❔Why you need to know Consumer Behavior ❓
Marketing Survival Guide Tip #6
Value
Value is defined as a personal assessment of the net worth one obtains from making a purchase. Value can also be thought of as what you're getting minus (-) what you give up. Economically speaking it can b your Opportunity cost.
Perceived Value is a child of value and can be thought of as what you expect to get. The actual value might be less or more than what you expected.
Categorical breakdown on Value
Utilitarian Value
Utilitarian value comes from a product or service that helps the consumer solve problems and accomplish tasks. You can think of it as the tools you use for you to conduct your work like Microsoft Excel.
Value is provided because the purchase and usage allows something good to happen.
Hedonic Value
Hedonic value is the end in of itself rather than a means to an end. Purchasing this product or service gives us a good feelings, happiness, and satisfaction.
The value is derived throughout the experience and the emotions involved with consumption, not because another end is accomplished. Going Sky diving gives us a hedonic value . Purchasing Chanel No. 5 Perfume is a utilitarian value but scent is what gives us that hedonic value.
Utilitarian value and hedonic value are not mutually exclusive. It can be both in some cases as with purchasing a luxury sports car, Lamborghini, can be used for a mode of transportation (utilitarian) and the thrill of that horsepower when you hit the gas.
A consumer would usually receive value from making a purchase. Consumers would have to first make that decision to buy.
Consumer decision making Process
Consumers make purchasing decisions through a complex interplay of factors influenced by their individual needs, preferences, and the environment in which they find themselves. At the core of this process is the recognition of a need or want, often triggered by external stimuli like advertising, recommendations from friends or family, or a specific life event. Once a need is identified, consumers embark on an information-gathering journey, seeking to educate themselves about available options. This phase often involves online research, reading product reviews, and comparing prices.
Emotional and psychological factors also play a significant role in decision-making. Personal values, brand loyalty, and emotional connections to a product can sway consumers in one direction or another. Social proof, in the form of peer reviews or testimonials, can reinforce or challenge these emotional ties. Additionally, practical considerations such as budget constraints, the perceived value of the product or service, and the perceived risk associated with the purchase all contribute to the final decision.
Ultimately, the culmination of these factors leads to a purchase decision. However, it's important to note that the decision-making process can vary greatly from person to person, product to product, and situation to situation. The dynamic nature of consumer behavior makes it a fascinating and multifaceted field of study for marketers and researchers alike.
Consumer involvement in the process
Consumer involvement in the purchase decision process varies depending on the product or service, the individual's personal preferences, and the circumstances surrounding the purchase. Involvement can be categorized as either high or low, and it significantly impacts the extent of effort and time a consumer dedicates to making a decision.
High involvement occurs when a purchase is considered important, expensive, or closely tied to the consumer's self-image or values. In such cases, individuals tend to engage in extensive information search, actively compare alternatives, and carefully evaluate the pros and cons before making a decision. High involvement purchases often include items like cars, homes, and investments, where the consequences of a wrong choice can be substantial.
On the other hand, low involvement purchases are those that are routine, inexpensive, or have minimal personal significance. Examples include everyday groceries, toiletries, and basic household items. Consumers tend to make these decisions quickly, often relying on habit, convenience, or brand loyalty rather than extensive research.
Consumer involvement is not static and can shift over time or across different situations. For instance, someone may typically have low involvement when buying a particular product, but if they encounter a unique and important variant of that product, their involvement may increase.
Understanding consumer involvement is crucial for marketers because it dictates the appropriate marketing strategies. High involvement purchases may require educational content, product demonstrations, and detailed information, while low involvement purchases benefit from convenience-focused marketing and brand loyalty initiatives. Recognizing these nuances helps businesses tailor their approaches to better align with consumer behavior and preferences.
Psychographics, Building Avatars
uilding a persona or psychographic profile for a specific consumer is a critical practice in marketing, especially when considering purchasing decisions. Such profiles provide marketers with a deep understanding of the target audience's motivations, preferences, and behaviors, enabling them to tailor their strategies effectively. When it comes to purchasing decisions, these personas play a pivotal role in several ways.
Firstly, personas help marketers anticipate and address consumer needs. By delving into the psychological and behavioral aspects of a consumer, businesses can align their products or services with those specific needs and desires. This alignment increases the chances of a consumer identifying a product as a solution to their problem, making the decision-making process smoother and more favorable.
Secondly, personas aid in message and content customization. Different consumers respond to distinct messaging styles and content formats. Understanding the persona allows marketers to create content that resonates with the target audience, whether through emotional appeals, logical arguments, or relatable storytelling. This personalization enhances engagement and influence throughout the decision-making journey.
Furthermore, building personas helps in product or service development. By knowing the characteristics and preferences of their ideal consumers, companies can innovate and adapt their offerings to better suit these profiles. This proactive approach not only increases the chances of satisfying customer needs but can also lead to the creation of products that resonate more deeply with the target audience.
In summary, creating personas or psychographic profiles for consumers in the context of marketing is essential for informed decision-making. It empowers marketers to understand, connect with, and influence their target audience effectively, ultimately improving the chances of success in the complex landscape of purchasing decisions. By crafting tailored strategies, messages, and products, businesses can build stronger relationships with their customers and drive better outcomes in today's competitive marketplace.
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