Understanding the Digital Customer - Essay Sample

Introduction

Consumer behavior refers to the study of the how the individual customers, groups, and organizations choose, purchase, use and dispose of different ideas, products and services in an effort of satisfying their requirements and wants (Hawkins and Mothersbaugh 2010, p. 13). It is the action of customers in the marketplace and the primary motives for their actions. The marketers analyze customer behavior in order to understand the factors that cause customers to purchase certain goods and services, and this enables them to determine the products that should be in the market, those that are obsolete and the best ways of presenting the products and services to the customers (Lages and Piercy 2012, p. 223). The evaluation of customer behavior assumes that the consumers are the actors in the market who play various roles such as providing information, using and paying for the products or services.

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Numerous times, the buyer might settle on by somebody yet the choice isn't theirs. For instance - an office may purchase gorgeous interiors for themselves, however, the choice for these products was made by the engineer or the interior designer. The best cases of influencers are kids. A father may purchase the item on the choice of the mother, yet the primary influencer is the child who needs a particular thing or a particular toy. Subsequently, toy organizations dependably promote on kids' TV channels to make them their influencers.

The primary drivers of consumer behavior are purchasing power, group influence, personal preferences, economic conditions, and marketing campaigns. The purchasing power influences customer behavior since it enables the customer to analyze their buying capacity before deciding on buying the products or services (Saura et al. 2017, p.76). The product may be of good quality, but it may fail to meet the customer`s buying ability. Such products have a significant impact on the levels of sales. When the seller or marketer groups the customers according to their purchasing capacity, they help in determining the eligible customers, and they can subsequently attain better outcomes. Therefore, it is essential to understand, analyze and keep track of the consumer behavior in the course of the marketing operations to achieve and retain a leading position in the marketplace.

The best investigation of consumer behavior is the point at which we break down their basic consumption process. Numerous consumers have their own image inclinations that are one of a kind from all the rest. In the event that one break down why the client leans towards one brand over another, it is easy to discover numerous highlights and qualities which the client favors and thus he is inclined towards one brand more than the other. Is it accurate to say that they are purchasing the item on the web, or would they say they are purchasing through an online store? Indeed, are the clients taking citations from 10 distinct providers and afterward picking a solitary one? What is the way in which the client is purchasing a brand, enlightens a great deal concerning how far the client is prepared to go to purchase the brand? This part of shopper conduct will be distinctive for every client and give knowledge into purchaser conduct examination.

Group influence is a crucial driver to consumer behavior since it affects the decisions that are made by the customers. The primary influential groups are made up of the family members of the customer, close friends, and classmates. The influential secondary group includes the neighbors and other acquittances. They have a significant influence on the buying decisions of the customer. For example, most college students have a mass liking of fast food at the expense of home cooked food, and this influences their eating habits as a group (Reynolds and Olson 2011, p. 17).

Personal preferences influence the behaviors of the customers based on their likes, dislikes, priorities, values, and morals. It is essential to understand the personal choices in dynamic industries such as the fashion world, food and personal care (Parise et al. 2016, p. 413). The personal view about the style and fun is a dominant influencing factor and since it influences the final decisions that are made by the consumer.

Economic conditions are critical drivers of consumer behavior. The spending of customers depends on the financial situations that are prevailing in the market place. This mainly applies to the purchase of certain products such as vehicles, houses, and house appliances. When the economic environment is positive, the customer becomes more confident and is willing to buy the product regardless of their monetary liabilities.

Marketing campaigns drive consumer behavior by influencing the decisions of potential customers. They cause a shift of market shares for the competitive businesses by creating a positive change to the decisions of the customers (Van Doorn and Verhoef 2015, p. 443). They occur in the form of promotions, and they are done on regular intervals to influence the buying decisions to the extent that the customers prefer one brand over the other in the same market. When the campaigns are conducted at regular intervals, they remind the customers about the importance of buying the products or services that are provided by a particular brand at the expense of purchasing from another brand (Haugtvedt et al. 2017, p. 237).

The drivers of online consumer behavior are service quality, product line, perceived risks, and user experience. The perceived risk is the uncertainty that online customers will face when they predict the consequences of buying decisions. The service quality is an essential determinant that drives online consumer behavior since it determines the likelihood of a future purchase (Conklin et al. 2014, p. 823). It also creates trust among customers. High-quality services boost the image of the business, and they attract more customers within the e-commerce platform. The user interaction in the online business influences the customer in several ways. Well-defined categories, intelligent segmentation of products, easy navigations and intelligent segmentation of products improve the ease of purchasing, and this attracts more customers.

Theories of Consumer Behavior

There are four main theories of consumer behavior which include psychoanalytical, Maslow, private and public self-image theories. The psychoanalytic theory states that human behavior is a product of the interactions between the ego, identity and the superego. It emphasizes the role of the unconscious psychological interactions in determining the behavior and personality of an individual (Lichtenberg et al. 2016, p. 11). The identity focuses on the gratification of the physical requirements and urges of an individual. The superego focuses on the social rules and morals of a person, and it develops as a child becomes familiar with his or her cultural components. The ego is the rational component of people`s personality. The three elements are the personality traits that influence customer behavior.

The Maslow theory is also known as Maslow`s hierarchy of needs. It is a motivational theory which states that the lower necessities of a person should be satisfied before an individual attends to the higher needs (Healy 2016, p.313). The needs are further classified to the deficiency and growth requirements (Grubb and Grathwohl 2017, p. 23). Customers are more likely to prioritize on the deficiency needs since they arise as a result of deprivation. This motivates them to buy the products since they are fundamental components of their lives. The private and public self-image theories are self-concepts which define the personal knowledge, beliefs, personal characteristics, values, goals, and abilities which influence the consumer behavior of people Cook and Artino 2016, p.1010).

Why Do People Post Online?

People post online for several reasons such as bringing valuable and entertaining content to other people, to define themselves, to develop relationships, to attain self-fulfillment and to market their brands (Blum-Ross 2016, p. 12). There are different types of people who post content on social media. The altruists are people who post helpful and reliable content. People who post relevant jobs to friends or valuable articles are examples of altruists. Careerists are individuals who utilize social media for networking in sites such as LinkedIn. They create a professional profile using these sites as an avenue of connecting with other like-minded individuals (Chaffey and Ellis-Chadwick 2019, p. 7). The Hipsters are young and creative people who are inclined to the cutting edge of technology. They use sites such as Twitter and Skype to convey their information.

An individual's opinions and conclusions will be influenced by demographics, for example, age, sexual orientation, culture, foundation, etc. Everyone's reaction to a specific showcasing effort will be founded on their discernment and frames of mind. An individual's capacity to fathom data, their view of their need, their disposition, will all have an influence. Social gatherings, from family and companions to web-based have lasting life impact. These factors likewise incorporate social class, pay, and instruction level. Competitor investigation can give helpful data about purchasers that are shopping in your vertical yet don't purchase from your image (Parise, Guinan and Kafka 2016, p.413). As customer conduct is tied in with utilizing the item just as the inspirations around getting it in any case, item audits and criticism can be valuable here, and help with item advancement. Digital market segmentation shows that everybody has diverse inspirations, sectioning buyers into gatherings is fundamental to understanding your clients in a nuanced way (Hasan and Mishra 2015, p.7).

Connectors are people who post online in an effort of utilizing the internet as an e-commerce platform. They take advantage of the free promotions that are offered by various social media sites, and they seek for customers of their products in these sites (Sung et al. 2016, p.263). The selections are people who post online to communicate with others instead of sending a private email. They make a social update to their followers, and they are very thoughtful about what they post on social media.

Analysis of My Social Media Habits

My main reason for using social media is to build a stronger relationship and contact with other people and to get exposed to a more diverse world with people of different cultures, ethnicities, race and religious backgrounds. I use social media with moderation to avoid the feeling of being overwhelmed and the pressure of creating a positive image for myself. Social media has enabled me to feel more connected to what is going on the lives of my friends even when they are at distant locations (Parise, Guinan and Kafka 2016, p.413). I also use social media to get enlightened about the current and contemporary issues that surround me including the local and international news.

I also use social media as an e-commerce platform for purchasing clothes, mobile phones, furniture, and other home appliances. Before making a purchase, I assess the pages of different online sellers to check their products and to compare with what I would like. I also make a comparison of the prices and settle on the seller who offers quality, unique and affordable products. I also check on the reviews from previous purchasers to determine the credibility of the seller and the feedback that they received from other buyers. Positive reviews are a sign of credibility and reliability, and negative reviews are a sign of unreliability. I am also consistent with an excellent online seller, and I am more likely to ma...