![]() ![]() There are four types of consumer behavior that marketers recognize. However, if the company instead uses its resources to develop a new beverage that appeals to a different audience, it stands to gain market share. Likewise, this data can also show the consumer types who dislike the product and what products they prefer.įor example, if a soft-drink company produces a popular beverage but then alters the recipe and the taste, it risks alienating millions of people who loved the way it tasted before. If a product has a consistently large market share among consumers, that's a sign that the product is satisfying a demand and should remain unchanged. Knowing what consumers like can help a business decide what to keep the same and what to change. Related: Forecasting Methods: What They Are and How To Choose Them Promoting retention and innovation They might predict a greater increase in sales of these jeans in the next quarter, manufacture a greater quantity of them and adjust marketing to promote them further. These changes in behavior can signal a change in buying trends, which is information that can help businesses predict the kinds of goods that consumers may buy in the future.įor example, a clothing manufacturer may notice that a specific style of jeans is selling more than other styles. Related: Definitive Guide To Differentiated Marketing (Plus How It Differs From Other Marketing Methods) Allowing for trend forecastingīecause consumer behavior studies examine what consumers buy and why they buy it, researchers can see when their buying behaviors change. Having differentiated these consumer types, a salesperson at this store may understand that their strategy for younger consumers is promoting the most state-of-the-art features, while for older consumers, it is explaining what certain features do. However, younger consumers are more likely to understand what features to expect in a phone and which are useful to them, whereas older consumers may be unfamiliar with the functions and specifications considered desirable. Understanding these different needs and behaviors can help businesses create multiple strategies to appeal to the various differentiated groups and also provide tailored customer service to each consumer type.įor example, a store that specializes in smartphones might have a broad target audience of consumers likely to have disposable income, which could be anyone from age 25 and up. Each group is part of a business's target audience but has needs or exhibits behaviors that differ from those of other groups. In marketing, differentiation refers to the act of distinguishing consumer types and grouping them by common characteristics. It can ask, "Which demands do competitors satisfy that we don't?" When it knows the answer to that question, the business can address their gap and give consumers a reason to consider their goods rather than those of competitors. If consumers are purchasing from a business's competitors, the business can improve its performance by studying consumer behavior. There are several other ways in which understanding consumer behavior can benefit marketers, companies and other businesses. It's also important for retailers and companies to keep up to date with shifting trends in taste, needs and economics, as these factors can affect consumer behavior and require further adjustments in both marketing and production. ![]() By understanding consumers' reactions to goods and marketing, they can analyze their audience's needs and expectations and thus work toward meeting them. ![]() ![]() Studying consumer behavior helps marketers see what consumers want and their reasons choosing certain products over others. Related: 15 Marketing Psychology Principles, Explained Why is it important to understand consumer behavior? Strategies like this that are based on consumer behavior analytics have the potential to increase sales. Knowing the what, where and why can inform retailers and companies on how to adjust their marketing to emphasize deodorant sales at certain times of the year. In the study of consumer behavior, researchers might examine what people buy, when and how often they buy it, where they usually buy it, why they buy it and more.įor example, in analyzing antiperspirant sales, researchers may notice that people usually buy this product more frequently in the summer, typically in pharmacies and grocery stores, and that this is because consumers are likely more concerned about managing their perspiration when the weather is hot. View more jobs on Indeed View More What is consumer behavior?Ĭonsumer behavior is how people feel and think when they are deciding whether to buy a product. ![]()
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