Consumer Behaviour Literature Review

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Customer behaviour has undergone a radical transformation due to the advent of digitalization and social media ‘explosion’. Consumers have access to a vast array of information regarding products and brands and also ‘customer experiences’. This has upped the ante for companies in terms of the overall consumer experience and product and services provided. New techniques of customer engagement like opt-in marketing have revolutionized the way companies are doing business. The use of social technology for internal purposes, such as environmental scanning to generate insights, matching employees to tasks, managing projects, allocating resources etc., has lead to improved financial performance of organizations. With the brand ownership baton…show more content…
Trends driven by the digital revolution are continuously changing consumer behaviour and their needs .This shall be the case in future too. Therefore, its important for a company to transform its customer service accordingly. Consumer Behaviour Consumers buy dreams and experiences rather than products and services (Brady, 2011). Consumers think, feel, reason and select between different alternatives before they purchase anything. The factors which influence these by include: their environment, the information they have and their motivation (Brady, 2011). Consumer Environment The consumer’s environment is his micro environment which is shaped by their culture, social group and individual characteristics. His wants and behaviours are guided by the values and norms that exist in his culture. Social groups including reference groups, family, social roles and social status also affect consumer behaviour. Consumer decisions are also governed by demographic characteristics like age, stage in life, occupation, economic circumstances, personality and self concept (Kotler et al, 2009, Chapter…show more content…
Consumers now can access companies and their services 24/7. Marketing over the last 20 years has shifted towards service, interactivity, connectivity and relationships. Digital technology is responsible for this shift (Kotler et al, 2009, Chapter 4). Digital technology has allowed for greater, faster and more accurate and transparent access to information for customers. It has also resulted in greater opportunities for companies to connect with and build relationships with their customers, to access new markets, and to transform their internal processes and communication, both internally and with partners and vendors (Kotler et al, 2009, Chapter
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