What is Consumer Behavior: Types & Examples - British Academy For Training & Development

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What is Consumer Behavior: Types & Examples

Consumer behaviour refers to the psychological and social process of how individuals or groups select and secure their pleasure between limited resources. This is an intricate process that explores what goes into making the purchase decisions, including information searches, evaluations of alternatives, costs and benefits of purchases, and most importantly, the problems and difficulties experienced in making the purchases.

 

Psychological Factors: These factors are introduced under the key issues such as motivation, perception, beliefs, and attitudes that influence the consumer in their process to make a product choice.

 

Social Factors: Consumer preferences and behaviours can be controlled by family, friends, social networks, as well as cultural norms.

 

Economic Factors: In terms of earning an income, saving, and general economic view, consumer behaviour can be subjected to the state of the economy.

Types and examples of consumer behaviour

The character of a consumer may be portrayed by several categories that require distinctive features. Here are four such types. Each of the categories mentioned is then supported by specific examples:

  1. Complex Buying Behavior

Complex buying behaviour is reserved for those instances where the consumers recognise differences among the brands and the purchase decision is critical to them. Such encounters are almost always observed when purchases to be made are costly, sporadic, and bear significant involvement on the part of the consumers, who predominantly amount to long hours of consideration. 

For example: buying a car, where the potential customer looks for variants of cars that meet certain criteria and their cost.

  1.  Dissonance-Reducing Buying Behaviour

It happens when consumers, highly involved in the buying process, have little to differentiate between the various brands. They might carry out a purchase only to wish they had resorted to cognitive dissonance after the static state of the buyer's regret, which causes them even more cognitive dissonance.

For example, a lot of consumers go through buyer’s remorse after making a purchase of a washing machine. 

  1. Habitual Buying Behaviour

Habitual buying conduct is a concept pertaining to consumer behaviour where consumers make purchase decisions without engaging in much deliberation and also feel that the products they are purchasing are indistinguishable.

For example, customers don’t take too much time in selecting their favourite brand of bread, milk, or shampoo; this is a decision that is largely automated by the mind.

The science of consumer behaviour 

Understanding consumer behaviour helps individuals, groups, and organisations to investigate how factors social, environmental, economic, as well as personal influence and impact their purchasing and consumption decisions by studying different factors that impinge on the individual or group of consumers. 

The study of these activities often draws from the disciplines of anthropological behaviour, psychology, economics, and marketing to determine which factors drive consumer decision-making.

Having a better understanding of customers’ buying habits is important in evaluating purchasing decisions and determining consumer behaviour, as it helps better marketing and business strategies. Assessing how individuals decide what choices to make, for example, brings innovative ideology that affects in reality the way businesses produce their goods and services, thus promoting better customer experiences.

What are the benefits of consumer behaviour analysis?

There are several ways in which companies and marketers can benefit from consumer research and analysing particular behaviour. Let me give you some of these:

  1. Improved Marketing Strategies

It is crucial for a business to know the needs and motivations of its target consumers in order to design relevant and persuasive marketing messages and reach them easily in order to communicate well and encourage target consumer behaviour.

  1. Enhanced Product Development

A deep dive into the analysis of consumer behaviour brings to the surface some very imperative concepts regarding the design of products and services in the sense that new products.

  1. Increased Customer Satisfaction

By analysing the reasons behind consumer decisions, organisations can optimise the encounter and, in turn, make the consumer come back more often.

What are the 6 characteristics of consumer behaviour?

Consumer behaviour is a subject of social science, particularly the research of economics, psychology, sociology, anthropology, and geography. Here are 6 characteristics of consumer behaviour:

  1. Post-Purchase Evaluation

After making a purchase, buyers evaluate the level of satisfaction and the service quality they got from the product, which in turn can affect future purchasing intentions and consumer loyalty.

  1. Information processing

The process of information processing is proposed to consist of five main stages, namely, gathering of information, storage of information, retrieval of information, dissemination or transmission of information, and utilisation of information. 

  1. Decision making

Consumer behaviour’s decision-making is a psychological process that people undergo in choosing products and services. This is a progressive series of individual activities that focus on the job at hand, which comprises the internally generated forces associated with the individual.

  1. Relationship with companies

One of the cardinal elements that play a pivotal role in consumer behaviour is the nature of the relationship that the consumers have with the relevant companies, as it affects purchase choices, brand attachment, and also satisfaction in general.

  1. Purchase Behaviour

The almost inevitable sequence of steps taken in the process goes from a realisation of an existing or a potential need to deciding upon and buying a particular product.

  1. Post-Purchase Behaviour

Post-purchase behaviour, after which consumers have made a purchase, refers to their actions, emotions, and reactions. It’s quite a turning point because it shapes the future buying behaviour, the attachment to the product, and even customers' satisfaction with a particular product.

How do you improve your marketing strategy using the science of consumer behaviour?

Consumer behaviour is the study of people associated with buying something. More specifically, the psychology of the customers, what shapes their preferences, and what influences them to make certain decisions. To practise one’s learned principles of making consumers behave in marketing campaigns allows the effectiveness of such campaigns to be higher and ensures that the right audience gets reached, thus increasing their engagement through passive and active obedience. 

 

Nevertheless, the appreciation of such emotions and decisions also spurs one in enthusiasm that leads to not only retaining the customer, but also, they will want to, and upgrade their behaviour towards their products and services.

What factors contribute to consumer behaviour?

Here are some of the most important factors that determine the behaviour of consumers:

  1. Psychological Factors

The mental state and thoughts also have a major influence on how consumers feel, think, and act towards their desire to buy a product.

  1. Social Factors

Social factors have a significant impact on not only the design but also the behaviour and make-up of the consumers, as these social factors go a long way in determining how the look, orientation, self-communication, and even the gender and age of the consumer should occur.

  1. Cultural Factors

Clients have a number of cumulatively contributing ethics, beliefs, and codes of practice in their minds. Thus, they prefer certain goods and services from among a wide variety of product and service options.

Conclusion

In order to productively communicate with the intended market, management at firms must take into account how schism consumer behaviour is demonstrated. In this respect, it is equally important to study the issues of product policy, pricing policy, and market communication for different age and income groups. When cross-pricing is a constant average at any given point, the generalised Marshallian demand function approach may be appropriate. The British Academy of Training and Development offers a number of courses aimed at providing attendees with a deeper understanding of these offered types of programs and the ability to successfully implement the knowledge about cultural behaviour in organisations.

Frequently Asked Questions

1. What are the main types of consumer behaviour?

The types of consumer purchase decisions are based on four types. These include complex buying behaviour, variety-seeking behaviour, dissonant-reducing buying behaviour, and habitual buying behaviour.

2. Can you provide an example of consumer behaviour?

This phenomenon is known as high involvement, meaning the act of delving deeply into information related to high-value but high-risk products before making a decision.

3. How does culture influence consumer behaviour?

It is common knowledge that there are various aspects in society that shape not only the cultural values of an individual or community but also the belief systems and preferences.

4. Why is understanding consumer behaviour important for businesses?

It’s the alignment of their actions with the desires of their customers that let them become loyal followers of a brand, happy customers of a business, and consequently, allows the former to grow.