Consumer Behavior: Micro, Macro Analysis & Impact of Key Theories

This essay delves into the understanding of customer behavior from both micro and macro perspectives, emphasizing its importance for businesses. It explores how micro-level factors influence individual buying decisions, while macro-level factors such as competition, market segmentation, and socio-cultural influences affect broader consumer trends. The impact of the COVID-19 pandemic on consumer behavior, particularly in the tourism sector, is also examined. Furthermore, the essay discusses the application of various theories, including the consumer culture thesis, reasoned action theory, and Maslow's motivation theory, to better understand consumer needs and motivations. The analysis highlights how businesses can leverage these insights to enhance customer satisfaction, gain a competitive edge, and adapt their marketing strategies to meet evolving consumer demands. Ultimately, the essay concludes that a comprehensive understanding of consumer behavior is crucial for marketplace success and sustainable business growth.

UNDERSTANDING
CUSTOMER

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Customer is a important part for any organisation. To know them is good for lead
business. Understanding customer is a key to providing good service which return result into
strong relationship between consumers(Daffy, 2019). This can raise reputation of business
through generating new sales. This process is essential for giving facilities to potential client that
can help to make a effective relationship with them. The behaviour of consumer is refers to a
study that processed by enterprise in order to choose and use goods and services that derive
customer satisfaction. Understanding customer behaviour is most significant for business as is
helpful for business for taking effective decision in respect to customer. This essay will discusses
about micro and macro perspective of consumer behaviour in which theory also explained that
can help to know each and every aspect of behaviour of customer.
MAIN BODY
Aspect of macro and micro for understanding behaviour of customer along with using
theories.
In case of micro understanding the behaviour of clients comprises several factors that
create a implication on buying nature. It is totally based in customer desire that directly affect
decision of business. Whereas in macro part it affect those elements that is very generic nad
specific for enterprise as well as entire economy. Basically it define that the extrinsic factor are
highly influence organisation performance in terms of sales, strategies, customer, growth and so
on. It focuses on acknowledging business position in respect of enhance competitive edge in
marketplace. It consist different kind of these factors for understanding buying behaviour
concept of targeted clients that can generate a smooth functioning if business.
In this current corporate world, every organisation is extremely competitive in nature, this
competition also plays a major role as its a key driven that affect perception of customer(Einhorn
and et.al., 2021). Due to this clients are confused as with the increasing competition in market
this can change customer demand this is totally based on changing trends. Firm can provide
identical items that gives several benefits to customer. Brand value is also very significant as it is
based on certain targets for selecting the products who gives a positive awareness in sort word of
mouth in market area. The huge competition that faced by company is focus on those items that
are continuously bringing distinct and innovative products. Like in electrical area LG company

having wide range of competitors that offer same kind of products with different quality and
price. Most of business acknowledge suppliers alternate that require labour and raw material for
conducting manufacturing procedure. It consist various policies in order that influence
bargaining power of business. It aids for an organisation in order to capturing whole market that
can spreading sales volume(García-Villaverde, Elche and Martinez-Perez, 2020). And customer
generate their direct interest for purchasing items of company just because to satisfy desire and
increasing market share.
Market segmentation is also essential for organisation because it helps to identify
potential customers on basis of their income, age, gender etc., It consist customer perception and
includes several external element that affect business such as technological, social, political,
economic and legal aspects. Basically, social factor highly influence the demand of clients as it
can change according to changing in taste, nature and preference of consumer. Now a days world
are suffering a very big disease who namely known as coronavirus. It is a infectious disease that
create severe cause in customer health and in some cases it converted into health. This pandemic
generates a greatly impact on purchasing decision of customers that can affect mindset of
potential people. In case of tourism sector, this factor generate a intensive influence on whole
enterprise which result converted into changing various strategies that can handle by
organisation. Due to this Covid-19 consumer are highly concerned about their safety and health
issues and they usually avoid crowded place. Thus, this affect tourism industry as many of
individuals are escape to go anywhere or not make any plans for holidays due to lock down as
well a health crises. Just because of this operations sales of industry also decreases. People are
more conscious about their health. So, it important that every organisation have to focus health
and safety care measures that can highly influence more consumers.
Social factor is most significant element in macro segment as this gives a an aids for marketing
sector to understand and identify target market necessities(Parihar and Dawra, 2020). This
involves several aspects such as lifestyle of customer, health and security and so on which is
highly helpful for them. To generate better customer understanding, industry can use different
theories which is highly helpful. For instance use of consumer culture thesis which is highly
influence dynamic as well as social affect that helps to shaping customer identity ad experience
on regular basis. This theory enhance consumer behaviour understanding that can frame
interrelated with various strategies and practices. In short this factor affect the buying behaviour

patten of targeting area in terms of social and cultural practices. In order to capturing target
market, it is significant for business to know the basic needs and demands of customer and their
perception and try to satisfying them as this is the key that enhancing growth of business.
There are several types of thesis that related to customer behaviour and also create
benefits for organisational success(Riley, 2020). It includes , action theory, Maslow's motivation
theory and so on. Like if a customer want to became teacher just because its is their passion .
They love to engage with children and teach them which is helpful for their better future. In that
case reasoned action theory affect buying decision of customer that convert into specific result.
Thus every marketing sector of business is high acquire for drives a effective positive result.
Now in context of Maslow's motivation theory, it basically comprise five needs which is highly
customer base such as psychological, safety, love/ belongingness , self actualisation and esteem.
This hierarchical structure influence market share in terms of company items that can satisfy
customer by fulfil their specific needs and requirements.
Shoppers character projects expresses course of how client base make their biographies through
their purchasing behaviours(Seppälä-Esser, 2020). For instance, Jewellers utilized clients on
extraordinary events to stamp relationship is a point that is related with advertising of articles, for
instance- any wedding bands are firmly joined to social and customs of individuals by blending
off just as settling down. Socio-authentic pattern of purchaser conduct is relate with how
customer have been and keep on being addressed in revealing of news on different media.
Buyers interpretative methodologies perceives course of client base that in what manner they
decipher, disguise and periodically cut down messages worried about brands and promoting. It
tends to be enlivened and inspired by real sentiments and energies for association's image. For
instance, recordings made by individuals on You tube communicates that its items being
unpacked or audience base can outline a more basic techniques to remix notices and creating
mock ads so that enormously impacts create on working of huge organizations. Like if an
industry focuses on buyer interpretative systems, it can works with promoting branch of
association to see how to utilize brand or its items according to consumer demand.
Thus this aspect is very much essential as it directly influence the environment of business which
are working for providing satisfaction to them. It is highly affected entire company because
people can buy according to trends that means what is highly demanded in marketplace and is it
beneficial to them. They kinds of question arises in customer mind while they are purchasing. If

they not acquire according to their desire then this can affect reputation of business also
customer faith on them.
CONCLUSION
It is being conclude from above essay is that consumer behaviour understanding affect
the marketplace and entire business as it can bring a competitive befits in industry only if
consumers feel satisfied also increasing competition level. In terms of providing specific desired
items to potential clients then this can reflect their mindset in order to purchasing such goods and
services. The respected aspect which is macro and micro is highly important just because it
directly affects buying nature of potential clients. The above theory is totally customer base that
helps to understand the nature of person. This is highly helpful for market department as it affect
buying pattern through using innovative digital techniques. Tourism sector consider as an
instance as with any kind of sudden changes this industry definitely affect and in this essay
pandemic depicts changes to purchase decision of targeted audience.
REFERENCES
Books and Journals
Daffy, C., 2019. Creating customer loyalty: build lasting loyalty using customer experience
management. Kogan Page Publishers.
Einhorn, M. and et.al., 2021. The Machine Age of Customer Insight. Emerald Group Publishing.
García-Villaverde, P.M., Elche, D. and Martinez-Perez, A., 2020. Understanding pioneering
orientation in tourism clusters: Market dynamism and social capital. Tourism
Management. 76. p.103966.
Parihar, P. and Dawra, J., 2020. The role of customer engagement in travel services. Journal of
Product & Brand Management.
Riley, J., 2020. Sustaining customer engagement through social media brand
communities. Journal of Global Scholars of Marketing Science. 30(4). pp.344-357.
Seppälä-Esser, R., 2020. Customer Experience in Hospitality and Tourism: A Cross-Cultural
Perspective. In The Routledge Companion to International Hospitality Management (pp.
67-80). Routledge.
Thekkoote, R., 2021. Understanding big data-driven supply chain and performance measures for
customer satisfaction. Benchmarking: An International Journal.