If you are interested in this field, the Business Administration degree in Valencia , as well as its modalities in Madrid , the Canary Islands and its online option will train you to be able to face the work challenges derived from this sector.
What is consumer behavior?
Consumer behavior encompasses all the overseas chinese in europe data choices and actions a person makes when purchasing, using or disposing of products or services. Therefore, it is a set of factors and mental processes that affect the purchase decision, its use and subsequent feedback .
There are several types of consumer behavior, which are as follows:
Dissonance reduction purchasing behavior: refers to when a consumer finds it difficult to differentiate similar products.
Complex consumer behavior : This type of behavior is displayed when major investments must be made, such as when buying a car, a house or another similar type of acquisition.
Habitual consumer behavior : based on general indifference to brands, not buying out of loyalty but out of necessity or habit.
Variety-seeking purchasing behavior : When the consumer tries different brands, easily opting for other products.
What factors influence consumer behavior?
In order to develop any effective marketing strategy in a company, it is essential to know the consumer behavior of its potential customers, their desires and requirements for making a purchase or decision.
Below are some of the factors that influence their behavior:
Social effects : refers to the influence that social groups, influencers or people closer to us such as friends or family have on purchasing decisions .
Cultural effects : These are customers' values and beliefs as well as cultural norms that can affect how a product or service is perceived.
Personal characteristics : age, gender, income or personality are factors that influence whether or not to purchase a product or service.
Psychological effects : involves the consumer's attitude, motivation and perception.
Stages of consumer behavior before a purchase
There are several stages that a customer goes through when making a purchase.
Recognition : The consumer takes on the role of initiator. At this point, he or she detects that there is a need.
Information seeking : the stage where you adopt the role of influencer. You look for reliable, first-hand information to evaluate it.
Evaluating options : Takes the role of decision-maker. Based on the information collected, performs an analysis and comparison including factors such as price, quality, delivery, returns, etc.
Purchase action : Role of decision-maker and buyer. After analyzing the options, the chosen product is purchased under various criteria.
Consumption : role of user and evaluator. Tests the product/service and evaluates satisfaction with the use of what was purchased.
How to measure digital consumer behavior through KPIs ?
Some of the most effective KPIs for measuring a marketing strategy are:
ROI : Return on Investment , quantifies the performance of investments made in advertising and marketing.
CAC : Customer Acquisition Cost. It calculates the average cost of acquiring new customers.
CLV : Customer Lifetime Value. Its objective is to create a long-term relationship with the customer.
Conversion rate : measures the number of users who visit the website and make a purchase or subscribe to a service.
Bounce rate : percentage of users who leave the page without taking any specific action.
Customer retention : Number of consumers who return to buy after making their first purchase.
Time on site : Measures the amount of time users have been browsing a website or app .
How to measure offline consumer behavior through KPIs ?
The most effective KPIs to measure an offline marketing strategy are the following.
Store traffic : measures the number of people who visit a store during a specific period of time.
In-store conversion rate : refers to how much customers spend on average on each purchase.
Visit frequency : measures the number of times a customer visits an establishment in a given period.
Dwell time : the amount of time a consumer spends in the store on average.
Return rate : how often a customer returns to the store after their first purchase.
Satisfaction : Collecting customer feedback through surveys or direct feedback (harder to obtain than with digital methods).
There are many career opportunities in Business Administration , and the European University offers a wide variety of Business and Technology courses to choose from. You also have other options such as the Course in Consumer Behaviour .
