Share on facebook
Share on linkedin
Share on twitter
Share on facebook
Share on linkedin
Share on twitter

What Does Consumer Behavior Mean for Marketing?

Companies in APAC are spending more on marketing than ever before: advertising spend in the region is set to grow 3.6 percent in 2020 compared to 2019. To make sure your marketing budget is being used wisely, you need to understand your customers’ needs, and you can’t do that without a grasp of consumer behavior – for instance, how they act during the purchasing journey, and what factors influence their behavior.


What Is Consumer Behavior?

Consumer behavior is the analysis of how consumers make decisions about what to buy, when to buy it, and how to do so. As well as purchasing behavior, it also involves how consumers think about various brands, how they choose between them, how they behave while deciding what to buy and how they are influenced by marketing campaigns, personal preferences, social and economic pressures and the wider culture.

Understanding consumer buying behavior is vital for marketers, as it sheds light on why consumers make the decisions they do. In turn, this will help marketers to understand which of their campaigns are more effective, and to more highly target their marketing spend in the future, increasing return on investment.

There are three types of human needs: basic needs (such as food, water, warmth and security), psychological needs (such as loving relationships) and self-fulfillment needs (reaching one’s full potential). When one of these needs isn’t being met, the consumer might decide that making a purchase will rectify this.

For example, maybe their running shoes have worn out, meaning they can’t exercise and so can’t meet their self-fulfillment needs of staying healthy, hence the search for a new pair.

Once they have recognized the problem (that their old product is no longer fit for purpose), they embark on an information search. In this case, it would mean searching the internet for running shoes, checking them out in-store, viewing ads, reading consumer reviews and getting advice from friends and acquaintances. Then they evaluate the alternatives, including brands, models and prices before making a purchase decision.

Finally comes post-purchase behavior – does the customer love the product, or hate it? And will they make their feelings known by writing a review or commenting on social media for other potential shoppers to see?


Different Types of Consumer Behavior

There are four main types of consumer behavior:

1. Complex buying behavior

This refers to buying infrequent, expensive products, like a house or a car. Because of the expense and emotional investment involved, consumers are highly involved in the purchasing process, and do extensive research.

2. Dissonance-reducing buying behavior

The consumer is still highly involved, but has difficulty choosing between brands and worries they may regret their choice.

3. Habitual buying behavior

With these purchases, the customer has little involvement in the product or brand category. These patterns are established over the long term, and typically involve low-cost items – for example, the type and brand of bread, soda and milk you buy.

4. Variety seeking behavior

Consumers sometimes change their purchasing behavior for no reason other than to try something new. They might be perfectly happy with their brand of coffee, for example, but just want to see what a different make is like.


What Influences Consumer Behavior?

Many variables affect customer behavior. You can control some of these, but for some, you will just have to bear in mind if you want to understand consumer behavior and then influence it.


Marketing campaigns can prompt customers to switch brands, stay loyal, and even start buying types of products and services that were previously alien to them.

Personal purchasing power

Economic factors have a direct bearing on personal purchasing power. This affects everything from big ticket items like houses and cars right down to everyday buys like groceries.

Personal choice

Each consumer has their own personal preferences in terms of tastes, morals, priorities and values. These are shaped by individual principles, value as well as the wider culture.

Peer pressure

The purchasing decisions of others in our social circle will also play a big part in determining customer behavior.


Want to know how you can identify which consumers are immediate buyers or hesitant to buy? Leverage Appier’s AiDeal driven by advanced machine learning to analyze consumers’ behavior on the website, and target who are most likely to complete purchases with offers. Contact us for more information today!


Let us know the marketing challenges that you’re facing, and how you want to improve your marketing strategy.


7 Steps Subscription Brands Can Take to Reduce Churn

The subscription e-commerce market continues to see rapid growth, with McKinsey’s latest figures suggesting it now totals between US$12 billion and US$15 billion in the US alone. Alongside the big global players, such as Hello Fresh, the Dollar Shave Club, and Naked Wines, are an increasing number of smaller, more localized brands such as LookFantastic, Pint Society and Japanese furniture and interior goods provider Muji. Despite the growing popularity of brands such as these, subscription companies typically face high churn as they struggle to keep customers over time. So, what can subscription brands do to prevent and reduce churn?   What Is Churn? Churn is the percentage of customers who stop using your products or services within a specific time frame. According to Recurly, a global subscription billing management company, the overall churn rate for subscription brands is 5.6 percent with subscription box and consumer goods running slightly higher. Customers churn for several reasons. A big one is to reduce expenses – an issue that has become more prominent since COVID-19 as people have become more conservative with their spending. Other reasons include less frequent use of a product or service, regular travel, and the seasonal nature of some subscriptions.

How to Build an Effective Multichannel Marketing Strategy

Brand websites, online ads, SMS, mail out… today’s enterprises can use more marketing channels than ever before. Multichannel marketing allows brands to leverage multiple channels to reach their customers more effectively.   What Is Multichannel Marketing? Multichannel marketing is the process of marketing to consumers through two or more channels simultaneously. These can be online (e.g. your branded website, app notifications, email, messenger, SMS, web push, social media, etc.), and offline (e.g. billboards, direct mail marketing like catalogues, events, etc.). Multichannel marketing is focused on your products or services, and allows you to reach your customers at multiple touchpoints, casting the widest net to drive the most engagements.   How Is It Different From Omnichannel Marketing? Multichannel marketing is often confused with omnichannel marketing, but the two are very different. Multichannel marketing is: Channel-focused Multichannel marketing centers on your marketing channels, rather than on the customer. The idea is to market your products or services through more than one channel, treating each channel as a separate silo that operates independently of all the others. So, online marketing will be a completely separate set-up to offline ads, for example. By contrast, omnichannel marketing focuses on the customer, and involves all channels

The Future of RPA: Tapping Into the Power of AI and Data

Author | Min Sun, Chief AI Scientist, Appier Robotic process automation (RPA) has helped businesses reduce the tedium of mundane tasks for people, giving them the opportunity to work on more rewarding tasks. However, RPA has limitations. The intelligent application of machine learning (ML) and artificial intelligence (AI) can take RPA to the next level. Software developers have been creating programs to automate tasks for many years, but RPA tools have democratized automation, bringing it into the reach of almost everyone. Drag and drop tools allow frontline workers to take everyday tasks and automate them. For example, a human resource (HR) officer might receive emails each day for leave requests. They may need to open those emails, extract particular information and compile it into a report that needs to be sent to specific people. It is a repetitive task that is carried out every day and may take a couple of hours. However, an RPA tool can create an automated workflow that scans the email account, extracts the relevant data, compiles it into a report and sends the email faster without hands-on intervention. This frees the HR worker up to focus on higher value activities.   Taking RPA to the