Comprehensive Report: Understanding Micro & Macro Consumer Behavior

This report provides a comprehensive analysis of consumer behavior, focusing on both micro and macro aspects that influence consumer decision-making. The report begins by defining consumer behavior and highlighting its importance in understanding customer needs and wants. Micro aspects such as decision-making processes, perceptual processes, consumer attitudes, personality, self-engagement, and employee motivation are examined, emphasizing their direct impact on buying behavior. Macro aspects, including neuro-marketing, conscious consumption, and market segmentation, are also discussed, illustrating how these factors shape consumer preferences and behaviors. Real-world examples from companies like Burberry, Sainsbury, and John Lewis & Partners are used to demonstrate how organizations leverage these micro and macro aspects to enhance customer satisfaction, brand image, and overall profitability. The report concludes that a thorough understanding of consumer behavior is essential for businesses to effectively meet customer needs and maintain a competitive edge.

Understanding
Customers

Table of Contents
Introduction .....................................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................4
References ......................................................................................................................................5

Introduction
Understanding customers refers to the process of determining the needs and wants of the
customers and offering them good and quality services. It involves getting to know target
customers so well that organisation can effectively determine their needs and enhance their
satisfaction level (Blankand Dorf, 2020). Understanding customers’ needs and wants helps the
business organisation to enhance their overall performance and gain competitive advantage in the
marketplace, determining the needs and wants of the customers also helps the organisation to
retain their customers for long period of time. It also helps the business organisation to retain
their customers for long period of time. The customers experience is considered to be an internal
and subjective response which customer gains from any kind of direct and indirect contact with
the business organisation. This report essay highlights proper understanding of micro and macro
aspects of the consumers behaviour. In addition to this, various examples of organisation to
understand the consumers behaviour is also highlighted in this report.
Main Body
Consumers behaviour is defined as the detailed study of how an individual customer or,
groups buy a particular product and services in order to satisfy their needs and wants. There are
various micro and macro aspects of the consumer behaviour that directly leads to influencing
their buying process. There are various aspects of the micro environment of consumer
behaviours such as decision-making, perceptual process, concept of attitude used in the
consumer marketing, personality and self-engagement in marketing and employees motivation
(Brinch, 2018). The decision-making as the micro aspect of the consumer behaviour involves the
process of making decisions in low and high involvement situations for continuous growth and
success. Offering quality services to the customers will make it easy for the customers to take
right decision. As well as organisation decision regarding their offering will directly influence
the behaviour of the customers as well. The second micro aspect of the consumer behaviour is
the perceptual process, it is one of the essential process of understanding consumers behaviour as
it involves choosing, organising and interpreting the data or information properly from various
platforms available. This helps the organisation to determine the needs and preference of the
consumers as well as determine their behaviour effectively. Large number of organisation are
focusing on determining the behaviour of their consumers and take required actions in response.
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The third factor is consumer attitude in the marketing analysis (Trivedi and Yadav, 2018).
Properly understanding the needs and wants of the consumers and making significant efforts in
that direction will help organisation to create positive attitude of consumers towards organisation
(Ghouri and Mani, 2019). Consumers attitude reflects their behaviour towards organisation,
organisation should determine that customers has positive attitude towards organisation. The
fourth micro aspect is the consumer personality and self-engagement in marketing. Analysing
various customers base and their personality, and accordingly offering them services will helps
organisations to achieve higher level of profitability. Also engaging with the customers, taking
regular feedbacks and handling their issues helps the organisation to positively engage with them
and create sense of belongingness with them, it will help the organisation to retain their
customers for long period of time. The last micro aspect is that the employees of the organisation
should be motivated to effectively handle their customers and offer them quality services.
Treating customers positively will help organisation to attract large number of customers and get
positive feedback. Determining and managing the above mentioned micro aspects of the
consumers will help company to understand the buying behaviour of their customers and satisfy
their needs accordingly (Suhartanto, 2019).
There are also various macro aspects of consumer behaviour that directly influence the
consumers behaviour and decision-making. Large number of organisation uses various macro
aspects of consumer behaviours in order to enhance their overall performance and gain higher
profitability. The various macro aspects of consumer behaviour includes neuro marketing,
conscious consumption and marketing segmentation. The first and foremost macro aspect of
consumer behaviour taken into consideration is the neuro marketing, it is one of the essential tool
taken into consideration helping the organisation to get into the minds of the consumers. The
main objective of neuro marketing is to effectively understand or analyse the consumer
behaviours through getting insight into the reactions and decision making occurring at the
unconscious level. It helps the business organisation to understand their target customers buying
behaviour and taking required actions in response (Jamshidiand Kuanova, 2020). Second macro
aspect that directly leads to impacting the buying behaviour is the conscious consumption, it is
considered to be social movement that is generally based on the growing awareness of the impact
of the buying decisions on the environment and customer health. With the growing concern
regarding environment among the business and consumers, large number of consumer moving
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towards use of sustainable products. Many organisations specially hospitality industry are
shifting their focus towards sustainable products and services. In addition to this, the increasing
effect of the advertising and media on the consumers also help in determining their needs and
preference to the organisation. The last macro aspect of the consumers behaviour is the market
segment, effectively dividing the market into proper segments as per consumers need and
organisation offering helps the organisation to effectively target them and create strong position
of the brand in their mind leading to retain them for long period of time (Meister and Mauer,
2018). It will help organisation to effectively determine their consumer behaviour as well as their
decision making. Segmentation plays an essential role in determining the behaviour and
preference of the consumers as the segments are divided considering these aspects only, it also
makes it easy for the organisation to satisfy their target consumer needs as well as retain them for
long period of time. Considering the macro aspects of consumer behaviour will help the
organisation to determine their consumer behaviours and satisfy their needs and wants
effectively (Kang and Namkung, 2019).
In order to effectively determine the consumer behaviours effectively, various examples
can be taken into consideration, the use of examples makes it easy to understand various aspects
of consumers behaviour taken into consideration. Large number of organisation around the globe
uses micro and macro aspects of the consumer behaviour in order to understand their target
consumers behaviour as well as their decision making process. For example the, Burberry which
is one of the well-established luxury brand, founded in 1856 uses neuro marketing in order to
determine the needs and wants of their customers as well as to understand their changing
behaviours. The use of this macro aspect help the company to offer customised products to their
target customers leading to enhance their satisfaction level effectively. It has played an important
role in enhancing overall profitability and productivity of the brand and leading to enhance their
brand image in the marketplace. This tool allows the brand to effectively influence shoppers
subliminally through tapping into the emotions and subconscious desires and needs effectively
(Kidronand Kreis, 2020). The another example of the industry practices is the Sainsbury
company, the company is also focusing on determining their consumer behaviour on the basis of
neuro-marketing tools in order to analyse and determine their taste and preference as well as
enhance their overall performance and profitability in the marketplace. The retail industry is
considered to be one of the most growing industry around the globe effectively contributing the
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growth and development of the economy, so in order to continue to grow and survive in the
marketplace for the Sainsbury, it is essential to enhance their customer base as well as retain
them for long period of time. This can be done through offering them quality services and
increasing their satisfaction level (Yangand Zhang, 2018). The company also focus on micro
aspects of consumers behaviour such as decision-making and perceptual process. The company
continuously work towards analysing the behaviours of the consumers and accordingly offers
them quality services to their customers so as to determine purchase decision form them.
Company also use perceptual process in order to choose, collect, analyse information from
various platform in order to determine the behaviour of the customers. Third example is of John
Lewis & Partners, which is one of the well-established high end department stores offering
quality services to their customers through using Neuro marketing and conscious consumption.
The use of neuro marketing helps the organisation to understand the buying behaviour of their
target customers as well as determine their needs and wants, and accordingly take required
actions as a response. This helps company to satisfy their target customer needs, company also
contribute to the welfare of the environment through focusing on sustainability (Luand Wang,
2020).
Conclusion
From the above report, it has been concluded that the properly understanding the
changing needs and wants of the consumers helps the business organisation to accordingly offer
them quality goods and services and satisfy their needs effectively. The various consumers such
as consumers such as chooser, communicator, identity seekers and so on as well as their
changing needs and wants directly leads to impacting the performance and profitability of the
organisation. This report helps in analysing various micro aspects of consumer behaviour such as
decision-making, perceptual process, concept of attitude as used in the consumer marketing. And
various other aspects involves personality and self-engagement in marketing and so on directly
leads to impacting consumers behaviour and buying process. Also macro aspects of the
consumer behaviour such as neuro-marketing helps in determining the behaviour of the
consumers through getting into their minds. Also to understand the behaviour of the consumers
various examples of the industry are also determined in this report.
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References
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