Consumer behaviour is the study of why people buy products or services and how they make decisions. It's a crucial concept in marketing, as it helps companies tailor their strategies to better understand what consumers want and need. Let's explore this topic further with some frequently asked questions.
Consumer psychology refers to the ways in which people think, feel, and behave when making purchasing decisions or interacting with brands. Marketers use consumer psychology research to design advertisements, product packaging, pricing strategies, and more that appeal to different customer motivations.
Some factors affecting consumer psychology include social influence (i.e., peer pressure), emotions (like fear or excitement), cognitive biases (such as confirmation bias), branding effects (including brand recognition or trustworthiness), cultural norms or backgrounds.
The process by which consumers decide whether or not to purchase a particular product/service is known as the purchase decision-making process. This process typically involves four stages:
1) Problem awareness - recognizing a need/desire for something new.
2) Information search - finding available options.
3) Evaluation of alternatives - weighing pros & cons before deciding
4) Post-purchase evaluation – after-sales assessment
Within each stage there are several factors that impact decision-making such as personal values/beliefs systems; knowledge about potential purchases; financial constraints/time scarcity.
Brand loyalty occurs when customers continue using/buying from a specific brand despite competing offers. This steadfastness representing essential lifetime value brings reduced marketing costs over time The emotional bond created between brands/consumers enhances revenue potentials by creating strong advocates through word-of-mouth advertising . Companies work hard create memorable experiences events add-ins for customers being satisfied loyal users tend recommend these .
## How do we Measure Customer Satisfaction Metrics?
Customer satisfaction metrics quantify customer sentiment regarding past interactions with a company. Common metrics used include Net Promoter Score (NPS), satisfaction surveys, or online reviews . These methods help us understand how the customer experienced our product and services relative to competitors.
Companies use NPS scores to measure customers who recommend/ promote their products often referred as ‘stakeholders’ while monitoring levels of success in relation competitor businesses helps implement strategies aiming loyalty improvements .
Customer feedback analysis typically involves reading & understanding comments from multiple channels such as emails, social media accounts webforms etc.. The aims of this process are:
1) Discovery - identifying new opportunities/problems
2) Prediction - developing better predictions based on past experiences.
3) Explanation: explanation for ongoing consumer behaviour
Companies turn insights gained into actionable initiatives which benefits both parties involved creating a win-win situation between business and customers
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