As per a new study conducted by an online giant, 67% percent of consumer purchasing decisions were influenced by the online reviews on the digital media. This could be a bad news for those companies who do not take online reviews and feedback seriously. Since consumers can quickly access your social media profile such as Facebook, Google or Yelp, they can easily post a positive or negative review about the products and services or the company.
Since 21% of all the online activity is carried on social media as per a study, businesses can either leverage the benefits by understanding the consumer’s voice or suffer due to negligence and bad reviews. Bad reviews play a critical role in the social media and easily get shared to a large audience. Hence, it is important that companies take this aspect seriously when having a social presence.
Consumer behavior is the process of studying individuals and companies and how they make a selection for a particular product and service. It primarily deals with the psychology, motivational factors and the overall behavior of the consumer.
Market research companies conduct consumer behavior studies by knowing following factors.
- What consumers think about various available options (may be brands, products, services, and retailers),
- What makes them select a particular product over the another and the crucial reasons behind such decisions.
- How consumers behave during the research and shopping?
- What influences their behavior such as the external environment comprising of media, society, and friends?
- Understanding how best marketing campaigns are designed to influence the consumer behavior.
All the above process is generally influenced by the following factors that are studied as well –
- Personal Factors – The option and interest of the consumer matter a lot depending on the age, culture, gender, education, locality and the professional as well as family background.
- Psychological Factors – The consumer behavior in today’s world is largely affected by the perceptions and attitudes towards a particular marketing campaign and largely varies from a person to person.
- Social Factors – Family, friends and peers and the social media discussion makes a huge impact on the consumer behavior from a person to person.
Other Sources of collecting consumer behavior data
Customer reviews, question and answer websites, surveys, focus groups, keyword research, Google analytics, competitor analysis, blog comments, twitter insiders, Google trends, government data, social media are some of the popular ways of collecting consumer behavior data.
Loud and proud branding doesn’t work anymore in the digital era. Consumers like to know the facts and proven experiences of the existing customers before making a decision. Due to the easy accessibility of research data, this has made even easy for consumers to do it religiously before making any sort of purchase decision, no matter what the product or service is. Thus, it has become all the more important for brands to stay in tune with the consumer behavior and tastes while engaging with them on continuous basis online.