Who is a Consumer?
Definition: The consumer is an individual, person, or thing who decides to purchase products and hire services catering to personal tastes, preferences, and consumed for personal use.
The existence of a consumer revolves around a decision that is explicitly fuelled by advertising and marketing. Any particular purchase for daily wear or food and beverages all come under the bracket of a consumer.
Wherein the purchase is made from a seller or a service provider following their approval.
The purchases are made instead of cash or alternative. This is either fully paid, or there is some agreement for guarantees where part payments find acceptance.
A Consumer is a person or thing utilizing a product or a service to its fullest extent serving the purpose that it is intended to.
Key attributes of a consumer involve the preferences that dictate choices, attitudes, mindset to the consumption levels. Consumer inclinations have a direct impact on the firms launching products that cater to individualized needs and wants.
Thus, scaling their sales according to demand. This process aims at reducing losses and increasing profitability.
Consumer behaviour influences buying decisions.
Hence playing a vital role in boosting the economy. Brands and businesses need to present products in a way that catapults the impact of the same in the consumer markets. Therefore, generating maximum revenue.
Understanding the definition of consumer is vested in studying the business’s competitors and the customer’s response to the same. There are varied factors that contribute to the purchasing patterns of a consumer.
Let us have a look at different factors that might influence your definition of consumer-
Factors to analyze while deciding target Consumer
These are personalized interests and opinionated viewpoints of consumers. That is heavily reliant on demographics from age to gender, culture, etc.
The factors governed by perceptions and attitudes reflect psychological factors. One that influences the responses to a product or a service.
3. Social Factors
Social media, family, friends, colleagues, and income are social factors that dictate consumer choices to a great extent.
Types of Consumers
As discussed above, a consumer is a person who buys goods and services for different purchases as per the personal inclinations and tendencies. Accordingly, a consumer can be divided into four different types-
- Loyal Consumers – Loyal consumers are those types of consumers who have made a commitment to the product or service of a particular brand.
- Impulse Shoppers – This type of consumer browses the products and services of their interests with no purchasing intention. Most of the retailers target such types of consumers to generate ROI.
- Bargain Hunters – Such type of consumer would like to get the best deals without converting for any upselling techniques. Such consumers would never like to become a loyal consumer.
- Wandering Consumers – Such types of consumers are quite similar to impulse consumers but they do not have any intention of making a purchase.
- Need-Based Consumers – With a need-based consumer, purchases occur as per the need or requirement of that consumer.
How to do Consumer Market Research?
Market research depicts the systematic data collection methods delving deep into the preferences of consumers. That segregates the actual and potential product or service choices of target consumers.
Marketing research is a process that combines consumer and business research examining all explorable aspects of a business environment. The purpose is to give voice to the consumer by focusing on understanding the consumer.
This includes the needs, driving force, attitudes to behaviour related to a product or a service. The service provider or seller is bestowed with ample information that is reliable, relevant, and valid while targeting the right buyer.
- Marketing research enables businesses to make informed decisions about the competition in the market. These decisions are well thought out, strategic and tactical. Chalked out to determine the consumer needs.
- The focus of consumer research is on the market variables, which aids in gauging the uncertainties. Relevant information assists in developing a response that is reliable and accurate through insights.
- Research insights are mandatory before product or service launches, fueling the cloud over-optimization and expansion into specific markets through effective business planning.
- Market research is synonymous with understanding the consumers close enough to demarcate importance and necessity. Thus, resolving the problem of figuring out lapses and filling in the gaps through careful replacements.
2 Ways to do Consumer Market Research are
1. Quantitative Consumer Research
Quantitative market research focuses on the collection of empirical data that delves into the numerical, statistical and computational analysis methods.
The research involves the systematic implementation of mathematical models to quantify theories as well as a hypothesis in regards to consumer trends. This is followed through the deployment of instruments and methods for the measurement of data.
The standardized questionnaire uses scientific methods prescribed before for respondents to identify the pattern and gauge their behavioural trends.
This is followed by experimenting with controlling techniques and manipulating variables to conclude. The one that forms the model for the structured market research process and involves hundreds of respondents.
Quantitative market research finds relevance in varied sciences from Psychology, Economics, Sociology to Political Science.
2. Qualitative Consumer Research
Qualitative Market Research involves examining, analyzing, and interpreting for identification of the purpose of consumer buying.
This is done to discover the types of classification based on phenomenon and entities that deduces the justification behind a consumer buying what he/she has and what reason compelled him/her to make the purchase.
There are no predetermined questionnaire sets nor mathematical models involved.
Qualitative research is targeted for explaining consumer behaviour, unlike gauging sales forecasts and predicting revenues as for quantitative methods.
Qualitative research unearths information of cases that have been evaluated the conclusions are part of the hypothesis.
A topic is decided, and a discussion panel is formed to seek appropriate answers from participants.
The procedure reveals a bulk load of information.
Businesses and organizations have slowly started to make comprehensive and elaborate changes when it concerns an individual’s decisions related to buying or not buying.
– And that is why being aware of the exact definition of the consumer as per the target market research.
Consumer behaviour is crucial to identifying the personalized preferences and choices that go into purchasing a product or a service.
What is your definition of the consumer? Share your thoughts in the comment section below.
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