Consumer Behaviour is the study or experiential understanding of Individuals or Consumer Groups’ beliefs and habits by their purchase patterns. The Purchase patterns exemplify their beliefs and habits which further explain their social and psychological behaviour. This behaviour is exhibited when they shop (select and purchase), use or discard products and services to fulfil basic needs for day to day existence, or luxuries, fancies and desires.
Consumer behaviour however is a complex topic as it is deep rooted and can vary from person to person. However, in a given sample of data, it is easier to identify purchase patterns reflecting common customer behaviour. This can be analysed using metrics or quantifiable data comprising of customer transactions and demographics.
Examples of Consumer Behaviour exemplified by the use of Data
- Shopping preferences for certain products or categories by Gender
- Which Age Category uses a particular media to make purchases?
- Can we conclude that women shop for Clothes more than the men?
- Why and how do Millennials respond to Gaming Advertisements?
- What Age Groups prefer certain category of Products or Services by Gender?
- What number and which category of Airline Customers shop during the Flight?
- Which Mobile Subscribers respond to Cultural or Gaming Campaigns?
How 5 Senses Contribute to make Purchase Decisions?
Purchase decisions of the customers can be logical, need based or impulsive driven by instinct or emotion. Human beings have 5 senses- Eyes (See), Ears (Hear), Nose (Smell), Tongue (Taste) and Skin (Touch). All or some of these senses contribute in confirming final purchase of the customer.
Consumers need to see, hear, smell, taste or touch the products before they make a purchase. All these senses contribute in creating information that generates trust of the Consumer by making them aware about the product. But sometimes that awareness or information about the product is not enough. And that is when additional external inputs are required to come to a conclusion.
Those external inputs can come from other product users or people, individual experiences, social communication and mass advertising like TV, Print, Radio, Out of Home, Digital/Social Media etc. But the real change has come with the advent of Social Media. People use Social Media to form communities or virtual groups for online interaction, or to create, share experiences and information. These sharing of experiences, information, messaging, online chatting form those External Inputs.
How has the Social Media Advertising changed the Customer Landscape ?
Social media in comparison to traditional mass media is very different, because it is fast, instant, rapid, and more broader in reach. Social Media Advertising is also cheaper as compared to TV, Print or Out of Home Advertising. The social media has the maximum reach and is globally accepted. Search Engines like Google and Social Platforms like Facebook, Instagram, Pinterest, Youtube, Snapchat and LinkedIn have made Social Media globally acceptable.
Any information is available at button click and instant which has led to the change in customer habits and behaviour. We no longer need to wait for information. This has shortened the Customer Purchase Time Span.
‘Impatient’ Customer
Companies that are taking advantage of that “Impatience” in customer to create rapid and dynamic Product Awareness are benefitting from it. They are doing it via online content creation and advertising on Social Media. Organizations are using Social Media to understand the Customer preferences and feedback about their products and adapting in real time. This real time response to the customer is leading the bandwagon of Social Commerce
How is it influencing Customer Purchase Decision? Let us consider some examples or Social Posting (on Facebook or Twitter or Instagram)
- Posts about someone’s dinning experience in a Restaurant can positively or negatively influence customer decision to visit that restaurant.
- When someone posts about a Vacation in Italy in a particular AirBnB, we get inspired to visit and make a travel plan. Companies use Google, Facebook or Twitter Advertising to entice customers to make travel arrangement.
- Reading about a Cheaper Airline Ticket Online can positively influence Customer Decision to make an Impulsive Travel Plan.
- Post about terrible Customer Service from a Telecom Provider, can
- Regular Posts from friends about Online Purchases or Shopping Experiences influences their friends’ purchases.
- Customer Product Reviews about a Mobile Phone or a Laptop.
All these greatly influence not only friends and families, but also diverse unrelated audiences across cultures and geographies due to fast, rapid and dynamic information availability.
Previously before the advent of Social Media and Google, time taken to come to a conclusion regarding Product Purchase was much more. This was because the information was not instantly available, or fast enough and neither available across geographies.
These Videos articulate the impact of Social Media on Human Behaviour
Social interaction and behaviour has undergone a profound change due to extensive use of Online Communities or Social Media Platforms. This has impacted Society’s Cultural Fabric and Relationships- the way people interact with each other. People have lesser time for in person meetings due to greater occupation with digital media. This has led to a behaviour change and rapid adoption of Social Media Channels.
It has also led to a greater awareness about different cultures and societies, their habits and preferences. This has led Organizations to make changes in their product assortments to suit varied consumer groups by analysing Online Consumer Sentiment. Peer to Peer Reviews or Online Product Reviews have on the other hand vastly influenced Consumer Choices in either way.
A Tedx Learning Video on Social Media’s Impact on Human Behaviour
Influence of Rapid, Instant and Dynamic Online Social Communication
It has also led to a large scale transformation of the way the Consumers and Organisations interact and influence each other. The instant access to the Information Universe and Digital Networking has played a great role in influencing this change which has brought forth both advantages and drawbacks.
Online Social Groups/Communities have facilitated knowledge, information and experience sharing amongst different cultures and geographies. This has brought forth a wide array of choices for the consumer that were not available earlier.
Organisations are using various Multimedia Channels and Online Social Communities to convey message about their product. These various channels converge to restate a consistent message about a Product. Hence the online advertisements and Multimedia Channels influence customers in a positive or negative manner to affect a purchase decision.
Popular QUORA Discussions on Impact of Social Media on Customer Buying Behaviour
CONCLUSION: Organisations now are using Social Media Channels to get insights on the Customer Sentiment and positively influence the Consumer Decision in short span of time.
