Understanding Customers: Micro and Macro Aspects of Consumer Behaviour

This report discusses the importance of understanding consumer behaviour for any organisation. It covers micro and macro aspects of consumer behaviour and their impact on purchasing decisions. The report also includes examples from the tourism industry.

Understanding
Customers

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................7
Books and Journals:................................................................................................................7

INTRODUCTION
Understanding consumer behaviour is very essential for any organisation. It represents
the study of consumers to make certain choices about the purchase, wants, requirements and act
in regards to a brand and its offered goods and services. It will also assist the company to know
and find the unmet opportunities (Ahmad and et.al., 2018). Somehow, if the business firm is
unable to reaslise the buying patterns of cleints then then will be a greater chance of fails of
product. Consumer behaviour can be characterized as the understanding of consumer buying
behaviour and how they take decisions regarding purchasing (Sharma and Yadav, 2021). It is
very complicated to know how prospective consumers will react to a new product and service.
There are lots of changes in the technology, fashion, disposable income, lifestyle, trends and
other similar factors, consumer behaviour also changes (Jaca and et.al., 2018). The assessment is
consider the micro and macro aspects of customer behaviour with relevant theories and examples
associated with tourism sector.
MAIN BODY
Consumer behaviour is meant by the acknowledgement of individuals, group of
individuals and organisations as well as all the activities relates with purchasing, consumption
and disposal of goods and services. This contains consumer, tastes, preferences, attitudes and
emotions influence the purchasing way of consumer (Pinarbasi, 2019). It is important to study
the consumer behaviour because it assists the marketers to study what influences customers
purchasing decisions. With the help of understanding the consumer behaviour, companies can fill
up the gaps in the marketplace and find the goods that are required and the the goods that are
outdated (Michelini, Principato and Iasevoli, 2018). Consumer behaviour is not only deals with
the new customer attraction but it also relates with retention of old and current customers. When
a consumer is satsfy and happy for a specific product then he or she will definitely repeat the
good. Therefore, advertisements should be finished in such a way that it should convert the
minds of customers to shop the certain goods and customers. It deals with the forecasting of
trends in marketing. For example, the recent trend is towards environment friendliness and
hygiene due to the Covid-19 pandemic (Haugtvedt, Herr and Kardes, 2018). These trends must
be analysed by the marketers including tourism companies. So that they can better understand
the consumer and their buying behaviour. Understanding consumer behaviour is also

fundamental to know the answers of few questions such as “ is the consumer purchase products
from the rivalries?, why the customer is moving towards competitors?, what features attracts the
customer to buy from the rivalry product and many more (McNeill and Venter, 2019). It is also
important for the company to stay relevant in the target market. They must analyse the rapid
changes of the consumer behaviour. Also, consumer behaviour affects by the various levels of
customer service, understanding the variations will facilitate the most appropriate service for the
personal requirements (Bulley, Adu-Brobbey and Duodu, 2018).
Micro environment signifies various aspects such as psychological factors of consumer
that how he think, reason, feel and choose the good or services between various substitutes
(brands, goods and merchandisers). It can be also influenced by background of consumer which
involves family, culture, media and signs (Pranjal and Sarkar, 2019). It often includes the
behaviour of consumer while purchasing or making other decisions regarding marketing. There
are many micro factors which influences the customers decision-making regarding purchasing.
The consumer decision-making is also influenced by the personal earning or economic
condition of an individual (Bulmer, Elms and Moore, 2018). If the person is earning high
income then it tends to spend more on luxurious products in comparison with lower or middle
class group of customers who would invest on essential items (Oe and Yamaoka, 2020). For
instance, a high-class person will tend to go for Ty Castell Hotel or The Savoy in UK, whereas a
middle class person will go for Premium Inn Hotel. The personality of a person also impacts
the buying decision. For example, a person who likes to visit places of hills would like to spend
his money on such areas where hills and mountains are there whereas a beach lover would
happily spend on areas of water such as Brighton i.e. a famous beach destination. Motivation
plays a fundamental role which affects the consumer behaviour. An individual has different
requirements such as basic needs, social needs, security requirements, self-esteem needs and
self-actualization needs (Graul, 2021). Thus, general needs and security needs of a consumer will
have more power to encourage customers to shop a product or service. For example, a person
who desires to fulfil the self-actualization need will go for the business class tickets for the
flights while a common class person will opt for economic class tickets. Personal attitude of a
person is more expected to purchase a product and which outcomes in the prospect of liking and
unlike a good. It emphasis the plan of customers in context to the items. Also, it involves logical
result of feelings and beliefs but not all the time. Suppose a person who is conscious about his

eating habits will tend to go for a place where he can eat his desired food items. The Personal
Variables model,when a customer gets influenced by this model the buying decisions are based
upon the internal factors which may include traditions, beliefs, goals, systems, personal opinions
or may other factor that motivates the buying decisions (Mat Zain, 2020).
Macro aspects of the consumer behaviour includes factors such as social factors that has a
momentous impact on the consumer behaviour in social traits. Social influencers are the key
aspect that can consist social interaction, person's family, school or work communities and any
group of individuals affiliates with (Rasyida, 2021). It may involve income, social class,
education level, living conditions. These factors are quite diverse and can be sensitive to analyse
the when build plans for marketing. Cultural aspect is also affecting the consumer behaviour
which consists preferences, tastes, values, behaviour and perceptions of society (Lombardi and
et.al., 2021). Companies also needs to acknowledge the cultural aspects of the consumer in order
to make decision-making related with marketing. Many companies fails to understand this aspect
of tourist which may lead to different cultural barriers (Nguyen and et.al., 2020). Black-Box
Model, is based upon the outer stimulus responses that means that a point triggers in the minds of
consumer to make purchase decisions which is affected by various factors such as marketing
message, sampling, promotions and many more.
In tourism industry, there are many companies which deals with both macro and micro
aspects of the consumer behaviour. One of the best examples is of EastJet Airlines that are
affected by various factors of environment (Micu, Sciandra and Micu, 2019). It is majorly
affected by the Covid-19 pandemic in which it faced a decline of sales and revenue for the
business (Molinillo, Vidal-Branco and Japutra, 2020). With the changing rules and guidelines
introduced by local government, the company has to look upon hygiene factors to maintain the
health and safety of their staff members and clients. On the other side, many tourist destination
has been affected by the Covid-19. Many famous places in UK such as Tower of London, The
Cotswold and many more, have been affected by the situation. Visitors were not allowed to visit
such places during that time. Brighton is the most famous place in UK which is affected by
various aspects (Scalvedi and Saba, 2018). Foreigners visits such places have different cultures
and backgrounds through which they are unable to communicate with the local people in the
area. This is may be due to cultural differences which simultaneously affect their buying
decisions in order to plan their next trip (Rekha and Jain, 2018). In order to attract lots of

customer, many companies in the tourism industry is putting efforts to encourage diverse culture
in the community.
CONCLUSION
It is concluded from the report that consumer behaviour is the study of individuals that
shows how a consumer make buying decision regarding company and its product and services.
For marketers, it is vital to analyse the changing behaviour of clients so that wants and demands
can be fulfilled accordingly. They can also innovative and create new products that better fits
with the customer demands. Consumer behaviour covers two major aspects such as micro and
macro. Business entities from any industry, essentially have to acquire knowledge of such
aspects. Both micro and macro deliver a big impact on the purchasing decisions of consumers.
The success of marketing activities also relies on such aspects. Marketers before making any
plan, have to go through with such factors of environment so as to make good business decisions.
Hence, by considering psychologies and forces of consumers behind the altering ways of
shopping, the companies can create new offerings, marketing campaigns and increase the profit
margins as well.

REFERNCES:
Books and Journals:
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