Consumer behavior is the study of how individuals, groups, and organizations make decisions about acquiring, using, and disposing of goods, services, experiences, or ideas. It encompasses aspects such as the psychological, social, and cultural influences on purchasing decisions, as well as the impact of these decisions on individual and society. Consumer behavior research provides insights into why and how consumers behave the way they do and helps marketers develop effective marketing strategies.
If you want to do good marketing, you must know your customers. Without understanding the needs that are motivating them to buy, your business won’t reach its full potential. Instead of pinpointed marketing campaigns, you’ll be hurling stuff at the wall and seeing what sticks. Unless you have an endless budget — which startups and…
Learn what consideration sets are and how many products are in them on average.
The consumer decision-making process is a complex activity influenced by cognitive, emotional and neurological factors. It’s nevertheless essential for marketers to understand it. Consumers make constant decisions about purchase, use, opinions, and discarding of products and services. If you don’t have any idea of how consumers make these decisions, how are you supposed to influence…
To understand consumer behavior, you must understand customer needs. Needs establish goals which in turn determine what products and services consumers purchase. Whether it’s choosing what to eat for lunch, which beverage to drink, what evening activity to do, or which mobile app to open on a commute, each decision is driven by a specific…
People are not rational decision makers. Quite the contrary we are highly irrational in almost everything we do. That’s because despite best intentions to remain as objective as possible there are just so many things that influence us in any given moment — both on a conscious level and on a broader emotional and subconscious…
It’s important for brands to nurture trust, no matter big or small. In fact, it’s easier for small brands and can lead to significant financial benefits. Brand trust is all about credibility and integrity. Once you understand that you can build brand trust more effectively. Trust is important in essentially all interactions in our society….
SMEs suffer a disadvantage in the marketplace when competing against large brands. There are, however, several psychological consumer insights that SMEs can use to their advantage. These include personifying the producer, positioning as an underdog, using attractive packaging and crowdfunding their products. Startups and other small and medium-sized enterprises (SMEs) operate at a severe disadvantage…
Brand hate is inevitable for every business. As people grow a liking to you, other people start to dislike you. Brand hate is caused by three key emotions: disgust, contempt and anger in different combinations that lead to different behavioral outcomes. Marketing discussion tends to focus on the positive emotional attributes in branding. You hear…
People buy luxury goods to gain status and ultimately improve their lives. Luxury brands are expensive because they have to be. If luxury brands were cheap, they would lose their ability to ascribe social status to their buyers. Porsche is the most valuable luxury brand in the world. Brand Finance estimates its brand value at…
Consumers make both low and high involvement purchase decisions. Low involvement decisions are quick and automatic while high involvement decisions take much more effort. A high involvement purchase decision can have low involvement steps and is shaped by a number of personal and situational factors. Consumers make decisions that are either high involvement or low…
