Understanding consumer behaviour could start before designing the product and services; this means that market research is necessary to judge the consumer expectations & early experience. The market research is therefore instrumental in understanding consumer behaviour. It helps the marketing manager holding qualifications from some of the top MBA colleges in Nashik to frame advertisement Strategy, Market segmentation, Positioning of the brand as well as deciding on the sales territory where the target consumer exists.
Factor influencing consumer buying behaviour:
- Brand Esteem
- Price
- Proximity
- Sales Promotion Offers
- Competition
- Hygiene
- Brand reputation and goodwill
Buying Habits, Buying Motives (Shopping)
Buying motives- The shopping of a consumer develops when the brand owner understands the consumer behaviour nicely and the consumer gets written out of repetitive shopping of that merchandise buying or shopping habits are developed due to certain motives which the brand owner develops in the consumer which means the consumers use to the particular brand.
Many brands came up with sales promotion offers and made it a shopping habit for the target consumers for that brand. They also created a motive to buy by giving quality brands.
Consumer Buying Decision Process (Consumer Decision Making Model)
The consumer buying decision process tells us how consumers react to the necessities which come across their shopping habits. These shopping habits can be driven due to impulse buying decisions or any other shopping decision which takes longer to come into the final decision for shopping therefore we can say that the consumer buying decision is a process of their shopping decision is a journey to the consumer rich to follow shopping we can say that.
Consumer decision making model has following steps:
- Need Recognition
- Information research
- Evaluation of Alternatives
- Purchase decision
- Post purchase behaviour
New product development:
It is the process by which a brand moves from one stage of product life cycle to another stage. It consists of innovation, venturing into new market segments, understanding consumer behaviour, changing product design. A case study for innovating a product is Tata Indigo CS. Some decades ago, Tata Motors launched Tata Indigo Car, which was above the expectation about the target.
Hence, Tata Motors launched Tata Indigo CS. They were costing and taxation issues but Tata Motors brand Able as a low-cost car which could fit profit or targets of consumers. It can also be done during the phase from growth to maturity from decline to reincarnation.
It should be done concisely in the Maturity stage.
Ex: MDH Masala
After the demise of the Chairman of the company the rebranding was done. This re-branding and unnecessary advertising led to a fall in sales figures. However, its earlier branding was restored and this could save the brand from moving towards a decline stage.
Diffusion of Innovation
It is the process, product portfolio, product line, product mix, product length, product width.
Innovation is an idea which is incorporated into the product or the service, which creates a difference in the brand so as to positively affect consumer decision making. Innovation remains the path of the new product development process, thereby creating a difference in the existing product, or idea generation for a new product, or innovative marketing strategy for existing product, or launching altogether a new brand. Propagating this innovation is the diffusion of innovation process. In this process, the target consumers unfreeze the existing idea, integrate the new idea of innovation, and then freeze the marketplace with the new idea.
Product Portfolio
It is the full range of offerings within a retail space, Product mix is the range of various offerings by various brands. This may include any particular range of products which is MBO multi brand outlet like Tata Chroma is merchandising these product mix consist of Another product line of various variants.
Product length, width is decided by various merchandise which are being showcased within that retail space.
Ex: Reliance Fresh
In service industry product length, Width, and price of the service, The Taj Hotel provides room stay, salon services, restaurants, spa services, clubhouse, Gym & swimming pool.
Conclusion
You will be able to form better business strategies when you are able to understand your audience properly. Such insights help you make better decisions and stay ahead of the competition in the long run. Buyers always prefer brands that make them feel valued.