Summary: E-commerce seems to be democratizing ‘shelf space’ as top brands do not dominate the e-commerce channel as much as they dominate brick-and-mortar retail the Bernstein report said. – Jack Neff, Advertising Age. It is very important to understand consumer behavior before drafting any strategy of marketing communications.
Consumer behavior study helps to identify consumers and target audience, the study provides in – depth analysis on the following:
- What compelled the Consumer to buys the product / Service?
- Who compelled the Consumer to buys the product / Service?
- Why a consumer buys the product / Service?
- How the Consumer buys the product / Service?
- Where the Consumer buys the product / Service?
- When the Consumer buys the product / Service?
Fundamentally consumer behavior answers the 5 W’s and 1 H’s which any company or marketer needs to understand. This insights help to market the product / service. Within last few years mobile, internet and social media has changed the buying behavior of customers worldwide. People spend more time on internet, especially on social media websites, which influences their behavior towards that product / service.
- 91% of people have gone into a store because of an online experience. (Source: Marketing Land)
- 89% of consumers conduct their research using search engines. (Source: PR Newswire)
- 62% of consumers end up making a purchase in-store after researching it online. (Source: Marketing Land)
- 72% of consumers trust online reviews as much as personal recommendations. (Source: Search Engine Journal)
- 78% of consumers say that the posts made by companies on social media influence their purchases. (Source: Forbes)
Marketers believe that in 2014 on wards marketers will begin using big data to analyze consumer behavior, since it will get itself seamlessly integrate with people’s busy lives generating in – depth information about trends. With big data the marketers will get empowered which will help marketers and advertisers to exactly target specific clients / consumers at specific time, place and through specific device. Further with geo – location based targeting of advertisements and promotions the marketer can exactly geo – locate the type of device and map consumer behavior.