The Psychology of Consumer Behaviour

Ever wondered why some Marketing ads that we saw on television, YouTube, or Instagram or heard on radio channels stay with you years after you have watched or heard them? Or, why do some visuals pop up in the back of our mind as soon as we see a consumer product? Or why are some products or services preferred by the masses while others barely reach the break-even points of their businesses?

There is just one answer to all these probing questions! These brands perfectly understood their target consumers’ psychology and tailored their products, services and ads to hit the right chord throughout their journey. In short, the successful brands mastered the delicate art of marketing psychology. These brands and their brand tone resonated with consumers like you by gauging your purchasing or consumer behaviour.

We are here to dive deep into the concept of consumer behaviour and find out why it is the key to every purchase decision and marketing success of anything out in the market: a product or service.

Is there a difference between customers and consumers?

While most are unaware of this subtle difference between a customer and a consumer, there exists a stark line separation between one and the other.

• Customer: A customer can still purchase your product or service without having a firsthand experience.
• Consumer: A consumer is the key user of your product or service.

Why is this distinction critical? We discuss this because, as a marketer or business owner, you must realise you are often serving two separate needs: the Customer’s need for efficiency (the purchase) and the Consumer’s need for a satisfying experience (the usage). Every strategy must be tailored to the real-life end-user whose choices are shaped by emotions, needs, and other psychological factors. While executing these strategies marketers must keep consumer decision-making at their hearts.

What is consumer behaviour?

Consumer behaviour is the study of individuals, groups, or organisations and all the activities associated with the selection, purchase, use, and disposal of goods and services. It is an applied social science that examines the emotional, mental, and behavioural responses that precede or follow these activities. Your factors (Market Research, Purchasing patterns, etc.) are the tools used to analyse this complex study.

Key factors governing consumers’ behaviour

Personal preferences Fundamentally, any purchase is based on the consumer’s personal preference. Age, gender, location, occupation and income influence their purchasing decision.

Needs Diving deep into needs, we must discuss Maslow’s Hierarchy of Needs, which is vital to marketers. Maslow represented an order of needs starting from the lowest level to the highest level needs.

The best marketing strategies strike a chord with these human needs and hence make an average consumer a lifelong loyal connoisseur.

• Physiological needs: When a brand appeals to a consumer’s physiological needs like healthy food choices, safe and happy homes, or better medical care, and makes them look like the preferred choice amongst their competitors, consumers don’t hesitate to choose them first. This is because this is the most fundamental need of human beings.
• Safety and security: Insurance companies, home security services or car manufacturers do not just sell their products, but their copywriters are experts in convincing their end customers that they are the best providers of their safety above all.
• Love and belonging: Human beings are social beings, and being socially accepted is one major factor motivating them to achieve better in life. When consumers feel loved and accepted and feel a sense of shared identity in brands, they don’t blink twice before selecting these. From apparel, cosmetics, tourism, hospitality, to medical facility providers, clubs and employees, everybody leverages this factor.
• Self-esteem: Your consumer is a human with emotions and will never choose a brand that doesn’t enhance his or her self-esteem. Industries like cosmetics, designer garments, lingerie, educational institutions, or fitness centres must cater with empathy, inclusion and understanding with a promise that they are there to improve their consumers’ inner and outer world by increasing their self-esteem.
• Self-actualisation: Human beings have an inherent need to be the larger person who caters to their self-actualisation needs. Brands that aid concepts like self-discovery, uncovering unique cultures, motivating personal challenges, creativity, expression, or caring for the planet are preferred by those seeking this need.

The social media influencer market The global influencer marketing size is projected to be between $28 billion and over $32 billion by the end of 2025. This is because social media influencers are relatable, strike a chord with us that feels so familiar, and we trust their choices. They have seamlessly captivated us by leveraging all our existential needs highlighted by Maslow’s laws. Out of all the above factors, they have captured our need for love and belonging and self-esteem by acknowledging our emotions and convincing us they feel the same way.

How does studying consumer behaviour help marketers?

This is how tailoring marketing strategies based upon consumer behaviour helps your brands grow by leaps and bounds and contribute towards marketing success.

• Customer satisfaction: Better customer appeal will lead to customer satisfaction and eventually customer loyalty. Your brand progresses from being a mere company to a legend by influencing consumer decision-making.
• Relevance of products: Being relevant in the market is of utmost importance for marketing success, and being cognizant of the present-day consumer challenges and needs will help you stay relevant in an already crowded landscape.
• Better focus: Studying consumer behaviour and buying habits will help narrow down your focus on the most used platforms. Omnichannel marketing is great, but if your consumers are more active on Instagram rather than Facebook, you must channelise all your energies here to maximise sales and profits.
• Tailoring marketing strategies: Your product design, appearance, message and tone must match the needs of your consumers based on consumer psychology. This is how you tailor your products and services to capture a larger audience. Your advertising psychology must mirror the consumer psychology.
• Customer segmentation: By being cognizant of consumer behaviour and purchasing patterns, you can create a better customer segmentation based on demographics.
• Customer retention: When your customers know you are aware of what they need the most today, they will never wander away to your competitor.
• Product and service innovation: Everybody loves to be heard, and your consumers want to be listened to with rapt attention. When brands know their consumers’ psychology, and they ask questions about individual experiences, they will mostly get honest answers. This paves the way for product and service innovation and improvisation.

In a dynamic market like that of consumer products and services, concepts of intent data, hyper-personalisation and consumer behaviour are metrics driving marketing strategies. All these tools and strategies are based upon consumer behaviour and, when analysed and leveraged, lead to the sustenance of a brand for a lifetime.

Afterword

The psychology of consumer behaviour is every brand’s bible to craft better strategies, be diplomatic and create a blueprint of becoming the undisputed choice from being just good. It is all about saying the right thing, at the right time, to the right audience and lure them towards you like none other. It is the right way to build lifelong relationships with your consumers because, beyond a certain point, whether it is business or personal equations, what sustains two parties together is the unspoken feelings of empathy, care and sincerity.

Understanding buying habits using marketing psychology is a technique rather than a trick that all businesses must master. Global conglomerates like Dominos, Apple, McDonald’s, Coca-Cola, Boroline and Dairy Milk have mastered their advertising psychology for decades and by doing so, they have resolved to have an everlasting relevance with a global audience —a feat worth pondering upon, by any aspiring brand.

At Billabong High International School , we believe in preparing young students for the practical world ahead. Learning concepts at a primary age will help them grasp complex concepts later. Visit us to learn how we teach our students complex concepts in a simplified manner to help them master them early on in life.