Posted in Marketing & Strategy Articles, Total Reads: 3503
, Published on 28 June 2011
The world of business has become a war zone with companies looking to out do the each other in every field. Companies are creating newer breakthrough products, starting creative advertising campaigns, fluctuating the product prices, providing post purchase services etc. However, the customer is not open to a lot of brand which offer similar products, similar services and have similar prices. Thus, is becomes critical for companies to readdress their issues of tapping their customer. And this can tackled by understanding an important aspect of any business- Consumer Buying behavior.
Consumers are the ultimate target for any business and it is rightly said that for businesses, customers are God. Thus understanding their needs, requirements, perspective, attitude etc are all essential if a company wants to sell its product or service and gain thee confidence of a customer.
Every customer has a significant role which he plays when a certain product is released in the market. Customers who purchase the products as soon as they are launched in the market are classified as initiators. Initiators are the people who have been waiting for the product to be launched and get associated with the brand as soon as it is available in the market. The buyers and deciders take their time for the market to settle down and analyze the product value, quality and price before becoming users. Influencers are those customers which play a big role in providing a positive word of mouthfor the products and help the product grow. However, influencers can also prove to be disastrous if they have a bad experience. Hence, for marketing companies, understanding the consumer buying behavior is critical.
Buying behavior of consumers can be classified depending upon the type of product that the customers are looking to buy. According to Assael, depending upon their involvement and difference between products consumers can be classified as complex buying consumers, variety seeking consumers, dissonance reducing consumers and habitual buying behavior.
Complex buying behavior is shown by consumers who seek high involvement in a product which is usually in the premium niche marketand has higher value. Customers buying laptops and cars are examples of complex buying behavior. On the other hand, when a huge variety of high involvement products are available, customers tend to show dissonance reducing buying behavior, as in the case of mobile phones. Customers also tend to be variety seeking when a low involvement is there as in the case of customers buying biscuits, wafers, soft drinks etc. However, there are certain products which customers have to buy as a routine and hence they show a habitual buying behavior like in the case of salt, rice etc.
Product quality, ease of use, accessibility and affordability are some things which influence the customer in buying a product. Friends, family, colleagues also play in significant role in influencing the purchasing behavior of a customer. A person who has a favorable experience with a certain brand would certainly spread good stories about it but a dissatisfied customer would not only stop using that service, but would ensure his close ones also don’t use the same. The customers also have a high value for money. So until the customer is absolutely sure, the possibility of brand switching remains imminent.
The needs of people would not only constantly increase but would also evolve along with changing times. With better accessibility through retailing, competitive pricing and high quality products, the customers have a huge pool to choose from. Thus, from the organizational perspective, one way of understanding the next buying behavior and decision of the customer it by tracking his every move.
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