Psychological factors influence consumer behaviour in many ways such as lifestyle, personality, thinking process, observations, usage of goods and services, willingness to purchase, loyalty, brand endorsement, etc.
WHAT IS CONSUMER PSYCHOLOGY?
Consumer psychology is the study of human behaviour in regards to the pattern in which they purchase goods and services, their reactions towards marketing, advertising, and packaging is also involved
It is a detailed study of the consumer’s decision-making to purchase products, ideas, experiences, or services to fulfil their desires and wants.
Usually, the decision to purchase something originates from series of stages –
- Recognition of need or requirements.
- Searching for the information.
- Evaluation of alternatives.
- Final purchase.
- Post-purchase evaluation & Satisfaction.
Dive in-depth into each stage here – What is the consumer buying cycle?
WHAT ARE THE TYPES OF CONSUMER BEHAVIOUR?
There are primarily 4 types of consumer behaviour –
COMPLEX BUYING BEHAVIOUR
Such behaviour involves a customer’s buying a highly expensive product that is infrequently sold.
In this, the customer goes through extensive research about the product understanding every aspect, like its advantages, disadvantages, usage warranty, guarantee, highs-lows everything in-depth.
For example, buying a car, a house, a highly expensive handbag, or any other such luxurious item.
DISSONANCE-REDUCING BUYING BEHAVIOUR
In this, the customer is very invested in buying a product, even if is very expensive, but becomes ‘dissonant’ while purchasing due to the unavailability of many brands producing the same. Dissonance occurs when she/he lacks confidence in regards to purchasing due to the confusion about which brand’s product will be good and worth buying. Such customers fear that they may regret their choice of the brand after the purchase.
HABITUAL BUYING BEHAVIOUR
It is that category of behaviour in which customer straight away buy an item and very frequently without any research. This involves low investment goods that you buy occasionally.
For example, while buying a pen you do not research for a brand and it has a low price as well. Such purchases come under habitual buying behaviour.
VARIETY SEEKING BEHAVIOUR
This is that purchasing behaviour in which a customer buys a product, uses it and then switches to the same product of another brand just to try it out, out of curiosity. Hence, seeking variety.
For example, usually, this behaviour persists with cosmetic products and food items.
WHAT IS THE NEED TO UNDERSTAND CONSUMER PSYCHOLOGY?
It is a challenge for marketers and business owners to understand the psychological factors that affect consumer behaviour, but it is equally important to know.
Having good knowledge of what influences the consumer’s behaviour most is the backbone of any market research.
Before launching any new service or product a marketer should do their research. They should invest a good amount of time in understanding the key concepts that govern the behaviour of the customer base.
The following are the points that should be analyzed while doing research on consumer psychology –
- Which option are the customers choosing more among various options
- What they think about different aspects of your business, like brand name, products, customer care services etc.
- What behavioural trends they are displaying while shopping.
- The environment around your customer.
Decoding the process behind the customer’s decision making can help marketers to boost up sales and ultimately revenue.
Research methods like consumer neuroscience aim to study consumer behaviour and what influences it. The goal of these researches is not only to understand why a customer behaves in a certain way but also how will they behave in the future.
A good understanding and study of such researches can lead to better purchases and constant sales and revenue growth.
Consumers are the fundamentals of any and every business. So in order to even stand in the market, the knowledge of consumer psychology is a must for a business owner and a marketer.