What Is Consumer Behaviour? (+ How To Influence It)

Summary

In this video, Stephen Houraghan from BrandMaster Academy explains consumer behavior and how understanding it can influence buying decisions. He emphasizes that decisions are often subconscious and influenced by factors like psychology, social context, culture, and personal motivations. By analyzing these, brands can better tailor their offerings to meet customer needs. Using examples like IKEA, Stephen illustrates how companies not only appeal to important buying factors but also create environments that stimulate customer behavior. Understanding and leveraging these insights can help businesses grow and influence consumer decisions effectively.

Takeaways

• 😀 Consumer behavior involves understanding the buying decision factors important to an audience to influence them through branding.
• 🧠 Buying decisions are mostly made in the subconscious mind, influenced by psychological, emotional, and environmental factors.
• 🛒 Consumer behavior is a mix of psychology, sociology, marketing, and economics, helping brands understand how people choose products and services.
• 💡 Brands that understand consumer thought processes and emotions are better positioned to influence decisions and grow sales.
• 📊 Studying consumer behavior helps brands determine how customers feel about competitors and what factors influence their choices.
• 💼 It's not just about having a good product or service; brands need to meet psychological requirements to impact buying decisions.
• 📈 Different market segments have different priorities. Price and quality may matter in one segment, while convenience and value are more important in another.
• 🛋️ IKEA's success is an example of catering to consumer behavior by appealing to specific buying factors (price and convenience) and creating an environment to stimulate purchases.
• 🔍 Brands should categorize their market segments to identify shared decision factors, then tailor their offerings to match those factors.
• 🧩 Influencing consumer behavior is not just about appealing to existing factors but also about creating experiences that stimulate desired behaviors.

Q & A

What is consumer behavior in marketing?

Consumer behavior in marketing refers to the study of how consumers make decisions about buying products, services, and brands. It involves analyzing factors like psychology, sociology, and economics to understand the buying process.

Why is understanding consumer behavior important for brands?

Understanding consumer behavior allows brands to influence buying decisions by catering to consumers' psychological needs and preferences. This helps brands create strategies to appeal to their target market and grow sales.

What are the five major factors influencing consumer behavior?

The five major factors influencing consumer behavior are psychological factors, social factors, cultural factors, economic factors, and personal factors.

How does studying consumer behavior help brand builders?

Studying consumer behavior helps brand builders determine what influences their customers' buying decisions, how they view competitors, and how environmental and psychological factors affect their choices. This knowledge allows brands to influence these decisions more effectively.

What is the importance of understanding market segments in consumer behavior?

Understanding market segments helps brands categorize their audience and identify shared buying decision factors within each segment. This allows them to tailor their products and marketing strategies to meet the specific needs and preferences of different customer groups.

How does IKEA influence consumer behavior?

IKEA influences consumer behavior by focusing on price and convenience, offering budget-friendly products with convenient flat-pack designs. Additionally, IKEA stimulates consumer buying decisions by creating an immersive in-store experience, showcasing furnished rooms that encourage customers to buy multiple items.

Why is creating an environment important for influencing consumer behavior?

Creating an environment that stimulates buying decision factors, such as convenience or value, can enhance a brand's ability to influence consumer behavior. This involves designing experiences that align with what customers prioritize when making purchases.

What is the role of psychological factors in consumer behavior?

Psychological factors play a crucial role in consumer behavior by influencing how people perceive products and services. Emotions, attitudes, and mental processes all affect how consumers make buying decisions, often subconsciously.

How does consumer behavior differ across market segments?

Consumer behavior can vary significantly across market segments. For example, in one segment, price and quality may be key buying factors, while in another, convenience and value may be more important. Brands must understand these differences to effectively influence decisions in each segment.

What is the relationship between brand strategy and consumer behavior?

Brand strategy and consumer behavior are closely linked. A brand’s strategy should be designed to appeal to the specific psychological and emotional factors that influence consumer decisions. By aligning brand strategy with consumer behavior insights, brands can create more effective marketing and sales tactics.