Table of Contents

Valentin Radu

Consumer behavior explores how individuals and groups

make decisions to purchase, use, and dispose of goods
and services. This field examines the motivations,
influences, and processes that guide consumer choices,
providing essential insights for businesses.

Understanding, analyzing, and keeping track of consumer

behavior is critical for businesses. Here’s what you should
consider. Keep on reading the article to find out what to
consider in analyzing consumer behaviors.

Think about the many (buying) decisions you make every

day; how much thought are you really giving to them?

Your decisions, be they on autopilot, or not, are what keep

marketers up at night.

Like it or not, boosting revenue can only happen once you

decode the process behind customers’ decisions.

And that’s what we’ll discuss today: how to understand

and influence consumers’ behavior.
What Is Consumer Behavior, Anyway?
Consumer behavior observes how people choose, use,
and discard products and services, encompassing their
emotional, cognitive, and behavioral reactions.

Understanding consumer behavior is key for businesses

trying to orchestrate impactful marketing tactics that
shape consumer decision-making pathways.

By gaining insights into the factors that influence

consumer choices, such as personal preferences, social
influences, cultural norms, and economic factors,
businesses can tailor their marketing strategies to
effectively target and engage their audience.

Consumer behavior incorporates ideas from several

sciences including psychology, biology, chemistry, and
economics. It draws on psychological principles to
understand how individual motivations, perceptions, and
attitudes shape consumer decisions. Biological factors,
such as physiological needs and sensory experiences,
also play a role in influencing consumption behavior.
Economic theories help explain how consumers allocate
their limited resources among competing wants and
needs, guiding businesses in pricing strategies and
product positioning.

In essence, consumer buying behavior serves as a crucial

foundation for businesses seeking to navigate the
complexities of the market and connect with their
customers on a deeper level. Understanding what drives
consumer decisions empowers businesses to anticipate
trends, adapt to changing preferences, and stay ahead in
today’s competitive marketplace.

Why Is Consumer Behavior Important?

Think of it this way: if you can’t identify the catalysts for
buying decisions, how are you expected to spark a desire
for your products in customers’ minds?

Understanding consumer buying behavior is crucial for

businesses striving to succeed in today’s competitive
marketplace:

Insight into Customer Needs: Consumer behavior

analysis provides valuable insights into the needs,
desires, and preferences of your target audience.
Understanding how consumers choose products
reveals gaps in your product suite or irrelevant
offerings, while also highlighting the most wanted
products in your catalog.
Effective Marketing Strategies: Knowing how
consumers make purchasing decisions allows
businesses to develop more effective marketing
strategies. By aligning your messaging, branding, and
promotions with consumer preferences, you can
increase the likelihood of capturing their attention
and driving conversions.
Product Development and Innovation: Consumer
behavior research helps identify gaps in the market
and areas for product improvement. By listening to
consumer feedback and observing their behavior,
businesses can innovate and develop products that
resonate with their target audience, leading to
greater customer satisfaction and loyalty.
Competitive Advantage: Understanding
consumption behavior gives businesses a
competitive edge. By staying ahead of consumer
trends and preferences, you can anticipate market
shifts, outmaneuver competitors, and position your
brand as a leader in your industry.
Customer Engagement and Retention: By
understanding consumer behavior, businesses can
create personalized experiences that engage and
retain customers. By building relationships based on
trust and understanding, businesses can foster long-
 term loyalty and advocacy.

As you can see, the task of understanding consumer

behavior is a high-stakes one.

This is why your consumer behavior analysis shouldn’t

end until you’ve identified:

Consumer sentiments and preferences toward

different options, including brands and products.
The factors that influence consumers’ choices
among various options.
Consumer behaviors during the research and
shopping phases.
The influence of consumers’ surroundings,
including peers, family, and media, on their decisions.

Types of Consumer Behavior

Even if many of the buying decisions are random and
spontaneous, researchers managed to identify four main
types of consumer behaviors. Let’s see how they differ
from one another.
Complex Purchasing Behavior

This type of behavior occurs when consumers are buying

expensive, rarely-purchased items.

In this case, people are deeply involved in the purchase

process, conducting extensive research before making a
significant investment.

Think about purchasing a house or a car; these are

consumer behavior examples of complex buying behavior.

Dissonance-Reducing Purchasing Behavior

Dissonance is defined as a lack of harmony. In the

shopping process, this behavior is visible when
consumers struggle to differentiate between brands.

There’s no favorite brand and none of the options is

particularly attractive, so ‘dissonance’ appears as
consumers fear they will regret their decision.

For instance, when buying a lawnmower, you may select

one based on price and convenience. However, you’ll still
seek reassurance about your choice afterward.

Habitual Purchasing Behavior

As opposed to the first two behaviors, this one appears

when consumers mindlessly buy something, with little to
no involvement in the product or brand category.

To illustrate, let’s think of grocery shopping: you visit the

store and buy your preferred type of bread.

You demonstrate zero brand loyalty, as you go for your

preferred taste, no matter the logo on the label.

Variety-Seeking Behavior

Finally, we have this scenario, where consumers purchase

a different product not because they were dissatisfied
with the previous one, but because they seek variety.

For example, think of people who order protein or other

supplements. It’s not that they’re not satisfied with the
product in itself; they just got bored of the same taste and
looked for some chocolaty feelings in their protein shakes.

It’s important you understand all these types of behaviors

and determine which type of customers your brand
attracts.

Are you bringing in people who seek variety in their

lives, and they’re just trying out your products?
People who mindlessly buy your products while
waiting for the bus to show up?
Or people who conducted extensive research, and
decided you’re the best possible option for them?

Understanding this nuance will give you a better idea

about how to segment different customer types.

How to Tailor Marketing Messages for

Each Behavior Type
We recognized the distinct characteristics of each
behavior type, and now it’s time to explore strategies for
customizing marketing messages for each consumption
behavior type. By implementing these tailored
approaches, you can effectively engage with consumers,
meet their needs and preferences, and drive meaningful
interactions that lead to increased sales and brand loyalty:

Tailoring for Complex Purchasing Behavior

Provide Detailed Information: Offer comprehensive

product descriptions, specifications, and comparison
charts to assist consumers in their research process.
Highlight Value Proposition: Emphasize the unique
features, benefits, and value proposition of your
 product or service to justify the higher investment.
Utilize Testimonials and Reviews: Showcase
positive testimonials, reviews, and case studies from
satisfied customers to build trust and credibility.
Offer Personalized Assistance: Provide
personalized assistance and expert guidance to
address any concerns or questions consumers may
have during the decision-making process.

Tailoring for Dissonance-Reducing

Purchasing Behavior

Build Trust and Reassurance: Use persuasive

messaging, social proof, and testimonials to
demonstrate the superiority of your brand and
alleviate consumers’ concerns.
Provide Satisfaction Guarantees: Offer satisfaction
guarantees, free trials, or generous return policies to
reduce the perceived risk associated with the
purchase.
Focus on Quality and Reliability: Highlight the
quality, reliability, and satisfaction guaranteed by your
brand to reassure consumers about their decisions.
Address Pain Points: Identify common pain points
or objections consumers may have and address them
directly in your marketing messages to alleviate
doubts.

Tailoring for Habitual Purchasing Behavior

 Maintain Brand Visibility: Ensure consistent
branding, packaging, and messaging to reinforce
brand recognition and stay top-of-mind for
consumers.
Leverage Loyalty Programs: Implement loyalty
programs, discounts, and incentives to encourage
repeat purchases and reinforce brand loyalty.
Create Memorable Experiences: Craft memorable
brand experiences through engaging content,
storytelling, and interactive campaigns to foster
emotional connections with consumers.
Stay Relevant and Topical: Keep your brand
relevant and topical by staying updated on industry
trends, consumer preferences, and market dynamics
to remain appealing to habitual buyers.

Tailoring for Variety-Seeking Behavior

Offer Diverse Product Range: Provide a diverse

range of products, flavors, or options to cater to
consumers’ changing preferences and desire for
novelty.
Create Excitement with Limited-Time Offers: Use
limited-time offers, seasonal promotions, and new
product launches to create excitement and
anticipation around your brand.
Highlight Unique Features: Showcase the unique
features, benefits, and experiences offered by each
product to entice consumers to explore new options.
 Encourage Exploration and Discovery: Facilitate
exploration and discovery by organizing products into
categories, providing recommendations, and offering
personalized suggestions based on past behavior.

What Influences Consumer Behavior?

Consumer buying behavior is influenced by various
factors and you won’t be able to influence all of them.

However, if you’re at the very least aware of the most

notable behavior influencers, you can still adapt and pivot
to old your strategies over consumers’ day-to-day reality.

Here are some of the most common factors affecting

consumer behavior:

Marketing Campaigns

The most obvious, and the most in control factor lies in

your marketing efforts.

When executed effectively and consistently, with

compelling messaging, marketing tactics can prompt
consumers to switch brands and even opt for higher-
priced alternatives.

For example, campaigns generated through Facebook can

serve as reminders for regularly purchased products or
services, like insurance.

Economic Conditions

Moving on to uncontrollable situations, economic

climates, particularly regarding big-ticket items such
as houses or cars, will significantly shape consumer
behavior.

Evidently, positive economic conditions tend to

strengthen consumer confidence and their willingness to
make purchases, regardless of financial commitments.

Personal Preferences

Personal factors like preferences, priorities, morals, and

values play a substantial role in shaping consumer
behavior, particularly in industries such as fashion or food.

While advertisements can influence behavior to some

extent, consumers’ choices are primarily guided by
their personal preferences.

For example, climate change activists are unlikely to start

consuming fast-fashion products, just as vegans aren’t
going to buy your medium-rare stake, regardless of
advertising efforts.

Group Influence

Peer pressure is a significant driver of consumer behavior.

The opinions and actions of family members, classmates,
neighbors, and acquaintances can exert considerable
influence on our decisions.

Social psychology also comes into play, affecting choices

like opting for fast food over home-cooked meals, which
can be influenced by education levels and social factors.

Purchasing Power

Finally, our financial capacity is a key determinant of our

consumer behavior. Unless exceptionally wealthy, budget
considerations often precede purchase decisions.

Even if a product is exceptional and the marketing

compelling, lacking the financial means to afford it can
discourage a purchase.
Segmenting consumers based on their purchasing power
helps marketers identify eligible consumers and achieve
more favorable outcomes.

Customer Behavior Patterns

Be careful not to confuse buying behavior patterns with
buying habits.

Consumer habits develop as inclinations towards

actions and become spontaneous over time, while
patterns exhibit a predictable mental structure.

Each customer possesses unique buying habits while

buying behavior patterns are collective and provide
marketers with distinct characterizations.

Customer behavior patterns can be categorized into:

Place of Purchase
Customers often split their purchases among various
stores, even if all items are available in one location.

For example, while a hypermarket may offer clothes and

shoes, customers may still prefer purchasing those items
from specific clothing brands.

Understanding customer behavior regarding place choice

will help you identify key store locations.

Items Purchased

Examining a shopping cart reveals valuable consumer

insights about purchased items and quantities.

Essential items may be bought in bulk, while luxury items

are typically purchased less frequently and in smaller
quantities.

The quantity of each item bought is influenced by factors

such as perishability, purchasing power, unit of sale, price,
and intended consumer base.

Time and Frequency of Purchase

Customers expect service at all hours, especially in the

era of e-commerce where shopping is just a few clicks
away. Shops must align their services with customer
purchase patterns, meeting demands at various times and
frequencies. Seasonal variations and regional differences
must also be considered.
Method of Purchase

Customers can either make in-store purchases or opt for

online orders, paying via credit card or upon delivery.

The method of purchase can influence customer

spending, as online shopping may include additional
charges like shipping fees.

Consider how much data you’ve already collected about

your customers.

As a marketer, yo want to stay on top of pattern analysis,

so you can then create strategies to encourage repeat
purchases, increased frequency, and higher spending.

How to Study Consumer Behavior?

Studying consumer behavior requires a multifaceted
approach that combines various methods and techniques
to gain comprehensive insights into the consumer habits,
preferences, and
decision-making processes of consumers. Let’s explore
some methods:

Market Research: Conducting thorough market

research is essential for understanding consumer
behavior. This involves gathering data on
demographics, psychographics, purchasing patterns,
and preferences through surveys, interviews, focus
groups, and observational studies. Market research
provides valuable insights into consumer needs,
motivations, and pain points, helping businesses
identify opportunities for product development and
marketing strategies.
Data Analysis: Analyzing data collected from various
sources is another crucial aspect of studying
consumer behavior. Businesses can leverage data
analytics tools and techniques to analyze sales
records, website traffic, social media interactions,
and customer feedback.
Customer Segmentation: Segmenting customers
based on common characteristics allows businesses
to tailor their marketing strategies and messages to
specific target audiences.
Monitoring Consumer Trends: Keeping abreast of
consumer trends and industry developments is
essential for studying consumer behavior. Businesses
can monitor social media trends, industry reports,
competitor activities, and emerging technologies to
identify opportunities and threats in the market.
Feedback and Interaction: Actively seeking
feedback from customers and engaging with them
through various channels allows businesses to gain
valuable insights into consumer behavior. Customer
interaction also provides opportunities for businesses
to gather qualitative insights into consumer
preferences and motivations.
Experimentation and Testing: Experimenting with
different marketing strategies and approaches is
 another effective way to study consumer behavior.
A/B testing, focus groups, and pilot programs allow
businesses to gather feedback and refine their
strategies based on real-world results.

Customer Behavior Segmentation

Segmenting customers and understanding their buying
behaviors has always been crucial for businesses. As we
defined, customer segmentation is the process of dividing
a customer base into groups that share similar
characteristics or behaviors. This strategic approach
allows businesses to better understand their customers
and tailor marketing efforts, products, and services to
meet the unique needs and preferences of each segment.

Now, with personalization and customer experience

becoming key factors in business success, effective
segmentation is more important than ever before.
Interestingly, only a third of companies using customer
segmentation find it significantly impactful. So you might
be an advantage here.

This lack of insights proclaimed by companies highlights

the need to find the right segmentation technique that
aligns with the unique needs of each business.

Traditionally, marketers have relied on six primary types of

behavioral segmentation:

1. Benefits Sought: This type of segmentation delves

into understanding what specific benefits or features
customers prioritize when making purchasing
decisions. For example, when customers buy
toothpaste, they may prioritize features like
whitening, sensitivity, flavor, or price, shedding light
on what motivates their purchases.
2. Occasion or Timing-Based: Segments based on
occasions, such as holidays or personal events like
birthdays, offer valuable insights into consumer
behavior patterns. By understanding the timing of
purchases, businesses can anticipate when certain
products or services might be in higher demand and
adjust their marketing strategies accordingly.
3. Usage Rate: The frequency at which customers
interact with a product or service serves as a strong
indicator of loyalty, churn, and lifetime value. By
segmenting customers based on their usage rate,
 businesses can identify their most engaged
customers and tailor retention strategies to foster
continued loyalty.
4. Brand Loyalty Status: Loyal customers, with their
higher lifetime value and potential for advocacy,
deserve special attention and incentives to nurture
their relationship with the brand.
5. User Status: This segmentation method categorizes
customers based on their relationship with the brand.
Segments may include non-users, prospects, first-
time buyers, regular users, and defectors, allowing
marketers to adapt strategies accordingly.
6. Customer Journey Stage: Segmenting based on the
readiness of buyers enables personalized
communication, helping identify obstacles and
opportunities for improvement at every stage,
including post-purchase behaviors.

In addition to these traditional methods, the RFM

(Recency, Frequency, Monetary Value) model provides a
behavioral segmentation approach. This model measures
the latest purchases, the frequency of purchases, and the
total spending of customers.

RFM analysis can be conducted manually or through

automated tools such as Omniconvert’s Reveal, enabling
eCommerce marketers to customize experiences based
on customer insights.
RFM segmentation and analysis can reveal who your most
loyal and profitable customers are and also:

Reveal what brands and products are dragging your

business down;
Build custom recommendations for your customers;
Solve certain Customer Experience problems.

Before making decisions based on gut feeling regarding

your customers and your audience, observe their
behavior, listen to them and build a relationship that will
make them stay loyal no matter how aggressive your
competitors are.

Consumer Behavior Case Study From

Our Agency
We partnered with AliveCor, a pioneer in FDA-cleared
mobile electrocardiogram (ECG/EKG) technology, to help
them better understand consumer behavior patterns, then
use the insights to refine its digital strategy and boost
conversion rates.

AliveCor faced a multifaceted challenge: while improving

conversion rates was crucial, understanding consumer
behavior dynamics emerged as equally important.

When we researched AliveCor’s online ecosystem,

blending quantitative UX & UI analysis, with qualitative
data derived from surveys, we uncovered some insights
regarding consumer behaviour.

Over 40% of website visitors expressed frustration in

finding comprehensive information, while 50% relied on
physician recommendations when considering AliveCor
products.

Furthermore, 26% of engaged visitors left without making

a purchase due to insufficient understanding of product
functionality.

Insights and Hypotheses

The insights we gathered in the research phase revealed

critical consumer behavior trends.

Information gaps and the influence of physician

recommendations emerged as key drivers shaping
purchase decisions.
Notably, a disconnect between visitor engagement and
conversion highlighted the need for clearer product
understanding.

Based on these insights, we developed and tested a

hypothesis: If we replaced the ‘Our mission’ tab in the
navbar with a ‘How it works’ option, and also created a
new page containing the ‘How it works’ video and other
related information, we could increase the number of
clicks on this tab and also the visitors’ engagement and
conversion rates.

Results:

The experiment confirmed our hypothesis, with significant

outcomes:

Conversion Rate: +21%

Revenue per Visitor: +5%
Statistical Relevance: +94%

For more experiments and a more complex experiment

showcase, check out the full Case Study here.

Our collaboration highlights the power of consumer

behavior insights in driving digital transformation.

With an understanding of consumer preferences and pain

points, AliveCor was able to optimize its digital platform to
meet user expectations and improve conversion rates.
This case study underscores the importance of
consumer-centricity in digital strategy.
If you prioritize consumer behavior insights, you can
cultivate meaningful interactions, strengthen brand
loyalty, and achieve sustainable growth in eComm &
Retail.

And this doesn’t only work in super specific industries, as

Retailers worldwide are also confirming how incredible
transformative Omniconvert-powered insights can be.

We helped Auchan – one of the largest retailers worldwide – obtain actionable

customer insights, becoming more data-driven for long-term growth.

Frequently Asked Questions

What Is an Example of Consumer Behavior?

Let’s take planning a city break for two as a consumer

behavior example.

For someone that just starting dating, it might be

extensive decision-making, but for a couple that has
spent 5+ years together, it could be limited decision-
making.

Another example of consumer behavior can be observed

when making a reservation at a restaurant. For a friend’s
night out, it requires a limited time investment, while
making a reservation for an anniversary or a proposal is a
more complex decision making.
What Are the Characteristics of Consumer
Behavior?

There are four factors that determine the characteristics

of consumer behavior: personal, psychological, social, and
cultural.

All factors have a major impact on a consumer’s behavior

and the characteristics that define a customer will change
as their life changes.

What are the stages of the consumer

decision-making process?

The consumer decision-making process typically unfolds

in several stages. First, consumers recognize a need or
problem they wish to address, which prompts them to
begin searching for information to guide their decision-
making process. This information search involves
gathering details from various sources, including personal
experiences, recommendations, and advertising.

Next, consumers evaluate the available options based on

criteria such as quality, price, and brand reputation. Once
they’ve weighed their options, consumers make a
purchase decision. After the purchase, consumers engage
in post-purchase evaluation, assessing their satisfaction
with the product or service and determining whether it
meets their expectations. This evaluation can influence
future purchasing behavior and brand loyalty.
How to measure the effectiveness of
marketing efforts on consumer behavior?

Businesses can utilize surveys and questionnaires to

collect feedback from customers regarding their
experiences with marketing campaigns, brand
perceptions, and purchasing decisions. Secondly,
businesses can analyze sales data to track trends,
customer acquisition rates, and purchase frequency,
providing insights into the effectiveness of marketing
campaigns.

Furthermore, monitoring website traffic, social media

engagement metrics, and online reviews can offer
valuable insights into consumer responses to marketing
efforts. Lastly, conducting market research studies such
as focus groups or consumer surveys provides deeper
insights into consumer behavior and preferences, allowing
businesses to refine their marketing strategies
accordingly.