Consumer behaviour is the study of the factors influencing a consumer’s choice in purchasing a product or service. By gaining insights into these factors, businesses can better tailor their products to fit the market.
Given the rapidly growing e-commerce industry, consumer behaviour can no longer be ignored, especially if businesses intend to attract new audiences and convert them into paying customers.
In this consumer behaviour guide for e-commerce businesses, we’ll dive into the consumer buying process, the types of consumer behaviour, and the factors influencing consumer behaviour. Let’s dive right into it!
Consumer Buying Process
The consumer buying process refers to the stages the customers go through in deciding which product to purchase. With a never ending slew of alternatives in the market, how will your business rise above your competitors? Understanding the consumer buying process can help you achieve this goal.
The six stages of the consumer buying process play a considerable role in understanding the consumer. They are:
Stage 1: Problem Recognition
Stage 2: Research
Stage 3: Evaluating Alternatives
Stage 4: Purchase Decision
Stage 5: Purchase
Stage 6: Post-Purchase Evaluation
All too often, inexperienced businesses tend to make the mistake of placing all their efforts on the final product and little on the buying process when, in fact, 70 – 90 percent of the buying process happens before customers engage with your company, product or service.
A conscientious business owner therefore diverts marketing resources around these six stages to encourage favourable outcomes for their business.
Types of Consumer Buying Behaviour
There are four main types of Consumer Buying Behaviour include:
- Complex Buying Behaviour
- Dissonance Reducing Buyer Behaviour
- Habitual Buying Behaviour
- Variety Seeking Behaviour
Complex Buying Behaviour usually happens when a consumer is purchasing an expensive product or service, such as a car or a house. It involves the consumer going through a meticulous evaluation to ensure they get the best value for their money.
Their previous buying experience, meanwhile, influences Dissonance Reducing Buyer Behaviour. Here, consumers will take time gathering information to prevent them from regretting their decision or making the same mistake.
When a consumer buys anything out of familiarity, such as house cleaning supplies or food condiments, this is known as Habitual Buying Behaviour.
Variety Seeking Buying Behaviour manifests in consumers when they want to try something new—for example, buying a new shade of lipstick.
Factors Influencing Consumer Behaviour
Some of the factors influencing consumer buying behaviour include:
- Psychological (Motivation, Perception, Learning, Attitudes and Beliefs)
- Social (Family, Reference Groups, Roles and Status)
- Cultural (Culture, Subculture, Social Class)
- Personal (Age, Occupation, Income, Lifestyle)
- Economic (Personal Income, Family Income, Income Expectations, Consumer Credit, Liquid Assets, Savings)
Although some of these influences are only temporary, looking into these variables can greatly help in mapping out your marketing strategies.
Just like how consumers invest time in deciding what to purchase, businesses must also exert effort and resources in tailoring their products or services to better fit their potential customers. One example would be to feature your products on marketplaces such as Carousell where you can effectively reach potential shoppers. To ensure your offerings are perceived well by your target audience, it is paramount to understand how a consumer’s mind works.
Check out the successful stories on Carousell here.