Every company has to know the behavior of its customers. This is just a matter of technical knowledge. You want to harness customer journey analysis, panel data and more to build your marketing and sales plan. Learning about customer psychographics also provide huge advantage in competitive markets. The question is what influences consumer behaviour ?
Firstly, consumers are largely influenced by groups. Family members, friends and social media play are seen to have a greater influence on customers decision to purchase a product or brand. Big brands also hire celebrities such as athletes to attract customers to buy their products. This method is used to increase brand awareness, reach out to new audiences and generate sales. Cristiano Ronaldo generated $500 million in value for Nike during 2016 through his massive social media network.
Lastly, Advertisement plays a huge role in influencing the purchasing decisions made by customers. The Marketing campaigns done on a regular basis can influence the consumer purchasing decision to such an extent that they may choose one brand over another. Marketing campaigns if carried out properly may even help to remind customers to shop for not so well known products. Apple saw drop as much as 15% in sales in 2018 and has emphasized advertising , resulting in Apples search advertising business could generate over $500 million in revenue this year.
In conclusion consumer behaviour is the most important marketing principle as it helps companies to focus on its target market and allows the opportunity to expand its market. A company that is able to produce for its perfect customer has understood the concept of consumer behaviour as quoted by Howard Schultz,If people believe they share a value with the company they will stay loyal to that brand.
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