Understanding customers

This essay discusses the importance of understanding customers for businesses to succeed in a competitive market. It explains the micro and macro aspects of consumer behavior and provides theories and examples to better understand the concept. The essay also highlights the impact of COVID-19 on consumer behavior.

Understanding customers

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro and macro aspects of understanding the customers by using theories and examples.......1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The process of understanding the customers is a method for providing the services to
customers effectively. This concept is a central key for any business enterprise that assists it in
asking the customer-base some addition questions related to products and related services of the
organisation. For better understanding the customers, the business also asks questions regarding
what other goods as well as services would they prefer or are having interest (Dolgun and
Köksal, 2018). In the study of consumer behaviour, an individual and the company with its
processes are studied along with the making selection and using the products and services of the
business concern. Understanding consumer buying behaviour is essential for an organisation as it
facilitates the company in making understanding of the impact of consumer's buying decisions.
Within this present essay, both micro as well as macro aspects of the consumer behaviour will be
explained and along with it, theories to these aspects are also going to be discussed (Sudhakar
and Gunasekar, 2020). Furthermore, an illustration will be taken into consideration within the
essay to better understand the aspect of consumer behaviour.
MAIN BODY
Micro and macro aspects of understanding the customers by using theories and examples
For better understanding the concept of consumer behaviour, there are two aspects that
directly impacts the business. These two aspects are micro aspects and macro aspects that helps
in understanding the buying behaviour of the customers (Sujah and Rathnayake, 2019). Within
micro aspects, there are various factors that affects consumer behaviour and directly impacts the
functioning of an organisation. Macro aspects involve the factors that impacts business
organisation in general and either specific industry or economy as a whole. These factors are
commonly refer to external factors which influence the functioning of business and involve
aspects associated with sales, customers, strategies, growth, etc. The factors within the major
aspects are having more concentration on recognising business position in comparison to its
competitors within market-place (Fuentes and et.al, 2020). There are different kinds of macro as
well as micro factors that provides assistance in better understanding the consumer buying
behaviour which affects business performance. The competitive business environment includes
some particular aspects that are to be taken into consideration by an organisation. There are
several rivalries of a business concern within the existing market and the competition in between
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them plays a crucial role in understanding customers. The competition within the market-place
between a company and its competitors affect the perceptions of consumers as it has been
analysed that customer-base is confused in making its buying decisions because of high
competition. There are distinct organisations that are supplying homogeneous products and
services with same benefits. It creates a critical situation for the customers that from where to
buy the product, who is offering real product, which product will be best and many more (Jhamb,
Kampani and Arya, 2021). But it should be understood by the organisation that the customer-
base would prefer that business concern which is providing goods or services at low cost in
comparison to competitor in the market-place. In between all these circumstances, the brand
value of an organisation plays an important role in capturing customers towards the firm because
targeted-audience would go with that company who is famous or having favourable word-of-
mouth within the market-place. The competition faced by a business concern is associated with
products of other organisations who are continuously making innovations in their existing
products to make them differentiated (Vakulenko, Hellström and Oghazi, 2018). For an instance,
there are various competitors of British Airways Holidays in tourism industry and some of them
are Jet2holidays, Virgin Holidays, Emirates Holidays and many more. These all companies
within tourism industry are offering identical services but British Airways Holidays is making
differentiated services through offering discounts and perks, concessions, etc.
In relation to suppliers, a business makes an identification in respect to the alternatives of
suppliers which are supplying the material or labour required by the company's manufacturing
process. It must formulate the strategies and approaches in respect to the buying of material
through giving bargaining power to the organisation. It facilitates the business concern in
attracting more of its customers as well as also provides assistance in enhancing the volume of
sales of the business operations (Lo, 2020). The most important aspect for a business
organisation is to target a particular market-segment as the process of targeting helps the
company in making better understanding of the requirements and perceptions of customers
within specific market-segment. There are distinct environmental factors which are included in
this concept like economical factors, social factors, technological factors and many others. In
context to social factors, it incudes factors such as taste and preferences of customers, buying
patterns, population growth, etc (Lorrai, 2019). While economic factors involve inflation,
taxation rate and many more. The situation of COVID-19 greatly influenced consumers buying
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behaviour because it frames various mindsets as well as perceptions of public. In tourism
industry, the factor of COVID-19 is a leading factor which affects the overall functioning of the
industry. Due to which the companies within this respective industry has to make changes in the
policies and strategies of business. The post period of this pandemic situation depicts that
consumers are more concerned about their health and safety and are avoiding stepping out of
their homes and places (Naid and Mashanda, 2017). It has reduced the business operations within
tourism industry as people are not preferring to go on trips. However, the situation becomes
normal and is observed that the consumers within the market-place are with changed perceptions
and tastes. They are more concerned towards their health and safety and are expecting the same
from the tourism industry. Therefore, it becomes important to understand the perceptions of
customer-base regarding their health and safety. Social factor is also considered as a macro
aspect to understand the customers and this factor facilitates marketing department of an
organisation in understanding perceptions of customer-base. Social factors involve buying
behaviour, health and safety, lifestyle, taste and preferences, etc.
The concept of understanding customers is very necessary for every business organisation
and the businesses must use the theories concerned with it. There are different types of theories
that can be used by the organisations in understanding the customers. Some of them are
consumer culture theory, Reasoned-action theory, Maslow's motivation need theory,
psychoanalytic theory, etc (Ou and et.al, 2020). Consumer culture their is concerned with social
impacts and alterations along with cultural meaning that form the experiences as well as identify
customer-base in relation to their daily-routine. This theory helps the organisation in
understanding the behaviours of the consumers by designing interrelated approaches. This type
of theory facilitates a business in understanding the perceptions of the customer-base which will
assists an organisation in capturing its target-base in a large number (Hill, Brierley and
MacDougall, 2017). According to reasoned-action theory, the marketing department within a
business is needed to provide favourable outcomes on behalf of the company along with selling
products to customers. Because market-share makes decisions regarding purchasing of product
when they expect a specific result from company. Psychoanalytic theory states that customer-
base makes buying decisions based on their hopes, expectations, feelings and aspirations (Park
and et.al, 2020). In relation to consumer identity projects theory, the process of how customers
generate their life stories by their buying patterns is studied. For an illustration, Jewels used by
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target-base on their special occasion to show relationship is a point that is concerned with
marketing of objects like engagement rings that are closely attached to the rituals as well as
culture of the people by pairing off and settling down(Ponsignon, Durrieu and Bouzdine-
Chameeva, 2017). There is another theory of Socio-historical pattern that helps an organisation
in understanding the buying behaviour of the consumer and is concerned with the process of
being represented in the reporting of the news and other media. The strategies of consumer
interpretative makes recognition in the process of customers buying behaviours that how they
interpret, internalise as well as occasionally brought the messages that are associated with the
brands and marketing of that product (Marriott and Williams, 2018). This can be motivated or
inspired through a genuine vibe or feelings for organisation's brand. For example, the videos that
are made by the people posted on You Tube depicts that goods are unboxed or customers can
frame a more impressive strategy to remix the advertisements and can produce the product in
such a manner that greatly influence operations and performance of business organisation
(Sarram and Ivey, 2018). If a company is making concentration on the interpretative strategies of
the consumers then it can be helpful for marketing department of the business enterprise for
understanding how to make use of brands or its related products and services in front of the
customer-base.
CONCLUSION
From above explanation of the essay, it is concluded that understanding customers is very
crucial for a business concern to enjoy competitive benefits over the competitors in changing
market-place. For delivering services and products to customer-base, it becomes important for a
business organisation to know and understand the taste and preferences of the consumers to make
them fully satisfied. It would help the business enterprise in enhancing the level of its sales
operations and also facilitates in creating a brand value within the competitive market. Micro and
macro aspects of understanding consumer behaviour have been explained in this essay and along
with it different theories are also discussed in relation to it. These theories would help the
marketing department of an organisation in understanding the buying behaviour of its potential
consumers by using digital techniques. A illustration has also been taken into consideration
within the essay that shows alterations in buying patterns of the customers.
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REFERENCES
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