What we need to know about consumer behavior!

Seeing invisible forces always brings a sense of joy and excitement to human beings. Studying consumer behavior reveals the invisible force of the market—much like the delight Newton felt when discovering the invisible force of gravity. A similar feeling emerges when we understand the market’s unseen dynamics, and by exploring them, we can reach deeper insights and turn those insights into action.

Consumers are the actors on the stage of the marketplace. Much of consumer behavior resembles performing in a play. Just like in a performance, each consumer has a script, makeup, and a particular costume necessary for a good presentation. Since individuals play multiple roles, they sometimes change their consumption decisions depending on the “show” they are part of. The criteria they use to evaluate products and services in one role may be completely different in another.
In this article, we aim to examine consumer behavior so that, through a better understanding of it, we can make business decisions more easily.

Customer Behavior

Consumer behavior is a controversial and challenging subject that encompasses individuals and what they purchase, as well as why and how they buy, marketing, the marketing mix, and the market itself. Wilkie and Salomon define consumer behavior as the physical, emotional, and mental activities that individuals engage in when selecting, purchasing, using, and disposing of goods and services to satisfy their needs and wants.
In another definition, consumer behavior is described as the set of activities directly involved in acquiring, consuming, and disposing of goods and services. These activities include the decision-making processes that occur before and after these actions.
Therefore, consumer behavior refers to the manner in which individuals purchase goods and services.

However, in reality, consumer behavior is more than just the act of purchasing goods and services. Consumer behavior is generally defined as follows:

The consumer’s final decision involves:
a) acquisition (purchase),
b) consumption, and
c) disposal (getting rid of goods, services, time, and ideas—different components of decision-making over a period of time.

Thus, consumer behavior is not merely what happens when a buyer pays money and receives a product or service in return; rather, it is a continuous process.

The importance of understanding consumer characteristics:
Understanding consumer characteristics plays a crucial role in many marketing applications, such as defining the market for a product or deciding on appropriate marketing techniques for specific consumer groups. Consumer-related data helps organizations identify threats and opportunities for a particular brand.

Why do we study consumer behavior?

Understanding consumer behavior is a good way of doing business. The fundamental concept of marketing states that the purpose of organizations is to meet needs. Marketers can only satisfy these needs to the extent that they understand the individuals or organizations that will use their products and services.

If we consider selling to mean that “each person tries to present what they have as valuable and encourage the other party to obtain and use it,” then all of us are, in some way, engaged in selling.

The street vendor sells his socks.
The teacher sells his knowledge.
Parents sell their advice.
A company sells its product and brand.
A person attending a job interview sells their résumé.

In this broad sense, even a nation sells its culture and civilization.

The simplest form of selling is when we offer a product, and the most complex form of selling is when we offer our ideas. Selling and the ability to sell a skills that, if someone lacks it, it is unlikely they can experience significant growth in any society.

According to this interpretation, all of us are also buyers—buyers of what others are selling. Therefore, the main goal of studying consumer behavior is to understand how to sell a product and how to buy the products of others. Consequently, to

• Developing a marketing strategy
• Setting policies and regulations
• Social marketing
• Raising awareness

The study of consumer behavior is conducted.

Why is the study of consumer behavior important?

The development of consumer behavior studies is the result of the shift in marketing philosophy—from a production and product orientation, to a sales orientation, and then to a marketing orientation. Other factors have also contributed to the expansion of consumer behavior studies, including the rapid introduction of new products, shorter product life cycles, the rise of consumer advocacy movements by private groups and public policymakers, increasing attention to the environment, and the growth of service marketing.

In such a context, having a proper understanding of consumers and the consumption process offers multiple advantages. These benefits include assisting managers in decision-making, providing a cognitive basis through the analysis of consumer behavior, helping lawmakers and regulators establish rules related to the purchase and sale of goods and services, and ultimately aiding consumers in making better decisions. Consumer behavior also plays a vital role in designing advertising campaigns. By understanding audience behavior, appropriate media and messages can be selected.

Moreover, studying consumer behavior can help us understand social science factors that influence human behavior. Accordingly, analyzing consumer behavior is essential in areas such as designing the marketing mix, market segmentation, positioning, and product differentiation.

The analysis and study of consumer behavior seek to answer the following questions:

• How do people become aware of their need for a particular good or service?
• How do consumers find the goods or services they want?
• How do consumers make their final choice?
• What happens when your good or service is offered?
• How is your product chosen?
• How is payment for your product made?
• How is your product stored?
• How is your product transported or delivered?
• How do customers use your product?
• What assistance do customers need when using your product?
• Is it possible to return or exchange the product? What are the reasons?
• How is your product repaired or serviced?
• What happens when your product is consumed or its use comes to an end?

Key Points of Consumer Behavior:

1. Consumer behavior is goal-driven.
In other words, consumer behavior generally occurs with the intention to achieve a specific objective.

2. Consumer behavior involves multiple activities.
A key feature of the definitions of consumer behavior is the focus on activities. It is also important to distinguish between deliberate and accidental activities. Some activities, such as talking to a salesperson or making a purchase decision, are deliberate behaviors. In contrast, there are occasions when a person who enters a store intending to buy a specific product ends up purchasing something else they did not plan to buy.

3. Consumer behavior is a process.
The stages of selecting, purchasing, using, and disposing of products indicate that consumer behavior is a process. Generally, the process of consumer behavior consists of three related stages: pre-purchase activities, purchase-related activities, and post-purchase activities.

4. Consumer behavior varies in terms of time and complexity.
Complexity refers to the number of activities involved and the difficulty of a decision. The two characteristics—time and complexity—are directly related. That is, assuming other factors remain constant, the more complex a decision is, the more time it will take.

5. Consumer behavior involves different roles.
There are at least three major roles in the consumer behavior process:
a) Influencer
b) Buyer
c) User

6. Consumer behavior is influenced by external factors.
Consumer behavior is largely affected by external forces such as culture, reference groups, family, and so on.

7. Consumer behavior varies among individuals.
Different individuals exhibit different consumption behaviors due to personal differences. This is why marketers engage in market segmentation.

Disciplines Related to Consumer Behavior:

Consumer behavior is an interdisciplinary field, and various sciences influence it:

Cultural Anthropology: The role of the product in social beliefs and behaviors.

Experimental Psychology: The role of the product in perception, learning processes, and memory.

Clinical Psychology: The role of the product in psychological adjustment.

Microeconomics (Human Ecology): The role of the product in individual and household resource allocation.

Social Psychology: The role of the product in individual behavior (as a member of social groups).

Sociology: The role of the product in social institutions and group relationships.

Macroeconomics: The role of the product in consumer-market relationships.

Semiotics (Literary Criticism): The role of the product in verbal and visual communication of meanings.

Demography: The role of the product in measurable population characteristics.

History: The role of the product in social changes.

Research Perspectives on Consumer Behavior:

1. Decision-Making Perspective (Rational Buying Behavior):

During the 1970s and early 1980s, researchers focused on the theory that consumers are rational decision-makers. The roots of this approach lie in psychology and economics. In this perspective, the process of how consumers identify a problem and attempt to solve it logically through a series of steps is examined. These steps include problem recognition, information search, evaluation of alternatives, choice, and post-purchase evaluation.

2. Experimental Perspective (Semi-Rational or Irrational Buying Behavior):

In this perspective, it is assumed that consumers do not always make purchases based on fully rational decision-making. Instead, they sometimes buy goods and services for fun, imagination, excitement, and emotions. The roots of this approach lie in motivational psychology, as well as in sociology and anthropology. Researchers who adopt the experiential perspective use interpretive research methods. Interpreters even study popular culture and social traditions to gain a deeper understanding of the consumption process.

3. Behavioral Perspective (Environmental Influence Perspective):

In this perspective, it is assumed that strong environmental forces guide the consumer in such a way that they purchase a product without relying on strong pre-existing beliefs or emotions. In this case, the consumer does not buy the product through a rational decision-making process or purely based on feelings. Instead, the purchase is a direct result of environmental influences such as sales promotion tools, cultural norms, the physical environment, or economic pressures.

It is worth noting that most purchases involve elements of all three perspectives mentioned earlier.

The basis of consumer behavior follows these five stages:

1. Post-Purchase Behavior

2. Problem Recognition

3. Information Search

4. Evaluation of Alternatives

5. Purchase Decision

Problem Recognition:

This model has been widely accepted by marketing professionals and serves as the foundation of consumer buying behavior. Individual drivers (social, psychological, and personal) and external drivers (environmental, organizational, and interpersonal) influence the various stages of consumer buying behavior.

Buyer Orientation:

In general, when purchasing goods and services, a buyer does not have complete information about the marketing mix and, at the same time, seeks to gain benefits from the offered products. Buyer orientation refers to the process in which a potential customer, through thinking, evaluation, consultation, and ultimately deciding on the appropriate source, proceeds to purchase a product.

The customer sourcing process is called “buyer orientation” and generally has five dimensions, including value, efficiency, quantity, variety, and benefits. Each of these dimensions is discussed in detail in the following section.

Value:

Apart from obvious value characteristics such as quality, fitness for purpose, and reliability, the price, performance, and reputation of the supplier are also important to the buyer. Additionally, buyers consider the technical capacity and symbolic attributes of the product, such as uniqueness, irreplaceability, and brand status.

However, other considerations are also involved. Value is not solely dependent on money; other factors matter to the buyer as well, such as physical effort, distance, and time required to find a suitable source for the product. Furthermore, issues like multiple intermediaries or exclusive supply sources can also influence the perceived value.

Efficiency:

Efficiency: A legitimate and efficient source of product supply can depend on the proximity of the person to the source. Therefore, distance is important to the buyer. Distance affects not only access, choice, freedom of selection, and buyer capability, but also time, which is often the most critical factor. Brand strength and reputation, repeat purchase capability, purchase outcomes, and shelf layout also influence efficiency. Overall, efficiency occurs when the buyer has adequate access to the supplier according to their expectations.

Quantity: One of the challenges related to goal-setting in marketing is the limited nature of some products (goods and services) for delivery to the buyer. For example, a mechanic needing a single part may be forced to purchase an entire set, or a person renting a dress for one night may be required to rent it for a minimum of three days. These are examples of economies of scale in stores, which may not satisfy buyers. In fact, this form of scale economy can be costly for the buyer.

Quantity refers to factors such as amount, number, divisibility, consistency, spare parts, and package size.

Variety:

Customers need freedom of choice. The ability to choose is often overlooked by manufacturers of goods and services as well as by marketers. Choice is a fundamental right of the customer and a necessary factor for effective marketing. Many individuals face limitations in their selections. A deeper understanding of the variety dimension can provide a broader perspective on consumers.

Choice can be ensured not only through product variety but also through price variety, payment and delivery options, after-sales services, insurance, warranties, and more. Economies of scale on the supplier’s side can lead to a lack of product variety, which has negative implications for the supplier. For example, in clothing retail, it may limit the buyer’s ability to choose the desired size, create potential dissatisfaction, and in critical situations, may lead to brand switching or even changing the supplier.

Benefits:

Customers perceive the benefits of a product and, if these benefits meet their expectations, they continue their relationship with the supplier. The essential and coherent nature of the sourcing process depends on the customer’s recognition that the chosen source provides the best possible benefits.

Post-Purchase Evaluation

The final stage in the consumer buying process is post-purchase behavior. During this stage, the consumer evaluates the purchase. This evaluation is essentially a comparison between what the consumer expected and what was actually received.

If a product or service meets the consumer’s expectations, they are satisfied with the purchase. However, if it fails to meet expectations, the consumer becomes dissatisfied. When buying a product involves high mental involvement, is considered very important, or is highly priced, consumers often experience post-purchase doubt. This doubt is referred to as post-purchase cognitive dissonance.

In such cases, consumers seek confirmation and reassurance of their purchase to reduce the tension and anxiety they feel. They do this by looking at advertisements or seeking affirmations from the seller. During post-purchase behavior, consumers often compare the brand they purchased with other brands they did not buy. For example, after evaluating several cars that are very similar, a buyer selects one. Post-purchase, they may be exposed to advertisements for these cars and compare the purchased car with the advertised alternatives, which can lead to concern or regret.

To reduce post-purchase cognitive dissonance, advertisers and marketers employ various strategies. One method is to show satisfied customers or individuals using the product. Another approach is to use comparative advertising, highlighting the advantages of the brand over others. Additionally, contact from salespeople and after-sales service staff, as well as direct communication with the customer, helps reduce tension and anxiety and increases satisfaction with the purchase.

External Factors Affecting Consumer Behavior:

• Culture
• Subculture
• Demographic Factors
• Social Status
• Reference Groups
• Family
• Marketing Activities

Internal Factors Affecting Consumer Behavior:

• Perception
• Learning
• Memory
• Motives
• Personality
• Emotions

Conclusion

To develop marketing strategies, set policies and regulations, engage in social marketing, and raise awareness, we study consumer behavior. Understanding how consumers behave helps managers make better decisions, assists lawmakers in creating appropriate regulations, and guides consumers in making more informed choices.
Since the study of consumer behavior is an interdisciplinary field, those interested in it should also be familiar with management, psychology, and economics to achieve a deeper and more accurate understanding.
Overall, understanding consumer behavior and its hidden aspects greatly contributes to business success. We recommend studying and mastering consumer behavior to all stakeholders in the stone industry, throughout the entire value chain.

References

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