The retail industry is highly influenced by the branding strategies and consumer behaviour. The consumer loyalty or customer loyalty aspects if taken care of always are a positive influence for a better retail environment. The importance of consumer behaviour for the retail industry in any environment is a mandatory prerequisite. Alternatively, a requirement that sets goals in the industry. Especially, the marketing goals which are always a key factor. This has to offer a lot to branding and the strategies related to factors influencing buying behaviours.
Having a good understanding of consumer behaviour is essential to a company regards to its current products as well as fresh product launches.
RELATION OF BUYING BEHAVIOURS TO CONSUMER BEHAVIOURS:
The relationship association of buying behaviours to consumer behaviour is a long-lasting one. Furthermore, a sustainable one in terms of the customer satisfaction aspects. The thought process associated with every consumer is different. However, it has to deal a great deal with the buying behaviours and key influences for the consumers. The chances of a product getting failed arises immediately after a company is unable to realise the consumer’s reaction towards a product.
The importance to analyse and figure out the necessary buying behaviours is mainly due to the changing fashion. Also, the trends, styles, technology, living style, disposable income, and similar other factors and behaviours.
The importance levels associated with consumer behaviours are outlined as follows;
A major necessity in the retail industry is known as ‘Consumer retention’. The first question is that ‘Is the consumer good enough?’ that he should be retained by a company or they follow general trends of customer or consumer retention. A simple theory is that finding out consumer behaviour is a key necessity in any industry. Especially, retail sector, to figure out ways for customer retention. In marketing & consumer behaviour, it’s just not important to attract new customers. However, it’s important to retain the existing customers as well. Customer retention simply means business, i.e. marketing the products in such ways that it will convince the customers time and again.
THE CONSUMER DIFFERENTIATION:
‘The Customer is always right’, a common entity or a phrase in the customer or consumer’s industry. The consumer differentiation applies to all segments or sectors of the industry. However, it’s a sole responsibility of the company to figure out the main difference. On top of this, how one customer opinion differs from the other. The best way is to make a target group of consumers with same or similar behaviours. A better way to analyse and figure out feedback of customers while launching a brand. As well as a product or a similar product with slightly different demographics.
As soon as the marketer is knowledgeable about the differentiation and how it varies as well as with each group of consumers. Automatically, helps the marketer and the company to design separate and unique marketing programs.
PREDICTING MARKET TRENDS:
The prediction of market trends is yet another key aspect in the retail industry while analysing the buying behaviours. The consumer behaviour analysis shall be the first to indicate the right shift in market trend. As an example, we can highlight that the most recent trend. Especially, in the food industry that has moved towards environmental & sustainability focus. This changing market trend was observed initially by many brands including McDonald’s. A key reason why McDonald’s focused more on healthy food options. More importantly, as part of their international marketing strategies.
A comprehensive consumer behaviour study helps the company in saving a lot of resources. These are resources, that might otherwise be allocated to produce a product that will not be sold in the market. Consumer behaviour while predicting market trends enables the company make decision on the production strategy. Something, which will definitely help saving warehouse costs and marketing costs.
RAISING COMPETITION THROUGH THE BRAND IMAGE:
A brand image helps significantly in raising the level of competition and that’s is also a key reason to study consumer behaviour more effectively. The key questions that a company needs to ask themselves regards to consumer behaviour are as follows;
- Why a consumer or a customer is also a customer of your competitor?
- Is your customer also a regular customer of your competitor?
- What gaps are being identified by your consumers in the products when comparing to your competitor’s products?
- What are the key features that attracts a consumer towards your competitor’s products?
All these questions are the primary ones to determine the brand image of a product as compared to your competitor’s product.