Understanding Customers: Micro and Macro Aspects and Theories

This essay discusses the importance of understanding customers for a business organization and explains the micro and macro aspects of understanding customers using theories and examples. It also highlights the impact of social factors on customer behavior and the use of consumer culture theory to understand customers. Course code: MGBBT0UCT

MGBBT0UCT
Understanding
Customers Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain micro and macro aspects of understanding the customer using the theories and
examples .....................................................................................................................................1
CONCLUSION................................................................................................................................3
References:.......................................................................................................................................5

INTRODUCTION
Understanding the customers is the process of learning all about the customers which is
necessary for the organisation to know about them. It has been found that the understanding the
customers is the major factor of organisation as it help the organisation in anticipating the needs
and demands of customers. It is essential for the business to realize the perception of their
customers for the purpose of continuous performing in the market and catch a broad reach of
consumers. It is totally depend on the product offerings of the organisation. Along with this, it is
necessary for the organisation to maintain a healthy and positive relation with their customers in
order to attracting them towards the products and the behaviour of employees. The customers
always want that they should be attended with the grace and respect. The organisation should
focus on the expectations of the customers as they are consider as the King for the organisation.
Several of technologies have been used by the organisations in order to identifying the buying
behaviour of their customers such as Big data, Artificial intelligence and many more. This essay
include the concept of micro and macro aspects of understanding the customers along with the
theories which the organisation use to understand its customers.
MAIN BODY
Explain micro and macro aspects of understanding the customer using the theories and examples
The environment which has a direct impact on the business organisation is consider as the
micro aspects whereas the macro factors affects generally and the entire economy or on any
specific industry. Macro refers to the large image of knowing the external factors and examining
the performance of business organisation by considering several issues such as customers,
growth, sales, strategies and many more (Sarkar, J.G., Sarkar, A. and Balaji, M.S., 2020). Along
with this, it also concentrate on analysing the position of business organisation in comparative to
their competitors. In order to understanding the customer, several of micro and macro factors are
analysed as they influence the entire business organisation.
The competitive environment include some basic concepts which are found as necessary
for every business organisation to take care of them. Each and every business organisation either
small or large enjoy monopoly. In the original business world, a business firm clash the several
other competition in the market. The competitors are consider as an important factor in
understanding the customers. Each business organisation from each and every industry have to
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face the competition in the market. It directly affect the perception of customers as the
availability of several competitors, confuse the customer and impact on their buying behaviour
because of availability of several brands of same products. In this case, mostly the customer
prefer the products of the organisation having low prices. In the context of tourism sector,
customer look for a brand value (Kursunluoglu Yarimoglu, E. and Gunay, T., 2020). Now a days
the businesses are facing the challenge to make the product different from other the products of
other competitors available in the market. For instance, Philips is an organisation dealing in
electronic market and the organisation is facing the competition on the basis of prices and
qualities offered by their competitors. Regarding the suppliers, the business organisation can
identify the availing options which are required material and labour according to the
manufacturing processes of the organisation. The management of organisation have option of
select such purchasing policy which have higher bargaining power which result in the attraction
of customers towards the organisation. Public is defined as the general people who have the
direct interest in the organisation's product and services as they work on the fulfilment of needs
and demands of people. It has been found as essential to put the customers in the on the prior
basis. For the purpose of understanding the behaviour of customers, the organisation is required
to select the target customer segment. This featured include numerous of new environmental
factors. For instance, some of social factors result in the change in the mind and perception of the
customers. It has been found that the COVID-19 pandemic bring several of changes in the mind
and perception of the customers which result in the changes in the strategies of the tourism
industry (Kim, J.S., and et. al., 2017). This sector is found as the most effective sector of
COVID-19. Due to the impact of COVID, people were worried about their health and they
stopped going out on vacations and holidays. Now, the situations are bring normal which result
in the change in the perception and expectation of customers in the context of tourism. General
public is expecting some advancement in taking care of their health from the business
organisations. It bring several of changes in the mindset of customers. In the context of
hospitality industry, it is necessary for the organisations to adopt various safety measures as on
the top most priority. Social factors are consider as the macro aspect in the process of
understanding the customers. This factor is really helpful for the marketers of the organisation
for understanding the needs and wants of customers. It involve several aspects such as consumer
behaviour, health and safety measures, lifestyle and many more.
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Consumer Culture theory is the theory which is being used by the organisation for the
purpose of understanding its customers in an effective manner. This theory promote the
organisations to understand the behaviour of customers as a part of complex, intricate web of
interrelated activities (Schweitzer, F. and Tidd, J., 2018). It leads to the involvement of many
aspects which an organisation is required to consider for the purpose of attracting the customers
and understanding their perception.
Consumer identity projects analyse how the customers develop the stories of their lives
through the buying or purchasing manner. For instance, Jewellery is usually used by the people
in to make and celebrate special occasions. The jewellery organisations can do the marketing and
advertising for their products such as engagement rings are closely aligned to the cultural rituals
of people pairing off and setting down. Travels are being marketed to the people who just retired
as they are just entering in the new stage of their life course (Ahn, J., Back, K.J. and Choe, Y.,
2019). Socio-historical structure of in taking concerns on how the customers and consumption
have been and continue to be , presented in the news reporting, fiction, films and other media.
Consumers instructive strategies helps the organisation in identifying how the customers
interiorize, construe and occasionally convey behind the brands and marketing content. For
illustration, consumer created videos on YouTube that show goods being ‘unboxed’ or
consumers can select a much captious strategies in the way they premix advertising, producing
mock ads in such a way that which implies effect on the big business. If the business
organisations give attention on the interpretative strategies of consumers as it can help the
marketers to understand how can present their brand in front of their customers (Villi, B. and
Koc, E., 2018).
CONCLUSION
It has been concluded form the above essay that understanding the neds, demands, wants,
preferences of customers is an important aspect for a business organisation. The management
take the several decisions related to the production and distribution of products and services on
the bases of the results of understanding the customers as they are key element for a business and
consider as the King. The organisations spend a lot of money on research before introducing the
products in the market so that they can make the product as per the expectations of the customers
which also result in the attraction of customers towards the organisation. Several of
environmental factors identify the micro and macro aspects of understanding the customers. The
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chief component which are known as social, economical and emotion accompanying factors
which accord the buying decisions of consumers. Consumer culture theory show that the
analyzable behaviour of the customers can be easy and the marketers can understand its
customers from the various strategies. For example the marketplace culture study in
characteristic the way which is determined in the consumer accompanying to fashion, tourism
and many more. It means that the marketers can detect the activity of the customer by the use of
several digital tool which will help them to understand the customers buying patterns and various
other things.
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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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