Consumer Behavior: Theories, Tools, Perceptions, and Data Sharing

This report delves into the multifaceted realm of consumer behavior, examining the psychological and economic theories that underpin purchasing decisions. It explores how marketers employ various tools, including social media engagement, customer support, and data-driven insights, to influence consumer choices. The report highlights the crucial role of consumer perceptions, attitudes, and cultural values in shaping buying behavior, providing examples of how these factors impact purchasing decisions. Furthermore, the report evaluates how businesses, exemplified by Vodafone, persuade customers to share their data and the subsequent impact on consumer behavior, including segmentation strategies and technological advancements. The analysis covers diverse aspects of consumer behavior, from the influence of income levels to the impact of cultural and religious beliefs, providing a comprehensive understanding of the forces that drive consumer choices in the marketplace.

Consumer behaviour Marketing
segmentation
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain two renowned theories and buying behaviour of consumers.........................................3
Determine the various tools used by marketers which helps in influencing the consumer
buying behaviour.........................................................................................................................4
Demonstrate the importance of consumer perceptions, attitudes and culture impact on the
buying behaviour of customers...................................................................................................5
Evaluate how business persuades its customers to share data and its impact on consumer
behaviour.....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Consumer behaviour is the study of behaviour and attitude of individuals toward
selecting and buying the products and services with the motive of satisfying their needs and
desires (Chaney, Sanchez and Maimon, 2019). Basically consumer behaviour is the action of
individuals in the marketplace that is products and services should be able to meet their
requirements. There are various factors which influences the behaviour of consumers that are
price, product, packaging, design of product and many more. The behaviour of consumers is
non-static in nature that is it changes frequently on the bases their needs and on the bases of
nature of products. Moreover the income status, education level and living standards of
individuals are responsible for changes in their behaviour and helps in determining their
purchasing power. The nature and behaviour of all customers is not same that is differ from
person to person on the basis of their lifestyle and culture. The topics covered in the report are
the renowned theories and its multi faceted nature on the buying behaviour of customers.
Various tools used by marketers to influence consumers, use of contemporary products and
services and its impact on consumer buying behaviour. Example of well established business unit
and how it influence its customers.
MAIN BODY
Explain two renowned theories and buying behaviour of consumers
Theories of consumer behaviour helps the marketers in understanding the nature and
behaviour of consumers (de Oliveira and Sousa, 2020). With the help of this they would be able
to develop their products and services according to preferences and desires of consumers.
Consumer behaviour theories provides a unique characterises which helps in understanding the
psychological process of consumers and their consumption pattern.
Marshallian Economics- This theory was founded by Alfred Marshall and according to
his point of view the consumer behaviour in the process of buying products and services is
dependent on the level of satisfaction they gain. This theory has provided several hypotheses to
marketers that are if the prices of product are kept low then the chances of sale are high. Whereas
in case of substitute goods if prices are kept low then sale of substitute product is high.
Furthermore this theory provide a way to marketers to understand the nature and behaviour of
consumers at the time when they are making purchases.
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The multi faceted nature of consumer buying behaviour is based on their level of income that is
if the income is high then the sale of product will also be high. The product should not be of
inferior category.
Psychoanalytic Theory- This theory was formulated by Sigmund Freud. According to
his opinion the humans did not understand their own motivations and this is because of
psychological factors (Fernandes and Panda, 2019). A major part of humans mind is unconscious
and contains large amount of desires. According to this theory consumers prefer and react to
symbolic things insight of those of economics. According to view point of Freud's the external
factors such as income, age, etc do not act as the decision factors in the life of customers but the
mindset and the motivation act as the deciding factors. This theory functions on three aspects
which are id, ego and super ego that is on the bases of these aspects the buying behaviour of
consumer is determined. Id functions on the pleasures, the super ego covers the factors related to
moral and the ego concentrate on the go between factors (Zeithammer, Stich, Spann and Häubl,
2019). These three phases helps consumer in deciding whether to buy a product or not.
The multi faceted nature of consumer buying behaviour is based on consumers feeling,hopes,
taste and preferences and mainly on the bases of rational appeals. The way of thinking and the
mind set of consumers helps them in taking buying decision.
Determine the various tools used by marketers which helps in influencing the consumer buying
behaviour.
It becomes very important for the marketers to understand the behaviour of consumers.
According to the behaviour and preferences of consumers the company design and develop the
product and services which satisfy the needs and desires of customers. The marketers adopt
various strategies in order to influence the consumer behaviour which are described below-
 Presence on Social platforms- In this new scenario people are more dependent on
technology and is using various social platforms for making connections and
conversations (Iványi and Bíró-Szigeti, 2019). Social media is on trend as people are
spending their most of time on social platforms. By using various social media platforms
marketers can make customers aware about its products and services. Moreover
marketers are focusing on promotional activities with different approach where they are
communicating customers that how their product is useful and beneficial for them. Social
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media is one of the most engaging platform where marketers can build strong relations
with its customers.
 By offering support to customers- The marketers also focus on the providing
unconditional support to its customers. The company provides after sales services to its
customers with the motive to retain them and convert them into loyal customers. Its the
responsible of the business to resolve the issues and problems of customers regarding
products and services (Kongsom and Kongsom, 2016). These practices helps in building
good relation with customers and also helps in enhancing the brand image of company.
 Understand the needs of customers- The main focus of marketers is to establish
communication with its customers and know their viewpoints and preferences. According
to the needs and desires the company make changes in its products and introduce new
products. The marketers with feedback approach tries to communicate with its customers
and establishes strong relation with them.
 Engaging customers offline and online- One of the best way in which marketers
influences the consumers is by engaging them on both online and offline platforms.
Moreover the level of customer engagement is dependent on how well an organisation is
functioning in marketplace.
 Connect with customers- Marketeers influence the customers by designing products
which provide which satisfy the needs of customers. By understanding the expectations,
behaviour and motivations of the customers the marketers established good relations with
customers. Marketers while promoting the products of company tries to entertain
customers with stories, origin stories, pictures and many more. It is one of the best way to
make customers aware and attract them towards products and services of the company.
Demonstrate the importance of consumer perceptions, attitudes and culture impact on the buying
behaviour of customers.
Customer perception is define as the process by which customer identifies and interprets
the acquired information and understands it in their way. Customer perception play important
role in influencing the customer behaviour (Lipowski, 2017). Moreover the attitude and culture
influence the buying behaviour of customers as it determines their personality, learning and
living standards.
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Pragmatists- This buying behaviour of customers is based on the practical environment
and not on the ideals and thoughts of customers. Many individuals (customers) purchase
products after analysis its usability and importance and not on the bases of what they like and
what they don't like. Customer perception here play very crucial role as on the bases of
practicality customer will have his viewpoint on the product or services that is it is useful and
essential product for him. Perception plays 80% role in building mindset of customers on the
product or service (Liu, Li and Guo, 2017). Attitude of customers is based on their beliefs and
feelings that is if they are not able to connect with the product they won't buy it. Customer
culture is the values which they get from their family and marketers need to understand the wants
of customers and accordingly develop products and services. For example- Customer before
buying mobile phone check its functioning in practical and take the advice from the people who
are already using it.
Fundamentalists- This buying behaviour of customers is based on the believes and
principles on particular subject or religion which they follow strictly. This buying behaviour is
influenced by customer perception, culture and attitude (Wahono and Kartika, 2017).
Fundamentalists behaviour of customers determine their perceptions on the products and services
of the company that is product falling in the category of its principles or not. The culture and
attitude of customers is highly influenced by fundamentalists behaviour. The customers who
functions strictly on set principles are open to very selective products and are very clear about
what they want and want they don't want. For example- Customers who belong to Hinduism do
not prefer black colour as it is consider as bad sign in their religion and they are very strict on
their believes and principles.
Not concerned buying behaviour of customers is influenced by their perception, attitude
and culture. This behaviour develops when customer have clear perception on the product that it
is at all not useful for them (Rajani and Nakhat, 2019). The culture which they are following too
consider products and services not useful. For example- For low income group customers
expensive mobile phone such as apple phones are not useful for them and its not their concern.
Evaluate how business persuades its customers to share data and its impact on consumer
behaviour.
Vodafone is one of the strongest and leading telecommunication company established in
UK and is dealing in IT services and telecommunication business. The company is facing high
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level of competition as there are many other companies which are providing telecommunication
services to customers. The marketers focuses on various strategies in order to influence
customers to take their services.
 Customer segmentation strategy helps them in targeting customers through different
tariffs and propositions and provide information through voice and messaging.
 The company has divided its customers in two forms that is on the bases of prepaid and
on contact bases. As they are providing different services to its customers on the bases on
their needs and preferences (Romeo-Arroyo, Mora and Vázquez-Araújo, 2020).
 They are improving their quality of services by establishing real team access for
interactions that is customers can visit their stores and can clear their doubts and
problems. This strategy has helps in building connection with customers and
understanding what more they want and expect from company.
 They are using latest technology and adding new services in order to provide
conveniences to its customers and attract them. In teams of technology they have evolved
from 2G services to 4G services.
 Moreover the agents of company are establishing connection with customers by
providing full knowledge and information to customers regarding services of company.
 The main focus of marketers is to build valuable customer relationship through personal
interaction. The promotional activities of the company is creating need and describing the
importances why customers should consider this product (Shabib and Ganguli, 2017).
 By providing better services through blend of digital workplace, artificial intelligence and
interaction with customers they are attracting potential buyers. They have improved NPS
and call resolution times in order to influence customers to buy their services.
Hence these strategies providing favourable outcomes to company and they are
influencing the customers. Customers are preferring Vodafone services over other competitors
because of its good quality services.
CONCLUSION
Consumer behaviour plays very important role in marketplace as their decisions
regarding what they want determines the need for products and services. Behaviour of customers
influences their buying decision and also help marketers in deciding various strategies which will
have maximum impact on the customers. There are various factors which contributes in
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influencing the behaviour of consumers. These factors are psychological, personal, socio-cultural
and motivation. The changes in the trends, living style, technology, etc influence the buying
behaviour of customers. The marketers need to identify and analyse these changing factors so
that they can make new strategies which aligned with the current environment. Understanding
the consumer behaviour is not just important to influence and attract new customers but it is
essential to retain the existing customers. The customer behaviour helps the marketers in creating
and developing effective campaigns for marketing. Moreover proper understanding of customer
behaviour provide support to marketers in identifying and analysing factors that what motivate
consumers to make the buying decision. Furthermore it is important for the company to provide
products and services according to needs and desires of customers in order to sustain in this
competitive environment.
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REFERENCES
Books & Journals
Chaney, K.E., Sanchez, D.T. and Maimon, M.R., 2019. Stigmatized‐identity cues in consumer
spaces. Journal of Consumer Psychology. 29(1). pp.130-141.
de Oliveira, C.P. and Sousa, B.M., 2020. Green Consumer Behavior and Its Implications on
Brand Marketing Strategy. In Green Marketing as a Positive Driver Toward Business
Sustainability (pp. 69-95). IGI Global.
Fernandes, S. and Panda, R., 2019. Influence of social reference groups on consumer buying
behavior: A review. Journal of management research. 19(2). pp.131-142.
Iványi, T. and Bíró-Szigeti, S., 2019. Smart city: studying smartphone application functions with
city marketing goals based on consumer behavior of generation Z in Hungary.
Periodica Polytechnica Social and Management Sciences. 27(1). pp.48-58
Kongsom, W. and Kongsom, C., 2016. Consumer behavior and knowledge on organic products
in Thailand. International Journal of Economics and Management Engineering. 10(8).
pp.2612-2616.
Lipowski, M., 2017. The differences between generations in consumer behavior in the service
sales channel. Annales Universitatis Mariae Curie-Skłodowska, Sectio H Oeconomia.
51(2). pp.159-167.
Liu, J., Li, X. and Guo, Y., 2017. Periodicity analysis and a model structure for consumer
behavior on hotel online search interest in the US. International Journal of
Contemporary Hospitality Management.
Rajani, V.T. and Nakhat, P., 2019. Consumer Behavior in Online Shopping: What they think
before they buy. Journal of Psychosocial Research. 14(2).
Romeo-Arroyo, E., Mora, M. and Vázquez-Araújo, L., 2020. Consumer behavior in confinement
times: food choice and cooking attitudes in Spain. International Journal of Gastronomy
and Food Science, p.100226.
Shabib, F. and Ganguli, S., 2017. Impact of CSR on consumer behavior of Bahraini women in
the cosmetics industry. World Journal of Entrepreneurship, Management and
Sustainable Development.
Wahono, F.A. and Kartika, E.W., 2017. Consumer Behavior Study On The Acceptance of
Airbnb from Consumer in Surabaya, Indonesia. Jurnal Hospitality dan Manajemen
Jasa. 5(2).
Zeithammer, R., Stich, L., Spann, M. and Häubl, G., 2019. Consumer Behavior in Bidding
Markets with Participation Costs. Available at SSRN 3474406.
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