Tag: Consumer

  • Consumers Behaviour: Comprehensive Overview

    Consumers Behaviour: Comprehensive Overview

    Understanding consumers behaviour is crucial for businesses. This comprehensive overview explores definitions, decision-making processes, advantages and disadvantages, and best practices to enhance marketing strategies and improve customer satisfaction.

    Concept of Consumers Behaviour: Comprehensive Overview

    Consumer behavior refers to the study of how individuals and groups make decisions regarding the selection, purchase, use, and disposal of products and services. It encompasses the influences of psychological, social, and cultural factors on their purchasing choices and the overall impact on market dynamics and trends.

    1. Definition

    Consumer behavior is the study of how individuals, groups, or organizations select, purchase, use, and dispose of products, services, or ideas to satisfy needs. It examines psychological, social, and cultural influences on decision-making and their societal impact.

    2. Consumer Decision-Making Process

    A 5-stage model:

    1. Problem Recognition: The consumer identifies a need (e.g., hunger prompts food purchase).
    2. Information Search: Researches options (e.g., online reviews, recommendations).
    3. Evaluation of Alternatives: Compares products (e.g., price, features, brand loyalty).
    4. Purchase Decision: Selects and buys the product (influenced by discounts, and availability).
    5. Post-Purchase Behavior: Evaluates satisfaction (e.g., repeat purchases or returns).

    3. Importance

    • Marketing Strategy: Tailor campaigns to audience preferences (e.g., TikTok ads for Gen Z).
    • Product Development: Align offerings with needs (e.g., eco-friendly packaging).
    • Customer Satisfaction: Improve experiences to reduce churn.
    • Trend Prediction: Anticipate shifts (e.g., rise in plant-based diets).
    • Segmentation: Target demographics effectively (e.g., luxury brands focusing on high-income groups).
    • Retention: Build loyalty through personalized engagement.

    4. Key Features

    • Multifaceted: Influenced by psychological (motivation, perception), social (family, peers), cultural (values, traditions), personal (age, income), and economic factors (price sensitivity).
    • Dynamic: Evolves with trends (e.g., digital shopping post-pandemic).
    • Subjective: Varies by individual preferences and demographics.
    • Goal-Driven: Aimed at solving problems or fulfilling desires.

    5. Advantages

    • Targeted Marketing: Higher ROI through personalized ads (e.g., Spotify playlists based on listening habits).
    • Risk Reduction: Test products using consumer insights before launch.
    • Enhanced Experience: Streamlined journeys (e.g., Amazon’s one-click ordering).
    • Loyalty: Reward programs increase retention (e.g., Starbucks Rewards).
    • Competitive Edge: Innovate ahead of rivals (e.g., Apple’s user-centric design).

    6. Disadvantages

    • Complexity: Hard to predict due to emotional/impulse buying.
    • High Costs: Surveys, focus groups, and analytics tools are expensive.
    • Ethical Issues: Privacy concerns with data collection (e.g., Facebook-Cambridge Analytica).
    • Changing Trends: Rapid shifts (e.g., fast fashion to sustainability) challenge relevance.
    • Information Overload: Excess data complicates decision-making.

    7. Solutions

    • Advanced Analytics: Use AI to decode complex patterns (e.g., Netflix recommendations).
    • Cost-Effective Research: Leverage social media polls or crowdsourcing.
    • Ethical Transparency: Obtain explicit consent and anonymize data (GDPR compliance).
    • Continuous Monitoring: Track trends via tools like Google Trends.
    • AI Tools: Automate data analysis to reduce overload (e.g., CRM systems).

    8. Best Practices

    • Personalization: Use CRM data for tailored offers (e.g., Nike’s custom shoes).
    • Data-Driven Decisions: A/B test campaigns (e.g., email subject lines).
    • Omnichannel Engagement: Seamless experience across platforms (e.g., Disney’s app-to-park integration).
    • Feedback Loops: Act on reviews (e.g., Airbnb host improvements).
    • Ethical Standards: Avoid manipulative tactics; prioritize consumer welfare.
    • Continuous Learning: Invest in workshops and market scans.
    • Educate Customers: Provide value via tutorials or content (e.g., Sephora’s beauty classes).

    Conclusion

    Understanding consumer behavior is vital for business success. While challenges like complexity and ethics exist, solutions like AI analytics and transparency foster trust. Adopting best practices ensures relevance in a dynamic market, driving growth and loyalty.

    FAQs

    1. What is consumer behavior?

    Consumers behaviour studies how individuals and groups make decisions about selecting, purchasing, using, and disposing of products and services. It includes the influences of psychological, social, and cultural factors on these decisions.

    2. Why is understanding consumer behavior important?

    Understanding consumer behavior helps businesses tailor their marketing strategies, improve product development, enhance customer satisfaction, predict trends, and effectively segment target demographics.

    3. What are the stages of the consumer decision-making process?

    The five stages include:

    1. Problem Recognition
    2. Information Search
    3. Evaluation of Alternatives
    4. Purchase Decision
    5. Post-Purchase Behavior

    4. What are some advantages of studying consumer behavior?

    Advantages include targeted marketing, risk reduction, enhanced customer experiences, increased loyalty, and a competitive edge in product offerings.

    5. What are some disadvantages of studying consumer behavior?

    Disadvantages can encompass complexity in predicting behavior, high research costs, ethical issues regarding data privacy, changing trends, and information overload.

    6. How can businesses overcome the challenges of consumer behavior?

    Solutions include using advanced analytics, conducting cost-effective research through social media, maintaining ethical transparency, continuous trend monitoring, and employing AI tools for data analysis.

    7. What are some best practices for analyzing consumer behavior?

    Best practices involve personalizing marketing efforts, making data-driven decisions, ensuring omnichannel engagement, creating feedback loops, maintaining ethical standards, investing in continuous learning, and educating customers.

    8. How does consumer behavior affect market trends?

    Consumer behavior directly influences market dynamics, as shifts in preferences and buying habits can shape product offerings, marketing strategies, and overall industry trends.

  • B2C Business to Consumer: Definition Types Pros Cons Examples

    B2C Business to Consumer: Definition Types Pros Cons Examples

    Unlock the potential of B2C business: Learn how businesses directly reach and satisfy individual consumers with products and services. #B2C #B2CBusiness #BusinesstoConsumer!

    Understanding B2C (Business to Consumer)

    B2C, or Business to Consumer, refers to the transactional relationship between a business and individual consumers. This model focuses primarily on selling products and services directly to consumers who are the end-users. Unlike B2B (Business to Business), which involves selling to other companies, B2C interactions are more straightforward and have shorter sales cycles. Discover the benefits of digital exchange and how they have revolutionized the financial landscape.

    What is Business to Consumer (B2C)? Meaning and Definition

    Business to Consumer (B2C) is a term that delineates the process of selling products and services directly from businesses to individual consumers. Unlike the B2B model, which involves commercial transactions between businesses, B2C is characterized by personal transactions between businesses and their end customers.

    In a B2C model, businesses target the needs and desires of individuals with their products or services. These transactions typically include items like clothing, food, electronics, and services such as online streaming or travel booking. The sales processes are designed to be simple, often instantaneous, and aim to provide a seamless purchasing experience for the consumer.

    The digital age has expanded the B2C landscape significantly through e-commerce platforms, enabling businesses to reach a global consumer base online. Notably, B2C is not limited to physical products but also encompasses the provision of services directly to consumers, such as financial services, healthcare, and entertainment.

    One of the key attributes of B2C is the marketing approach that businesses adopt. It usually involves emotional, engaging, and persuasive tactics that appeal to consumers, contrasting the more rational and relationship-driven marketing used in B2B models. The goal in B2C marketing is often to drive impulse buys and capitalize on consumer buying behaviors.

    Types of B2C Business Models

    The B2C (Business to Consumer) sector comprises various models that cater to the direct selling of products and services to consumers. Below, we discuss the primary types of B2C business models that are prevalent in the market today:

    1. E-Tailers/Online Retailers

    E-Tailers are essentially online retailers that operate on the internet. These businesses sell a variety of goods, from clothing to electronics, directly to the consumer through their websites or mobile apps. Examples include Amazon, eBay, and many others that have digital storefronts for consumers to browse and purchase items.

    2. Direct Sellers

    Direct sellers market their goods and services directly to consumers, often bypassing the traditional retail environment. This model can include both online and physical sales methods, such as through a company’s own website or via in-person demos and home parties.

    3. Online Services

    This category includes companies that provide services rather than tangible goods, which could involve financial services, travel accommodations, online courses, and streaming services such as Netflix or Spotify. The transactions for these services are facilitated online.

    4. Community-Based Models

    Platforms that rely on community-based models enable users to interact and sell directly to one another. Social media marketplaces, forums, and classified ads websites like Facebook Marketplace or Craigslist are examples where communities drive the commerce.

    5. Subscription Services

    Subscription services have gained popularity by offering products or services on a recurring basis. This model often brings convenience and value to consumers, fostering brand loyalty. Examples include monthly subscription boxes for food, cosmetics, or books, as well as software or media subscriptions.

    6. Fee-for-Service

    Under this model, businesses charge consumers for specific professional services. This can include sectors like healthcare, consulting, or financial services where a direct transactional relationship exists between the service provider and the consumer.

    7. Freemium Services

    Freemium models offer a basic version of a product or service for free while charging for advanced features or benefits. This is common in apps and software where users can upgrade to premium versions for enhanced capabilities or an ad-free experience.

    8. Advertisement-Based Models

    These businesses provide content or services free of charge to consumers but generate revenue through advertisements. Many online publications, social networks, and video platforms use this model where consumer attention is monetized by showing targeted advertisements.

    Each of these B2C business models is designed to cater to specific consumer needs and preferences, utilizing the digital advancements of today’s economy to facilitate transactions and enhance customer experiences.

    Differences between B2C (Business to Consumer) and B2B (Business to Business)

    When comparing the B2C and B2B models, a number of key differences emerge, relating to the transaction process, customer relationship management, sales cycle, marketing strategy, and purchasing behavior. Here we explore these distinctions in detail:

    Transaction Complexity and Volume

    B2B transactions are often more complex and involve higher volumes than B2C transactions. B2B sales typically require more significant investment in both time and resources, dealing with larger quantities, while B2C transactions are usually simpler and involve individual consumer purchases.

    Sales Cycle Duration

    The sales cycle in B2B is generally longer due to the need for decision-making that often involves multiple stakeholders. In contrast, B2C sales cycles are shorter because the decision-making process is usually confined to individual consumers who can make purchases quickly, often impulsively.

    Relationship Focus

    B2B relationships tend to be long-term and relationship-driven, focusing on building and maintaining a professional rapport. B2C relationships are more transactional, with the primary focus being on the product or service fulfillment for individual consumers.

    Marketing Strategies

    The marketing approach in B2B involves more content-driven, educational material tailored toward a professional audience, emphasizing the value and ROI of the product or service. B2C marketing is often emotional and attempts to tap into the consumer’s desires and needs, inspiring quick purchasing decisions through engaging and persuasive tactics.

    Customer Decision Process

    In B2B, the purchasing decision is typically based on logic and calculated decision-making, requiring clear evidence of business value. On the other hand, B2C consumers are often driven by emotion, brand recognition, and personal desires, which can lead to more spontaneous purchasing decisions.

    Pricing and Payment Terms

    B2B pricing structures are often negotiated and may include tiered pricing based on volume, with longer payment terms arranged. In contrast, B2C prices are usually fixed, and consumers are expected to pay for products or services upfront or through consumer financing solutions.

    Buyer’s Expertise

    B2B buyers are usually experts in their industry who need detailed information and specifications to make an informed purchase. In the B2C market, consumers may not have the same level of understanding or interest in detailed product specifications and often rely on simplified information and brand trust.

    Product Tailoring

    B2B products and services might be customized to meet specific business requirements, which can include customization in features, integrations, or scale. B2C offerings are often standardized to suit the broad requirements of the consumer market.

    After-Sales Service and Support

    B2B after-sales service and support are critical components and can be quite involved, including training, implementation, and ongoing support. B2C after-sales service must be responsive and user-friendly but typically doesn’t require the same level of depth as B2B.

    User Experience and Convenience

    Convenience and user experience are pivotal in B2C, emphasizing easy and enjoyable interactions with products and services. While also important in B2B, the focus is more on efficiency and meeting specific business needs within the buyer’s journey.

    Understanding these differences is crucial for any business in developing effective strategies and processes that are tailored to their specific target market—whether it’s individual consumers or other businesses.

    Pros of B2C (Business to Consumer)

    Wider Market Reach

    B2C businesses benefit from a vast market of individual consumers and the potential to scale rapidly, especially with the global reach of the internet and e-commerce platforms.

    Faster Sales Cycles

    The sales cycle in B2C is shorter than in B2B, enabling businesses to convert leads to sales quickly, often with instantaneous transactions.

    Direct Consumer Relationships

    B2C allows businesses to engage directly with consumers, gather feedback, and use that information to improve products or services promptly.

    Emotional Branding Opportunities

    The emotional connection to a brand is more prevalent in B2C, which companies can leverage through storytelling and creative marketing campaigns.

    Simplified Decision-Making Process

    In B2C, the decision-making generally rests with a single individual, simplifying the sales process compared to the committee-based decisions common in B2B.

    Opportunity for Impulse Buying

    B2C businesses can take advantage of impulse buying behavior through strategic marketing and product placements.

    High Volume of Transactions

    B2C markets often experience a high volume of transactions with a wide array of consumer products and services in demand.

    Innovative Pricing Strategies

    With B2C, businesses can employ various pricing strategies and promotions, such as discounts and special offers, to attract and retain customers.

    Flexibility in Product and Service Offerings

    Consumer trends can change quickly, and B2C companies can be more agile in responding to these shifts with new or adjusted offerings.

    Cons of B2C (Business to Consumer)

    Lower Average Transaction Value

    Individual consumer transactions are generally lower in value compared to the large-scale transactions in the B2B space.

    Higher Customer Acquisition Costs

    Attracting individual consumers can be costly due to the need for extensive marketing and advertising efforts.

    Increased Competition

    The accessibility of the B2C market leads to high levels of competition, which can make customer retention challenging.

    Sensitivity to Consumer Behavior

    B2C markets are more susceptible to changes in consumer trends, economic fluctuations, and shifts in brand loyalty.

    Limited Personal Relationships

    The focus on transactions rather than long-term relationships means businesses may have more difficulty fostering loyalty and repeat business.

    Need for Extensive Customer Support

    Due to the transactional nature and high number of consumers, B2C companies often require a large customer support infrastructure.

    Reliance on Brand Perception

    B2C success is heavily reliant on brand image, which can be damaged by factors such as poor quality, negative reviews, or public relations issues.

    Product Returns and Exchanges

    B2C businesses typically have higher rates of returns and exchanges, which can be costly and time-consuming to manage.

    Dependence on Consumer Reviews and Social Proof

    Potential customers often depend on reviews and social proof, meaning a few negative experiences can significantly impact sales.

    By understanding the advantages and disadvantages of B2C, businesses can strategically plan their operations, marketing efforts, and customer engagement tactics to effectively serve the consumer market and optimize their growth and profitability.

    Success Practices for Your B2C Business

    To thrive in the competitive landscape of B2C business, companies need to adopt a set of best practices that not only attract consumers but also retain them and foster brand loyalty. Here are some strategies that can help B2C businesses succeed:

    Focus on Customer Experience

    Enhancing the consumer’s purchasing journey can lead to increased satisfaction and repeat business. Ensure your website is user-friendly, customer service is impeccable, and that you have a hassle-free return policy.

    Leverage Data Analytics

    Utilize tools and software to analyze consumer data and behavior. Insights gained from this data can inform product development, targeted marketing campaigns, and personalized shopping experiences.

    Implement SEO Best Practices

    Invest in Search Engine Optimization (SEO) to increase visibility in search engine results. A solid SEO strategy can drive organic traffic to your website, leading to higher sales conversions.

    Engage Through Social Media

    Social media platforms offer powerful channels for engagement, customer service, and viral marketing. Create engaging content that resonates with your audience to stimulate shares and entice new customers.

    Create High-Quality Content

    Content marketing can help establish your brand as a leader in your industry. Publish informative blogs, videos, and guides that not only engage your audience but also provide value.

    Optimize for Mobile Devices

    With the rise of smartphones, having a mobile-optimized platform is essential. Ensure your website and emails are responsive and easy to navigate on a mobile device.

    Utilize Email Marketing

    Capture email addresses and employ segmented email marketing to keep in touch with your consumers. Personalized emails can lead to higher engagement and more sales.

    Encourage Reviews and Testimonials

    Since consumers often rely on social proof, encourage satisfied customers to leave positive reviews and testimonials which can be showcased on your website and social channels.

    Harness the Power of Personalization

    Use consumer data to create personalized experiences, from product recommendations to tailored emails. Personalization can significantly impact consumer purchasing decisions.

    Offer Multiple Payment Options

    Incorporate a variety of payment methods including credit cards, digital wallets, and financing options to reduce friction at checkout and accommodate consumer preferences.

    Stay Agile with Trends and Technologies

    The B2C landscape is continuously evolving. Stay current with the latest trends and technological advances to offer innovative solutions that meet the changing needs of consumers.

    Develop a Strong Value Proposition

    Clearly articulate the unique benefits of your products or services. A compelling value proposition can differentiate your brand from competitors and attract more consumers.

    Foster Community Engagement

    Build a community around your brand through forums, membership programs, or interactive events. A strong community can lead to brand advocates and organic word-of-mouth marketing.

    Implement Loyalty Programs

    Reward repeat customers with loyalty programs that offer discounts, exclusive access, or other perks. Loyalty programs can enhance customer retention rates and lifetime value.

    Monitor and Manage Your Online Reputation

    Actively monitor what’s being said about your brand online. Address any negative feedback promptly and professionally to maintain a positive reputation.

    Continuously Optimize and Test

    Regularly test different aspects of your marketing and sales funnels. Use A/B testing for websites, ads, and emails to find what resonates best with your audience and optimize accordingly.

    By adhering to these best practices, B2C businesses can build strong relationships with consumers, increase their market reach, and drive sustainable growth in a dynamically changing marketplace.

    3 Remarkable Case Studies of B2C Success

    Amazon: The Gold Standard in E-commerce

    Amazon started as an online bookstore and quickly expanded to offer everything from electronics to groceries. Their customer-centric approach is legendary, featuring user-friendly shopping, personalized recommendations, and the groundbreaking Amazon Prime subscription service offering fast, free shipping and streaming services, cultivating an immense loyal customer base.

    Netflix: Revolutionizing Entertainment Consumption

    Netflix transitioned from DVD rentals to a streaming colossus, transforming how consumers access films and television. By investing in original content and a powerful recommendation algorithm, Netflix has not only maintained relevance but has also become synonymous with contemporary home entertainment.

    Apple: Fusing Technology with Lifestyle

    Apple has masterfully created an ecosystem of products and services, with an emphasis on design and user experience. Their retail stores provide hands-on product experiences coupled with exceptional customer support, bringing palpable excitement to the release of every new iPhone, iPad, and MacBook, solidifying Apple’s illustrious image in the technology landscape.

    B2C: Beginning of Future Business

    The business landscape is in a state of perpetual evolution, shaped by the dynamic forces of technological advancement, consumer behavior, and economic change. In this transformative era, Business to Consumer (B2C) stands at the forefront of modern commerce, heralding what can be seen as the dawn of future business.

    The Digital Revolution

    The inception of the internet marked the beginnings of a new chapter in B2C commerce. This isn’t just about a transformation from brick-and-mortar to online stores—it’s the spark that ignited a colossal shift in how businesses approach product design, consumer interaction, and marketing strategies. The digital age has democratized the consumer market, where accessibility and information equip consumers with unprecedented power to dictate market trends.

    Touch of Technology

    Technology isn’t just a tool; it’s become the cornerstone of consumer interaction. With AI-powered chatbots, VR showrooms, and AR applications, the B2C ecosystem is delivering experiences that were once considered pure science fiction. These advancements are not merely enhancing consumer convenience; they are redefining the very concept of what it means to shop and engage with brands.

    The Global Marketplace

    E-commerce platforms have dismantled geographical barriers, enabling businesses to extend their reach far beyond local communities and national borders. This global marketplace is not only a conduit for product distribution but also a melting pot of cultural exchange, innovation, and competition. B2C has truly become a gateway to the world, offering diverse products and services to an international audience.

    The Era of Personalization

    One of the most powerful dimensions of future B2C commerce is personalization. Big Data analytics and AI have made it possible to tailor experiences, offers, and communications to the individual preferences and behaviors of consumers. This hyper-personal approach builds deeper connections between businesses and consumers—converting one-time purchases into loyal, engaged customers.

    Speed and Agility

    Today’s consumers demand immediacy, and B2C businesses are responding with real-time solutions. Whether it’s same-day delivery through logistics innovations or instant customer service responses, the need for speed has never been greater. This fast-paced environment favors agile businesses that can quickly adapt to changing consumer needs and market fluctuations.

    The Green Imperative

    Sustainability is no longer a niche concern but a global imperative that’s shaping future business practices. B2C companies are increasingly aware that their environmental footprint is a significant factor in consumer decision-making. From eco-friendly packaging to responsibly sourced products, B2C businesses are integrating green principles into their operations to meet the demands of an eco-conscious consumer base.

    Consumer Empowerment

    The B2C model empowers consumers to dictate market trends, voice their opinions publicly, and hold businesses accountable. The ability to leave reviews, share experiences on social media, and influence brand perceptions has shifted the power dynamics in favor of the consumer. As such, consumer feedback has become a vital ingredient for business growth and innovation.

    Challenges and Opportunities

    The road ahead for B2C is paved with both challenges and opportunities. While the potential for reach and influence is unprecedented, so is the complexity of managing global supply chains, navigating digital security concerns, and rising above the cacophony of an overcrowded marketplace.

    B2C businesses that are forward-thinking, customer-obsessed, and nimble in the face of change will not only survive but thrive in this evolving landscape. As we delve into this brave new world of future business, the B2C sector holds a mirror to our society’s advancements, challenges, aspirations, and potential for growth.

    The future of B2C is not a distant reality; it is already unfolding before us. With each technological breakthrough and each shift in consumer expectation, B2C continues to march at the vanguard of commerce, signaling the start of what is undoubtedly an exciting era for businesses and consumers alike.

  • What is Consumer Decision Making Process?

    What is Consumer Decision Making Process?

    Consumer Decision Making Process Meaning, Definition, Types, and Stages. The purchaser selection-making method includes the shoppers figuring out their needs, gathering information, evaluating alternatives, and then making their shopping decision. Consumer behavior may additionally decide with the aid of monetary and psychological elements and influenced using environmental elements like social and cultural values.

    Here are the articles to explain, the Meaning, Definition, Types, and Stages of the Consumer Decision Making Process.

    Consumer decision making behavior is a complicated technique and includes a whole lot beginning from hassle attention to post-purchase activities. Every patron has extraordinary wishes in their everyday lives and these are these wants that make to make one-of-a-kind decisions.

    Decisions can be complex, comparing, evaluating, and choosing as properly as buying from a range of merchandise relying upon the opinion of a customer over a precise product. This renders perception and realization of the fundamental hassle of the client selection-making technique for entrepreneurs to make their merchandise and offerings specific to others in the marketplace.

    Meaning and Definition of Consumer Decision Making Process:

    The buying process begins when customers recognize an unsatisfied need. Then they seek information about how to satisfy their need- what, products might be useful and how they can buy them. Customers evaluate the various alternative sources of merchandise such as stores, catalogs, and the Internet and choose a store or an Internet site to visit or a catalog to review. This encounter with a retailer provides more information and may alert customers to additional needs.

    After evaluating the retailer’s merchandise offering, customers may make a purchase or go to another retailer to collect more information. Eventually, customers make a purchase, use the product, and then decide whether the product satisfies their needs. In some situations, customers like Sania spend considerable time and effort selecting a retailer and evaluating the merchandise. In other situations, buying decisions stand made automatically with little thought.

    The types of Consumer Decision Making Process:

    The three types of customer decision-making processes are:

    1. Extended problem solving,
    2. Limited problem solving, and
    3. Habitual decision making.

    Extended Problem Solving:

    Extended problem solving is a purchase decision process in which customers devote considerable time and effort to analyzing alternatives. Customers typically engage in extended problem solving when the purchase decision involves a lot of risk and uncertainty. There are many types of risks. Financial risks arise when customers purchase an expensive product. Physical risks are important when customers feel a product may affect their health or safety.

    Social risks arise when customers believe a product will affect how others view them. Consumers engage in extended problem solving when they are making a buying decision to satisfy an important need or when they have little knowledge about the product or service. Due to high risk and uncertainty in these situations, customers go beyond their knowledge to consult with friends, family members, or experts.

    They may visit several retailers before making a purchase decision. Retailers influence customers engaged in extended problem solving by providing the necessary information in a readily available and easily understood manner and by offering money-back guarantees. For example, retailers that sell merchandise involving extended problem solving provide brochures describing the merchandise and its specifications; have informational displays in the store (such as a sofa cut in half to show its construction); and use salespeople to make presentations and answer questions.

    Limited Problem Solving:

    Limited problem solving is a purchase decision process involving a moderate amount of effort and time. Customers engage in this type of buying process when they have had some prior experience with the product or service and their risk is moderate.

    In these situations, customers tend to rely more on personal knowledge than on external information. They usually choose a retailer they have shopped at before and select merchandise they have bought in the past. The majority of customer decision-making involves limited problem-solving.

    Retailers attempt to reinforce this buying pattern when customers are buying merchandise from them. If customers are shopping elsewhere, however, retailers need to break this buying pattern by introducing new information or offering different merchandise or services.

    For example;

    Sania Mirza’s buying process illustrates both limited and extended problem-solving. Her store choice decision was based on her prior knowledge of the merchandise in various stores she had shopped in and an ad in the San Francisco Chronicle. Considering this information, she felt the store choice decision was not very risky, thus she engaged in limited problem solving when deciding to visit Macy’s. But her buying process for the suit stood extended. This decision was important to her, thus she spent time acquiring information from a friend and the salesperson to evaluate and select a suit.

    One common type of limited problem solving is impulse buying. Impulse buying is a buying decision made by customers on the spot after seeing the merchandise. Sania’s decision to buy the scarf was an impulse purchase.

    Retailers encourage impulse buying behavior by using prominent displays to attract customer attention and stimulate a purchase decision based on little analysis. For example, sales of a grocery item are greatly increased when the item stands featured in an end-aisle display when a “BEST BUY” sign stands placed on the shelf with the item, and when the item stands placed at eye level (typically on the third shelf from the bottom), or when items stand placed at the checkout counter so customers can see them as they wait in line.

    Supermarkets use these displays and prime locations for the profitable items that customers tend to buy on impulse, such as gourmet food, rather than commodities such as flour and sugar, which are usually planned purchases. Impulse purchases by electronic shoppers are stimulated by putting special merchandise on the retailer’s home page and by suggesting complimentary merchandise.

    Habitual Decision-Making:

    Habitual decision-making is a purchase decision process involving little or no conscious effort. Today’s customers have many demands on their time. One way they cope with these time pressures is by simplifying their decision-making process.

    When a need arises, customers may automatically respond with, “I’ll buy the same thing bought last time from the same store.’ Typically, this habitual decision-making process is used when decisions aren’t very important to customers and involve familiar merchandise they have bought in the past.

    Brand loyalty and store loyalty are examples of habitual decision-making. Brand loyalty means that customers like and consistently buy a specific brand in a product category. They are reluctant to switch to other brands if their favorite brand isn’t available. Thus, retailers can only satisfy these customers’ needs if they offer the specific brands desired. Brand loyalty creates both opportunities and problems for retailers.

    Customers stand attracted to stores carrying popular brands. But since retailers must carry high-loyalty brands, they may not be able to negotiate favorable terms with the supplier of the popular national brands. Store loyalty means that customers like and habitually visit the same store to purchase a type of merchandise.

    All retailers would like to increase their customers’ store loyalty. Some approaches for increasing store loyalty are selecting a convenient location, offering complete assortments and reducing the number of stockouts, rewarding customers for frequent purchases, and providing good customer service.

    Stages of Consumer Decision Making Process:

    The buying behavior model stands as one method used by marketers for identifying and tracking the decision-making process of a customer from the start to the end. The process stands categorized into 5 different stages which stand explained as follows:

    Need Recognition:

    Need recognition occurs when a consumer exactly determines their needs. Consumers may feel like they are missing out on something and needs to address this issue to fill in the gap. When businesses can determine when their target market starts developing these needs or wants, they can avail the ideal opportunity to advertise their brands.

    An example who buys water or cold drink identifies their need as thirst. Here; however, searching for information and evaluating alternatives are missing. These consumer decision-making steps stand considered to be important when an expensive brand is under buying consideration such as cars, laptops, mobile phones, etc.

    Problem Recognition:

    The buying process begins when consumers recognize they need to satisfy. This stands called the problem recogni­tion stage. Imagine leaving class to find that high winds had blown one of the oldest trees on campus directly onto your car. You need your car to get to school, work, and social events with your friends and family.

    Because your current car stands destroyed, you would immediately recognize that you need a new type of transportation. In this case, due to a lack of pub­lic transportation and the distance you must travel to meet your day-to-day obligations, you need to purchase a new car.

    Information Search:

    The information search stage in the buyer decision process tends to change continually as consumers require obtaining more and more information about products that can satisfy their needs. Information can also obtain through recommendations from people having previous experiences with products.

    At this level, consumers tend to consider risk management and prepare a list of the features of a particular brand. This is done so because most people do not want to regret their buying decision. Information for products and services can be obtained through several sources like:

    • Commercial sources: advertisements, promotional campaigns, salespeople, or packaging of a particular product.
    • Personal sources: The needs are discussed with family and friends who provided product recommendations.
    • Public sources: Radio, newspapers,s, and magazines.
    • Experiential sources: The own experience of a customer of using a particular brand.

    Information searches fall into two main categories- external and internal.

    External Information Search:

    When consum­ers seek information beyond their knowledge and experience to support them in their buying deci­sion. They are engaging in an external information search. Marketers can help consumers fill in their knowledge gaps through advertisements and prod­uct websites. The Internet has become an increasingly powerful tool. Because it provides consumers with on-demand product information in a format. That offers them as much or as little detail as they prefer.

    Many firms use social media to empower consum­ers’ external information search. For example, Ford uses Facebook, Twitter, YouTube, Flickr, and Scribd to communicate information and deepen relationships with customers. Ford combined paid advertising and content on Facebook by placing a sponsored video about the Ford Mustang on the Facebook logout page. Over 1 million people viewed the video in just one day. Allowing Ford to provide external information about the Mustang to a large audience of consumers.

    The consumer’s friends and family serve as perhaps the most important sources of external information. Think about the example of buying a new car and what those in your life might say about different brands or types of vehicles. You might be impressed by the salespeople and commercials for a certain type of car. But if your parents or friends tell you about a bad experience they had with it. Their opinions probably carry more weight.

    The power of these personal external infor­mation sources highlights why marketers must establish good relationships with all customers. It’s impossible to predict how one consumer’s experience might influence the buying decision and information of another potential customer.

    Internal Information Search:

    Not all purchases require consumers to search for information externally. For frequently purchased items such as – sham­poo or toothpaste, internal information often provides a sufficient basis for making a decision. In an internal information search, consumers use their past experi­ences with items from the same brand or product class as sources of information. You can easily remember your favorite soft drink or vacation destination. Which will likely influence what you drink with lunch today or where you go for spring break next year.

    In our car example, your experience with automobiles plays a significant role in your new car purchase. If you have had a great experience driving a Ford Escape or Toyota Camry. For example, you may decide to buy a newer model of that same car. Alterna­tively, if you have had a bad experience with a specific car, brand, or dealership. You may quickly eliminate those automobiles from contention.

    Evaluation of Alternatives:

    This step involves evaluating different alternatives that are available in the market along with the product lifecycle. Once it has been determined by the customer what can satisfy their need. They will start seeking out the best option available. This evaluation can be based upon different factors like quality, price, or any other factor which are important for customers.

    They may compare prices or read reviews and then select a product that satisfies their parameters the most. Once consumers have acquired information. They can use it to evaluate different alternatives, typically with a focus on identifying the benefits associated with each product. Consumers’ evaluative criteria consist of attributes that they consider important about a cer­tain product.

    For example, you would probably con­sider certain characteristics of a car. Such as price, warranty, safety features, or fuel economy, are more important than others when evaluating which one to buy. Car marketers work very hard to convince you that the benefits of their car, truck, or SUV reflect the criteria that matter to you. Marketing professionals must not only emphasize the benefits of their goods or service. But also use strategies to ensure potential buyers view those benefits as important.

    A company marketing an extremely fuel-efficient car might explain that you can use the several thousand dollars a year you will save on gas to pay off credit card debt or fund a family vacation. In contrast, a company marketing a giant SUV with poor fuel efficiency might tell you about the vehicle’s safety fea­tures and how it can protect your family or the flexibility it will give you to take more family members on trips.

    Purchase Decision:

    When all the above stages have been passed, the customer has now finally decided to make a purchasing decision. At this stage, the consumer has evaluated all facts and has arrived at a logical conclusion. Which is either based upon the influence of marketing campaigns or upon emotional connections or personal experiences, or a combination of both. After evaluating the alternatives, a customer will most likely buy a product. Usu­ally the marketer has little control over this part of the consumer decision-making process. Still, consumers have several decisions to make at this point.

    For example, once you have decided on the car you want, you have to decide where to buy it. Price, sales team, and experience with a specific dealership can directly impact. This decision can finance terms such as lower interest rates. If you decide to lease a car rather than buy one, you would make that decision during this step.

    An effective marketing strategy should seek to encourage ritual consump­tion. Ritual consumption refers to patterns of consumption that are repeated with regularity. These patterns can be as simple as buying the same soft drink or stopping at the same place for breakfast every morn­ing. These types of repeat purchases often provide firms with higher profits and a steady stream of cus­tomer sales.

    Post Purchase Behavior:

    The purchase of the product is followed by a post-purchase evaluation. Which refers to analyzing whether the product was useful for the consumer or not. If the product has matched the expectations of the customer, they will serve as a brand ambassador. Who can influence other potential consumers which will increase the customer base of that particular brand? The same is true for negative experiences; however, they can halt the journey of potential customers toward the product. Post-purchase evalua­tion is even more important to marketers today because of the power of customer reviews available on the Internet.

    Such reviews can become critical factors in the firm’s ability to win over new customers. Though the decision-making process provides marketers with a framework for understanding how consumers decide to purchase a product, consumers don’t always follow the orderly stages discussed. Marketers should not assume that because their strategy succeeds at one stage of the consumer decision-making process it will succeed at the next.

    For example, a car company might do an excel­lent job of providing external information to help interest you in its car but still not receive your business. Because of your inability to secure financing or the objections of your family members. Numerous situational influences like these can occur at various points in the decision-making process and change the customer’s path.

    Meaning Definition Types and Stages of the Consumer Decision Making Process Image
    Meaning, Definition, Types, and Stages of the Consumer Decision Making Process; Photo by Francois Le Nguyen on Unsplash.

    Reference;

    • It is retrieved from https://www.yourarticlelibrary.com/consumer-behaviour/consumer-decision-making/99878 and https://www.marketingtutor.net/consumer-decision-making-process-stages/
    • Image Source from https://unsplash.com/photos/X6rUQ4lH40I
  • Consumer Buying Decisions Internal External Influences

    Consumer Buying Decisions Internal External Influences

    Internal and External Influences on Consumer Buying Decisions. Consumer behavior is the finding out about how humans buy, use, gather, and dispose of agency items and services. What is the consumer buying decision? Consumers can buy items and services, however, they can additionally achieve them via bartering, lending, or leasing. Once items stand purchased, the client can then use them in a range of ways.

    Here are the articles to explain, What are the Internal and External Influences on Consumer Buying Decisions?

    Product bumped off one time like bloodless ingesting or it should use over time as a cell phone. The shopping for conduct of others can additionally affect by using how lots you use it. Positive opinions can be a way for relaxed clients to advocate the product to others. Conversely, sad shoppers can make complaints and inspire different shoppers now not to purchase that brand.

    Consumer behavior additionally consists of the movements that appear after a product has stood used. Some organizations make investments in a lot of cash to make merchandise that can recycle. These groups are extra famous with buyers who care about the surroundings and are greater in all likelihood for them to promote their merchandise and services. We can usually say that important elements impact customer behavior.

    These elements decide whether or not a goal purchaser buys a product or not. These are Psychological, Cultural, Economic, Social, and Personal factors. Individuals or groups, such as a family, can additionally make shopping choices for items and services. The buy selection is a procedure and several human beings work collectively to affect the buy choice in such an instance. Each man or woman may additionally play a section in the decision-making process.

    Throughout the discussion of internal and external influences. It can say that every condition and influence is different and it also varies from one consumer to another. Some influences can change by marketers whereas some can only handle when they occur. Understanding these influences is essential as with this marketers’ can assist consumers in their purchase decisions. US coffee marketers can also resolve their troubles related to selling coffee by identifying specific internal and external influences on consumer buying decisions that are as follows:

    Consumer Buying Decisions Internal Influences:

    What is the Internal Influence on Consumer Buying Decisions? Internal influences come from consumers’ lifestyles and ways of thinking. These are consumers’ thoughts, self-concepts, feelings, attitudes, lifestyles, motivation, and memory. These internal influences can also know as psychological influences. Internal influences depict the ways through which consumers interact with the universe around them, identify their feelings, collect and examine information, develop ideas and beliefs, and take some specific action. These internal influences can also use by US coffee marketers to better understand the specific buying behavior of their consumers.

    Several internal influences affect consumers at the time of buying coffee which subsequent are very important and need to understand by US coffee marketers:

    Personal Needs & Motives:

    The most substantial internal influence that affects consumer purchase decisions is his personal needs and motives. The need of a consumer can define as a lack of something or the difference between his desired and actual state. Motive is an individual’s inner state that encourages him to satisfy his specific need. This could also understand with an example like an individual may be hungry or thirsty. Which is his actual state and he also has a desire to be well fed which is his desired state. This need would motivate him to discover a restaurant or hotel to satisfy his need. All needs of consumers are not possible to define but throughout significant research, consumers’ needs are classified.

    By identifying these needs and motives of consumers, US coffee marketers can easily influence their consumer buying decisions. The most substantial need identification model that can use by US coffee marketers to motivate their consumers is Maslow’s Need Theory. This theory gives by Abraham Maslow an American psychologist. According to this theory, consumers’ needs are classified in this order that if understood and used to influence consumers can be very helpful:

    Purchase decisions;

    Understanding these needs is very essential to direct consumers’ unfulfilled needs toward purchase decisions. With this, US Coffee marketers can identify the consumers’ different needs related to buying a coffee. Like, a consumer may purchase coffee to satisfy his thirst, whereas others may purchase it for discussion with friends or business class people. As well, some others may have different reasons to purchase it like students or office going just want it to get relaxed. And some youngsters want to have fun and get together at a coffee shop with some snacks.

    So, every consumer has different needs that may be his basic or psychological needs so before selling coffee to a target market it is essential to identify the needs of different segments of the target market. Identification of consumers’ different needs related to buying coffee will significantly assist a coffee marketer in segmenting its target market and serving them most effectively.

    Attitudes:

    The next substantial internal influence that affects consumer buying behavior is their attitude. Attitude pertains to what an individual feels or thinks about something. It stands always reflected in individuals’ acts as well as in their buying patterns. Once a person’s attitude forms it is very hard to change. If a consumer has some kind of negative attitude towards a specific product or issue, it will not be easy to change that belief. It is a long-lasting general evaluation of consumers about a product, service, or company.

    Attitudes inform marketers about their consumers and how well they establish in the overall marketplace. Identification of these attitudes can also assist coffee marketers in knowing about their consumers and their perceptions of coffee sellers. US coffee marketers need to keep in mind that in the modern era, consumers expose to several advertisements and information and they don’t remember all of them. However, in this exposure, if they find something conflicting with their attitudes screen easily.

    Advertisement;

    So, coffee marketers need to design advertisements in an appropriate manner that does not conflict with US consumers’ attitudes. The attitudes of consumers learn as they stand shaped by their own experiences and as well as influenced by their ideas and personality. As well, individuals’ attitudes stand also influenced by their friends & family members and extensive media coverage. For operating successfully, it is essential to influence consumers’ attitudes which can stand done by creating and establishing an effective perception in their minds.

    Serving coffee with all essential facilities, a good environment, and high quality will assist coffee marketers in selling coffee to US consumers. Some of the coffee companies are doing well in the US like Starbucks and it is due to their positive image in the minds of their customers in every aspect of their business and as well towards society. The creation of a positive image is essential to influencing consumers’ attitudes and this can only stand done by serving them effectively in an all-inclusive manner.

    Consumer Buying Decisions External Influences:

    What is the External Influence on Consumer Buying Decisions? At the time of buying a product or service, all of us confront several external influences that involve our own culture, subculture, household structure, and groups. These associations of individuals know as external influences because the source of influence usually occurs from the exterior to an individual despite his or her inside influences. External influences also known as socio-cultural influences, as grow from the individual’s formal and informal relationships with his friends, family, and other individuals.

    Understanding these external influences is essential to affecting consumers buying decisions. Although almost all of the described external factors are essential to understanding the most fundamental external factor. What influences consumer purchase decision is his/her culture which is as follows:

    Culture:

    An individual’s values, attitudes, beliefs, and opinions shape by his culture. This in turn also forms people’s attitude toward buying specific products or services. The culture of an individual also gratifies his several emotional needs and due to this. They try to protect their cultural values and beliefs. This culture of protection reflects in individuals’ behavior as consumers. This could also understand with an example of McDonald’s that served Indian consumers in a way it used to serve American consumers. This act of the company made a negative effect on Indian consumers due to their specific vegetarian culture values.

    Culture can develop a consumer need and as well as can also affect the gratification of that need. In this way, culture depicts how an individual satisfies or fulfills his needs that if identified by coffee marketers can assist them in serving US consumers in a much more effective way. By serving coffee in a way that resonates with the priorities of US culture, US coffee marketers can increase their chances of consumer acceptance and success. They should try to serve coffee with high quality and different kinds of environment according to the needs of US consumers.

    Collect information;

    Business-class people should serve coffee at esteemed and premium prices in a peaceful environment. Whereas youngsters should serve coffee at reasonable prices in a fun-loving environment. Before serving consumers, US coffee marketers must collect information about their specific target markets’ cultural values. It can stand done by analyzing their family, religious establishments, and education associations.

    These specific values taught by US culture can stand identified easily that in turn can use to serve customers. The culture and value-related information can stand considerably used by coffee companies marketing managers to create messages and advertisements that are more likable and tempting to attract consumers.

    Segmentation:

    With the help of a discussion of internal and external influences on US consumer buying behavior. They can segment based on demographic, psychographic, and location & culture. Regarding demographic segmentation, US consumers can segment based on factors like age, income, gender, and education level. In psychographic segmentation target market can segment based on attitude towards drinking coffee, attitude towards going out for coffee, attitudes towards coffee price, opinion about coffee shops, etc. In concern to culture or location, the market can segment into different locations.

    Based on different types of segmentation approaches, the primary customer segments for coffee marketers in the United State are:

    The Students: 

    This segment mainly involves students from the university, college, and post-college from urban cities. It includes students within the 16-22 age range. This segment of consumers has lower income and is very price sensitive to consumer goods such as coffee.

    The Leisure: 

    This segment includes people from family and friends that love to have coffee for enjoying a good conversation. The age of this group people varies from 16-65. It involves people from different income and education levels. So it is a broad group to serve by US coffee marketers.

    Business People: 

    This segment represents busy business class professionals that stand normally aged between 22 and 55, with moderate to high income and education levels.

    Target Market:

    Among the above-discussed market segments, the most appropriate target market. That can stand selected by US coffee marketers in starting is the students. It is easy to understand the situations and factors that influence students. As well, the number of students in the country is increasing because of all kinds of institutions. Targeting, this market will be easy, and positioning an effective image in the minds of students will assist coffee marketers in extending their image in the minds of other target customers.

    The selected targeted market can affect positively by offering them coffee at low prices with additional services. Some of the students require a peaceful environment or some of them love to have fun or gossip. Designing coffee shops with both kinds of environments will effectively serve their needs. This target market’s interest in going out for coffee directs by the need for social interaction and concentrated study.

    The students who like coffee once will visit a coffee shop again. Sometimes they may visit a coffee shop for peace or sometimes for having fun with friends. Their needs can stand fulfilled easily so, it is better to serve this target market first and after attaining success in this, US coffee marketers can proceed to other market segments.

    Recommendations:

    With the above discussion, it becomes clear that internal/external influences affect consumer buying decisions. For attaining success in this kind of environment, marketers must design. Their product and marketing-related strategies by identifying specific internal and external influences. U.S. Coffee marketers can also attain success in the US by making use of the above-discussed internal and external influences that affect consumers’ coffee purchase decisions.

    Regarding the identified external-internal influences and selected target market, US coffee marketers can develop or alter. Their marketing strategy in the following manner that includes all aspects of a firm’s marketing mix:

    Product:

    Nowadays consumers do not remain loyal to a product. And when it is a disposable product like coffee, it becomes more difficult. Consumers want full value from products like coffee that can only deliver by serving them with a high-quality product. By identifying external/internal influences a product according to target market needs can design. 

    The selected target market is students and they belong to the school and college-going students. Who prefers coffee drinks with baked goods. As well, they also look for a good experience or coffee shop. At the time serving students, US coffee marketers need to keep this in mind. All these aspects as this will assist them in delivering a high-value and quality-oriented product.

    Price:

    Another significant aspect of Coffee companies’ marketing strategy is the price as it affects almost all types of consumers. The US coffee marketers should serve the selected target markets with low-to-mid price coffee products and services. Students do not have high incomes and they belong to different classes. Students buying decisions can direct significantly by considering their internal and external influences. According to their influences, they need to target low to medium-range prices.

    Place:

    Nowadays consumers are highly exposed to retail stores or fast-food chains. They like to go and have fast food in shops that operate in different locations of a city or nation. It is their general attitude and this should be considered by US coffee marketers at the time of undertaking decisions about the locations of their coffee stores. 

    They should at least start their operations with 2-3 coffee stores as it makes a positive impression on consumers’ attitudes and motivates them to experience one specific coffee store. They should try to start with an urban location or a location. That is the hub of students like an area where almost all reputed institutes of the US are running. In this way, students can motivate by specific coffee stores or shops.

    Promotion:

    The last substantial aspect of companies marketing strategy. That can alter substantially by identifying internal/external influences on consumer buying decisions is promotional strategy. For consumer products like coffee, it is not worth making extensive use of active marketing channels like media advertisements. Awareness and promotion of products like coffee can only stand done with extensive passive exposure through its stores and coffee packaging.

    For a drink, consumer-like students can only attract to the visual repetition of its logo and products everywhere and at every time of the day. With the help of logical visual repetition of coffee products packaging. Exceptional awareness can create by US Coffee marketers for its selected target market and as well as for other segments.

    Consumer Buying Decisions Internal External Influences Image
    Consumer Buying Decisions Internal External Influences; Photo by Brooke Cagle on Unsplash.

    Reference;

    • It is Retrieved from https://www.ukessays.com/essays/marketing/internal-external-influences-on-consumer-behaviour-marketing-essay.php?vref=1
    • Image Source from https://unsplash.com/photos/tLG2hcpITZE
  • 6 Importance of Consumer Behaviour in Marketing

    6 Importance of Consumer Behaviour in Marketing

    Understanding the importance of consumer behaviour in marketing or any organization before launching a product. If the organization failed to analyze how a customer will respond to a particular product, the company will face losses. Consumer behaviour is very complex because each consumer has a different mind and attitude towards the purchase, consumption, and disposal of products.

    Here are the articles to explain, the Importance of Consumer Behaviour in Marketing!

    Understanding the theories and concepts of consumer behaviour helps to market the product or services successfully. Moreover, studying consumer behaviour helps in many aspects. As there is constant change in living standards, trends, fashion, and technology change. Consumers’ attitude toward the purchase of product varies. Understanding these factors is of utmost importance because the marketing of products is largely dependent on these factors.

    What is the Importance of Consumer Behaviour in Marketing? This essay discusses the value to marketers of understanding the importance of consumer behaviour concepts and theories in marketing.

    Meaning and Definition of Consumer Behaviour;

    Consumer Behaviour or Buyer Behaviour is referred to the behaviour. That is displayed by the individual while they are buying, consuming, or disposing of any particular product or service. These behaviors can be affected by multiple factors. Moreover, it also involves searching for a product and evaluating of product where the consumer evaluates different features, purchases, and consumption of the product. Later the post-purchase behavior of the product is studied. Which shows consumer satisfaction or dissatisfaction where it involves the disposal of the product.

    The customers while buying a product go through many steps. The study of consumer behaviour helps to understand how buying decision is made and how they look for a product. Moreover, understanding consumer behaviour also helps marketers to know the what, where, when, how, and why of the consumption of product consumption. These help marketers or organizations to know the reason behind the purchase of products by consumers and how it satisfies them. Among other factors, basic needs like shelter and hunger along with a craving for psychological fulfillment tends consumer to buy a certain product or service.

    Importance of Consumer Behaviour to business managers in marketing;

    The main purpose behind marketing a product is to satisfy the demands and wants of the Consumers. The study of consumer behavior helps to achieve this purpose. As consumers are the most important person for marketers or salespeople. Therefore they need to consider the likes and dislikes of the consumers so that they can provide them with the goods and services accordingly. The more careful analysis helps in more exact prediction about the behavior of consumers of any product or service. The study of consumer behaviors helps business managers, salespeople, and marketers in the following way.

    • To design the best possible product or service that fully satisfies consumers’ needs and demands.
    • Decide where the service or product would be made available for easy access to consumers.
    • Decide the price at which the consumers would be ready to buy that product or service.
    • To find out the best method of promotion. That will prove to be effective to attract customers to buy a product.
    • To understand why, when, how, what, and other factors that influence buying decisions of the consumers.

    Importance of Consumer Behaviour to Marketers in marketing;

    Marketers need to study consumer behaviour. They need to know consumers as individuals or groups opt for, purchase, consumer, or dispose of products and services and how they share their experiences to satisfy their wants or needs. This helps marketers to investigate and understand how consumers behave. So that they can position their products to a specific group of people or targeted individuals.

    From the marketer’s viewpoint, they assume that the basic purpose of marketing is to sell goods and services to more people so that more profit could be made. This principle of making profits is heavily applied by almost all marketers. Earlier, marketers were successful in accomplishing their purpose. However, today, consumers are more aware of the use of products and other information about the product. It is not easy to sell or attract customers to buy the product. Thus, to sell a product or service or to convince consumers to buy the product. The marketers have to undergo proper research to win them over.

    The following are some of the points discussed that explain the value to marketers of understanding and applying consumer behaviour concepts and theories.

    1. Understand Buying Behaviour of consumers
    2. Create and retain customers through online stores
    3. Understand the factors influencing Consumer’s Buying Behaviour
    4. Understand the consumer’s decision to dispose of a product or services
    5. Increasing the knowledge of salesperson influence consumer to buy the product
    6. To help marketers to the sale of products and create focused marketing strategies
    To understand Buying Behaviour of consumers;

    The study of consumer behaviour helps marketers to recognize and forecast the purchase behavior of consumers while they are purchasing a product. The study of consumer behavior helps marketers not only to understand what consumers purchase but helps to understand why they purchase it. Moreover, other questions like how, where, and when they purchase it are also answered. The consumption and the reasons behind the disposition of that particular product or service help marketers to be fully aware of the product that is marketed.

    Consumer behavior studies also help marketers to understand the post-purchase behavior of the consumers. Thus, marketers become fully aware of every phase of the consumption process i.e., pre-purchase behavior, behavior during purchase, and post-purchase behavior. Many studies in the past show that each consumer behaves differently toward a product i.e. They buy the product for different reasons, pay different prices, used the product differently, and have different emotional attachments with the product.

    To create and retain customers through online stores;

    Professor Theodore Levitt says that consumer behavior is of most importance to marketers in business studies as the main aim is to create and retain customers. If the consumers are satisfied with the product, he or they will buy the same product again. Therefore, the product should be marketed by markers in such a way that convince the customer to buy the product. Thus, creating customers and retaining those customers are important.

    These can be done through understanding and paying close attention to the consumer’s behavior. While making a purchase decision or buying a product in the marketplace. Moreover, the information published on the websites largely influences the customer’s buying behavior. Such information on published sources arouses consumers to buy a product or service. Moreover, updating such information will help the consumer to retain a product or re-try the product. If the product has dissatisfied them.

    To understand the factors influencing Consumer’s Buying Behaviour;

    Marketers need to consider the factors that affect the buying behavior of consumers before entering the market. Many factors can influence the purchase decision of consumers such as social influence, cultural influences, psychological factors, and personal factors. Understanding these factors helps marketers to market the product at the right time to the right consumers. For example, if the marketer is marketing a Halal product. The marketers first consider all the factors that can influence consumers to buy Halal products. Where they can target specific areas where Halal food is more sold.

    Marketers need to pay attention to cultural influences such as religion, values, and norms of the people or societies targeted, and the lifestyle of the targeted consumers. The marketers can propose different strategies that convince the targeted consumers to buy marketed products or services. Moreover, marketers should ascertain the factors that influence and affects the purchase decision of consumers.

    If the marketers failed to understand the factors that might influence consumers. They will fail to convince the consumer to purchase that product or will fail to meet the demands of consumers. Some variables cannot stand directly observed. In such cases, a thorough understanding of concepts and theories of consumer behavior helps marketers to predict the consumer’s buying behavior to a reasonable extent. Thus, understanding consumer behavior to buy a product is complex and requires marketers to continuously understand and apply various concepts and theories for successful marketing.

    To increase the knowledge of salespeople to influence consumers to buy the product;

    All the products and services marketed revolve around the behavior of consumers that how they will respond to them. Effective marketing of a product by salespeople may help to deliver the right product to the right people. Consumer behavior deals with the knowledge of what the consumers need and want to buy and what goods and services are available to satisfy their needs. Thus, consumer behavior deals particularly with the behavior of people i.e., consumers.

    A salesperson needs to be fully aware of the customer’s requirements. So that he or she could communicate the benefits of the product to the customers. Moreover, the salesperson by understanding the consumer’s demand and need for a product can sell goods that are most closely related to their requirement. Besides understanding consumer behaviour, the salesperson should also have command over their spoken language.

    This is because any miscommunication could harm the brand’s reputation. Moreover, if the consumers have more knowledge about the product than the salesperson, the sales might fail to meet their targets. Thus, analyzing consumer behavior and knowledge for effective marketing of products by salespeople is important. The salespeople must be fully aware of the consumer’s behavior in different situations. So that they could help them in meeting their demands and satisfaction.

    To understand the consumer’s decision to dispose of a product or service;

    Disposal of products involves the throwing away of products by consumers. This behavior of consumers is very complex and requires more importance by marketers. Understanding the consumer’s behavior about how and when consumers dispose of a product, the marketers or the companies can position themselves so that this behavior could stand limited.

    If the product or service has failed to deliver the required or expected satisfaction by the consumers, the product disposes of by the customers. For this, some marketers track the follow-up from the consumers so that they can gauge the reason behind the failure of the product. Moreover, to retain customers, some marketers or organizations offer customers services like exchange of products, money-back guarantees, etc. Although, these tools are helpful to influence the post-purchase behavior of consumers to some extent.

    The method of disposition varies transversely from product to product. Some of the factors that lead to consumers’ behavior to dispose of a product include psychological characteristics, situational factors, or the intrinsic factors of the product. The psychological characteristics include attitude, mood, emotion, social class, social conscience, perception, etc. Situational factors such as urgency, functional use, fashion change, etc., and intrinsic factors such as product style, durability, reliability, adaptability, replacement cost, color, size, etc. can lead to consumers’ decision to dispose of a product.

    For example, the personal computers sold previously stood largely demanded by consumers. However, due to changes in size, advancing technology, affordability, and convenience; most people have switched to laptops and mobiles with operating systems have disposed of personal computers to a greater extent.

    To help marketers to optimize the sale of products and create focused marketing strategies;

    The theories and concepts of Consumer behavior help marketers to optimize their sales and to create efficient marketing strategies. Moreover, these theories provide marketers with information on the consumer’s behavior to spend money, likely causes that incline them to spend more money on a product, and these two pieces of information help to plan strategies that should practice by the marketers for successful marketing of a product. Studying different consumer behavior theories helps to understand the different choices that consumers make to buy a product. Some factors need to exist carefully analyzed by marketers. Which helps them to increase their sales and develop effective marketing strategies. These factors stand discussed as follows:

    Consumer’s rational behavior:

    It is foremost important for a marketer to understand the situations where consumers behave rationally. Many consumer behavior theories suggest that the consumers want to get maximum benefit and satisfaction from the product by spending the minimum amount of money. This shows that consumers do not spend all their money to buy a product and keeps a certain amount of money as their savings. However, on the other hand, the consumers having limited money spend all their money on the purchase of their basic needs such as shelter, food, and clothing. Thus, the marketer must carefully analyze these two situations of consumers before marketing a product or service.

    Consumer’s taste and preferences:

    Understanding consumer taste and preferences help marketers to revamp their products so that they could meet customer satisfaction. These factors may change from time to time. The change in consumer behavior affected by these factors should exist carefully monitored. Marketers need carefully understand the consumer’s interest in the products by breaking down the targeted consumers into demographics, like age, occupation, and location as they contribute to investigating information about consumer preferences.

    Price of Products:

    Prices of products stand as a widely discussed factor in consumer behavior theories. The theories suggest that marketers should keep their prices low without affecting the quality to attract consumers. This is because consumers go mostly for products that are of low price but satisfy their demand.

    Features of Product:

    An increased number of features offered by the product tends to increase the price of products. In such cases, consumers go for added features in a product at an affordable price. Therefore, the markers design their products in such a way that the product gives maximum value or features to consumers at an affordable price.

    Consumer’s knowledge about a product:

    The marketer must know to what extent the consumers know a product. Mostly, consumers select products with which they are familiar. For example, if the consumers are aware of the health effects of eating high-fat food or fast food, marketing such a product to health-conscious consumers will end up in failure.

    Summary;

    In a nutshell, consumer behavior theories and concepts are of most importance to salespeople or marketers in marketing. As products stand made to cater to consumers’ needs and demands. Therefore, the products should exist carefully marketed for the achievement of organizational goals. The study of consumer behavior helps them in analyzing different factors that have influenced the buying decision of the consumers. If the marketers failed to understand these factors, they would not meet their targets.

    What is the Importance of Consumer Behaviour in Marketing Image
    What is the Importance of Consumer Behaviour in Marketing? Photo by Adismara Putri Pradiri on Unsplash.

    Reference;

    • It is Retrieved from https://www.ukessays.com/essays/marketing/importance-of-consumer-behaviour-to-business-managers-marketing-essay.php?vref=1
    • Image source from https://unsplash.com/photos/EQM9J3RZO8k
  • Consumer Behavior in Marketing Meaning Definition

    Consumer Behavior in Marketing Meaning Definition

    What is the Meaning and Definition of Consumer Behavior in Marketing? Consumer behavior is the finding out about how character customers, groups, or groups select, buy, use, and dispose of ideas, goods, and offerings to fulfill their wishes and wants. It refers to the moves of the buyers in the marketplace and also the underlying factors for these actions.

    Here are the articles to explain, Meaning and Definition of Consumer Behavior in Marketing!

    Marketers count on that through appreciation of what motivates the buyers to purchase precise items and services. They will be capable to determine—which merchandise is wanted in the marketplace. Which is obsolete, and how fine to current the items to the consumers.

    The learn about purchaser conduct assumes that buyers are actors in the marketplace. The standpoint of position concept assumes that buyers play quite a several roles in the marketplace. Starting from the provider of the record, from the consumer to the payer, and the disposer, also buyers play these roles in the choice process.

    The roles additionally range in exclusive consumption situations. For example, a mom performs the function of an influencer in a child’s buying process. Whereas she performs the position of a disposer of the merchandise fed on through the family.

    Introduction to Consumer Behaviour;

    Consumer Behaviour or Buyer Behaviour refers to the conduct that displays. With the aid of the character whilst they are buying, consuming, or disposing of any specific product or service. These behaviors can affect by way of more than one factor. Moreover, it additionally includes looking for a product and evaluating of product. Where the patron evaluates unique features, purchases, and consumption of the product. Later the post-purchase conduct of the product is studied. This indicates purchaser pride or dissatisfaction with the place it includes the disposal of the product.

    The clients whilst shopping for a product go thru many steps. Finding out about patron conduct helps to recognize how shopping for selection stands made and how they seem to be for a product. Moreover, perception of purchaser conduct additionally helps entrepreneurs to recognize the what, where, when, how, and why of the consumption of merchandise consumption. These assist entrepreneurs or agencies to comprehend the cause at the back of the buying of merchandise by way of buyers and how it satisfies them. Among different factors, fundamental wishes like refuge and starvation alongside a craving for psychological success tends patron to purchase a positive product or service.

    Meaning and Definition of Consumer Behavior;

    Some chosen definitions of consumer behavior are as follows:

    According to Engel, Blackwell, and Mansard;

    “consumer behavior is the actions and decision processes of people who purchase goods and services for personal consumption”.

    According to Louden and Bitta;

    “consumer behavior is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services”.

    Consumer behavior is the finding out about how personal customers, groups, or companies select, buy, use, and dispose of ideas, goods, and offerings to fulfill their desires and wants. It refers to the moves of the buyers in the market and also the underlying explanations for these actions.

    Consumer Behavior in Marketing Meaning Definition Image
    Consumer Behavior in Marketing Meaning Definition; Photo by Clay Banks on Unsplash.
  • Distinction Between Consumer Goods and Capital Goods

    Distinction Between Consumer Goods and Capital Goods

    Capital Goods and/vs Consumer Goods terms use to explain goods based totally on how they may use also study their distinction or difference. A capital is suitable for any suitable use to help grow future production. Consumer items are the ones utilize by purchasers and have no destiny efficient use. The equal physical excellent may be either a client or capital excellent, relying on how the best use. An apple bought at a grocery keep and without delay eaten is a customer properly. An identical apple sold by way of an organization to make apple juice is capital properly. The distinction lies inside the apple’s utilization.

    Here is the article to explain, Distinction or difference between Consumer Goods and/Vs Capital Goods!

    In economics, items are matters that could fulfill human wishes and desires. Goods take into consideration as one’s commodities that are capable of pleasant human needs and desires. There are number one classifications of products, i.E. Consumer items, and capital goods. Primarily in cutting-edge economics, there are 2 kinds of goods: Consumer goods and Capital goods.

    Consumer goods define as consumable items which do no longer want in addition to processing. Consumers are also able to use or devour those goods at once. For example snacks, bread, mineral water, toothpaste, shampoo, espresso, cookies, tea, and many extras.

    Capital goods are those goods that need in addition processing and generally go to manufacturing from producers. They normally are available in large quantities and examples encompass commodities along with wooden, log, gold, and half of-raw materials. People generally shop them in inventory or warehouse as stock for additional processing or funding.

    Consumer items are described as the products which can use for final consumption, i.E. The products that aren’t used for further processing. On the other hand, capital goods are those goods that can use for destiny manufacturing through the producers, as opposed to via the consumers for very last use. The line of demarcation amidst those two kinds of goods may be very skinny and blur. The only point that bureaucracy is a base for the distinction between client goods and capital goods is their use.

    What is Consumer Goods?

    In Economics, each tangible product or commodity this produces to satisfy and fulfill market wishes know as a Consumer item. It may also categorize into three types together with long-lasting items, nondurable goods, and offerings.

    Durable goods are normally having a considerable lifestyles span, frequently three years or more like a battery, far-flung management, furniture, and maximum likely electronics. While non-durable items will expire in a depend on months to 1 year or 12 months which include food and liquids, garments, soap, and matters that house-chores want.

    Some people may think that services aren’t part of client items however that isn’t real. Consumer-going through offerings are intangible products or actions consumed concurrently. Examples of those consist of haircuts, vehicle restore, landscaping, sales advertising and marketing, and home or web designing.

    Definition of Consumer Goods:

    Consumer goods, additionally referred to as final goods, are tangible items that might gears up for intake or purchased via people or families for final consumption to meet their needs. They are in addition sub-divided into long-lasting goods, nondurable goods, and offerings.

    Consumer items encompass the one’s products of our daily desires like meals products (e.G. Veggies, eggs, cooking oil, grains, etc), household home equipment, digital items, furnishings, and cleaning merchandise.

    What are Capital Goods?

    Meanwhile, Consumer items end after transport to the give up-person, Capital items still need to process earlier than they can use. The person of capital goods is commonly the opposite corporation that later will produce consumer goods (that is what we known as a commercial enterprise to business B2B). There are three forms of Capital items: Property, Plant, and Equipment (fixed asset).

    Examples of Capital goods are buildings, factories, machinery, cars, etc. And examples of Capital items used for a provider commercial enterprise are a hair mask utilized by hairstylists, a computer used by an internet fashion designer, and many others. Like Consumer goods, capital goods also classifies as tangible belongings, due to the fact they can measure, have financial value, and commonly have a physical form.

    Definition of Capital Goods:

    Capital goods, alternately known as intermediate or manufacturer items, are the products that deploy by the organization as input within the manufacturing of patron goods and offerings, together with plant and equipment, system, fixtures, vehicles, office constructing.

    The buy of capital goods is a critical expense for corporations as they require large capital investment, whose gain receives over time. Moreover, those goods depreciate over their life years and so, the enterprise can claim a partial tax deduction for this reason.

    Main Key Differences Between Consumer Goods and/vs Capital Goods:

    The great differences between customer goods and capital items mention as underneath:

    • Consumer items define as the products used by the give up-consumer for intake. Capital items goods deploye to provide consumer goods.
    • Business to Consumer (B2C) advertising and marketing use to promote patron items while the marketing approach used to sell capital items is Business to Business (B2B) advertising and marketing.
    • Consumer goods mainly offer for personal consumption. On the opposite, capital items purchase to generate other merchandise.
    • Capital items goods utilize by one commercial enterprise to help some other enterprises produce customer goods.
    • Consumer goods utilize by clients and haven’t any future efficient use.
    • Capital goods include items like buildings, machinery, and gear.
    • Examples of patron goods consist of meals, home equipment, clothing, and vehicles.
    • Consumers buy patron goods. As in opposition to this, the shoppers of capital items are manufacturers.
    • As the purchaser goods without delay fulfill the needs of consumers; so that they have a direct call for. As hostile, capital goods satisfy the patron desires not directly; so they have derived demand.
    • Suppliers determine the rate of client items. Conversely, organizations set the charge of capital goods.
    • While consumer items mean for the very last intake, capital items worry about the very last investment.

    Conclusion:

    After reviewing the above points, it is pretty clear that client items are in lots of ways extraordinary from capital items. Although if you take a look at the opposite side of the coin; you may come to realize that capital goods and customer items both are the same; it’s miles most effective the reason they may use for, makes them specific.

    To understand this, permit’s take an example of mangoes; if the mangoes are purchased for consumption purposes, then it’s far stated to be consumer appropriate. Conversely, if the purchase of mangoes is for making juice and then reselling it, then it is said to be a capital top.

    Consumer goods and capital goods are two different things but the very last product comes in the hand of customers. Consumer goods in phrases of chain glide and marketplace are a great deal better than capital items due to their usage and call for.

    The Consumer items are clean to attain by purchasers but capital items are meant to process first earlier than being eaten up. Consumer goods are tangible merchandise that has the main use to satisfy modern wishes; whilst capital goods are not to be fed on immediately but purchased to make other consumable merchandise.

    When it comes to sturdiness, capital goods are having a longer life span and mainly emerge as funding even as client goods are relatively short due to personal use purposes. In any financial system, some fluctuations immediately affect the marketplace rate and glide. Consumer goods commonly observe the tides at the same time as capital goods are comparatively stable and have a tendency to get better over the years.

    Distinction or difference between Consumer Goods and Vs Capital Goods Image
    Distinction or difference between Consumer Goods and/Vs Capital Goods; Image by PublicDomainPictures from Pixabay.
  • How Consumer Financing Benefit Service Providers

    How Consumer Financing Benefit Service Providers

    Consumer Financing Benefit – Service providers are a vital component of our society. Service Providers (SPs) Meaning provide advice, legal services, real estate, communications, storage, and processing to organizations. They provide us with the services that make our lives more efficient, easier and better every day. For providing all the services efficiently and effectively, they also need to be well-equipped with the right tools. When it comes to lending services, consumer financing is vital for service providers to be able to access the required capital they need at a reasonable cost.

    If you are also worried about how to grow a contractor business or healthcare service then consumer financing can help you. Consumer financing benefits service providers in many ways by providing the cash flow they need to grow their business. Consumer financing provides the necessary liquidity they need to reinvest in their business, purchase inventory or expand operations, know their benefits.

    Without consumer financing options service providers would be unable to create new jobs and provide employment opportunities for others. In this article, we’ll guide you about the benefits of consumer financing for service providers and many more. So, let’s dive into the article.

    How Consumer Financing Helps Service Providers?

    Consumer financing is a great lever for contractors because it helps them grow and expand faster. Contractors can easily get in touch with consumer finance company loans without any hassle; which enables them to secure funding quickly that might not have been available otherwise.

    The best part about this type of lending service is how flexible and convenient it actually is. Consumer financing gives people more time and flexibility when calculating repayment schedules; so there are no worries about overstretching budgets or getting trapped into an endless cycle of debt just so you can pay your bills on time.

    Consumer finance company loans have become an integral part of our economy by providing capital that allows contractor businesses to grow which helps jumpstart the economy and continue healthy expansion.

    How Consumer Financing Benefits Service Providers?

    Consumer finance lending is an excellent way to support the service providers in your community and make it easier for them to do business with their customers by improving how they invest, grow, and provide quality customer care. Implementing consumer financing into a company’s operations can help drive growth. Following are some of the benefits consumer financing offers to service providers.

    Improving The Efficiency and Effectiveness of the Services

    The services offered by the service providers are becoming increasingly more sophisticated and complex. Yet, there is not a corresponding increase in the company’s available funds to invest in developing said expertise or skill sets. The availability of consumer finance loans frees up their cash flow for such investments; which can be invaluable when it comes to improving the effectiveness and efficiency of various business operations.

    Consumer finance loans are a perfect option for service providers; because they will provide them with the resources and tools; they need to get their jobs done without any worries about the financial crisis.

    Providing Consumer Mortgages

    It’s no secret that homeownership rates keep dropping each year while rents spike higher than ever before. Consumer financing companies offer mortgage solutions like mortgages for purchase, refinancing options; as well as creating new credits with some lenders specializing exclusively in this area only. This helps consumers get into homes they otherwise may not have qualified for due to lack of good credit history, cash flow, and down payment.

    Building Customer Trust

    In any service industry, building customer trust is crucial. A consumer finance company can help by providing financing for select customers that may not otherwise qualify for a loan on their own. Consumer financing boosts the efficiency of the service providers. By improving the efficiency of their services, consumer financing companies can better defend the customer base from competitors.

    Providing Cash Flow for new Projects

    The company can also help service providers by providing financing for new projects and expansions that might otherwise not be possible due to lack of capital or cash flow issues. This helps keep customers coming back in a competitive market, which keeps the business thriving for both parties involved.

    Improving the Productivity of Service Providers

    Increasing productivity by providing them with all the necessary tools and resources; they need to do a superior job for clients while also maintaining the profitability of a company’s operations. Consumer finance is not only an option that helps improve service providers but it will benefit them as well.

    To grow your contractor businesses, you should have consumer finance companies loans; which are enough to bring you out from any kind of financial crisis because it has more flexible rates; so if you want your contract business growing then take this opportunity now.

    Helping the Service Providers Attract Borrowers

    Consumer financing helps service providers attract more and new borrowers. Competing in an increasingly crowded market for business is tough with many companies offering a similar product or service to your own. Implementing consumer financing can help distinguish you from the competition by increasing customer acquisition rates, reducing marketing expenses, and expanding your customer base.

    Providing a Competitive Edge

    The service provider is a competitive industry. To generate more revenues, you have to stay a step ahead of your competitors. One way to do that is by offering a better customer experience than the competition. Offering consumer financing options to your customers allows them to get; what they want even if they have bad credit scores.

    Consumer financing can help your business provide an unrivaled level of service because you can offer more flexible rates and terms for loans; which helps your customers get what they want even if they don’t have enough money yet.

    Boosting The Revenues of Service Providers

    Financing is also very important for service providers because it can help them grow their businesses. Consumer financing allows you the opportunity to generate additional revenue streams without having an impact on your existing customer base while creating new ones with those customers that are struggling financially but still want what you have available at your company. By providing your services to more and more customers, you can grow your business as well.

    Ultimately, this type of lending service is what keeps our economy moving forward; because, it allows contractor businesses to expand with confidence knowing that financial obligations will be met on time for both parties involved in the transaction.

    How Consumer Financing Benefit Service Providers Image
    How Consumer Financing Benefit Service Providers; Image by Lorena Ruano Rueda from Pixabay.
  • Financing Benefit Services Provider for Consumer

    Financing Benefit Services Provider for Consumer

    Financing Benefit – Service providers are a vital component of our society. They provide us with the services that make our lives more efficient, easier and better every day. For providing all the services efficiently and effectively, they also need to be well-equipped with the right tools. When it comes to lending services, consumer financing is vital for service providers to be able to access the required capital they need at a reasonable cost.

    If you are also worried about how to grow a contractor business or healthcare service then consumer financing can help you. Consumer financing benefits service providers in many ways by providing the cash flow they need to grow their business. Consumer financing provides the necessary liquidity they need to reinvest in their business, purchase inventory or expand operations.

    Without consumer financing options service providers would be unable to create new jobs and provide employment opportunities for others. In this article, we’ll guide you about the benefits of consumer financing for service providers and many more. So, let’s dive into the article.

    What is the Advantage or Benefit of Financing?

    Both consumers and businesses benefit from funding programs because funding gives customers more purchasing power and flexibility, and helps companies drive sales and increase cash flow. Here are the top five financing benefit or advantage:

    Increase or Boost sales.

    Funding can help your business get more sales by giving customers the flexibility to make regular loan payments that meet their budget constraints. By introducing financing options early in your sales pitch; you can remove the biggest barrier to closing sales: the high purchase price. Customers value funding because it gives them more purchasing power and allows them to get; what they want without having to pay full price upfront. A recent Forrester study found that companies that offered on-site financing programs for sales to customers increased their sales by 32 percent.

    Increase the average value of the order.

    Use your financing program as an effective tool for sales customers, with which you can increase your company’s average order value. To increase the size of your transaction, simply show your customers how a small increase in their monthly loan payments can allow them to get the upgrade they want. For example, if you offer to renovate a kitchen, explain to the customer that; they can upgrade from a marble countertop to a soapstone countertop for $20 more per month.

    Increase and Improve cash flow.

    You can increase your company’s cash flow by using a third-party provider like Financeit. As soon as Financeit approves your customer loan; you will receive the full purchase amount in your bank account within a few working days. This not only contributes to a healthy cash flow for your company; but, also ensures that your company does not take any funding risks. You can relax knowing that you will always receive money while we manage your regular customer payments. Even if your customer defaults or defaults on the loan, you will not be responsible for the money.

    Attract and Get new customers.

    When companies offer funding programs, they grow their potential customer base by making their products and services available to more users. Not everyone has the money to finance large purchases, such as furniture or home renovations. The funding breaks up bulk purchases into manageable payments so more people can afford them, expanding the pool of potential customers for your business.

    Earn and Get repeat business.

    Your funding program can attract customers to return to your business for future purchases, build brand loyalty, and help you increase sales. Once customers understand that you offer to fund and understand how they can benefit from it; the next time they need to make a major purchase using funding; they will be more likely to return to your business than to go to a competitor; who may not offer the same funding opportunities.

    How Consumer Financing Helps Service Providers?

    Consumer financing is a great lever for contractors because it helps them grow and expand faster. Contractors can easily get in touch with consumer finance company loans without any hassle; which enables them to secure funding quickly that might not have been available otherwise.

    The best part about this type of lending service is how flexible and convenient it actually is. Consumer financing gives people more time and flexibility when calculating repayment schedules; so there are no worries about overstretching budgets or getting trapped into an endless cycle of debt just so you can pay your bills on time.

    Consumer finance company loans have become an integral part of our economy by providing capital that allows contractor businesses to grow; which helps jumpstart the economy and continue healthy expansion.

    How Consumer Financing Benefits Service Providers?

    Consumer finance lending is an excellent way to support the service providers in your community; and, make it easier for them to do business with their customers by improving how they invest, grow, and provide quality customer care. Implementing consumer financing into a company’s operations can help drive growth. Following are some of the benefits consumer financing offers to service providers.

    Improving The Efficiency and Effectiveness of the Services

    The services offered by the service providers are becoming increasingly more sophisticated and complex. Yet, there is not a corresponding increase in the company’s available funds to invest in developing said expertise or skill sets. The availability of consumer finance loans frees up their cash flow for such investments; which can be invaluable when it comes to improving the effectiveness and efficiency of various business operations.

    Consumer finance loans are a perfect option for service providers because they will provide them with the resources; and, tools they need to get their jobs done without any worries about the financial crisis.

    Providing Consumer Mortgages

    It’s no secret that homeownership rates keep dropping each year while rents spike higher than ever before. Consumer financing companies offer mortgage solutions like mortgages for purchase, refinancing options; as well as creating new credits with some lenders specializing exclusively in this area only. This helps consumers get into homes they otherwise may not have qualified for due to lack of good credit history, cash flow, and down payment.

    Building Customer Trust

    In any service industry, building customer trust is crucial. A consumer finance company can help by providing financing for select customers that may not otherwise qualify for a loan on their own. Consumer financing boosts the efficiency of the service providers. By improving the efficiency of their services, consumer financing companies can better defend the customer base from competitors.

    Providing Cash Flow for new Projects

    The company can also help service providers by providing financing for new projects; and, expansions that might otherwise not be possible due to lack of capital or cash flow issues. This helps keep customers coming back in a competitive market, which keeps the business thriving for both parties involved.

    Improving the Productivity of Service Providers

    Increasing productivity by providing them with all the necessary tools and resources they need to do a superior job for clients while also maintaining the profitability of a company’s operations. Consumer finance is not only an option that helps improve service providers but it will benefit them as well.

    To grow your contractor businesses, you should have consumer finance companies loans; which are enough to bring you out from any kind of financial crisis because it has more flexible rates; so if you want your contract business growing then take this opportunity now.

    Helping the Service Providers Attract Borrowers

    Consumer financing helps service providers attract more and new borrowers. Competing in an increasingly crowded market for business is tough with many companies offering a similar product or service to your own. Implementing consumer financing can help distinguish you from the competition by increasing customer acquisition rates, reducing marketing expenses, and expanding your customer base.

    Providing a Competitive Edge

    The service provider is a competitive industry. To generate more revenues, you have to stay a step ahead of your competitors. One way to do that is by offering a better customer experience than the competition. Offering consumer financing options to your customers allows them to get what they want even if they have bad credit scores.

    Consumer financing can help your business provide an unrivaled level of service because you can offer more flexible rates and terms for loans; which helps your customers get what they want even if they don’t have enough money yet.

    Boosting The Revenues of Service Providers

    Financing is also very important for service providers because it can help them grow their businesses. Consumer financing allows you the opportunity to generate additional revenue streams without having an impact on your existing customer base while creating new ones with those customers that are struggling financially but still want what you have available at your company. By providing your services to more and more customers, you can grow your business as well.

    Ultimately, this type of lending service is what keeps our economy moving forward because it allows contractor businesses to expand with confidence knowing that financial obligations will be met on time for both parties involved in the transaction.

    Financing Benefit Services Provider for Consumer Image
    Financing Benefit Services Provider for Consumer; Image by Tumisu from Pixabay.

  • What is the Role of Group Influence in Consumer Behavior?

    Learn and Study, What is the Role of Group Influence in Consumer Behavior?

    So, if its true that individualism is dead and that consumer behavior is dominated by the influence of groups? There is no doubt consumer behavior is heavily influenced by groups. Individuals are always striving to conform to group behavior and to please others and this influences the purchase choices that they make. The influence of groups also helps to establish trends in lifestyle, fashion, and the assimilation of new products, into the lives of consumers. Also learned, Group Influence on the Consumer Behavior, What is the Role of Group Influence in Consumer Behavior?

    The notion of ‘virtual communities’ has been around ever since the inception of the internet. Whereas people used to meet and form communities geographically, the internet allows groups of like-minded people to meet virtually through communities based on, for example, online chat rooms and forums. Here individuals, who share common interests, can make contact with each other without any geographic restrictions. The interaction between members of such groups tends to be more uninhibited that it would be in a non-virtual group, as anonymity allows people to say things to other members of the group they maybe wouldn’t say face-to-face.

    Specialist social networking sites have emerged in the last ten years and now have huge numbers of members. Facebook, for example, has over 2 billion members globally and can wield enormous power over the brand consumption choices of those members. An example of the demonstration of this power was in 2007 when ninety-three different Facebook groups, containing over 14,000 members in total, petitioned for Cadbury’s Wispa chocolate bar, which had been withdrawn in 2003, to be re-introduced. Cadbury listened to what these Facebook groups were saying and decided to relaunch Wispa in late 2007.

    Many large corporations have now taken a reactive, rather than proactive, stance in terms of their online social network marketing by setting set up their own ‘brand communities’. Tesco has used data from its Clubcard scheme to establish a brand community of families with babies and toddlers. When Tesco discovered that this group of regular shoppers did not think that they could place their trust in the Tesco brand for buying baby and toddler products it established the online Tesco ‘baby and toddler club’.

    Membership of the club confers various benefits on families with babies and toddlers including double Clubcard point, free parking spaces right next to store entrances, and a free parenting advice magazine. This brand community initiative raises the levels of trust in the Tesco brand for baby and toddler products and increased Tesco’s market share.

    Amazon.com is not just a successful online retailer, it has also created a virtual community of its customers where they can not only buy a wide range of books and electronic products but they can also engage with the Amazon brand. Customers are able to write and submit book reviews and post messages on a forum, amongst other activities.

    They can even engage with their favorite authors through email addresses supplied on Amazon.com. If a consumer enters the relevant details then Amazon will also send reminders about the birthdays of family and friends and make recommendations for gifts based on past browsing experience,. Equally, every time a registered user logs on to the site he or she is presented with purchasing ideas that reflect their expressed tastes that have been demonstrated through previous online buying behavior.

    Another influential group is consumer ‘tribes’, who are characterized by their active and enthusiastic consumption behavior, which is sometimes extreme in nature. They will actively resist the messages thrust at them by marketers and tend not to consume brands and products without exerting some influence of their own over those brands and products.

    They will add to them and struggle with them, altering the actual, or perceived, nature of the brand or product until it blends seamlessly with their own lifestyle. Consumer ‘tribes’ have also flourished online especially through one of the most talked about online phenomena of recent times, namely ‘blogging’. Bloggers, with no particular experience or expertise, are able to disseminate all kinds of messages about brands with impunity.

    They wield incredible power over the uniform, tribes of postmodern consumers and their blogging efforts mean that brands are no longer fully able to control their marketing communications activity. However, some of the more savvy marketers have recognized this threat to the integrity of their brand messages and have responded with their own blogs. For example, the internet service provider, AOL, used the medium of blogging in an attempt to defend its brand against tribes of malicious bloggers.

    The company’s ‘Discuss’ blog urged consumers to reassess their opinions of its broadband service by probing views within different consumer groupings to stimulate interest in topics that would not usually be included in the content of offline marketing activity. The ‘Discuss’ blog was a great success and achieved over one thousand postings and more than one hundred thousand hits in its first few weeks online.

    Each broad culture will contain ‘sub-cultures’, which are differentiated by religious beliefs or race, or can be groups of people who simply have the same values, attitudes and beliefs. The influence of ‘sub-cultures’ over consumer behavior thus: members of a subculture often signal their membership by making distinctive and symbolic tangible (purchasing) choices in, for example, clothing styles, hairstyles and footwear.

    A clearly identifiable sub culture is ‘youth culture’, which exhibits distinctive attitudes and purchasing behavior and is widely recognized by marketers as a highly valuable global market segment. Members of the youth culture group will often be highly aware of high profile and heavily advertised brands and will have positive and aspirational attitudes to purchasing such brands in order to signal their membership of the subculture.

    Style is perhaps the single largest indicator of membership of ‘youth culture’ and has been evidenced by the past emergence of sub groups of youth culture, such as hippies, mods, rockers and punks. Although these groups wanted to be seen as rebellious they in fact depended, ironically, on consumer goods, such as clothing and music, to re-enforce their identities.

    The association of youth sub culture with music has long been exploited by marketers. For example, Brown and Williamson, manufacturers of the ‘Kool’ brand of menthol cigarettes, started sponsoring music concerts in the 1970’s because of the ability of such events to communicate with adolescents. In 2004 Kool’s marketers felt that music would be a powerful medium for conveying emotional messages about cigarettes and building a brand image and so the ‘Kool Mixx’ concerts were launched. These targeted young American males, by exploiting the new musical genre of ‘hip-hop’, which had wide appeal with youth culture.

    There are other groups that influence young people as they become more autonomous from their parents. So called ‘reference groups’ play an increasingly important role in the development of young people. A reference group can be defined as an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior. Most individuals are adverse to behavior that goes against the consensus of their reference group or groups.

    For example teenagers, as consumers, are more relaxed when they are with members of a reference group than when they are on their own. When a consumer lacks confidence in his or her purchase decision-making ability, they look to their reference group for guidance and advice. Reference groups for teenagers will typically include family members and friends as well as their music and sports idols.

    The concept of ‘self’, is a psychological concept that is involved with motivating consumer behavior and an individual’s ‘self-esteem. A favorable self-esteem is generally regarded as being crucial to success in life. Teenagers, particularly, are likely to be very aware of their self-esteem, or lack of it, due to both the physiological changes taking place in their bodies, at and beyond puberty, and the attitudes, opinions, and beliefs of others.

    In consumer behavioral terms these esteem needs can be the motivation for the acquisition of so called ‘luxury’ products, such as branded fashion and clothing, which can help a young person gain recognition and status within his or her key reference groups For example, teenage school children will often connect with reference groups of their peers. Members of these reference groups may decide to dress in particular kind of way and often will wear items of designer-brand footwear and clothes.

    These teenagers consumers will seek to own the brands that their heroes in sports, film music own. The principle being that, by owning such brands, they can improve, by association, both their self esteem and their standing in the reference group. ‘Tag-Hauer’ is a good example of a brand that exploits this need for an association to with a celebrity reference group Brad Pitt and Lewis Hamilton are two of the celebrities that endorse the Tag-Hauer brand through advertising which is principally aimed at young adult males.

    Despite the huge weight of evidence to support the claim that individualism in consumer behavioral terms is dead, and that the age of the group is with us, it should be remembered that individuals still retain the ability to make their own decisions about what they buy and who they buy it from. Highly impulsive, individual buyers are likely not to reflect on their purchase decisions and emotions will be a prime force in attracting them to a particular purchase.

    Individualism is influenced largely by culture and occurs most frequently in those cultures where it is most highly-prized, such as in the USA. Here it is reckoned that impulsive consumer behavior accounts for over $4 billion of sales annually and over 80% of all purchases in some product categories, for example, magazines and sweets.

    In conclusion, it can be seen that regardless of nationality, race or gender, the influence of the group over consumer behavior is highly significant. The emergence of the internet has caused a huge surge in group influence especially amongst teenagers and young adults. These individuals are also highly susceptible to the influence of reference groups and will often seek the approval of their peers before making a purchasing decision. Marketers have not just responded to the demands of virtual groups of consumers but have also risen to the challenge of influencing group behavior themselves.

    Again, the internet has been of assistance in helping them to deliver their brand messages and respond to consumer needs and wants through independent social networking sites, such as Facebook, and, increasingly through the established of their own brand communities. None of this is to say, however, that individualism is necessarily dead as evidenced by the fact that many consumers still make impulsive buying decisions without reference to any group behavior.