Why do we buy a product or avail a service? Is it only because of the need or desire? Then what makes consumers choose one out of the many available options in the market? What factors determine the success of a product among consumers? The answer to many and most of such questions is based on an integrated concept of Consumer Psychology. The buying choices of consumers are largely based on the thoughts, perceptions, and beliefs of the consumers. Each of these influences the buying choices of consumers and that clearly indicates how precise a company has to be regarding consumer psychology if they want their products or services to ace the market.
By definition, Consumer Psychology is the mindset or psychological base of the consumers that they use while buying things. Every modern-day company that is into business has a proficient team of consumer psychologists who investigate the thought process and pattern of consumer behavior to help the company curate such products that can gain a wide consumer base and retain the same over time.
Components of Consumer Psychology
The domain of consumer psychology is indeed multifaceted. You cannot evaluate consumer psychology on a single parameter. There are various components of consumer psychology some of the most important of which are:
- The thoughts and beliefs that consumers generally apply when choosing a product or service
- An emotional background that works while choosing a product or service
- External factors such as the media, advertisement, influence of peer pressure that applies while choosing a product or service
- External and internal motivation for buying a particular product or choosing a particular alternative over other competitors
- The correct approach and strategy for planning advertisement or marketing campaigns for promoting a specific product
- Pay attention to individual differences and unique consumer behavior and attitudes
Consumer Psychology in Today’s Context
There is no way to deny that the huge influx of the internet n our daily lives has led to an obvious evolution in the consumer psychology of the modern world. With e-commerce and the online business model, the thought process and beliefs of the consumers have changed radically. Accuracy, transparency, and healthy competition are gaining fast foot. Also, there are various challenges such as authenticity and security that are being challenged. With the ever-increasing digitization and globalization, it is very important to understand consumer psychology in today’s scenario.
Online consumer behavior is a crucial field of study that illuminates modern-day consumer psychology. In today’s world, consumer psychology is no longer a coefficient of physical factors like which store is nearby to their home instead it depends on a multitude of other factors. Such factors that have come into the frame are ratings, the presentation of a product online, the delivery service of the e-commerce store, the reviews of the pre-existing consumers that are available on the website, the online customization of the website, and so on.
The evolution of the World Wide Web has had a greater impact on recent day’s consumer psychology and the surge will keep on continuing with further advancements in the etch field.
Impact of COVID 19 on Consumer Psychology
Consumer psychology and behavior have significantly changed during the COVID era and the change can be well perceived to persist even in the near future. New consumer behavior has replaced the old ways. From the way we shop to the way we expect products – everything is undergoing a hell of a rapid shift with the new normal at its pivot. The pandemic has changed almost all the spheres of consumer behavior. There is a phenomenal surge in e-commerce that has never been witnessed before. There is a change in brand preferences among consumers as well. The way brands are communicating with their target audience has also changed.
Almost all the brands are prioritizing hygiene and COVID safety protocols during this phase. Trends such as online shopping, contact-less delivery, and the adoption of digital mode for almost every aspect of shopping have become the core component during this pandemic time. The consumer decision journeys are evolving very fast and the pandemic has made the journey even more fast-paced.
There is a shift in the mode of communication and information conveyance between brands and consumers. There is a rapid decline in outdoor advertising and an increase in digital advertising. With the rapid decline in physical engagement, it becomes important how brands can put up their products and services for the consumers across the digital media. Consumers are mostly interested in real-life pictures, demo videos, and reviews before making a purchase decision. That is why the ad campaigns are designed accordingly and there is huge popularity in the video shopping apps.
Hygiene and convenience have become predominant factors influencing consumer behavior. People are more concerned about their products and services being safe for them than anything else. Even lucrative products that lack safety parameters are not performing well in the market. Hence the consumers are focussing more on trusted and loyal brands rather than taking the risk of trying out the new brands that are low on credibility.
Sustainability is also one of the trendiest concepts these days. From buying products that come in eco-friendly packaging to choosing brands that contribute positively to the well-being of the planet, consumers are prioritizing Earth’s health. Hence, the brands that
How Can Brands Respond to the Changed Consumer Behaviour?
Consumer beliefs are undergoing rapid evolution. Such change in behavior is influencing the entire demand-supply chain. To keep up with the evolving consumer behavior the brands must have the scope to leverage into consumer insights. The brands can take up the following approaches to keep up with the changing consumer behavior:
- Shape their offerings in compliance with the new changing habits of the consumers
- Reinforce trust and positivity through all the products and services. Make the products much more than just tangible purchases
- Prioritize the use of contextual cues through almost everything they sell
- Align the specifications of the products and ad campaigns to the mindset of the modern consumers (especially of their target audience)
- Decode consumer psychology at the molecular level to cater to them better.
A good understanding of consumer psychology can help a business soar high and affirm its worth as a trustworthy brand.
Author: Sreeran jana
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