A Comprehensive Analysis of Customer Behavior: Theories & Factors

This essay provides a detailed analysis of customer behavior, focusing on the micro and macro factors that influence consumer buying decisions. It examines the competitive business environment, the role of brand value, and the impact of economic, social, technological, and political factors. The essay also explores various consumer behavior theories, including the consumer culture theory, psychoanalytic theory, reasoned action theory, and Maslow's motivation-need theory, to provide a comprehensive understanding of how and why customers make purchasing choices. The analysis emphasizes the importance of understanding customer preferences, needs, and perceptions for organizations to gain a competitive advantage and effectively tailor their products and services to meet market demands. The document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Understanding Customers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Micro and macro aspects of understanding the customers using the theories and examples......3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Understanding customer behaviour is the concept which is based upon providing services
to customer base in effective manner. This is one of the most key aspect which is present within
business enterprises and helps in facilitating and organization for asking questions regarding
goods and services. The process is based upon study which is done in relation to personal and
organizational aspect regarding its product and services within an organization. Understanding
such behaviour of consumers it is important for an business organization as it helps firm in
making understanding developed with impacts upon buying decisions of consumer. The essay is
based upon both micro and macro aspects of consumer behaviour has been discussed. Further
theories in relation to consumer behaviour has been explained. In the end an illustration will be
explained to described about aspects of consumer behaviour.
MAIN BODY
Micro and macro aspects of understanding the customers using the theories and examples
The micro perspective of consumer behaviour in relation over different factors affecting
buying behaviour of consumer- base which makes direct influence created on business concern .
Whereas in macro factors business organizations has general and specific industry or an
economy as whole(SALEHI, Moradi and Abdoli, 2018). Micro factor is simply related to
external factor that impacts business organization and various aspects related to it like
customers, sales, strategies, growth and many more. These type of factors are concentrated upon
recognising position of business regarding rivals which exists within market. In this several kinds
of micro as well as macro factors upon aspects of understanding behaviour of consumer
impacting business functions. The business environment is very competitive and involves
specific aspects which an organization considers. There are different types of competitors of an
organization that makes market and its competition play crucial role in understanding customers
as per marketplace. This creates influence over buying behaviour related to consumer as several
organizations of firm have offered product or services as there are various organizations or firm
offering identical product and services over lower cost in relation to its competitors present in
market. The brand value of an organization plays major role as target base helping in selecting

product to those organizations making positive impact created within marketplace. The
competition taking place within an organization requires to face concern when the product and
other organizations are introducing their differentiated and innovative products within market.
Regarding suppliers an business recognises availing alternative of suppliers and requires material
or labour according to process manufacturing. This should frame the policies in relation to
purchasing of materials by providing bargaining power of an organization. It helps in capturing
more of target based and helps in assisting over expansion of volume of sales within business.
Customers at time have direct interest within products and services of an organization that makes
satisfaction created over requirements regarding market share.
Targeting market segments is one of the most significant perspective for a business which
is related to base helping in making perceptions and requirements of customers base fulfilled.
There are several environmental factors which is included with various aspects regarding social,
economical factors, technological factors and many more. Political factors they are responsible
for affecting business organization through tax policies which makes prices increased which
disturbs customers base. It in case price increases of product then customers base is impacted as
they shift to other alternatives which satisfy there demand. Economic factors are those factors
that has been covering various aspects like export and export rate, deflation with inflation,
unemployment is also covered withi it. If profit is nit generated by an organization then its would
not be able to produce quality products making organization loose customers faster and better
manner. Social factors they are helpful in understanding various aspects related to society like
taste, preference and quality of products. If trends are not understood in proper manner then
customers demand would not be satisfied making organization loss its brand value within
market. Technological factors these factors deals upon those aspects that is based upon
technological changes that has been taking place within an organization. If legislation are not
met and legal structure is not formed then customers would not trust the organization resulting in
loss occured within it. Legal factors they are based legal aspect which has to be followed by an
organization. Environmental factors they are those factors which deals with environmental
policies(Tran, Van Dang and Tournois, 2020). These factors are responsible for attracting
customers concern about environment.
The macro factors has helped in making sure that customers behaviours understood in
more effective manner as they are focused upon understanding about consumer taste,

preferences, buying capacity, influence of technology over them. Also they are responsible for
understanding about consumers rights which helps in making flow possible within an
organization. Also consumer behaviours is related upon environmental awareness at times
consumer having better preferences changes themselves.
Micro factors of consumer behaviour majorly impacts organizations capacity to
understand about consumer effectively by making an organization full fill consumer's needs and
demand making organization grow effectively. Also these factors has tend to explain about
threats, opportunities, weakness and strengths understood about consumers behaviours which
makes better decisions to be developed. These factors are consistency, performance and business
environment. If consistency is lost then product quality decreases creating dissatisfaction within
customers. Performance of an organization decreases which makes customers lose trust in
organization making customers reject the product. If business environment is not positive then
outcome is negative which makes customers shift over other brands.
For better understanding of the customers, a business can also use theories that are
associated with understanding consumer behaviour. The best example of theory to understand
the behaviours of customers is consumer culture theory. This theory is associated with the social
influences and dynamics along with the cultural meanings that shape the experiences and
identities of consumer regarding daily life. With the help of this type of theory, an organisation is
encouraged to understand the behaviour of the consumers by framing interrelated practices and
strategies. Consumer cultural theory concentrates the patterns of buying behaviours of the target-
market as a social as well as cultural practice. There are several aspects that are involved in this
kind of theory such as taste and preferences of consumers. In order to capture more of the target-
base, it is essential for an organisation to understand the needs as well as requirements of the
customers by knowing their perceptions( Vakulenko, Hellström and Hjort, 2018).
There are several other types of consumer behaviour theories that helps an organisation to
understand the behaviours of its potential consumers . Some of them are psychoanalytic theory,
reasoned action theory, Maslow's motivation-ned theory. According to Psychoanalytic theory, a
consumer makes buying decisions on the basis of their hopes, feelings, aspirations and fears. For
example, if a customer wants to be a singer or has passion to sing the songs, then it would like to
buy voice lessons or instruments or software that records music. Reasoned-action theory states

that customers make buying decisions when they expect a specific result from the company.
Hence, marketing department of the organisation required to give a positive result along with the
selling that product to consumer. Within Maslow's need motivation theory, there are five needs
included psychological, safety, love, esteem and self-actualisation needs. This hierarchy within
the theory asserts that market-share purchase the products for fulfilling their above specified
needs and requirements.
Consumer identity projects states the process of how customer-base create their life
stories through their buying patterns. For example, Jewels used by customers on special
occasions to mark relationship is a point that is associated with marketing of objects such as
engagement rings are closely attached to the cultural and rituals of the people by pairing off as
well as settling down. Socio-historical pattern of consumer behaviour is associated with how
customers have been and continue to be represented in the reporting of the news and other media
(Williams and et.al, 2020. Consumers interpretative strategies recognises the process of
customer-base that how they interpret, internalise and occasionally brought down the messages
concerned with brands and marketing. It can be inspired and motivated by genuine feelings and
vibes for organisation's brand. For example, videos created by the people on Youtube expresses
that products being unboxed or the customer-base can frame a more critical strategies to remix
the advertisements and producing mock advertisements in such a way that greatly impacts the
functioning of large businesses. If a firm concentrates on the consumer interpretative strategies,
then it can facilitates the marketing department of the organisation to understand how to use the
brand or its products in front of their customer-base.
CONCLUSION
From above explanation, it is concluded that understanding consumer behaviour is very
important for any organisation to gain competitive advantage over the rivalries in the market. In
order to offer the products as well as services, the mindsets and perceptions of the customers are
essential to understand. Micro and macro aspects that affects the buying behaviour of the
customer-base are explained within the essay. Theories related to consumer behaviour are also
explained to understand the buying patterns of the target-base. These theories would help the
marketing department of an organisation to observe the buying pattern of the targeted-audience

using the digital tool. Example of tourism industry is also taken into the consideration that
depicts the changes in buying behaviour of the consumer.

REFERENCES
Books and journals
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conception, measurement, and consequences. Journal of the Academy of Marketing
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experiences: a text mining review. Journal of Services Marketing.
SALEHI, S., Moradi, A. A. and Abdoli, S. F., 2018. The Impact of Social-Personality
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Tran, Q. X., Van Dang, M. and Tournois, N., 2020. The role of servicescape and social
interaction toward customer service experience in coffee stores. The case of
Vietnam. International Journal of Culture, Tourism and Hospitality Research.
Vakulenko, Y., Hellström, D. and Hjort, K., 2018. What's in the parcel locker? Exploring
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Williams and et.al, 2020. The practitioners’ path to customer loyalty: Memorable experiences or
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