Understanding Customers: Micro and Macro Aspects and Theories

This essay discusses the micro and macro aspects of understanding customer behavior using theories and examples. It also explains the importance of understanding customer behavior for any organization. Theories related to consumer behavior are also explained to understand the buying patterns of the target-base. Example of tourism industry is also taken into the consideration that depicts the changes in buying behavior of the consumer.

Understanding customers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Micro and macro aspects of understanding the customers using the theories and examples......3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The concept of understanding customers is a way to give services to customer-base in an
effective manner. This process is a key for any organisation or business enterprise and facilitates
an organisation in asking customers additional questions in relation with what other goods or
services of the company would stoke their interest. Consumer behaviour is the study of a
personnel and the company and the process of selecting ans using the products or services of the
organisation (Homburg, Jozić and Kuehnl, 2017). Understanding the behaviour of consumers is
important for any business organisation because it helps the firm in understanding what impacts
the buying decisions of the consumers. In this essay, both micro and macro aspects of consumer
behaviour are going to be discussed. Along with it, theories related to these aspects will also be
taken into consideration. Furthermore, an illustration will be explained within the portfolio to
describe the concept and aspects of consumer behaviour.
MAIN BODY
Micro and macro aspects of understanding the customers using the theories and examples
The micro aspects of the consumer behaviour consists of various factors that impacts the
buying behaviour of the customer-base and directly influence the business concern. While macro
factors affects the business organisation in general and the specific industry or economy as a
whole (Ilyas and et.al, 2021) . Macro factors simply means the external factors that influence
performance of business and consists of aspects such as customers, sales, strategies, growth and
many more. These type of factors also concentrate on recognising the position of the business in
relation to its rivalries in the market. There are several types of micro as well as macro factors or
aspects of understanding the buying behaviour of the consumer that impacts functioning of
business.
The business environment is very competitive and involves specific aspects that an
organisation has to consider. There are various competitors of an organisation within the market
and this competition plays a crucial part in understanding the customers (Jiang and et.al, 2019).
When a firm face its rivalries then it also impact the perceptions of customer-base as it is
analysed that the targeted-audience are confused because of intense competition in the
marketplace. It influences the buying behaviours of the consumers because there are several
organisations or firms that are offering identical products or service with same benefits. The

customer-base would prefer that company which is offering the product or service at a lower cost
as compared to competitor in the market. Within this, brand value of the organisation also play a
major role as target-base would choose the products of those companies who are famous or have
positive word-of-mouth in marketplace.
The competition that an organisation faces is concerned with its products that other
organisations are continuously introducing their differentiated and innovative products in the
market (Ju and et.al, 2019). For example, within the electronic market, Sony company has its
various competitors like Samsung, LG, Panasonic and many more that are offering their products
and are facing the competition in terms of the prices and quality of the products. In relation to
suppliers, a business recognises the availing alternatives of suppliers that supply required
material or labour as per the process of manufacturing. It should frame the policies regarding the
purchasing of materials by providing bargaining power to firm. It helps an organisation in
capturing more of its target-base and also assists in expanding the volume of sales within the
business. Customers have direct interest in the products and services of the company because
those goods as well as services satisfy the requirements of the market-share.
Targeting the market-segment is the most significant aspect for a business as it is
considered as a base to understand the perceptions and requirements of the customer-base
(Kuehnl, Jozic and Homburg, 2019). There are several environmental factors involved in this
aspect such as social factors, economical factors, technological factors and many more. Social
factors include taste and preferences of the consumer while economical factors include inflation,
etc. The pandemic situation of COVID-19 has greatly impacted the buying behaviours of the
consumers as it created distinct mindset and perceptions of the people. Within tourism industry,
this factor had intense influence on the businesses and has resulted in changing the business
strategies of the company in respective industry. After this pandemic situation, customers are
more concerned about their health and safety and because of that, they stopped stepping out of
their homes. This has reduced the sales operations of the tourism industry as people are avoiding
the trips and holidays and are preferring to stay at homes rather than stepping outside (Mahr,
Stead and Odekerken-Schröder, 2019) . However, now the situation is normal and it is also
observed that there are certain changes in the expectations of the market-share in respect to
tourism industry. People are more concerned about their health and are expecting same from the

companies. Hence, it becomes essential for the organisations to consider the health and safety
measures associated with customers.
Social factor is also taken into consideration as a macro aspect to understand the
customers. This kind of factor provides assistance to marketing department of the organisation in
identifying and understanding the requirements of the target-market. There are different factors
that are included in this aspect and some of them are consumer behaviour, lifestyle, health and
safety measures and many more.
For better understanding of the customers, a business can also use theories that are
associated with understanding consumer behaviour (SALEHI, Moradi and Abdoli, 2018) . The
best example of theory to understand the behaviours of customers is consumer culture theory.
This theory is associated with the social influences and dynamics along with the cultural
meanings that shape the experiences and identities of consumer regarding daily life. With the
help of this type of theory, an organisation is encouraged to understand the behaviour of the
consumers by framing interrelated practices and strategies. Consumer cultural theory
concentrates the patterns of buying behaviours of the target-market as a social as well as cultural
practice. There are several aspects that are involved in this kind of theory such as taste and
preferences of consumers. In order to capture more of the target-base, it is essential for an
organisation to understand the needs as well as requirements of the customers by knowing their
perceptions.
There are several other types of consumer behaviour theories that helps an organisation to
understand the behaviours of its potential consumers (Tran, Van Dang and Tournois, 2020) .
Some of them are psychoanalytic theory, reasoned action theory, Maslow's motivation-ned
theory. According to Psychoanalytic theory, a consumer makes buying decisions on the basis of
their hopes, feelings, aspirations and fears. For example, if a customer wants to be a singer or has
passion to sing the songs, then it would like to buy voice lessons or instruments or software that
records music. Reasoned-action theory states that customers make buying decisions when they
expect a specific result from the company. Hence, marketing department of the organisation
required to give a positive result along with the selling that product to consumer (Vakulenko,
Hellström and Hjort, 2018). Within Maslow's need motivation theory, there are five needs
included psychological, safety, love, esteem and self-actualisation needs. This hierarchy within

the theory asserts that market-share purchase the products for fulfilling their above specified
needs and requirements.
Consumer identity projects states the process of how customer-base create their life
stories through their buying patterns. For example, Jewels used by customers on special
occasions to mark relationship is a point that is associated with marketing of objects such as
engagement rings are closely attached to the cultural and rituals of the people by pairing off as
well as settling down. Socio-historical pattern of consumer behaviour is associated with how
customers have been and continue to be represented in the reporting of the news and other media
(Williams and et.al, 2020). Consumers interpretative strategies recognises the process of
customer-base that how they interpret, internalise and occasionally brought down the messages
concerned with brands and marketing. It can be inspired and motivated by genuine feelings and
vibes for organisation's brand. For example, videos created by the people on Youtube expresses
that products being unboxed or the customer-base can frame a more critical strategies to remix
the advertisements and producing mock advertisements in such a way that greatly impacts the
functioning of large businesses. If a firm concentrates on the consumer interpretative strategies,
then it can facilitates the marketing department of the organisation to understand how to use the
brand or its products in front of their customer-base.
CONCLUSION
From above explanation, it is concluded that understanding consumer behaviour is very
important for any organisation to gain competitive advantage over the rivalries in the market. In
order to offer the products as well as services, the mindsets and perceptions of the customers are
essential to understand. Micro and macro aspects that affects the buying behaviour of the
customer-base are explained within the essay. Theories related to consumer behaviour are also
explained to understand the buying patterns of the target-base. These theories would help the
marketing department of an organisation to observe the buying pattern of the targeted-audience
using the digital tool. Example of tourism industry is also taken into the consideration that
depicts the changes in buying behaviour of the consumer.

REFERENCES
Books and Journals:
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
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Ilyas and et.al, 2021. The Influence Of Digital Marketing And Customer Perceived Value
Through Customer Satisfaction On Customer Loyalty. Journal of Legal, Ethical and
Regulatory Issues. 24. pp.1-14.
Jiang and et.al, 2019. Dynamic modelling of customer preferences for product design using
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Ju and et.al, 2019. Exploring Airbnb service quality attributes and their asymmetric effects on
customer satisfaction. International Journal of Hospitality Management. 77. pp.342-
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Kuehnl, C., Jozic, D. and Homburg, C., 2019. Effective customer journey design: consumers’
conception, measurement, and consequences. Journal of the Academy of Marketing
Science. 47(3). pp.551-568.
Mahr, D., Stead, S. and Odekerken-Schröder, G., 2019. Making sense of customer service
experiences: a text mining review. Journal of Services Marketing.
SALEHI, S., Moradi, A. A. and Abdoli, S. F., 2018. The Impact of Social-Personality
Characteristics on Customer Satisfaction (Case Study: Mizban Restaurant).
Tran, Q. X., Van Dang, M. and Tournois, N., 2020. The role of servicescape and social
interaction toward customer service experience in coffee stores. The case of
Vietnam. International Journal of Culture, Tourism and Hospitality Research.
Vakulenko, Y., Hellström, D. and Hjort, K., 2018. What's in the parcel locker? Exploring
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Williams and et.al, 2020. The practitioners’ path to customer loyalty: Memorable experiences or
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