Consumer behavior and purchasing: Do you know your company’s “why”?
If a company is going to continue to thrive, then they need to understand the consumer behavior patterns and the entire “why” behind everything that they are doing. You can market every product and service, spend thousands of dollars, but if the messaging, audience and motivation is all wrong, it just won’t work.
The consumer behavior theory is the study of how consumers spend their money. There are four main types of consumer behavior that companies should understand while marketing and developing their lead generations and sales.
Theory of Reasoned Action
This theory dives into the reasoning behind pre-factored purchased decisions from consumers. A consumer only takes this action when there is a respected result coming from it. If a consumer’s oven breaks, the consumer will research and purchase a new one because of the necessity and the final result.
However, during this process consumers can often change their minds and continue to research for a better alternative that will help with their final purchase.
In the marketing industry, this would be part of the beginning stages of the sales funnel and move towards the final decision “purchase” stage.
The EKB Model explains that consumers will absorb all relevant information and research that is related to the product., That makes all of the marketing materials that are produced and consumed from brands and businesses very important. This theory is based on personal insight that gives marketers two main moments to provide their input. During the beginning where they can provide positive content about the product and when consumers look towards external sources for influence to purchase the product.
Motivation- Need Theory
As humans and consumers, we have basic needs that need to be fulfilled in order for us to find importance or continue with success. This theory works off those five basic needs such as psychological, safety, love, esteem and self-actualization.
Depending on the consumer’s needs during each purchase, they will fulfill one or more of these five basic needs.
A great example of this is luxury vehicle brands such as Lexus, Jaguar, Mercedes-Benz and more. Why does the latest Lexus need a back massager in the driver seat, its own wifi and self-parallel parking features? Well, it is part of the aesthetic, and the car is always one of the top in its category for safety features, so it fulfills safety and even esteem needs.
Hawkins Stern Impulse Buying
How many times have we impulse shopped or bought something? Maybe for some of us, we call it “retail therapy” or “treating yourself.” While these notions are not bad at all, this is the beginningof the impulse buying theory.
Did you need another sweater, maybe? “But it was too cute to pass up on it!” This is probably because of the display, eye-catching marketing or the perfect product or packaging.
There is always a reason why candy, extra miscellaneous items, gift-cards, gum and so many other smaller purchases that can be made are put in the checkout lines.
As companies, it is important to understand these theories, and while a singular one might not fit your model completely, you can pick and choose what works best for the common consumer behavior and purchasing patterns you notice from your customers.
While we are still in a global pandemic, another change that has affected consumer behavior is stay-at-home orders and quarantine procedures. As a country, there was a considerable amount of time that consumers spent in their home, which meant their behaviors shifted drastically.
COVID-19 not only changed the behavior of consumers, but it also accelerated their new behaviors with more impulsive purchasing. This was due to the blurring lines of digital consumption and social commerce available at faster rates than ever before.
Even browsing devices changed! Pre-COVID-19, consumers were using their mobile devices to do a majority of their shopping and research, but during the pandemic and now, a shift has been made back to desktop viewing and usage.
These are the biggest changes that all companies have to take into consideration moving forward, and how it affects the models listed above, because it can change some of their messaging and even a core component of their marketing plan.
With these new customer behavior patterns and trends, companies are having to not only adapt to new patterns anda pandemic, but they also have to continue to provide their services and nurture customer satisfaction.
From here, this will help the “why” behind each and every one of your products and services.
Why are consumers purchasing your products and services? The wrong marketing can kill the entire “why” because it doesn’t align with purchasing patterns and consumer behavior.
Whether it is for long-term or short-term services, impulse buying or continuing to research and develop their knowledge, the why is behind their behavior and patterns!
Don’t just “throw it at the wall” and hope it starts to stick. From the very first post or marketing piece a customer sees and consumes, it needs to make the right impression. The more data you can collect on previous campaigns, purchases, lead generation and behavior during COVID-19, the better.A company can gain more insight into “why” consumers are actually buying and calling them.
Identify faithful and loyal customers
How often do you notice the same names, email addresses or consumers purchasing products or liking your Facebook posts?
These loyal or faithful customers are valuable to the company because they provide the ideal target audience for consumer behavior patterns.
Send an email blast with a questionnaire to ask them some of the following questions:
- How did you originally find us?
- What products or services are you currently purchasing or utilizing?
- Why do you continue to use our services or products?
- What could we improve upon?
- Any other suggestions?
Another way to figure out faithful and loyal customers is to see which content, keywords for SEO strategies are bringing in consistent and returning customers!
Even for new customers, what is bringing them to the site? A blog? What about a product? Make sure that is part of the “why” and learn why that blog, content or product is so valuable to traffic.
This pandemic has taught companies around the world about the importance of flexibility, but startups are one of the best examples of being flexible.
With startups, the idea is there, but sometimes the execution turns it into something entirely different over time. Being flexible is what helps it to break out.
When Spotify was a startup, the service noticed a decline in their advertising, and because their main source of revenue is from 3rd-party advertising, this meant a serious change had to be made.
The solution? Podcasts! Over 150,000 podcasts were added in one month, and this meant advertising could continue, but the biggest takeaway was their ability to immediately switch gears and problem-solve.
Staying flexible was their biggest success.
As podcasts continue to grow in popularity, and Spotify holds its place in the top 10 of music streaming services, they figured out their customers' needs and continued to provide their “why” to their loyal consumers!
It is important to understand that a company doesn’t need to completely shift gears or change their entire brand and business model. What can change is the approach. Companies can revitalize their marketing all while keeping their unique aspects and staying true to their core values.
Are you struggling to keep up with the competition during this pandemic, or not sure what is working or isn’t working anymore? At Omaha Media Group, we can be that support system and digital expert for you!
Contact us today.
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