Analysis Consumer behavior Details will help businesses design and provide more suitable products and services, increase sales and improve revenue. However, this is a rather difficult job and requires highly qualified personnel. In the article below, Viindoo will share with businesses how to analyze customers accurately and clearly. Let's find out together!
1. The concept of consumer behavior
Consumer behavior (Consumer Behavior) is the actions, decisions, and thoughts of a customer when searching for, choosing, or using a service. In other words, Consumer behavior is the process by which a customer makes a decision to buy or not to buy, choose which product or brand is suitable, search for information about a product, compare price and quality, evaluate post-purchase satisfaction. and decide whether to continue selling or not.
Consumer behavior is also how customers shop. Some of these factors include:
- Consumer shopping frequency
- Shopping trends
- Consumers' feelings about the advertising, sales and services that businesses provide
Example: Consumer shopping behavior when buying moisturizers studied by analysts:
- Purpose of women buying moisturizer: Improve skin problems
- Favorite cosmetic brands: Olay, Obagi, L'oreal,...
- Timesdab cream in a day: 1-2 times in the early morning or evening
- Favorite place to buy products: Supermarket, buy online, buy directly at the store, ...
- Number of purchases: Weekly, monthly, once every 2 months,...
>>>> See More: Customer touch point What is that? How to increase touch points with customers
2. Why study consumer behavior?
Consumer behavior have a direct influence on the customer's decision to buy or not to buy the product. Therefore, research Consumer behavior help businesses recognize and predict the shopping trends of each buyer segment, helping customer classification specifically. Based on these data, businesses will easily build appropriate and effective marketing strategies.
Build and optimize marketing campaigns:
Capturing the consumer behavior of customers to determine their needs, preferences, habits and shopping behavior. From there, businesses will build more effective and correct marketing strategies.
Based on the analyzed data, businesses will have a basis to build marketing campaigns suitable for each customer segment, can touch the right customer insight, optimize the customer care process and make them loyal consumers of the business.
Strong increase in sales
Capturing user behavior will help businesses create appropriate marketing strategies, removing barriers between products/services and customers' search needs. From there, the sales conversion rate of the business will be increased.
Predict market trends
Analysis of user shopping behavior will show a change in user shopping trends. For example, the current consumer shopping trend is towards environmentally friendly and healthy products. This trend has been studied by many famous brands, including McDonald's. Since then, McDonald's has brought to its customers healthy, healthy foods.
In addition, predicting the changing trend of the market also helps businesses save costs to produce unsold products.
Product innovation and improvement
It is estimated that the number of failures of new products ranges from 33% to 90% in a category. Therefore, businesses always try their best to be able to improve the success rate of their new ideas and products. One of the effective ways applied by many businesses is to study carefully and thoughtfully about consumer behavior.
3. Factors affecting consumer behavior
Currently, there are countless factors affecting consumer behavior, some typical factors can be mentioned as:
|Society||Mentality||Personal personality||Others factors|
|Family||Religion, belief||Personal hobbies||Customers loyalty|
|Friend||Motivation||Personal Opinions||Price sensitivity|
|Educational background||Attitude||Sex||Word of mouth|
Culture is considered as the most basic factor that determines the buying behavior of customers. For example, Vietnamese customers will be influenced by cultural factors about national identity when making value selection decisions. Therefore, marketers need to pay attention to these factors when building strategies, advertising messages, choosing styles and colors of products, and training employees' working styles.
Each culture often contains its own cultures with different levels of integration. These specific cultures include: Ethnicity, race, religion, belief, geography.
Social classes are homogeneous and relatively stable classes in society. The social classes are arranged in a certain order. In it, members will share the same values, interests and manners.
Social classes are not only sorted by a factor such as income but also by a combination of occupation, education, property, and other factors. Therefore, businesses should study social class because members of the same class will have the same way of thinking and behaving.
3.2 Personal personality
Each different age will have different shopping habits and needs. Usually, users will tend to change the products and services they want to buy at each stage of their life. Example: When young, consumers will eat baby foods, as adults they will eat most of the foods and as they get older, they will go on a diet. That is also the reason that marketers choose their target customers based on life cycles and circumstances.
Each job will also have different shopping needs. Usually, occupation will affect the shopping needs of consumers. For example: Workers will buy clothes and shoes to facilitate their work... Therefore, marketing experts need to identify the occupational group that has the most interest in products and services. mine.
Style of life:
Although the customers are from the same class, age, and culture, they will still have different lifestyles. From there, their shopping needs will also be different.
In general, a person's lifestyle will be expressed through his or her activities, interests and outlook on life. Although consumers are in the same cultural group, social class, occupation, but the lifestyle will be different.
Economic circumstances will have a huge impact on a person's product choice decision. This situation may include: Income, savings, assets... Besides, with income-sensitive assets, enterprises should regularly pay attention to changes in personal income, interest productivity and savings.
An individual can receive direction on character, politics, economy, love… from his parents. Even individuals who do not have much contact with their parents will still be significantly influenced by them. In families where an individual lives with his or her parents, their decisions will be greatly influenced by the parents.
For expensive products/services, husband and wife will discuss to make a decision. In this case, marketers need to determine who has the greatest influence on the purchase of that product/service.
Roles and status in society:
Each role is associated with a certain position in society. Therefore, users often choose products that show their status in society. Marketing professionals need to determine which position their products/services are suitable for in order to launch an appropriate advertising campaign. However, status in society will change depending on class and geographical area.
Usually, each person will have different needs depending on the stage of life. In particular, some needs will be instinctive, stemming from the mental state of fatigue, stress, hunger... of people. Others will originate from a psychological state such as: The need to be recognized, respected, admired... All these needs can only become motives when they reach a strong enough level.
Motivation or impulse puts pressure on a person to find ways to satisfy that need, reducing stress. Psychologists have discovered many theories about human motivation such as: A. Ma Slow, F. Herzberg.
According to experts B. Berelon and G. Steiner, perception is the process by which an individual selects, organizes, and interprets the information received to form a meaningful picture of the world.
Perception is not only determined through the characteristics of each individual, the impact of influencing factors but also depends on the correlation relationship between those factors and the surrounding circumstances and characteristics of each person. individual.
- Perception will be divided into 3 processes:
- The process of selective interest
- The process of selective distortion of information
- Selective memorization
According to experts, a person acquires knowledge through the interaction of motives, triggers, situations, responses, and reinforcement. The urge is a factor that affects the intrinsic arousal, which promotes actions. For example: When a person has an urge to be proactive about means of transportation, it will be directed to the motivation to relieve that urge, namely a motorbike or car.
Beliefs and attitudes:
Belief has an affirmation that people will get something. This belief can be formed based on understanding, trust, can be influenced or not by emotional factors. Marketing professionals need to carefully note and analyze the beliefs of consumers in the products/services they provide.
4. Current popular consumer behavior model
4.1 Philip Kotler's model of consumer behavior
General. Consumers' shopping behavior will be done in 5 steps: Knowing the needs, searching for information, comparing between products, making a purchase, evaluating products. Accordingly, the Philip Kotler model is also built based on these 5 steps.
According to Philip Kotler's model, marketing factors such as price, product, supplier, promotion will combine with other environmental factors, affecting consumers' consciousness. and their mass reactions. Today, Philip Kotler is a model Consumer behavior well known and used by many businesses.
4.2 Maslow's Hierarchy of Needs Model
Model according to Maslow's hierarchy of needs is made up of the most basic human needs such as: physiology, safety, social, desire to be valued, self-expression. This model will help businesses see the desire to meet the basic physiological needs of consumers before forming other higher needs.
4.3 Black box model
The black box model represents how consumers deal with stimuli and their responses to these stimuli before purchasing a product.
For example, HSBC Bank has built a CSR campaign on education, environmental protection and community to create a professional and beautiful brand image in the eyes of customers. Since then, HSBC has built a favorable impression on customers and people who love environmental protection and community-oriented activities.
5. Effective consumer behavior research process
Research process Consumer behavior is done through 5 steps:
- Step 1: Analyze the market. Enterprises need to conduct market analysis based on factors such as age, occupation, gender, etc.
- Step 2: Determine the value of each customer segment: Each customer group will have different values. Therefore, businesses need to determine what factors their customers are susceptible to, and how their needs are to build the right analytical method.
- Step 3: Analyze the influencing factors. After obtaining data from market analysis, businesses will know the value and factors affecting each specific customer group.
- Step 4: Identify customer needs and experiences. Businesses need to analyze in detail about the needs and shopping trends of customers and the difficulties and challenges in their buying experience.
- Step 5: Analyze advertising and sales channels. Businesses need to find out and choose the right sales and advertising channels for the customer segment they are targeting.
Analysis Consumer behavior It is a mandatory job that businesses must do if they want their marketing campaigns to be successful. Contact Viindoo via 0225 730 9838 If you need advice on effective customer care solutions.