BUS630: Consumer Behavior

10a. Identify the various components that would be most effective in understanding and/or predicting a consumer's behavior

• What are four factors that might be considered in consumer buying behavior?
• From a marketing perspective, why is it important to understand consumer buying behavior?
• From a social perspective, what is one factor to consider about consumer buying behavior?

When predicting a consumer's behavior, it's important to consider four factors or characteristics. These include personal, psychological, social, and cultural. Each one of these characteristics may change a consumer's behavior. Another factor to consider is the aging process and how these characteristics might change over time. For example, the social aspect will be entirely different when the consumer is in their 20s compared to when they reach their 50s. Not only has their social status changed, but their consumer buying behavior has changed.

From a marketing perspective, it is important to understand consumer buying behavior so that the marketer can better target a specific population. The consumer decision-making process may change depending on various factors affecting the buyer. As mentioned in other units, it is important to consider the various factors or characteristics of the consumer's behavior because the marketing can then be targeted to that population.

To review, see Consumer Behavior Components Summary.

 

10b. Evaluate the dimension components that a marketer could use in a customer segmentation

• What is customer segmentation?
• Why is it important to study customer segmentation?
• How can marketing be applied to customer segmentation?

Customer segmentation may be analyzed through different segmentation approaches, and examples may include demographic, behavioral, or geographic. A marketer needs to be able to narrow down the target market for specific promotions. To properly do this, market segmentation is needed. Market segmentation allows marketers to focus on specific statistics that may favor that population.

For example, if a real estate company wanted to advertise to potential buyers in the Houston area, they may use demographics and geographics, such as age, family size, and location. The marketer can then use this information to promote properties specific to that buying population.

To review, see Segmentation Criteria and Approaches.

 

10c. Identify the actions a marketer could take to measure, monitor, and improve the customer experience

• What is an example of improving the customer experience?
• How can the customer experience be monitored?
• Why is it important to improve the customer experience?

Marketing companies may want to analyze and improve the customer experience, and they can do this by monitoring or measuring the experience to improve. One way the customer experience may be monitored or measured is by reviewing that product or service. Many companies encourage customers to leave reviews after purchasing a product or using a service. These reviews may also contain feedback about that product or service and may give examples of improvement.

All companies must attempt to improve the customer experience because happy customers leave good reviews, which will encourage new customers to buy products for their services. By monitoring feedback through reviews, social media, and the company website, a company can monitor customer experience.

Consumer decision-making trends change frequently and can affect consumer behavior. For example, sustainability has been a business trend that has become quite popular. By promoting a product or a brand's sustainability, you may be able to better connect with the consumer and what is important to them.

To review, see Consumer Decision-Making Trends.

 

10d. Explain the concept of emotional branding and its impact on customer acquisition

• What is emotional branding?
• What is an example of emotional branding as it relates to consumer behavior?
• Why is it important for a company to establish emotional branding with a customer?

Emotional branding occurs when a customer deeply connects with a brand, and their consumer behavior reacts to that emotional bond. For example, Bath and Body Works and The Body Shop have strong customer followings because of their use of scent. Both stores have connected with customers through scent, which may bring fond memories and an emotional attachment.

When emotional branding occurs between a brand and a customer, customer loyalty is built, and in some cases, this bond may be very difficult to break. Once that bond forms, the buyer may continue to purchase products from that company for more than a decade.

Many companies would like to establish emotional bonding with customers, but most bonding with a brand occurs naturally and cannot be forced. It may be possible to build an emotional bond between a brand and a customer over time. The consumer must first trust that the products are reliable and usable and then may become a loyal customer after some time has passed.

To review, see Emotional Branding Overview.

 

Unit 10 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• consumer buying behavior
• consumer decision-making trends
• emotional branding
• improve the customer experience
• segmentation approaches