong customer relationships.
Real-world examples
Case study: Apple's ecosystem lock-in
Apple drives loyalty by creating a seamless ecosystem across devices—iPhone, Mac, Apple Watch, and AirPods—that simplifies life for users. This understanding of consumer preference for convenience keeps users deeply embedded in their ecosystem.
Case study: Spotify’s behavioural data play
Spotify analyses listening habits to offer hyper-personalised playlists like “Discover Weekly.” This predictive engagement based on user behaviour encourages daily usage and builds emotional attachment.
Case study: Unilever’s local market intelligence
Unilever adapts its product offerings and campaigns based on local consumer preferences. For instance, in India, it tailors its skincare products to suit different climate zones and skin types, showing its sensitivity to regional behaviours.
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Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
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What is
consumer behaviour?
Consumer behaviour is the study of how individuals, groups, or organizations make decisions to purchase, use, and dispose of goods and services. It encompasses the psychological, emotional, and behavioural responses that influence these decisions, as well as the external factors like culture, social norms, and economic conditions that shape them.
Key takeaways
Focus on decision-making
Explores why and how consumers make purchasing decisions.
Influencing factors
Includes purchase, usage, and disposal activities.
Influencing factors
Shaped by psychological, cultural, social, personal, and economic factors.
Business relevance
Helps businesses design targeted marketing strategies and improve customer satisfaction.
Dynamic nature
Consumer behaviour evolves with trends, technology, and societal changes.
How can consumer behaviour guide product innovation and customer relationships?
Consumer behaviour is a multidisciplinary field combining insights from psychology, sociology, economics, and marketing to understand what drives consumer decisions. It examines:
- Purchase activities: How consumers search for information, evaluate alternatives, and decide what to buy.
- Usage activities: How consumers use products or services and derive value from them.
- Disposal activities: How consumers discard products or packaging (e.g., recycling or reselling).
Consumer responses can be categorised into:
- Emotional responses: Feelings or moods associated with a product or brand.
- Cognitive responses: Thought processes like evaluating product features or comparing prices.
- Behavioural responses: Observable actions like purchasing or recommending a product.
By studying consumer behaviour, businesses can:
- Identify customer needs and preferences.
- Develop effective marketing campaigns.
- Innovate products based on market demand.
- Build strong customer relationships.
Real-world examples
Case study: Apple's ecosystem lock-in
Apple drives loyalty by creating a seamless ecosystem across devices—iPhone, Mac, Apple Watch, and AirPods—that simplifies life for users. This understanding of consumer preference for convenience keeps users deeply embedded in their ecosystem.
Case study: Spotify’s behavioural data play
Spotify analyses listening habits to offer hyper-personalised playlists like “Discover Weekly.” This predictive engagement based on user behaviour encourages daily usage and builds emotional attachment.
Case study: Unilever’s local market intelligence
Unilever adapts its product offerings and campaigns based on local consumer preferences. For instance, in India, it tailors its skincare products to suit different climate zones and skin types, showing its sensitivity to regional behaviours.
:
Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.