As the wind changes its direction suddenly, the same uncertainty is attached to customer’s behaviors. Many top companies fail to predict customer’s behaviors. However, those who do have become the trendsetters.
Predicting what a customer wants is a tough ask. It’s like a puzzle; every time you feel you’ve solved it, another challenge pops up. Predicting consumer behavior depends on various things. Psychological and external factors play a vital role in shaping consumer behavior.
The external factors are culture, locality, ethnicity, social class, and past experiences. On the other hand, psychological factors are mostly related to the targeted customer’s personality.
As difficult as it is to access customer’s wants, many brands have cracked the code. This article is focused on exploring the factors that help in predicting consumer behavior. So, without any delay, let’s get straight to the point.
Table Of Contents
Psychological Factors
These factors are closely linked with the customer’s personality. Most companies, before launching the product analyze the psychological traits of the consumer market. The product is molded and shaped accordingly. Only then, it gets the go-ahead to be launched. Some major psychological factors are:
Motivation:
Every purchase has a motive behind it. Whenever a customer makes a purchase, there’s a hidden motivation. It can be their need, want, or desire, but there’s always something motivating to make the purchase.
Finding that hidden motivation is the key. Knowing what triggers the customer’s purchases, brands can take advantage and offer products and services accordingly.
Perception:
The next psychological factor is perception. Do you know why ads matter? Because they form a perception about your brand and its products.
People can make a lasting impression about a brand in a minute. Businesses need to be careful when targeting customers. Also, not every product can be for everyone.
For example, portraying your products as top-line, expensive products may eliminate middle and lower-middle-class people out of the equation. Even though the products are in their range, they may not buy them, thinking they’re out of their range. For this reason, brands must be vigilant about whom they want to cater to.
Attitude:
Predicting consumer behavior comes with some attitude issues. Most people don’t buy something that goes against their beliefs. Even a slight hint of it may stop them from buying. So, brands need to ensure that their products are well within the acceptable domain of their target market.
External Factors
Companies don’t have any control over external factors. As a spectator, they can only observe the external factors and act accordingly. Also, external factors can change in the blink of an eye. So, companies need to be really quick in accessing the external factors. Some external factors contributing to consumer behavior are as follows:
Social Factors: Social factors include peer pressure and similar factors. Most people make uninformed decisions due to this. Also, social factors determine the acceptability of a product among the masses as well.
Before going live, companies should ensure to cover all social aspects related to their product. Otherwise, they might fail to get a vote of confidence from the people.
Cultural Factors:
Cultural values take precedence over anything in some societies. People take pride in their culture and follow it thoroughly. A company not knowing a thing about a respective culture cannot grow.
Also, a successful strategy for companies is to align products falling into the cultural domains of a society. Only then, they can attract people’s attention.
Social Class:
Different social classes exist in a society. Not every company has the resources to launch products for each of them. That’s why it is vital to target a specific social class.
For example, it would be a mistake to offer products to a society that can’t afford it. So, extensive research can help companies to make informed and effective decisions.
Also, data-driven decisions can make any company flourish.
Using different tools, companies can conduct effective market research. However, running such strong tools requires strong connectivity for which we recommend Optimum.
With Optimum’s connection, brands can analyze market demographics with ease. To find out more, they can visit Optimum’s website. Also, they’re catering to Spanish customers as well via Optimum servicio al cliente en español.
Moreover, two more factors can affect people's buying behaviors. These are:
Place:
As much as customers like convenience, they want to roam freely when shopping. Also, many customers prefer to buy things from the retailer. As a result, stacking up everything at a single store may not be a good idea.
Instead, companies can make effective use of distribution by placing products at different stores. This way, they won’t become a hindrance in customer’s movement and would cover the market as well.
Purchasing Trends:
Purchasing trends define two things. The first one is how much people are willing to spend on a product. This aspect also highlights the purchasing power of the people.
The second is the product’s utility. It shows that if people are willing to buy the product again or not. Considering the purchasing trends of customers, companies can impact consumer behavior systematically.
Winding Up
Consumer behavior varies from time to time. What is today in fashion might have been considered taboo a decade ago. The only way for brands to keep up with changing customer’s preferences is to know them thoroughly.