Understanding Customers: Micro and Macro Aspects and Theories

This essay discusses the importance of understanding customers for businesses and explains the micro and macro aspects of understanding customers using theories and examples. It also highlights the impact of social, economical, and emotional factors on the buying behavior of customers. The essay concludes by emphasizing the effectiveness of decisions taken by businesses after understanding the buying behavior of customers.

MGBBT0UCT
Understanding
Customers

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain micro and macro aspects of understanding the customer using the theories and
examples .....................................................................................................................................1
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................5

INTRODUCTION
Customers are always consider as the King of business. Hence, it is found necessary for
the business organisation to understand them and it has been done through a well defined
process. Understanding the customers means to evaluate the needs and demands of customers. In
order to continuous performing the business operations in the market and catching a broad reach
of customers, it is necessary for the organisations to develop the products and services as per the
perception of customers. It is also necessary for the business firm to make and develop healthy
and positive relationship with their customers so that they can attract the customers to buy the
products and services. Customer relationship is also beneficial for making positive reputation of
business in the society along with bringing the feeling of loyalty in the customers. It has been
found that customers always have a desire that they should be attended with respect and grace.
So the business organisations are require to work for completing the desires of customers. By
fulfilling the expectations and desires of customers, the organisation can increase its profitability.
It has been found that the management of businesses introduce several of technologies for the
purpose of buying habit of customers which include Artificial intelligence, Big data and many
others. This essay deals with the conception of micro along with macro aspects of understanding
the customers and the theories which are being used by the organisations for understanding its
customers.
MAIN BODY
Explain micro and macro aspects of understanding the customer using the theories and examples
Micro aspect of environment directly effect the business operations of a business
organisation. On the other hand, the macro environmental aspect effects generally the entire
economy or any specific industry. Macro aspects include the large image which help in
determining the external factors and knowing about the performance of business organisation by
examining the various issues which include growth, strategies, customers, sales and many others.
It also help in knowing about the accurate and correct position of business in the competitive
market. When an organisation want to understand their customers, they are required to analyse
the micro and macro factors because they directly affect the business operations (Sarkar and et.
al., 2020).
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The involvement of several basic concepts have been analysed in the competitive
environment and it is necessary for the business organisations to take care of all these factors so
that they can enjoy the monopoly. The business organisations are required to clash the other
competitors which are available in the market. In order to understand the customers, the
organisations have to beat the competition so that they can attract the customers. It has been
found that the availability of same product from several brands effect the buying behaviour and
perception of customers as it create a lots of confusion in their mind for making the decision
regarding the purchase of product. In the case of availability of several products, the customer
make choice of the products of low prices. It has been found that the customer look for brand
value in tourism sector. Due to presence of high competition in the market, the business
organisations are facing several challenges in the process of making their product and services
different from other competitors (Kursunluoglu Yarimoglu, E. and Gunay, T., 2020). For
example, Philips is a private firm which is providing several electronic equipments and they are
facing the competition on the basis of prices and qualities which are offered by their competitors.
In the context of suppliers, the business organisations can determine the exploiting options such
as required raw material and labour as per the manufacturing processes of the business. The
management of organisations are required to search for that policy of purchasing which include
the higher bargaining power so that the customers can attract towards the business. General
people or public have power to directly affect the business organisation. It also take the interest
in the operations as the management is performing all the business operations only for the
purpose of fulfilling all the needs and requirements of public. Hence, it is mandatory for the
management of business to put the customers on priority. Usually, the organisations select a
target segment of their customers, it make the process of understanding the customers easy.
Along with this, selection of market segment save wastage of time as the management have to
focus only on their target customers. It also involve a number of some new environmental
factors. It has been found that some of social factors bring the changes in the buying behaviour
of customers (Schweitzer, F. and Tidd, J., 2018). For instance, several of changes have been
analysed only because of COVID-19. Its direct impact on tourism industry can be seen as the
people change their perception regarding the tour and travel. Tourism industry is highly effected
because of COVID-19 as the general public is worried regarding to their health and they do not
feel safe to go outside from their home. As a result, people stop going on vacation and holidays.
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As the situation is becoming better day by day which also bring the changes in the perception
and requirements of customers. The customers of business of tourism sector are expecting some
changes in their services regarding their health and safety. In hospitality sector, the organisations
are required to bring some advancement in their safety measures so that customers feel safe and
healthy while taking their services (Kim, J.S., and et. al., 2017). Through these examples, it has
been found that the social factors work as the macro aspects in the process of understanding the
customers. It also work as the major component which help marketers in understanding the needs
and wants of customers. Consumer behaviour, lifestyle, health and safety measures are the
various aspects of understanding of customers.
It has been found that organisations use Consumer Cultural Theory, so that they can
easily understand the customers in an effective and efficient manner. Majorly, this theory leads
to the promotion of skills which are being used in the process of understanding the customers as
it is a part of complex, intricate web of interrelated actions (Villi, B. and Koc, E., 2018). It
involve several concepts which are required to be considered by the organisation in order to
attracting the customers and determining their perception.
Consumer identity projects examine how the customers develop the narration of their
lives by the buying or purchasing way. For example, Jewellery is being used by the people in
making and celebrating the special functions. The jewellery firms can do the marketing and
promotion of their goods like as engagement rings are nearly aligned to the cultural religious
ceremony of people coupling off and setting down. Travel and tourism industries perform
marketing activities by targeting the people who are just retired as they are more interested in
taking tour and travel services on the beginning of new phase of their lives (Ahn and et. al.,
2019). Socio-historical construction of in taking concerns on how the customers and ingestion
have been and continue to be presented in the news coverage, fiction, picture and other media.
The strategies of consumers instructive plays an important role in business organisation
as it help in identifying how the customers interpret and convey behind the brands and content of
marketing. For instance, several of customers make videos by showing the goods being unboxing
and post them on YouTube. It has been analysed that customers can select a much critical
scheme of consumers as it help the employees of marketing department in understanding how
they can present their brand in front of general public.
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CONCLUSION
From the above essay, it has been concluded that the most important aspect of a business
organisation is to understand the preferences, needs or demands of customers. By understanding
the customers, the organisations take decisions and develop strategies regarding the production
and distribution of products and services. Before introducing any new product or services, the
organisations completely understand the requirements of customers so that reach to the
maximum number of customers and generate higher revenue. The major factors such as social,
economical and emotional are directly affect the buying behaviour of customers which also
affect the sells of product and services of a business organisation. Tourism industry get effected
by the social factor as it change the perception of people regarding travelling and vacations.
Consumer Culture Theory make the process of understanding the customers easy. The decisions
taken by the business firms after understanding the buying behaviour of customers are always
found as effective.
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References:
Books and Journals
Ahn, J., Back, K.J. and Choe, Y., 2019. Customers’ needs satisfaction: A scale validation with
refinement in the integrated resort setting. International Journal of Hospitality
Management, 82, pp.39-47.
Kim, J.S., and et.al., 2017. The impact of four CSR dimensions on a gaming company’s image
and customers’ revisit intentions. International Journal of Hospitality Management, 61,
pp.73-81.
Kursunluoglu Yarimoglu, E. and Gunay, T., 2020. The extended theory of planned behavior in
Turkish customers' intentions to visit green hotels.
Sarkar, J.G., Sarkar, A. and Balaji, M.S., 2020. The “right-to-refuse-service” paradox: Other
customers’ perception of discretionary service denial. Journal of Business
Research, 121, pp.686-695.
Schweitzer, F. and Tidd, J., 2018. Approaches to close the solution space: Customers as
evaluators. World Scientific Book Chapters, pp.141-189.
Villi, B. and Koc, E., 2018. Employee attractiveness and customers’ service failure
perceptions. Journal of Hospitality Marketing & Management. 27(1). pp.41-60.
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