Decoding the consumer behaviour

Consumer behaviour is the study of how individuals, groups and organisations decide to buy goods and services and how several factors can influence these decisions. For brands, understanding who their existing and target customers are, how and why they behave is a good starting point. Organisations can then directly inform marketing campaigns and brand messaging, product and service development and the overall customer experience to strategise how to reach their audience. Understanding consumer behaviour, therefore, is a powerful tool that when harnessed correctly, can have a significant and positive impact on consumers and companies.  

Understanding the consumer psyche

Tapping into the mind of the consumer can be a daunting prospect. There’s a lot going on and no two consumers are ever the same, so it can be difficult to know where to start when navigating the complexities and unpacking what makes consumers tick.  

The average consumer will decide to buy a product or service based on personal, psychological and social factors.  

Personal factors include demographics, such as age, gender, income, education, culture and profession. Although brands have virtually no control over these components, these are important influences to be considered. For example, millennials are more experimental with their purchasing choices and are less loyal to brands compared to older generations.  

Psychological factors that influence consumer behaviour can include motivation, cognitive understanding and attitudes and perceptions towards a brand, product or service. Addressing these aspects in their messaging, image, and products, is where brands can have the most influence on consumer behaviour. For example, positioning a product or service in a way that can satisfy a consumer’s need for social status could be the deciding factor in whether they make the purchase or not.  

Lastly, social factors are hugely influential to how consumers behave. Relationships with family, friends, colleagues and even the media form a part of who consumers are and can radically impact their buying choices. We’ve all bought something just because our friends have it, therefore the power of social influence cannot be underestimated!  

The shifting landscape

It’s no secret that consumer behaviour is drastically different to what it was five years ago. Changes in consumer behaviour can occur because of fluctuations in any of the factors above. However, global events, such as the Covid-19 pandemic and the cost-of-living crisis have caused an unprecedented disruption to consumers’ lives, meaning certain factors have had a bigger impact on consumer behaviour compared to others.  

It feels as if we’ve come a long way since the start of Covid-19, where fear and uncertainty took hold of our wallets and resulted in a national shortage of toilet paper and hand sanitiser. This shift in consumer behaviour was fleeting, yet many changes are proving to be more permanent. Online shopping is at the forefront, and the ‘conscious consumer’, who buys based on the sustainability and the necessity of a product is becoming more common.  

As we move into 2023 and the current cost-of-living crisis presents itself as another force for change, we are once again seeing consumer behaviours adjusting and trying to cope. Consumer confidence is at an all-time low and people are taking considered action to save money. Behaviours that involve cutting back on unnecessary expenditure such as eating out, holidays and leisure is particularly prominent amongst 18–34-year-olds, who are feeling the impact of the current economic climate more severely. Additionally, consumers are seeking out alternatives that remain a priority for them. For example, cancelling existing gym memberships in favour of other methods to keep fit and switching to cheaper brands for essentials such as food and clothing.  

Know your consumer

It is safe to say that today’s consumer is unique and now more than ever, it is crucial for brands to understand who their consumers are. By harnessing this knowledge, brands can analyse attitudes and behaviours towards their products or services and recognise areas for improvement and gaps in the market, both existing and newly found. As we continue to watch how global events such as the cost-of-living crisis evolve, it will be fascinating to see how it shapes where, what, how and why consumers choose to buy a product or service.