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Consumer Behaviour in Marketing

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Published: Jan 4, 2019

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Consumer behaviour and marketing implications, consumer behaviour and marketing strategies, consumer behaviour and market segmentation, consumer behaviour and product positioning, consumer behaviour and marketing research, consumer behaviour and non-profit and societal marketing, consumer behaviour and governmental decision making.

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How Marketing Influences Consumer Behavior: A Comprehensive Guide

The modern consumer’s decision-making process is complex and difficult to understand. It is the result of a mix of emotions, experiences and marketing efforts. Can marketers influence and affect consumer behavior? The answer is yes!

This comprehensive guide explores the approaches and tactics used by businesses to influence consumers and pave their way to successful purchases. We will look at the various behavioral marketing tactics and psychology behind it, its ethical implications, as well as the latest trends in digital marketing. Get your answers here and discover how marketing affects consumer behavior.

Understanding Consumer Behavior

Consumer behavior is a tricky puzzle, combining ideas from multiple sciences to understand why people buy certain products and services. It’s a branch of marketing that focuses on the factors influencing customers’ decisions – like price, quality, customer service, availability and brand reputation.

Do you ever feel like there are gaps between what you want in a product compared to its competitors? That’s because these differences aren’t always obvious! Consumers often compare features or characteristics of different companies before deciding which one best fits their needs. Plus, personal preferences can also affect choices as a consumer – based on experiences or opinions of others.

Complex buying behavior is when it gets really interesting: think big purchases such as houses or cars. These require extensive market research and comparison shopping before making any decisions – not to mention taking into account the advice of family and friends!

What is consumer behavior?

A consumer behavior analysis – what is it? And why do marketers use it? It’s an in-depth study of how consumers decide on a product and what influences their buying decisions. Psychological factors such as attitudes, motivations, and beliefs; social factors like family, friends, and culture; economic factors like income and purchasing power – all these elements come together to form consumer behavior. By studying this and study consumer behavior well, marketers can target new customers more effectively by understanding why people buy certain products or services and what influences their decisions.

Why is consumer behavior important?

Consumer behavior plays a huge role in the success of any business. Knowing how customers think and make decisions can help businesses tailor their products and services to meet the needs of their target audience more loyal customers, as well as identify potential gaps in the market.

Education levels and social factors also have an impact on a consumer purchases behavior. People with higher education are more likely to do research before making a purchase, while family, friends, and culture can all influence decision-making processes.

Psychology plays a key part too – personal opinions, experiences or judgments can shape responses to attempts at influencing consumer behaviors. Plus marketing techniques like advertising or promotions may sway someone’s choice when it comes to buying something.

The ever-changing nature of customer preferences is why markets are constantly shifting – so businesses must stay up-to-date with these changes if they want to remain competitive. By understanding consumer behavior companies can adapt their products and services accordingly for maximum success!

Influencing Consumer Decisions

Behavioral marketing is like a puzzle. It involves understanding the pieces of consumer behavior and putting them together to create an effective marketing strategy that increases customer engagement, boosts sales, and creates a positive brand image.

So what are these pieces? The 6 principles of influencing consumer decisions include personal factors such as age, gender, income level, and occupation; education level; social factors such as family, peers, and media; marketing messages; personal opinions; and purchasing decisions. All of these can have an impact on how consumers make their choices.

Advertising is also key in influencing consumer behavior – it can be used to motivate people or discourage them from making certain purchases. By understanding how customers think and act when they see ads for products or services, marketers can craft more effective campaigns that target the right audience with persuasive messages.

Finally businesses can use customer data to gain valuable insights into their needs so they can design better experiences for them. Through analyzing behavioral data companies can segment customers by loyalty levels or analyze purchase decisions to create tailored strategies for each group of consumers – all while gaining insight into benefits features values use cases or problems motivating purchase decisions!

Types of Behavioral Marketing

The most popular types of tactics for behavioral marketing include targeted advertising, personalized content, segmentation, retargeting, data collection, customer profiling, and predictive analytics. Targeted advertising involves showing ads to a specific, behavioral segmentation of the population, such as those who have visited a website or searched for a certain keyword. Personalized content is content tailored to an individual’s interests or needs. Segmentation involves dividing customers into different groups based on their behaviors, interests, or loyalty level. Retargeting is the practice of showing ads to consumers who have already interacted with a company’s website or product. Data collection involves collecting information about customers such as browsing activity, purchase history, and search history. Customer profiling is analyzing customer data to create detailed profiles of customers. Predictive analytics is using customer data to predict customer behavior.

One example of how companies use different types of behavioral marketing is Nike’s ‘Find Your Greatness’ marketing campaign used at the 2012 Olympics in London. Nike’s target audience was very specific; they aimed to reach California-based men between the ages of 18 and 40 who spent time bodybuilding. Nike used targeted advertising, personalized content, and segmentation to reach this audience. They also used data collection, customer profiling, and predictive analytics to create marketing messages that would be more likely to resonate with their target audience.

The 6 Principles of Influencing Consumer Decisions

The first principle of influencing consumer decisions? What are the personal factors that can make or break a purchase? Age, gender, income level, occupation – all these play an important role in how we decide to spend our hard-earned money. Education is also key; those with higher levels of education may be more likely to make informed decisions.

But it’s not just about us as individuals – social factors like family and friends, media messages and even past behavior can have an influence on what we buy. That’s why marketing messages are so important: they provide information about the product or service and can sway our opinion one way or another.

To really get ahead in sales, marketers need to understand customer differentiation – segmenting customers based on their own customer buying behavior and capacity helps them target the right people for their products and services. They can use data gathered from customer decision-making processes such as upselling, cross-selling and remarketing to increase revenue too! By studying customer behavior they can identify key store locations which will help them better understand consumer behavior overall.

Understanding consumer behavior is essential if you want your marketing campaigns to be successful – by really understanding consumer buying behavior and how to influence consumer decisions you’ll create persuasive messages that will lead potential customers down the path towards making a purchase!

Current Consumer Behavior Trends

For years, the marketing industry has been drastically transformed as customers’ shopping habits and preferences have shifted. Companies must stay in the know of these changes to remain relevant, understanding their target customer’s buying behavior and using the right strategies to influence them. This involves learning about their needs, likes, dislikes, and current trends so they can tailor their message accordingly.

The Sony Walkman is a prime example of a product that failed to keep up with the digital age – once an incredibly popular item in the late 1970s; it was quickly replaced by Apple’s iPod when it was released in 2001. This serves as an important reminder for companies to stay connected with eCommerce developments if they want to succeed.

CX experts have identified some challenges businesses must face if they want insight into consumer behavior: setting aside personal biases; focusing on key pain points; creating opportunities for delighting customers; staying informed on what’s hot in eCommerce; analyzing customer reviews. All this will help companies better understand their target audience and make sure their marketing messages are tailored correctly.

importance of consumer behaviour in marketing essay

Online Buying

In the digital era, customers have opened a Pandora’s box of choices and opportunities. Companies have had to scramble to keep up with tactics such as search engine optimization, targeted advertising and personalized emails.

This shift has transformed the way customers shop – from browsing in stores to scouring the web for products before making a purchase. To stay ahead of the competition, companies must be aware of this trend and use it to their advantage by optimizing their marketing strategies.

Online privacy has become a hot topic – but what does it mean? Companies are collecting data about customer behavior to personalize their email marketing and messages and target the right customers. But is this beneficial or invasive? To protect customer data, companies must encrypt it, use secure sockets layer, and limit data sharing with policies.

Clean and Green Companies

As environmental awareness grows, so does the demand for sustainable products. Consumers are on the hunt for companies with eco-friendly practices. To keep up, businesses must create products that are renewable and reduce waste while switching to energy efficient processes. Doing this can help them attract more customers and build brand loyalty – like a magnet drawing in metal filings!

Understanding customer behavior is key for businesses to make the most of their marketing efforts. Through behavioral marketing, they can tailor their messages to better influence consumer decisions and stay ahead of the competition – like a master chess player outmaneuvering an opponent. So how do you use behavioral marketing? By understanding current consumer trends and adapting your strategies accordingly!

Understanding consumer behavior is an essential part of any successful marketing strategy. But what are the elements that influence consumer decisions? The six principles – need recognition, search and evaluation, purchase decision, post purchase evaluation, lifestyle and attitude – can all be used to create effective campaigns.

Nowadays, online buying is on the rise as well as anonymity and demand for clean and green companies. All these trends provide valuable insights into the market share how consumers behave today.

Benefits of Understanding Consumer Behavior

Understanding consumer behavior is a must for businesses wanting to create successful marketing strategies. Knowing the different elements of consumer behavior helps companies to identify consumer behavior and craft campaigns that precisely target their desired audience.

How can they do this? By using the data from consumer behavior studies to identify the best way to reach their target, what messaging resonates with them and which products and services they are likely to buy.

Plus, businesses can use this info to make segmented marketing campaigns tailored specifically for each part of their target audience – giving them an edge over competitors!

Tips for Influencing Consumer Decisions

The six principles of influencing consumer decisions – need recognition, search and evaluation, the purchase process and decision, post purchase evaluation, lifestyle, and attitude – are invaluable tools for businesses to craft successful marketing strategies. By understanding these principles, companies can create campaigns that truly connect with their target audiences.

For instance, need recognition helps firms identify the needs of their customers and tailor messaging accordingly. Search and evaluation allows them to comprehend how people research products or services before making a purchase decision; this knowledge can be used to construct more effective campaigns. Finally, lifestyle and attitude enable businesses to design targeted ads that appeal to the interests and values of their intended audience.

You should also read:

Social Psychology in Marketing What is the Mere Exposure Effect?

Understanding consumer behavior is essential for businesses to remain competitive and relevant. With the right marketing strategies, businesses can create successful campaigns tailored to their target audience.

Understanding the six principles of influencing consumer decisions – need recognition, search and evaluation, purchase decision, post purchase evaluation, lifestyle, and attitude – using behavioral marketing examples as well as keeping up with current consumer behavior trends, are key factors in creating effective, targeted campaigns. Companies must use tools such as behavioral targeting, customer data collection, segmentation, and retargeting to gather and analyze information about their audiences in order to successfully influence them.

Additionally, companies must employ techniques such as clean and green strategies and online buying safety to stay contemporary and build trust with potential customers. By using these tactics, understanding consumer behavior, and staying informed of current trends, businesses can put loyal customers and themselves in a better position to increase their success.

Frequently Asked Questions

How does marketing influence customer behaviour.

Marketing has the power to influence customer behaviour by creating persuasive messages that evoke emotions, cause customers to react, and shape how they think about products or services. Through various forms of advertising, a marketing department can effectively capture people’s attention and guide them towards a desired action.

What factors influence consumer behavior?

Consumer behaviour is greatly influenced by psychological, social, cultural and economic factors. Consumers are often driven by their past experiences and emotions, and changes in external environments such as rising prices or trends in the market can shape consumer buying behavior and habits. Businesses should take these into account when targeting their customers in order to effectively reach their desired audiences.

What is consumer behavior in marketing?

Consumer behavior in marketing is the study of why and how people and organizations make decisions while buying, consuming and disposing goods, services and ideas in order to satisfy their needs. Understanding the psychology behind consumer decision making provides valuable insight into effective marketing strategies.

What is meant by customer behavior?

Customer behavior is the study of how people make purchasing decisions, including what they buy, when they buy it, how often they buy it, and the factors that influence their purchasing decisions. It examines their actions both in-store and online, as well as considering factors such as personal influences, motivations and demographics.

The past, present, and future of consumer research

Published: 13 June 2020
Volume 31 , pages 137–149, ( 2020 )

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Maayan S. Malter ORCID: orcid.org/0000-0003-0383-7925 1 ,
Morris B. Holbrook 1 ,
Barbara E. Kahn 2 ,
Jeffrey R. Parker 3 &
Donald R. Lehmann 1

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In this article, we document the evolution of research trends (concepts, methods, and aims) within the field of consumer behavior, from the time of its early development to the present day, as a multidisciplinary area of research within marketing. We describe current changes in retailing and real-world consumption and offer suggestions on how to use observations of consumption phenomena to generate new and interesting consumer behavior research questions. Consumption continues to change with technological advancements and shifts in consumers’ values and goals. We cannot know the exact shape of things to come, but we polled a sample of leading scholars and summarize their predictions on where the field may be headed in the next twenty years.

Digital technologies: tensions in privacy and data

Sara Quach, Park Thaichon, … Robert W. Palmatier

Research Methodology: An Introduction

Customer engagement in social media: a framework and meta-analysis

Fernando de Oliveira Santini, Wagner Junior Ladeira, … Barry J. Babin

Avoid common mistakes on your manuscript.

1 Introduction

Beginning in the late 1950s, business schools shifted from descriptive and practitioner-focused studies to more theoretically driven and academically rigorous research (Dahl et al. 1959 ). As the field expanded from an applied form of economics to embrace theories and methodologies from psychology, sociology, anthropology, and statistics, there was an increased emphasis on understanding the thoughts, desires, and experiences of individual consumers. For academic marketing, this meant that research not only focused on the decisions and strategies of marketing managers but also on the decisions and thought processes on the other side of the market—customers.

Since then, the academic study of consumer behavior has evolved and incorporated concepts and methods, not only from marketing at large but also from related social science disciplines, and from the ever-changing landscape of real-world consumption behavior. Its position as an area of study within a larger discipline that comprises researchers from diverse theoretical backgrounds and methodological training has stirred debates over its identity. One article describes consumer behavior as a multidisciplinary subdiscipline of marketing “characterized by the study of people operating in a consumer role involving acquisition, consumption, and disposition of marketplace products, services, and experiences” (MacInnis and Folkes 2009 , p. 900).

This article reviews the evolution of the field of consumer behavior over the past half century, describes its current status, and predicts how it may evolve over the next twenty years. Our review is by no means a comprehensive history of the field (see Schumann et al. 2008 ; Rapp and Hill 2015 ; Wang et al. 2015 ; Wilkie and Moore 2003 , to name a few) but rather focuses on a few key thematic developments. Though we observe many major shifts during this period, certain questions and debates have persisted: Does consumer behavior research need to be relevant to marketing managers or is there intrinsic value from studying the consumer as a project pursued for its own sake? What counts as consumption: only consumption from traditional marketplace transactions or also consumption in a broader sense of non-marketplace interactions? Which are the most appropriate theoretical traditions and methodological tools for addressing questions in consumer behavior research?

2 A brief history of consumer research over the past sixty years—1960 to 2020

In 1969, the Association for Consumer Research was founded and a yearly conference to share marketing research specifically from the consumer’s perspective was instituted. This event marked the culmination of the growing interest in the topic by formalizing it as an area of research within marketing (consumer psychology had become a formalized branch of psychology within the APA in 1960). So, what was consumer behavior before 1969? Scanning current consumer-behavior doctoral seminar syllabi reveals few works predating 1969, with most of those coming from psychology and economics, namely Herbert Simon’s A Behavioral Model of Rational Choice (1955), Abraham Maslow’s A Theory of Human Motivation (1943), and Ernest Dichter’s Handbook of Consumer Motivations (1964). In short, research that illuminated and informed our understanding of consumer behavior prior to 1969 rarely focused on marketing-specific topics, much less consumers or consumption (Dichter’s handbook being a notable exception). Yet, these works were crucial to the rise of consumer behavior research because, in the decades after 1969, there was a shift within academic marketing to thinking about research from a behavioral or decision science perspective (Wilkie and Moore 2003 ). The following section details some ways in which this shift occurred. We draw on a framework proposed by the philosopher Larry Laudan ( 1986 ), who distinguished among three inter-related aspects of scientific inquiry—namely, concepts (the relevant ideas, theories, hypotheses, and constructs); methods (the techniques employed to test and validate these concepts); and aims (the purposes or goals that motivate the investigation).

2.1 Key concepts in the late - 1960s

During the late-1960s, we tended to view the buyer as a computer-like machine for processing information according to various formal rules that embody economic rationality to form a preference for one or another option in order to arrive at a purchase decision. This view tended to manifest itself in a couple of conspicuous ways. The first was a model of buyer behavior introduced by John Howard in 1963 in the second edition of his marketing textbook and quickly adopted by virtually every theorist working in our field—including, Howard and Sheth (of course), Engel-Kollat-&-Blackwell, Franco Nicosia, Alan Andreasen, Jim Bettman, and Joel Cohen. Howard’s great innovation—which he based on a scheme that he had found in the work of Plato (namely, the linkages among Cognition, Affect, and Conation)—took the form of a boxes-and-arrows formulation heavily influenced by the approach to organizational behavior theory that Howard (University of Pittsburgh) had picked up from Herbert Simon (Carnegie Melon University). The model represented a chain of events

where I = inputs of information (from advertising, word-of-mouth, brand features, etc.); C = cognitions (beliefs or perceptions about a brand); A = Affect (liking or preference for the brand); B = behavior (purchase of the brand); and S = satisfaction (post-purchase evaluation of the brand that feeds back onto earlier stages of the sequence, according to a learning model in which reinforced behavior tends to be repeated). This formulation lay at the heart of Howard’s work, which he updated, elaborated on, and streamlined over the remainder of his career. Importantly, it informed virtually every buyer-behavior model that blossomed forth during the last half of the twentieth century.

To represent the link between cognitions and affect, buyer-behavior researchers used various forms of the multi-attribute attitude model (MAAM), originally proposed by psychologists such as Fishbein and Rosenberg as part of what Fishbein and Ajzen ( 1975 ) called the theory of reasoned action. Under MAAM, cognitions (beliefs about brand attributes) are weighted by their importance and summed to create an explanation or prediction of affect (liking for a brand or preference for one brand versus another), which in turn determines behavior (choice of a brand or intention to purchase a brand). This took the work of economist Kelvin Lancaster (with whom Howard interacted), which assumed attitude was based on objective attributes, and extended it to include subjective ones (Lancaster 1966 ; Ratchford 1975 ). Overall, the set of concepts that prevailed in the late-1960s assumed the buyer exhibited economic rationality and acted as a computer-like information-processing machine when making purchase decisions.

2.2 Favored methods in the late-1960s

The methods favored during the late-1960s tended to be almost exclusively neo-positivistic in nature. That is, buyer-behavior research adopted the kinds of methodological rigor that we associate with the physical sciences and the hypothetico-deductive approaches advocated by the neo-positivistic philosophers of science.

Thus, the accepted approaches tended to be either experimental or survey based. For example, numerous laboratory studies tested variations of the MAAM and focused on questions about how to measure beliefs, how to weight the beliefs, how to combine the weighted beliefs, and so forth (e.g., Beckwith and Lehmann 1973 ). Here again, these assumed a rational economic decision-maker who processed information something like a computer.

Seeking rigor, buyer-behavior studies tended to be quantitative in their analyses, employing multivariate statistics, structural equation models, multidimensional scaling, conjoint analysis, and other mathematically sophisticated techniques. For example, various attempts to test the ICABS formulation developed simultaneous (now called structural) equation models such as those deployed by Farley and Ring ( 1970 , 1974 ) to test the Howard and Sheth ( 1969 ) model and by Beckwith and Lehmann ( 1973 ) to measure halo effects.

2.3 Aims in the late-1960s

During this time period, buyer-behavior research was still considered a subdivision of marketing research, the purpose of which was to provide insights useful to marketing managers in making strategic decisions. Essentially, every paper concluded with a section on “Implications for Marketing Managers.” Authors who failed to conform to this expectation could generally count on having their work rejected by leading journals such as the Journal of Marketing Research ( JMR ) and the Journal of Marketing ( JM ).

2.4 Summary—the three R’s in the late-1960s

Starting in the late-1960s to the early-1980s, virtually every buyer-behavior researcher followed the traditional approach to concepts, methods, and aims, now encapsulated under what we might call the three R’s —namely, rationality , rigor , and relevance . However, as we transitioned into the 1980s and beyond, that changed as some (though by no means all) consumer researchers began to expand their approaches and to evolve different perspectives.

2.5 Concepts after 1980

In some circles, the traditional emphasis on the buyer’s rationality—that is, a view of the buyer as a rational-economic, decision-oriented, information-processing, computer-like machine for making choices—began to evolve in at least two primary ways.

First, behavioral economics (originally studied in marketing under the label Behavioral Decision Theory)—developed in psychology by Kahneman and Tversky, in economics by Thaler, and applied in marketing by a number of forward-thinking theorists (e.g., Eric Johnson, Jim Bettman, John Payne, Itamar Simonson, Jay Russo, Joel Huber, and more recently, Dan Ariely)—challenged the rationality of consumers as decision-makers. It was shown that numerous commonly used decision heuristics depart from rational choice and are exceptions to the traditional assumptions of economic rationality. This trend shed light on understanding consumer financial decision-making (Prelec and Loewenstein 1998 ; Gourville 1998 ; Lynch Jr 2011 ) and how to develop “nudges” to help consumers make better decisions for their personal finances (summarized in Johnson et al. 2012 ).

Second, the emerging experiential view (anticipated by Alderson, Levy, and others; developed by Holbrook and Hirschman, and embellished by Schmitt, Pine, and Gilmore, and countless followers) regarded consumers as flesh-and-blood human beings (rather than as information-processing computer-like machines), focused on hedonic aspects of consumption, and expanded the concepts embodied by ICABS (Table 1 ).

2.6 Methods after 1980

The two burgeoning areas of research—behavioral economics and experiential theories—differed in their methodological approaches. The former relied on controlled randomized experiments with a focus on decision strategies and behavioral outcomes. For example, experiments tested the process by which consumers evaluate options using information display boards and “Mouselab” matrices of aspects and attributes (Payne et al. 1988 ). This school of thought also focused on behavioral dependent measures, such as choice (Huber et al. 1982 ; Simonson 1989 ; Iyengar and Lepper 2000 ).

The latter was influenced by post-positivistic philosophers of science—such as Thomas Kuhn, Paul Feyerabend, and Richard Rorty—and approaches expanded to include various qualitative techniques (interpretive, ethnographic, humanistic, and even introspective methods) not previously prominent in the field of consumer research. These included:

Interpretive approaches —such as those drawing on semiotics and hermeneutics—in an effort to gain a richer understanding of the symbolic meanings involved in consumption experiences;

Ethnographic approaches — borrowed from cultural anthropology—such as those illustrated by the influential Consumer Behavior Odyssey (Belk et al. 1989 ) and its discoveries about phenomena related to sacred aspects of consumption or the deep meanings of collections and other possessions;

Humanistic approaches —such as those borrowed from cultural studies or from literary criticism and more recently gathered together under the general heading of consumer culture theory ( CCT );

Introspective or autoethnographic approaches —such as those associated with a method called subjective personal introspection ( SPI ) that various consumer researchers like Sidney Levy and Steve Gould have pursued to gain insights based on their own private lives.

These qualitative approaches tended not to appear in the more traditional journals such as the Journal of Marketing , Journal of Marketing Research , or Marketing Science . However, newer journals such as Consumption, Markets, & Culture and Marketing Theory began to publish papers that drew on the various interpretive, ethnographic, humanistic, or introspective methods.

2.7 Aims after 1980

In 1974, consumer research finally got its own journal with the launch of the Journal of Consumer Research ( JCR ). The early editors of JCR —especially Bob Ferber, Hal Kassarjian, and Jim Bettman—held a rather divergent attitude about the importance or even the desirability of managerial relevance as a key goal of consumer studies. Under their influence, some researchers began to believe that consumer behavior is a phenomenon worthy of study in its own right—purely for the purpose of understanding it better. The journal incorporated articles from an array of methodologies: quantitative (both secondary data analysis and experimental techniques) and qualitative. The “right” balance between theoretical insight and substantive relevance—which are not in inherent conflict—is a matter of debate to this day and will likely continue to be debated well into the future.

2.8 Summary—the three I’s after 1980

In sum, beginning in the early-1980s, consumer research branched out. Much of the work in consumer studies remained within the earlier tradition of the three R’s—that is, rationality (an information-processing decision-oriented buyer), rigor (neo-positivistic experimental designs and quantitative techniques), and relevance (usefulness to marketing managers). Nonetheless, many studies embraced enlarged views of the three major aspects that might be called the three I’s —that is, irrationality (broadened perspectives that incorporate illogical, heuristic, experiential, or hedonic aspects of consumption), interpretation (various qualitative or “postmodern” approaches), and intrinsic motivation (the joy of pursuing a managerially irrelevant consumer study purely for the sake of satisfying one’s own curiosity, without concern for whether it does or does not help a marketing practitioner make a bigger profit).

3 The present—the consumer behavior field today

3.1 present concepts.

In recent years, technological changes have significantly influenced the nature of consumption as the customer journey has transitioned to include more interaction on digital platforms that complements interaction in physical stores. This shift poses a major conceptual challenge in understanding if and how these technological changes affect consumption. Does the medium through which consumption occurs fundamentally alter the psychological and social processes identified in earlier research? In addition, this shift allows us to collect more data at different stages of the customer journey, which further allows us to analyze behavior in ways that were not previously available.

Revisiting the ICABS framework, many of the previous concepts are still present, but we are now addressing them through a lens of technological change (Table 2 )

. In recent years, a number of concepts (e.g., identity, beliefs/lay theories, affect as information, self-control, time, psychological ownership, search for meaning and happiness, social belonging, creativity, and status) have emerged as integral factors that influence and are influenced by consumption. To better understand these concepts, a number of influential theories from social psychology have been adopted into consumer behavior research. Self-construal (Markus and Kitayama 1991 ), regulatory focus (Higgins 1998 ), construal level (Trope and Liberman 2010 ), and goal systems (Kruglanski et al. 2002 ) all provide social-cognition frameworks through which consumer behavior researchers study the psychological processes behind consumer behavior. This “adoption” of social psychological theories into consumer behavior is a symbiotic relationship that further enhances the theories. Tory Higgins happily stated that he learned more about his own theories from the work of marketing academics (he cited Angela Lee and Michel Pham) in further testing and extending them.

3.2 Present Methods

Not only have technological advancements changed the nature of consumption but they have also significantly influenced the methods used in consumer research by adding both new sources of data and improved analytical tools (Ding et al. 2020 ). Researchers continue to use traditional methods from psychology in empirical research (scale development, laboratory experiments, quantitative analyses, etc.) and interpretive approaches in qualitative research. Additionally, online experiments using participants from panels such as Amazon Mechanical Turk and Prolific have become commonplace in the last decade. While they raise concerns about the quality of the data and about the external validity of the results, these online experiments have greatly increased the speed and decreased the cost of collecting data, so researchers continue to use them, albeit with some caution. Reminiscent of the discussion in the 1970s and 1980s about the use of student subjects, the projectability of the online responses and of an increasingly conditioned “professional” group of online respondents (MTurkers) is a major concern.

Technology has also changed research methodology. Currently, there is a large increase in the use of secondary data thanks to the availability of Big Data about online and offline behavior. Methods in computer science have advanced our ability to analyze large corpuses of unstructured data (text, voice, visual images) in an efficient and rigorous way and, thus, to tap into a wealth of nuanced thoughts, feelings, and behaviors heretofore only accessible to qualitative researchers through laboriously conducted content analyses. There are also new neuro-marketing techniques like eye-tracking, fMRI’s, body arousal measures (e.g., heart rate, sweat), and emotion detectors that allow us to measure automatic responses. Lastly, there has been an increase in large-scale field experiments that can be run in online B2C marketplaces.

3.3 Present Aims

Along with a focus on real-world observations and data, there is a renewed emphasis on managerial relevance. Countless conference addresses and editorials in JCR , JCP , and other journals have emphasized the importance of making consumer research useful outside of academia—that is, to help companies, policy makers, and consumers. For instance, understanding how the “new” consumer interacts over time with other consumers and companies in the current marketplace is a key area for future research. As global and social concerns become more salient in all aspects of life, issues of long-term sustainability, social equality, and ethical business practices have also become more central research topics. Fortunately, despite this emphasis on relevance, theoretical contributions and novel ideas are still highly valued. An appropriate balance of theory and practice has become the holy grail of consumer research.

The effects of the current trends in real-world consumption will increase in magnitude with time as more consumers are digitally native. Therefore, a better understanding of current consumer behavior can give us insights and help predict how it will continue to evolve in the years to come.

4 The future—the consumer behavior field in 2040

The other papers use 2030 as a target year but we asked our survey respondents to make predictions for 2040 and thus we have a different future target year.

Niels Bohr once said, “Prediction is very difficult, especially if it’s about the future.” Indeed, it would be a fool’s errand for a single person to hazard a guess about the state of the consumer behavior field twenty years from now. Therefore, predictions from 34 active consumer researchers were collected to address this task. Here, we briefly summarize those predictions.

4.1 Future Concepts

While few respondents proffered guesses regarding specific concepts that would be of interest twenty years from now, many suggested broad topics and trends they expected to see in the field. Expectations for topics could largely be grouped into three main areas. Many suspected that we will be examining essentially the same core topics, perhaps at a finer-grained level, from different perspectives or in ways that we currently cannot utilize due to methodological limitations (more on methods below). A second contingent predicted that much research would center on the impending crises the world faces today, most mentioning environmental and social issues (the COVID-19 pandemic had not yet begun when these predictions were collected and, unsurprisingly, was not anticipated by any of our respondents). The last group, citing the widely expected profound impact of AI on consumers’ lives, argued that AI and other technology-related topics will be dominant subjects in consumer research circa 2040.

While the topic of technology is likely to be focal in the field, our current expectations for the impact of technology on consumers’ lives are narrower than it should be. Rather than merely offering innumerable conveniences and experiences, it seems likely that technology will begin to be integrated into consumers’ thoughts, identities, and personal relationships—probably sooner than we collectively expect. The integration of machines into humans’ bodies and lives will present the field with an expanding list of research questions that do not exist today. For example, how will the concepts of the self, identity, privacy, and goal pursuit change when web-connected technology seamlessly integrates with human consciousness and cognition? Major questions will also need to be answered regarding philosophy of mind, ethics, and social inequality. We suspect that the impact of technology on consumers and consumer research will be far broader than most consumer-behavior researchers anticipate.

As for broader trends within consumer research, there were two camps: (1) those who expect (or hope) that dominant theories (both current and yet to be developed) will become more integrated and comprehensive and (2) those who expect theoretical contributions to become smaller and smaller, to the point of becoming trivial. Both groups felt that current researchers are filling smaller cracks than before, but disagreed on how this would ultimately be resolved.

4.2 Future Methods

As was the case with concepts, respondents’ expectations regarding consumer-research methodologies in 2030 can also be divided into three broad baskets. Unsurprisingly, many indicated that we would be using many technologies not currently available or in wide use. Perhaps more surprising was that most cited the use of technology such as AI, machine-learning algorithms, and robots in designing—as opposed to executing or analyzing—experiments. (Some did point to the use of technologies such as virtual reality in the actual execution of experiments.) The second camp indicated that a focus on reliable and replicable results (discussed further below) will encourage a greater tendency for pre-registering studies, more use of “Big Data,” and a demand for more studies per paper (versus more papers per topic, which some believe is a more fruitful direction). Finally, the third lot indicated that “real data” would be in high demand, thereby necessitating the use of incentive-compatible, consequential dependent variables and a greater prevalence of field studies in consumer research.

As a result, young scholars would benefit from developing a “toolkit” of methodologies for collecting and analyzing the abundant new data of interest to the field. This includes (but is not limited to) a deep understanding of designing and implementing field studies (Gerber and Green 2012 ), data analysis software (R, Python, etc.), text mining and analysis (Humphreys and Wang 2018 ), and analytical tools for other unstructured forms of data such as image and sound. The replication crisis in experimental research means that future scholars will also need to take a more critical approach to validity (internal, external, construct), statistical power, and significance in their work.

4.3 Future Aims

While there was an air of existential concern about the future of the field, most agreed that the trend will be toward increasing the relevance and reliability of consumer research. Specifically, echoing calls from journals and thought leaders, the respondents felt that papers will need to offer more actionable implications for consumers, managers, or policy makers. However, few thought that this increased focus would come at the expense of theoretical insights, suggesting a more demanding overall standard for consumer research in 2040. Likewise, most felt that methodological transparency, open access to data and materials, and study pre-registration will become the norm as the field seeks to allay concerns about the reliability and meaningfulness of its research findings.

4.4 Summary - Future research questions and directions

Despite some well-justified pessimism, the future of consumer research is as bright as ever. As we revised this paper amidst the COVID-19 pandemic, it was clear that many aspects of marketplace behavior, consumption, and life in general will change as a result of this unprecedented global crisis. Given this, and the radical technological, social, and environmental changes that loom on the horizon, consumer researchers will have a treasure trove of topics to tackle in the next ten years, many of which will carry profound substantive importance. While research approaches will evolve, the core goals will remain consistent—namely, to generate theoretically insightful, empirically supported, and substantively impactful research (Table 3 ).

5 Conclusion

At any given moment in time, the focal concepts, methods, and aims of consumer-behavior scholarship reflect both the prior development of the field and trends in the larger scientific community. However, despite shifting trends, the core of the field has remained constant—namely, to understand the motivations, thought processes, and experiences of individuals as they consume goods, services, information, and other offerings, and to use these insights to develop interventions to improve both marketing strategy for firms and consumer welfare for individuals and groups. Amidst the excitement of new technologies, social trends, and consumption experiences, it is important to look back and remind ourselves of the insights the field has already generated. Effectively integrating these past findings with new observations and fresh research will help the field advance our understanding of consumer behavior.

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Malter, M.S., Holbrook, M.B., Kahn, B.E. et al. The past, present, and future of consumer research. Mark Lett 31 , 137–149 (2020). https://doi.org/10.1007/s11002-020-09526-8

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The Importance of Consumer Behavior in Marketing

January 24, 2020 • DJ Team

Long-term sales stability is not just about having a great product. It's about meeting consumers' needs, understanding what makes them tick, and speaking to them in the ways that make them want to engage. In order to do this, marketers turn to a variety of reports, surveys, and tools to understand one thing - consumer behavior. It's a marketer's gold. And as we've seen time and time again, those who use it best, and align their marketing decisions to what the data tells them, are those who win. But what exactly is consumer behavior, and why does it matter to your business?

What Is Consumer Behavior?

In general terms, consumer behavior is a psychologically-based study of how individuals make buying decisions and what motivates them to make a purchase. Several facets of consumer behavior exist, such as:

How a consumer feels about certain brands, products, or services
What motivates a consumer to pick one product over another and why
What factors in a consumer's everyday environment affect buying decisions or brand perceptions and why
How consumers make decisions in groups or when they are alone

Multiple factors exist that determine buyer behavior. We discuss four of them below.

What are the 4 Factors Influencing Consumer Behavior?

There are several factors that influence consumer behavior, but four of the most important are cultural, social, personal, and psychological factors. Let’s take a closer look at each.

Cultural Factors - Culture consists of the practices of a particular nation, people, or group. It might be determined by nationality, religion, location, or associations. What does this look like? An example of a consumer making decisions based on their culture could be a Midwesterner who buys ranch for their pizza—or their french fries, onion rings, or chicken fingers.
Social Factors - These are the parts of a person's environment or background that affect their purchasing behaviors. These factors include family and friends as well as other social groups whose acceptance the consumer desires. When purchasing an item, a consumer might choose a brand or a company based on what their parents bought for the family growing up.
Personal Factors - These include someone's age, occupation, finances, marital status, lifestyle, and values. A good consumer behavior example would be a parent in their 20s choosing to purchase an SUV instead of a minivan. Why? Because personal perception might indicate that a minivan is a vehicle for a middle-aged family.
Psychological Factors - The way someone sees a product or service, as well as their personal beliefs and motivations, affect the way they purchase. For example, a consumer who enjoys working out will probably spend more money on fitness classes or dumbbells for home than someone who dislikes working out.

What is the Importance of Marketing to Consumers' Behavior?

We can all agree: The best marketing educates people, helps them make informed decisions about their purchases, and ultimately drives their buying behavior. In other words, marketing makes the world go around—at least for businesses that are trying to sell a product or service. And therein lies the key importance of marketing to actual customers and their behavior—it sells.

Too often, marketing teams have been forced to rely on hypotheticals or historical data to build out marketing strategies. And while this approach can certainly work for some companies, the best marketing takes into account what consumers actually want and need right now.

By using consumer behavior (and the four factors discussed above) marketers can target what consumers are searching for, what their behavior looks like, what their pain points are, and more. Doing so can help you prove to consumers that you’re a business that understands what they want, why they want it, and why you’re the best option around. All of this is essential to your bottom line.

Why Is Consumer Behavior Important to Business?

According to a Salesforce report, 66% of consumers expect companies to understand their needs and expectations. This means that if you don't understand what a consumer wants before they can tell you, they're probably taking their business elsewhere.

Successful organizations build their marketing strategies with consumer behavior insights as the foundation. They're not generating products and marketing plans based on their ideas alone; they are bringing external information into the fold to find out what customers want and how they want it, then interacting with them accordingly. This is the essence of creating a positive customer experience (CX), and CX means everything to fostering a loyal customer-base. Consider this stat from Qualtrics :

What Is the Role of Consumer Behavior in Marketing?

The organizations that not only solve, but best communicate that they solve, real consumer problems are the ones that win in the market today. Therefore, consumer behavior insights can be used to inform almost all areas of your marketing strategy. This may include what content you should be creating within your blogs and other content mediums, the types of stories you tell in your video and display advertisements, or even how you adjust your product lines to deliver what the consumer wants.

As an example, let's consider the content your marketing teams could create in the coming months. If you're a brand that specializes in products for men (like cufflinks, watches, or ties, for example), you might have a plan to create a bunch of blogs about gifting for men around certain holidays. Easy, right? Well it certainly can be with the right information.

When analyzing consumer search behavior, you might find that there are a lot of searches around anniversary gifts for husbands. But what exact keywords are consumers typing into google? Will “gifts for men on anniversary” receive more hits than “ideas for husband anniversary gift?” This subtle tweak in the way you use titles and keywords in your content could mean the difference between getting almost 10,000 site visitors or just above 1,000 from this content.

Sources of Consumer Behavior Data for Marketers

Consumer behavior insights can be derived through a variety of ways. They may come from analytics provided by your marketing or sales platforms, they may be a result of surveys, or they may come from your own analysis of publicly available data (such as search engine data). The more you understand your ideal customer, the better you can tweak your marketing efforts to woo those individuals.

In an increasingly digitally-driven world, many components of consumer behavior can be captured by analytics provided by the marketing channels you already use. For example, display ads, search ads, and website content contain a treasure trove of data. In these cases, clickthrough rates, page views, and site conversion activity can tell you a lot about what consumers do and don’t like…and what marketing content actually works.

But there's a large amount of consumer behavior data that is outside of a marketers' readily-accessible view, such as how consumers are engaging with competitors' websites–and how those sites' content influences consumer behavior in-turn. Analytics solutions that leverage competitive intelligence in combination with search behavior data have the ability to guide marketing strategies in a variety of ways. That’s exactly where DemandJump comes in. We save you time by automating the SEO keyword and competitive research based on consumer behavior.

To conclude, marketers who leverage the power of consumer behavior data automatically take giant steps forward in their race against competitors to reach their audience. If consumer behavior is not currently driving your marketing strategy, you may be missing out on important marketing opportunities right in front of you.

leveraging the power of consumer data in marketing

Discover Your Customers’ Complex Buying Behavior with DemandJump

If you'd like to see what your target audience cares about and what content they are most interested in consuming, DemandJump can help. Our reports give you data on what your customers are searching for, recommendations on how to better market to those audiences, and how your competitors are ranking in grabbing your audience’s attention. To simplify your content strategy and see how you stack up against competitors, get started with a free account today!

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The Importance of Understanding Consumer Behavior in Marketing

Author: Carolyn Menz Category: Social Media & Digital Date: June 19, 2020

Offering a great product or service is a good start to building a business, but it isn’t enough to sustain long-term sales. If you really want to make a splash in the market and set up your business for continuing success, the number one thing you can do is to make your customers feel like you really “get” them. And that starts with understanding consumer behavior .

Consumer purchasing behavior refers to the ways in which individual customers, groups or organizations select and buy goods and services to satisfy their wants and needs. It’s a multi-faceted type of research that incorporates psychology, economics and other areas of interest and answers the following questions:

What do consumers buy?
Why do they buy?
When do they buy?
How often do they buy?

Fully understanding consumer behavior also requires a bit of research into the types of consumer buying behaviors (i.e., shopping mostly online) that your customers exhibit, as well as the factors influencing consumer behaviors (busy moms with limited time to shop in physical stores).

Why is understanding consumer behavior important?

Understanding consumer behavior , and turning that data into actionable insights, helps you create a relationship of understanding and trust with your consumers, which can ultimately result in an increase in brand loyalty. It shows the consumer that you’ve done your homework, that you understand their wants and needs, and that you have the solutions they’re looking for.

Building that type of rapport with your audience is hugely valuable in securing and retaining a customer base. According to recent reports, 76% of consumers expect companies to understand their needs and expectations, and organizations that lead in customer experience outperform their competitors on the S&P 500 index by 80% . So, not only do consumers expect you to solve their problems, you also have to clearly communicate that you do, or else they’re likely to turn elsewhere.

What is the importance of consumer behavior ?

The importance of consumer behavior in marketing is far reaching. First and foremost, the insights you gain from studying and understanding consumer behavior will help you make informed choices about how to plan out your marketing strategy so that you reach your audience most efficiently. You’ll have a better grasp on the types of messaging to include on your website and social media platforms and in your advertising – in other words, the types of content that your audience is most likely to take notice of and respond to. Ultimately, it’s all about creating the right image for the right audience.

But it goes even deeper than that:

Consumer differentiation. While you may have already established a targeted demographic for your business, expanding your understanding of consumer behaviors can help you identify variations among your individual customers. Each new sub-group of consumers has its own unique characteristics that can then be targeted and marketed to more precisely.
Predicting marketing trends. Paying close, regular attention to consumer behavior can help you spot trends in their actions as they begin to emerge. The sooner you spot these trends, the more efficiently you can shift your marketing efforts to support them – ensuring you don’t waste precious resources on outdated information and, likewise, keeping you relevant and even ahead of the curve.
Identifying room for new products. Another thing the data allows you to keep an eye on is an opening for the development of new products or services. If your customers are consistently performing a particular behavior, or expressing needs that your business does not currently address, you may find that there’s room in the market for you to expand your offerings.

For help in better understanding the consumer behaviors of your own target audience, contact Paradigm Marketing & Design today. We’re here to help you show your customers that you’ve got exactly what they need.

Have questions? Contact us

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3.2: Factors That Influence Consumer Buying Behavior

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Learning Objectives

By the end of this section, you will be able to:

List and describe the cultural factors that influence consumer buying behavior.
Explain the social factors that impact consumer buying behavior.
Discuss the personal factors that influence consumer buying behavior.
Describe the psychological factors that influence consumer buying behavior.
Explain situational factors that impact consumer buying behavior.

Cultural Factors That Influence Consumer Buying Behavior

Why people buy isn’t always a straightforward question. Think about the last time you bought a car, a bike, or other item. Why did you buy that specific make and model? Was it because its sleek style made you feel good about yourself? Perhaps you bought a particular brand because someone in your family bought the same brand. These are just a couple of examples of some of the factors that influence consumer buying behavior. Let’s examine some others.

Cultural factors comprise a set of values or ideologies of a particular community or group of individuals. These can include culture, subcultures, social class, and gender as outlined in Figure 3.4.

Cultural factors include culture, subculture, social class, and gender.

Culture refers to the values, ideas, and attitudes that are learned and shared among members of a group. Human behavior is largely learned. When you were a child, you learned basic values, perceptions, wants, and behaviors from your family and other external influences like the schools and churches you attended. Consider how these values and attitudes have shaped your buying behavior. For example, in a traditional Hindu wedding in India, a bride may wear red lehenga to the wedding, whereas Christian brides typically wear white. In India, widows are expected to wear white, whereas widows in the United States and other parts of the world generally wear more somber colors to a funeral. 2

A subculture is a group of people, such as environmentalists or bodybuilders, who share a set of values. Ethnic and racial groups share the language, food, and culture of their heritage. Other subcultures, like the biker culture, which revolves around a dedication to motorcycles, are united by shared experiences. The Amish subculture is known for its conservative beliefs and reluctance to adapt to modern technology. Think about what subculture(s) you may belong to and how they influence your buying behavior. For example, hip-hop music has long been associated with fashion, particularly sneakers. Run DMC’s 1986 hit “My Adidas” led to the first endorsement deal between a fashion brand and a musical act, setting the stage for lucrative partnerships spanning the decades since—Master P with Converse , Jay-Z and 50 Cent with Reebok , Missy Elliott and Big Sean with Adidas , and Drake with Nike .

Link to Learning: Failures and Inspirations

Cultural factors play a major role in determining how best to market to consumers. There are numerous examples of company efforts that failed because they did not reflect an understanding of the culture in a particular market. Watch this CNBC video on why Starbucks failed in Australia and read this article about how Coca-Cola and PepsiCo failed when they first moved into the Chinese market.

Also check out this CNBC video about why 7-Eleven failed in Indonesia.

Failures are always important because they come with learned knowledge, and if you understand the WHY behind the failure, the learning can lead to shifts in strategy and possible success. Read the inspiring story behind Run DMC ’s revolutionary market deal with Adidas and how it opened the door for current artists like 50 Cent, Jay-Z, and Puffy.

For more success stories, check out these videos about numerous companies that got it right . Examples include stories from Rihanna’s Fenty beauty line, Adobe ’s “When I See Black” ad, Bumble ’s “Find Me on Bumble” campaign, and many more!

Your social class is also an important influence on your buying behavior. Sociologists base definitions of social class on several different factors, including income, occupation, and education. While there is disagreement on the number of social classes defined by income in the United States, many sociologists suggest five social classes: upper class, upper-middle class, lower-middle class, working class, and the economically disadvantaged. 3 Income is largely defined by disposable income (the money you have left to spend or save after taxes are deducted), but its influence goes beyond just dollars, euros, yen, etc. For example, a lower-middle-class individual might focus primarily on price when considering a product, whereas an upper-middle-class person might consider product quality and features before price. However, you also can be influenced by a social class to which you don’t belong but by which you want to be accepted. Have you ever spent money you really didn’t have on brand name running shoes or a designer purse because that’s what your friends have?

Finally, your gender plays an important role in your buying behavior. People of different genders not only want different products as a result of their upbringing and socialization, but they approach shopping itself with different motives, perspectives, and considerations. While it’s always dangerous to stereotype, those who identify as male typically follow a utilitarian, more logic-based approach when shopping. They want a quick, effortless shopping experience. Those who identify as female, on the other hand, make decisions on a more emotional level. Zappos considers these different motives and provides different layouts on their landing pages for different genders. While the “male” version focuses on providing clear navigation by product categories, the “female” version aims to sell on emotion. 4

Link to Learning: Behind the Gender Differences

Gender differences lead to different buying behaviors. Read this article about one such example, Birchbox , a hair care and skin care subscription service. For even more information, check out this article about the reasons for the differences , which include purpose, experience, brain make-up, and more. Interesting reads!

You can also watch this Gaby Barrios TED Talk. Barrios is a marketing expert who speaks about how targeting consumers based on gender is bad for business.

This humorous video from The Checkout, a TV show about consumer affairs, discusses gender marketing packaging decisions and their impact on your wallet.

Another video about fashion brands focuses on how their parent companies leverage gender strategies.

Careers In Marketing: Women in Marketing

Let’s look at gender from another angle—women advancing in marketing. Part of a series about jobs in marketing , this article examines equity in the world of marketing. Findings include data on gender balance and inequality, and guidance on ways to improve.

For an inspirational moment, be sure to read these heartwarming stories about six mothers of great marketers .

Social Factors That Influence Consumer Buying Behavior

Social factors are those factors that are prevalent in the society where the consumer lives. Every society is composed of individuals who have different preferences and behaviors, and these individuals influence the personal preferences of others in the society. Humans are social individuals, and the influences of people’s family, reference groups, and roles and status (refer to Figure 3.5) have a huge impact on their buying behavior.

Social factors that influence consumer purchasing behavior are family, reference groups, and roles and status.

Let’s first consider the influence of family . It is generally believed that most people pass through two families: a family of orientation (i.e., the family to which you were born or with whom you grew up) and a family of procreation (the family formed through marriage or cohabitation, including your spouse, partner, and/or children). Consider first the family of orientation. When you were growing up, whether or not you recognized it, you likely developed some degree of buying behavior through watching adult members of your household and probably tend to buy the same products or services as you grow older. Was your father a die-hard Chevy driver? If so, the chances are good that you’ll probably at least consider buying a Chevy, too. Now consider the influence that your spouse, partner, and/or children have on your buying behavior. You may want that Chevy pickup because that’s what your father drove, but your spouse or partner may subtly (or perhaps not so subtly) sway you toward a Chevy crossover SUV because it’s more practical with kids to transport to school, sports, and other activities.

Reference groups are those groups with which you like to be associated. These can be formal groups, such as members of a country club, church, or professional group, or informal groups of friends or acquaintances. These groups serve as role models and inspirations, and they influence what types of products you buy and which brands you choose. Reference groups are characterized by having opinion leaders—people who influence others. These opinion leaders aren’t necessarily higher-income or better educated, but others view them as having more expertise in a particular area. For example, a teenage girl may look to the opinion leader in her reference group of friends for fashion guidance, or a college student might aspire to getting an advanced degree from the same university as an admired professor. Social media influencers also play a role here. Consider the influence that celebrities like Kendall Jenner (with more than 217 million Instagram followers) 5 or Leo Messi (with over 310 million Instagram followers) 6 have on individuals.

All people assume different roles and status depending upon the groups, clubs, family, or organizations to which they belong. For example, a working mother who is taking classes at the local community college assumes three roles at varying times—that of an employee, a mother, and a student. Her buying decisions will be influenced by each of these roles at different times. When she is shopping for clothing, her purchases may be influenced by any or all of these roles—professional attire for the office, casual clothes for classes, or yoga pants for home.

Personal Factors That Impact Consumer Buying Behavior

Personal factors, such as your occupation, age and life cycle stage, economic situation, lifestyle, and personality and self-concept also play a major role in your buying behavior (refer to Figure 3.6). Let’s examine each of these in more detail.

Personal factors that influence consumer purchasing behavior are age, life cycle stage, economic situation, occupation, lifestyle, and personality or self-concept.

Age is a major factor that influences buying behavior because consumer needs and wants change with age. Your buying habits as a teenager or twentysomething are likely to be vastly different from your buying habits in middle age and beyond. Consider the four generational cohorts currently comprising the consumer market:

Baby boomers (born between 1946 and 1964) are currently in their 60s and 70s. This generational cohort is approximately 70 million people strong in the United States and accounts for $2.6 trillion in buying power, 7 so you can imagine its impact on the consumer market. What types of products would you expect baby boomers to buy? Key categories for this group of buyers include pharmacy and health care products, household goods and appliances, wine, books (both digital and physical), cosmetics, and skin care products. 8
Generation X (born between 1965 and 1979/80) are currently in their 40s and 50s. This cohort is approximately 65 million strong 9 and generally has more spending power than younger generational cohorts because they’re at or reaching the peak of their careers, and many Gen Xers are dual-income families. 10 This makes them an optimal target for higher-end brands and convenience-related goods, like made-to-order or prepared meals from the grocery store.
Generation Y , also known as Millennials , (born between 1981 and 1994/96) are currently in their 20s and 30s. This cohort is the largest generation group in the United States, with an estimated population of 72 million. 11 One interesting aspect of Millennial buying is that they shop sustainably. They shop for brands that produce items with natural ingredients and ethical production lines and sustainable goods in every sector, such as food, household cleaning products, linens, and clothes. 12
Generation Z , also known as Zoomers , (born between 1997 and 2012) are currently in their teens to early 20s, and they are just starting to have an economic impact on the consumer market. Although over 67 million strong, 13 many Zoomers are still in school and living with their parents, and their discretionary spending is limited.

Marketing in Practice: Marketing to the Ages

Knowing how to speak to your target market is critical. Knowing how to frame your message to a Baby Boomer versus a Gen Xer is what makes marketers successful. Want to know how to speak to each group? Check out these articles about marketing to different age demographics and generational marketing .

Learn from real-world examples of how age-agnostic marketing can work.

Have you ever seen a commercial or advertisement that pulls on your heartstrings because it gets you reminiscing? Nostalgia is an impactful tool in marketing because it gives a feeling of meaning and comfort. Check out this online blog to learn more about the impact of nostalgia in marketing.

Likewise, your life cycle stage has a major influence on your buying habits. Consider the different buying choices you would make as a single person who is renting an apartment in an urban area versus the choices you would make as a homeowner in the suburbs with children. It should be noted, though, that age and life cycle stage can often be poor predictors of buying behavior. For example, some 40-year-olds are just starting their families, while others are sending their kids off to college. Still other 40-year-olds are single (or single again). Some 70-year-olds may fit the stereotype of a retired person with a fixed income; others are still active or perhaps still working, with plenty of disposable income.

Your economic situation (income) is a huge influence on your buying behavior. Higher income typically means higher disposable income, and that disposable income gives consumers more opportunity to spend on high-end products. Conversely, lower-income and middle-income consumers spend most of their income on basic needs such as groceries and clothing.

Your occupation is also a significant factor in your buying behavior because you tend to purchase things that are appropriate to your profession. For instance, a blue-collar worker is less likely to buy professional attire like business suits, whereas attorneys, accountants, and other white-collar workers may favor suits or business casual work clothes. There are even companies that specialize in work clothes for certain types of workers, such as health care professionals who buy scrubs or construction workers who buy steel-toed boots.

Your lifestyle reflects your attitudes and values. What do you consider to be your lifestyle? Do you strive to live an active, healthy lifestyle? If so, your purchasing decisions may focus on healthier food alternatives instead of fast food. Do you consider yourself to be a soccer parent? You may (perhaps reluctantly) forgo that sports car for a minivan in order to transport your kids to youth sporting events or other activities.

Your personality and self-concept are also important factors influencing your buying behavior. Personality is the characteristic patterns of thoughts, feelings, and behaviors that make a person unique. It’s believed that personality arises from within the individual and remains fairly consistent throughout life. 14 Some examples of the many personality traits people might have include things like self-confidence, individualism, extroversion, introversion, aggression, or competitiveness. Your personality greatly influences what you buy as well as when and how you use or consume products and services.

Perhaps even more importantly, as consumers, people tend to buy not only products they need but also those products or services that they perceive as being consistent with their “self-concept.” In other words, they generally want the products they buy to match or blend in with who they think they are. 15

Psychological Factors That Influence Consumer Buying Behavior

Your buying choices are further influenced by several major psychological factors, including motivation, perception, learning, feelings, beliefs, and attitudes (refer to Figure 3.7).

Let’s first consider how motivation affects your buying behavior. Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. It’s the driving force behind your actions. One of the most widely known motivation theories is Maslow’s hierarchy of needs (see Figure 3.8).

A pyramid shows Maslow’s Hierarchy of Needs. Starting with the most basic at the bottom and moving up to the point of the pyramid, those needs are: physiological needs, safety needs, social needs, esteem needs, and self-actualization needs.

Abraham Maslow asserted that all individuals have five needs, arranged from the most basic lower-level deficiency needs to the highest-level growth needs. As Figure 3.8 shows, physiological needs are at the most basic level and include things like adequate food, water, and shelter. Think about how marketers may try to appeal to consumers based on physiological needs. For example, Snickers ran a very successful ad campaign based on the slogan “You’re not you when you’re hungry.”

The second level is safety and security, the need to be safe from physical and psychological harm. Once again, consider just a few successful marketing campaigns that have focused on safety—“You’re in Good Hands with Allstate ” and Lysol ’s “Practice Healthy Habits” campaign with its tagline “What It Takes to Protect.”

The third level is belonging, or social needs. This level includes things like the need for emotional attachments, friendship, love, or belonging to community or church groups.

Esteem, the fourth level, includes such needs as recognition from others, taking pride in your education or work, awards, and/or prestige.

The highest level is self-actualization, which involves self-development and seeking challenges. For example, Nike ’s “Find Your Greatness” campaign was intended to spark greatness in ordinary people, not just professional athletes.

Link to Learning: Examples of Maslow’s Five Needs

Check out this Snickers' “You’re not you when you’re hungry” commercial, which appeals to basic human physiological needs.

This Lysol “What It Takes to Protect” commercial appeals to the human needs for safety and security.

Consider this public service announcement (PSA) from the Ad Council that is dedicated to fostering a more welcoming nation where everyone can belong. How does it appeal to the human need for community and belonging?

One awesome esteem level example to check out is this one from Dove . Dove launched a campaign to boost female self-esteem and to celebrate female beauty in all shapes and sizes. The company also created “confidence-boosting boards” on Pinterest. The boards include self-esteem activities so girls and their parents can share words of encouragement.

Check out one of Nike’s commercials from the “Find Your Greatness” campaign. How does it appeal to the human need for self-actualization?

Maslow asserted that people strive to satisfy their most basic needs before directing their behavior toward satisfying higher-level needs, so it stands to reason that consumer buying behavior would follow this model. For example, you’d first have to fulfill your needs for food and shelter before you might consider putting money away for retirement or purchasing a home security system.

Link to Learning: Maslow and Marketing

Understanding Maslow’s hierarchy of needs will help you be an effective and impressive marketer. You’re going to see this model in many of your business courses, not just marketing, so take the time to learn about it. Check out this brief video that may help you understand how to use Maslow’s hierarchy of needs in marketing. Learn about why Maslow’s hierarchy of needs matters.

Perception is the way in which people identify, organize, and interpret sensory information. It’s another variable in consumer buying behavior because the perceptions you have about a business or its products or services have a dramatic effect on your buying behavior. What makes perception even more complex is that consumers can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention. Let’s take a closer look.

Every day, you’re bombarded with marketing messages from TV commercials, magazine and newspaper ads, billboards, and social media ads. As of 2021, it was estimated that the average person encounters between 6,000 and 10,000 ads every single day. 16 It stands to reason that you can’t possibly pay attention to all of the competing stimuli surrounding you, so you’ll pay attention to only those stimuli that you consider relevant to your wants and needs at the time and screen out the rest. That’s the process known as selective attention .

Marketing in Practice: When Bombarding Backfires

Bombarding consumers with marketing messages can cause more harm than good. According to this article from Marketing Dive , bombarding people with ads would negatively impact a brand. This article from the Advertising Association shares data that indicates bombardment and intrusiveness negatively impact perceptions of advertising.

How can you combat the issue? Quantcast outlines ways to avoid ad bombardment.

Careers In Marketing: It’s about Ability

Your personal brand will be a significant factor when it comes to finding a job. What does your personal brand say today? What is your marketing story? Is it what you want it to be? If not, what will you do to change it? The end-of-chapter content includes various ways to explore your personal brand to help you prepare for your job search.

How are you going to stand out among other candidates? What can you do with your résumé? According to Jason Shen’s TED Talk, you should highlight your abilities and not your experience. He speaks to potential and how you can make yourself more attractive to potential employers by telling a story in a compelling way.

According to the American Marketing Association (AMA) , you need to know yourself well. Self-knowledge will help you know the kind of work environment you perform best in and what kind of work you enjoy most. The AMA is a great place to learn how to stand out as a marketing job applicant , target companies, prepare your best résumé, and have a successful interview.

Check out these sources on how to stand out and ways you can beat the competition:

Freemanleonard : “How Marketers and Creatives Can Stand Out in Today’s Competitive Job Market”
Recruiter.com : “13 Tried-and-True Creative Tactics Candidates Have Used to Stand Out in Interviews”
Acadium : “Launch Your Digital Marketing Career: How to Stand Out as a Candidate”
Indeed: “8 Marketing Interview Questions to Expect”
Entrepreneur : “Building Your Brand Is How You Will Stand Out When Applying for a Job”
Smart Insights : “7 Tactics to Help You Stand Out as a Marketer and Get Better Jobs”
24 Seven : “10 Tips to Ace Your Next Marketing Job Interview”

If you want to go the extra mile in making yourself stand out, reach out to current marketers and ask them questions. You can find hundreds, even thousands, of current marketers on LinkedIn . Try targeting people from companies you’re interested in or would like to learn more about. Look for specific people who are doing jobs that interest you. Going to an interview armed with information is incredibly powerful and will speak volumes to your interviewer. Be sure to find a way to work your completed research into the interview conversation because it will speak to your drive, curiosity, and ambition—all traits every interviewer wants to hear about. This will also be another way you can stand out from others interviewing for the job. Questions you could ask current marketers in preparation for an interview include (but by no means are limited to):

What about you stood out in your interview process that made your current company hire you?
Can you tell me about examples of people you’ve interviewed and why they stood out to you?
How have candidates stood out when they spoke about their abilities in a job interview scenario?
What are your thoughts on candidates sharing a college project with you as a way to demonstrate abilities?
What advice do you have for me?

Be creative with your questions! Look online for other questions you could ask. Have fun!

Even the stimuli that people notice don’t always come across in the way in which the marketers intended. Selective distortion is the tendency of people to interpret information in a way that fits their preconceived notions. This was demonstrated years ago when PepsiCo launched its Pepsi Challenge blind taste test commercials. Participants were presented with two colas in unmarked plastic cups and asked to taste both colas and choose the one they liked better. Then the tester would lift a small screen to reveal the brand the participants preferred. In TV commercials that aired for years, Pepsi showed the stunned reactions of loyal Coca-Cola drinkers who had chosen Pepsi over Coke in the test. One grandmother in a commercial said, “I can’t believe it. I’ve never had a Pepsi in my life, but it must be better!” 17

People also tend to forget much of what they learn and to retain information that supports their preconceived attitudes and beliefs. That’s the power of selective retention , a bias by which you’re more likely to remember messages that are closely related to your interests, values, and beliefs rather than those that are contrary to those values and beliefs.

Beliefs, feelings, and attitudes also play an important role in consumer buying behavior. Beliefs are consumer perceptions of how a product or brand performs relative to different attributes. These beliefs are generally formed through personal experience, advertising, and conversations with others, and they play a vital role because they can be either positive or negative. You can even hold both positive and negative beliefs about the same thing. For example, you may believe that coffee is good for you because it helps you focus and stay alert, but you may also worry about the effect of coffee on your health and the way it stains your teeth. Human beliefs aren’t always accurate and can change according to the situation.

Consumer attitudes are a composite of a consumer’s beliefs, feelings, and behavioral intentions toward a product or service (see Figure 3.9).

Three different consumer attitudes are overlayed onto an arrow pointing to the right. Starting at the left, those attitudes are: beliefs, affects or feelings, and behavioral intentions.

We’ve already talked about beliefs, so let’s focus for a moment on affect, or feeling. Consumers often have certain feelings toward brands, products, or services. Sometimes these feelings are based on people’s beliefs, such as a vegetarian who can’t stand the thought of eating a hamburger, but you may also have feelings that are relatively independent of your beliefs. For example, someone who has strong environmentalist beliefs may object to clearing forests to make way for a housing development but may have positive feelings toward Christmas trees because they subconsciously associate these trees with the experience that they had at Christmas as a child.

The behavioral intention aspect of an attitude is what you as a consumer plan to do—buy the brand or not buy the brand. As with affect, this is sometimes a logical consequence of your beliefs but may sometimes reflect other circumstances. Consider a consumer who doesn’t particularly like a restaurant but will go there because it’s an after-class gathering spot with her friends. 18

Learning is still another important factor in consumer buying behavior. The fact is that consumer behavior is learned, and much of what you buy is based on your previous experiences with particular brands. This is commonly known as the Law of Effect , which asserts that, if an action is followed by a pleasant consequence, you’re likely to repeat it; if the action is followed by an unpleasant consequence, you’re less likely to repeat it. For example, let’s say you buy an Apple iPhone . If your experience with the iPhone is positive, you’ll probably be more inclined to buy another Apple product when you’re looking for a tablet or wearable. On the other hand, if you’ve had a not-so-positive experience with your iPhone, you’re likely to look at other brands when considering purchasing other devices.

Marketing in Practice: Lessons in Psychology

Psychology is a big part of marketing. Insight into your customers’ thinking will allow you to create marketing messages and stories that better speak to their needs. Learning, the process where customers acquire information they can apply to future purchases, is a foundational concept in marketing. Learn about the various types of learning and how they can impact marketing strategies from this Forbes article .

Situational Factors That Impact Consumer Buying Behavior

Situational factors influencing consumers are external (refer to Figure 3.10). These factors play an important role in how consumers experience a product and how these consumers’ opinions are formed.

Situational factors that affect consumer buying behavior are: environmental factors, life cycle stage, economic situation, occupation, timing, and mood.

Environmental factors such as music, lighting, ambient noise, and even smells can either discourage or encourage a consumer’s purchase decision. For example, researchers conducted a study on the effect of lighting on consumer purchases in a grocery store. They lit half the store with traditional fluorescent lighting and the other half of the building with LED lighting. Researchers conducted the study over 21 weeks and discovered that consumers bought 25 percent more products on the LED-lit side of the store. 19

Spatial factors also play a role. The way a product is displayed may make it seem desirable, but a crowded store or a long line at the cash register can suddenly make that same product seem less desirable. Think about it: Have you ever seen a long line to check out at the cash register and put the product you intended to buy back on the shelf because it simply wasn’t worth it to waste your time standing in line?

The Marketing in Practice feature box shows how sound and smell can affect consumers.

Marketing in Practice: Abercrombie & Fitch

As consumers, people usually don’t think twice about what a store smells or sounds like, the way it makes them feel or think, or what it makes them do. But Abercrombie & Fitch (A&F) thinks about it a lot (see Figure 3.11).

The company has its own line of men’s fragrances called “Fierce,” which is sprayed liberally in stores to give off what the company describes as a “lifestyle . . . packed with confidence and a bold, masculine attitude.” A&F knows who it wants in its stores, and by associating its fragrance with its stores, it creates a self-fulfilling prophecy for its male clientele who, by wanting to smell like A&F, will be like the models and sales staff in the store.

A&F also plays loud club music throughout its stores, attracting young people who can withstand loud music longer, while older customers may run from it. It’s just another way that A&F is enabling its stores to maintain a more youthful clientele and a “fresher” image. 20

Watch this video on Abercrombie & Fitch’s brand transformation for further insight on how A&F has positioned its retail brand Hollister as a global iconic teen brand and modernized the A&F brand to focus on young millennial consumers.

The social situation of shopping is another situational factor. Did you know that you’re more likely to stop to look at certain products when you’re in the company of a friend as opposed to a parent? The social aspect can even alter the price you’re willing to pay. You might be more inclined to purchase a more expensive product when you’re with a colleague or potential partner than you would if you’re with a friend or spouse. 21

The goal of your shopping trip is yet another situational factor. If you go to a store to look for a birthday present for your mother, your purpose is totally different than if you’re casually shopping for a new pair of shoes. The reason for shopping dictates the kinds of products customers are willing to interact with at that time and may cause them to bypass certain products they would normally interact with on another shopping trip. This is even true at the grocery store. You’ll interact with products differently if you’re on your weekly shopping trip versus simply going into the store because you’re out of milk.

Much like the purpose of your shopping trip, timing also influences your consumer behavior. If you’re in a rush because it’s Christmas Eve and you haven’t bought a present for your best friend yet, you’ll interact with fewer products than if you have hours to shop. Even if two people are looking for the same type of product, the one in a rush will probably end up with the most accessible product, whereas the leisurely consumer has time to weigh the price and quality of offerings.

Finally, your mood influences your buying behavior. Someone who is feeling sad or stressed interacts differently with products than a happy, relaxed shopper. The same can be said for someone who’s fatigued versus someone who’s full of energy.

Marketing in Practice: Situational Factors

There are many examples where companies use situational factors in their marketing approaches. Here are several online sites and specific articles:

Westin and the White Tea Signature Scent
The Aroma Trace : “Best Examples of Olfactory Marketing in Companies”
Sync Originals: “10 Brands That Made Music Part of Their Marketing DNA”
Omnify : “8 Simple Lighting Techniques That Boost Retail Sales”
Science News: “Does Background Noise Make Consumers Buy More Innovative Products?”
Journal of the Academy of Marketing Science : “Sounds Like a Healthy Retail Atmosphere Strategy: Effects of Ambient Music and Background Noise on Food Sales”

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

You’re at the shopping mall looking for a new pair of shoes when you smell the wonderful aroma of freshly baked pretzels. Before you know it, you’ve bought a giant pretzel with cheese sauce. What type of factors influenced your purchase?

Psychological factors
Social factors
Situational factors
Personal factors

Traditionally, in China, the bride’s wedding gown is red because the color is associated with good luck, happiness, and prosperity. Which influence on consumer buying behavior does this illustrate?

Social class
Personality

Jazmine purchases a wireless alarm system for her apartment. According to Maslow’s hierarchy of needs, which level of needs does this purchase reflect?

Physiological
Safety/security
Self-esteem

The tendency of people to interpret information in a way that supports what they already believe is known as ________.

cognitive dissonance
selective attention
selective retention
selective distortion

Attitudes are a composite of a consumer’s beliefs, feelings about, and ________ toward a product or service.

predispositions
behavioral intentions
preconceived notions
attributions

Understanding and shaping consumer behavior in the next normal

Months after the novel coronavirus was first detected in the United States, the COVID-19 crisis continues to upend Americans’ lives and livelihoods. The pandemic has disrupted nearly every routine in day-to-day life. The extent and duration of mandated lockdowns and business closures have forced people to give up even some of their most deeply ingrained habits—whether spending an hour at the gym after dropping the kids off at school, going to a coffee shop for a midday break, or enjoying Saturday night at the movies.

About the authors

This article, a collaboration between McKinsey and the Yale Center for Customer Insights, was written by Tamara Charm, Ravi Dhar, Stacey Haas , Jennie Liu, Nathan Novemsky, and Warren Teichner .

Such disruptions in daily experiences present a rare moment. In ordinary times, consumers tend to stick stubbornly to their habits, resulting in very slow adoption (if any) of beneficial innovations that require behavior change. Now, the COVID-19 crisis has caused consumers everywhere to change their behaviors —rapidly and in large numbers. In the United States, for example, 75 percent of consumers have tried a new store, brand, or different way of shopping during the pandemic. Even though the impetus for that behavior change may be specific to the pandemic and transient, consumer companies would do well to find ways to meet consumers where they are today and satisfy their needs in the postcrisis period.

Behavioral science tells us that identifying consumers’ new beliefs, habits, and “peak moments” is central to driving behavioral change. Five actions can help companies influence consumer behavior for the longer term:

Reinforce positive new beliefs.
Shape emerging habits with new offerings.
Sustain new habits, using contextual cues.
Align messages to consumer mindsets.
Analyze consumer beliefs and behaviors at a granular level.

Reinforce positive new beliefs

According to behavioral science, the set of beliefs that a consumer holds about the world is a key influencer of consumer behavior. Beliefs are psychological—so deeply rooted that they prevent consumers from logically evaluating alternatives and thus perpetuate existing habits and routines. Companies that attempt to motivate behavioral change by ignoring or challenging consumers’ beliefs are fighting an uphill battle.

The COVID-19 crisis, however, has forced many consumers to change their behaviors, and their new experiences have caused them to change their beliefs about a wide range of everyday activities, from grocery shopping to exercising to socializing. When consumers are surprised and delighted by new experiences, even long-held beliefs can change, making consumers more willing to repeat the behavior, even when the trigger (in this case, the COVID-19 pandemic) is no longer present. In other words, this is a unique moment in time during which companies can reinforce and shape behavioral shifts to position their products and brands better for the next normal.

When consumers are surprised and delighted by new experiences, even long-held beliefs can change, making consumers more willing to repeat the behavior.

For example, approximately 15 percent of US consumers tried grocery delivery for the first time during the COVID-19 crisis. Among those first timers, more than 80 percent say they were satisfied with the ease and safety of the experience; 70 percent even found it enjoyable. And 40 percent intend to continue getting their groceries delivered after the crisis, suggesting that they’ve jettisoned any previously held beliefs about grocery delivery being unreliable or inconvenient; instead, they’ve been surprised and delighted by the benefits of delivery.

Another example of changing beliefs involves at-home exercise. The US online fitness market has seen approximately 50 percent growth in its consumer base since February 2020; the market for digital home-exercise machines has grown by 20 percent. It’s likely that many people who tried those fitness activities for the first time during the pandemic believed that at-home exercise couldn’t meet their exercise needs. That belief has clearly changed for many of these consumers: 55 percent who tried online fitness programs and 65 percent who tried digital exercise machines say they will continue to use them, even after fitness centers and gyms reopen. To reinforce the new belief that online fitness can be motivating and enjoyable, NordicTrack, in a recent TV ad titled “Face Off,” shows that online workouts can foster the same friendly competition and connection that people look for when they go to the gym or attend in-person exercise classes.

An effective way to reinforce a new belief is to focus on peak moments—specific parts of the consumer decision journey that have disproportionate impact and that consumers tend to remember most. Peak moments often include first-time experiences with a product or service, touchpoints at the end of a consumer journey (such as the checkout process in a store), and other moments of intense consumer reaction.

Some companies have focused on enhancing the consumer’s first-time experience. Plant-based-meat manufacturer Beyond Meat, for instance, was already benefiting from delays in meat production in the early days of the COVID-19 crisis: its sales more than doubled between the first and second quarters of 2020. In collaboration with local restaurants and catering companies, the company has been delivering free, professionally prepared food to hospitals and other community centers. By giving away Beyond Burgers prepared by professional chefs, Beyond Meat is creating positive first experiences with its product at a time when consumers are more open to trial.

As the consumer journey has changed, so have the peak moments, and it’s crucial for companies to identify and optimize them. For example, a peak moment in a grocery store might be the discovery of an exciting new product on the shelf. In the online-grocery journey, however, a peak moment might instead be on-time delivery or the “unboxing” of the order (the experience of taking the delivered items out of the packaging). Grocers could consider including a handwritten thank-you note or some other surprise, such as a free sample, to reinforce consumers’ positive connections with the experience.

Highly emotional occasions can spark intense consumer reactions and therefore present an opportunity for companies to create peak moments associated with their products or brands. For example, when graduations shifted from formal, large-scale ceremonies to at-home, family celebrations, Krispy Kreme offered each 2020 graduate a dozen specially decorated doughnuts for free. With that promotion, the company connected its brand with an emotional event that may not have been a key occasion for doughnuts prior to the pandemic.

Shape emerging habits with new products

Companies can nudge consumers toward new habits through product innovation. For instance, the COVID-19 crisis has spurred consumers to become more health oriented and increase their intake of vitamins and minerals. Unilever reported a sales spike in beverages that contain zinc and vitamin C, such as Lipton Immune Support tea. The company is therefore rolling out such products globally. It’s also aligning its innovation priorities with consumers’ emerging health-and-wellness concerns.

Similarly, packaged-food companies can encourage the habit of cooking at home. Spice manufacturer McCormick’s sales in China have sustained double-digit increases compared with 2019, even as the Chinese economy has reopened and people go back to their workplaces. The same pattern could play out in other countries. Kraft Heinz’s innovation agenda for its international markets now prioritizes products that make home cooking pleasurable, fast, and easy—products such as sauces, dressings, and side dishes. These will be targeted at “light” and “medium” users of Kraft Heinz products.

Sustain new habits, using contextual cues

Habits can form when a consumer begins to associate a certain behavior with a particular context; eventually, that behavior can become automatic. To help turn behaviors into habits, companies should identify the contextual cues that drive the behaviors. A contextual cue can be a particular task, time of day, or object placement. For example, more consumers are keeping hand sanitizer and disinfecting wipes near entryways for easy access and as a reminder to keep hands and surfaces clean. Product packaging and marketing that reinforces the put-it-by-the-door behavior can help consumers sustain the habit.

Some companies may need to identify—and create—new contextual cues. Before the COVID-19 crisis, a contextual cue for chewing-gum consumption was anticipation of a social interaction—for instance, before going to a club, while commuting to work, and after smoking. As social occasions have waned during the pandemic, a chewing-gum manufacturer must look for new contextual cues, focusing largely on solo or small-group activities, such as gaming and crafting. Gum manufacturers could consider designing packaging, flavors, and communications that reinforce those new associations.

Align messages to consumer mindsets

People across the country have felt an intensified mix of anxiety, anger, and fear because of recent events, making marketing a tricky terrain to navigate. The heightened emotions and increased polarization of the past few months could drive lasting changes in consumers’ behavior and shape their long-term preferences. Companies should therefore ensure that all their brand communications are attuned to consumer sentiment. The quality of a company’s communication and its ability to strike the right tone will increasingly become a competitive advantage.

McKinsey’s consumer-sentiment surveys show that consumers are paying closer attention to how companies treat their employees during this crisis—and taking note of companies that demonstrate care and concern for people. That has implications for how brands connect with consumers and what types of messages will resonate. Hair-care brand Olaplex, for example, became one of the most mentioned hair-care brands on social media when it started an affiliate program: the company donated a portion of its proceeds from product sales to customers’ local hairstylists, helping them stay afloat during salon closures.

That said, consumers will see through—and reject—messages and actions that are performative and that seek to commercialize social issues. A brand’s communications must align with its purpose ; otherwise, the messages won’t ring true. Testing marketing messages among a diverse group of consumers, in the context in which those messages will appear, could help prevent costly missteps.

Analyze consumer beliefs and behaviors at a granular level

Consumer beliefs, habits, occasions, and emotional-need states will continue to evolve rapidly over the next year or two as the world awaits a COVID-19 vaccine. For consumer companies to stay abreast of those changes, monitoring product sales alone won’t be sufficient. Companies must also conduct primary consumer-insights work, with a focus on identifying changed behaviors and associated changed beliefs and motivators to get a comprehensive picture of the changing consumer decision journey.

Qualitative, exploratory research will have a particular role to play as a precursor to (and, in some cases, a substitute for) quantitative research. Digital data-gathering and monitoring techniques—such as mobile diaries, social-media “listening,” and artificial-intelligence-driven message boards—will be vital tools to help companies understand emerging behaviors and contextual cues. When structured well, those insights generate new thinking within an organization that can be validated through larger-scale surveys and in-market testing. Companies can then refine their product offerings and marketing messages accordingly.

In addition, granular analyses of footfall data and omnichannel sales will unearth telling details, such as which geographic regions are seeing in-person commerce rebound first and which products consumers are buying (such as smaller pack sizes to avoid sharing, activewear versus office wear, and so on). Whereas in the past, companies might have fielded high-level usage and attitude surveys and brand trackers a few times a year, it’s especially important now for companies to keep a closer eye on the evolution of consumer behavior on a weekly or monthly basis.

The COVID-19 crisis has changed people’s routines at unprecedented speed—and some of those changes will outlast the pandemic. Even in states and cities that have reopened, consumers remain cautious about resuming all of their precrisis activities. We’ve seen differences in consumer behavior across geographic markets and demographic groups, and those differences will only widen during the recovery phase, given that the health, economic, and social impact of COVID-19 isn’t uniform. Companies that develop a nuanced understanding of the changed beliefs, peak moments, and habits of their target consumer bases—and adjust their product offerings, customer experiences, and marketing communications accordingly—will be best positioned to thrive in the next normal.

Tamara Charm is a senior expert in McKinsey’s Boston office; Ravi Dhar is director of the Center for Customer Insights at the Yale School of Management; Stacey Haas is a partner in McKinsey’s Detroit office; Jennie Liu is executive director of the Yale Center for Customer Insights; Nathan Novemsky is a marketing professor at the Yale School of Management; and Warren Teichner is a senior partner in McKinsey’s New Jersey office.

This article was edited by Monica Toriello, an executive editor in the New York office.

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67 mobile marketing statistics: unlocking the power of mobile advertising.

Mobile marketing statistics offer invaluable insights for crafting impactful mobile marketing strategies in the rapidly evolving digital landscape. With over 67 comprehensive mobile marketing statistics, this guide provides insights into the power of mobile advertising. The importance of these statistics cannot be overstated, as they offer a clear look at the most important mobile marketing tips and emerging growth strategies.

The Rising Importance of Mobile Marketing

The ascendancy of mobile marketing is a testament to the ubiquity of mobile devices in our daily lives. With over 5 billion unique mobile phone users worldwide, the integration of mobile apps into marketing strategies has become not just advantageous but essential. Mobile marketing statistics reveal a staggering engagement rate, with users checking their devices 63 times daily on average.

This constant connectivity offers marketers an unprecedented opportunity to reach audiences where they are most attentive. Consequently, a robust mobile marketing strategy is no longer a luxury—it’s a cornerstone of modern business, driving growth and fostering intimate connections with consumers at every swipe, tap, and scroll.

Mobile Device and Mobile Phone Usage and Penetration Rates

5.35 billion people are using the internet in 2024, equating to 66.2 percent of the world’s total population.
Internet users have grown by 1.8 percent over the past year, with 97 million new users coming online for the first time during 2023.
In 2024, an estimated 56% of global internet traffic will originate from mobile devices, while desktops will contribute 39%.
The remaining 5% of global internet traffic in 2024 will be attributed to emerging technologies like smart TVs and IoT devices.
Mobile devices accounted for 49.78% of all web visits, while desktops made up the remaining 50.22%.
Over one year, mobile users’ share increased by 5%.
In 2022, mobile phones generated 60.66% of website traffic, while desktops and tablets were responsible for 39.34%.
55% of page views in 2021 came from mobile phones.
More than half of all video views come from mobile devices.
Phone-based CPCs cost 24% less than desktops while having a 40% higher CTR .

Mobile Marketing Effectiveness

In 2022, mobile advertising spending reached a record of 327.1 billion U.S. dollars worldwide.
This figure marked an increase of 17.2 percent compared to the previous year.
According to the latest data, spending will amount to nearly 399.6 billion by 2024.
Most marketers reported that mobile devices were responsible for more than half of their annual traffic.
The average website has a bounce rate of 37% and an SEO click-through rate of 13%.
70% of marketers believe that A/B testing is essential to boost conversion rates.
40% of consumers are seen to abandon their carts if an app isn’t mobile-friendly.
There are over 3.5 million apps in the Google Play Store.
Google accounts for over 95% of global mobile search market share.

Mobile Marketing Statistics: Consumer Behavior and Preferences

88% of mobile time is spent on apps.
40% of consumers will abandon their carts if your app isn’t mobile-friendly.
48% of customers say if a website or app isn’t mobile-friendly, it’s a clear indication that the business doesn’t car.
88% of online shoppers won’t return to a site after a bad user experience.
The number of mobile users will reach 292 million next year.
First-time app installation globally will touch 183.7 billion in 2024 .
21% of Millennials open an app 50+ times per day .

Mobile Browsing and App Usage on Mobile Devices

Mobile app downloads worldwide from 2016 to 2023 (in billions).
Number of mobile app downloads worldwide from 2019 to 2027 by segment (in million downloads).
Number of Apple App Store and Google Play mobile app down loads worldwide from 3rd quarter 2016 to 1st quarter 2023 (in billions).
Mobile app downloads worldwide from 1st half of 2019 to 1st half of 2023 (in billions).
Mobile app usage will grow at a CAGR of 20% from 2021 – 2024.
The number of mobile users will reach 292 million next year .
The click-through rate (CTR) for in-app ads is 0.56% globally, compared to the 0.23% that mobile web ads see.
The average American checks their phone 262 times per day.
In 2021, in-app advertising reached a whopping $201 billion.

Consumer Preferences for Mobile Ads on Mobile Phones

Global mobile ad spending reached $362 billion in 2023 , an 8% increase over the previous year, driven by revenue from short-form video and video-sharing apps.
Mobile ad spending is projected to hit $402 billion in 2024, an 11% year-over-year increase.
The global revenue of customer experience personalization and optimization software is projected to surpass 9.5 billion U.S. dollars by 2024.
Many companies are already spending more than half of their budgets on personalization efforts today.
90% of leading marketers say personalization significantly contributes to business profitability.
Personalization is appreciated by 69 percent of customers as long as it is based on data they have explicitly shared with a business.
80% of consumers will share personal data in exchange for deals or offers.
74% of eCommerce companies have a website personalization program.
The recommendation engine market size is projected to hit $12 billion by 2025.

SMS Marketing Statistics

87% of businesses that text report their digital marketing is successful.
91% of business owners and marketing managers say they see higher conversion rates with integrated marketing campaigns that include SMS.
Most businesses have an average SMS marketing click-through rate between 21 and 35%.
Customer satisfaction surveys and customer service are the primary reasons why businesses are using SMS marketing in 2024 .

SMS Marketing Adoption and Effectiveness

In 2024, 80% of businesses use SMS marketing software to text their customers.
Nearly 70% of businesses will increase their SMS marketing budgets in 2024.
Businesses that text customers are 683% more likely to report digital marketing success than businesses that don’t use text messaging.

SMS Marketing Best Practices

The average opt-out rate for businesses is between 1 and 2%.
Businesses say that 11-20% of their revenue can be attributed to SMS marketing.
81% of consumers check their text notifications within just five minutes of receiving a text.

Mobile Advertising Formats and Trends

The global in-app advertising market is forecasted to reach $352.70 billion in 2024.
Digital video advertising was expected to attract $80.1 billion in spending worldwide in 2021, and this expenditure is projected to increase to $120 billion by 2024.
In 2023, digital video ad spending amounted to almost $176.63 billion.
In 2024, predictions are that TikTok will surpass Facebook and Instagram as the most popular social platform for marketing videos.

Mobile Video Advertising Statistics

In 2024, the global native advertising market is expected to cross $100 billion.
The United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom.

Native Ads and In-App Advertising Statistics

By 2025, the global native advertising market is expected to reach $402.33 billion.
Native ads are viewed 53% more frequently than traditional display ads.
Native ads generate an 18% higher lift in purchase intent and a 9% lift in brand affinity responses as compared to banner ads.
The click-through rate (CTR) for native ads is 0.16% on desktop and 0.38% on mobile, which is a significant feat compared to 0.11% for traditional banner ads.
75% of customers trust editorial sites, while only 54% of them trust social media. The audience is more likely to trust the native ads on editorial sites (68%) as compared to social media ads (55%).

The Future of Mobile Marketing

As we gaze into the horizon of mobile marketing, the future seems poised for transformative growth, driven by mobile usage statistics that underscore the centrality of mobile devices in consumer lives. The industry is bracing for a surge in mobile traffic and mobile searches, with predictions that mobile ad spend will skyrocket, eclipsing traditional advertising mediums. Innovations in mobile apps and mobile ads are expected to become more personalized, interactive, and seamlessly integrated into user experiences. The data paints a clear picture: businesses that adapt to these trends, fortifying their mobile marketing strategy with data-driven insights, will not only survive but thrive in the competitive digital ecosystem of tomorrow.

Emerging Mobile Marketing Trends

The landscape of mobile marketing is undergoing significant transformations, driven by the evolving ways in which consumers use their mobile devices. As we delve into this dynamic field, several key trends stand out for their potential to reshape how brands engage with audiences through mobile platforms:

Augmented Reality (AR) Integration : AR technology is becoming increasingly prevalent in mobile marketing, offering interactive and immersive experiences directly from users’ smartphones. This can range from virtual try-ons for products like glasses and makeup to interactive games that bring brand characters to life in the user’s environment.
Artificial Intelligence (AI) Advancements : AI is playing a crucial role in personalizing user experiences on mobile devices. Through machine learning algorithms, mobile apps can deliver personalized content, product recommendations, and even predictive search functionalities, enhancing user engagement and satisfaction.
Location-Based Marketing (LBM) : Utilizing GPS and other location-sensing technologies, LBM delivers advertisements and content that are relevant to the user’s current location. This could include special offers from nearby stores, local event promotions, or location-specific app functionalities.
Voice Search Optimization : With the growing use of voice assistants on mobile devices, optimizing for voice search is becoming increasingly important. This involves ensuring that content is easily discoverable and accurately interpreted by voice search algorithms, facilitating a seamless user experience.
Mobile Commerce (M-Commerce) Enhancement : As more consumers turn to their mobile devices for shopping, brands are optimizing their mobile sites and apps for e-commerce. This includes streamlined checkout processes, mobile payment integration, and personalized shopping experiences.
5G Technology Impact : The rollout of 5G is set to significantly boost mobile marketing capabilities by enabling faster load times, higher quality video streaming, and more reliable connections. This can enhance mobile ad delivery and engagement, particularly for data-intensive formats like video and interactive content.
Social Media Shopping Features : Social platforms and influencer marketing agencies are increasingly integrating shopping functionalities, allowing users to make purchases directly through the app. This blurs the lines between social media browsing and online shopping, creating new opportunities for targeted mobile marketing campaigns.
Sustainability and Ethical Marketing : Consumers are becoming more conscious of environmental and ethical issues, leading to a rise in brands emphasizing sustainability in their mobile marketing. This can include promoting eco-friendly products, sustainable practices, or charitable initiatives within mobile content and ads.

These trends highlight the rapid innovation within mobile marketing, underscoring the importance of leveraging new technologies and consumer insights to create engaging, effective, and personalized mobile experiences. As these trends continue to evolve, they will play a pivotal role in shaping the future of mobile marketing, pushing brands to adopt more sophisticated and user-centric strategies.

The Role of Innovation in Mobile Marketing

Innovation in mobile marketing is not just about staying current; it’s about leading the charge in a world dominated by smartphone usage statistics. The fusion of new technologies, platforms, and strategies is reshaping the realm of mobile advertising, making relevant mobile marketing statistics more crucial than ever. As mobile statistics continue to show an upward trend in device penetration and usage time, marketers are compelled to innovate or risk obsolescence. From leveraging data analytics for personalized ad experiences to exploring the potential of 5G networks for instant connectivity, innovation is the driving force that propels mobile marketing statistics into new frontiers of customer engagement and business growth.

FAQs: Mobile Marketing Statistics

Why is mobile marketing becoming more important for businesses.

Mobile marketing is on the rise due to the pervasive use of mobile devices globally. With over 5 billion unique mobile phone users worldwide, leveraging mobile apps for marketing has become essential. Our mobile marketing statistics reveal that users check their devices 63 times daily on average, offering a prime opportunity for businesses to engage with their target audience effectively.

What are the most effective mobile marketing channels and strategies?

The most effective mobile marketing channels and strategies vary, but our data suggests that personalized advertising, particularly through mobile apps, yields significant results. Additionally, integrating augmented reality (AR) and artificial intelligence (AI) into mobile marketing efforts can enhance engagement and drive conversions.

How does SMS marketing fit into the overall mobile marketing landscape?

SMS marketing remains a relevant and effective tool in the mobile marketing landscape. Our statistics show that 87% of businesses using text messaging report successful digital marketing outcomes. SMS marketing is particularly impactful for customer satisfaction surveys, customer service, and integrated marketing campaigns.

How do mobile marketing strategies differ for B2B and B2C businesses?

Mobile marketing strategies can differ significantly for B2B and B2C businesses based on their target audience and objectives. Not tailoring your strategy to your specific type of business and industry is among the top mobile marketing mistakes a business can make. While B2C businesses may focus more on engaging content through mobile apps and social media, B2B businesses might prioritize lead generation and relationship-building through personalized email campaigns and professional networking apps.

What are the key performance indicators (KPIs) for mobile marketing campaigns?

Key performance indicators (KPIs) for mobile marketing campaigns include app downloads, click-through rates (CTR), conversion rates, customer engagement metrics, and mobile marketing ROI . Monitoring these metrics allows businesses to assess the effectiveness of their mobile marketing efforts and make data-driven decision.

What are the best tools and platforms for managing mobile marketing campaigns?

Several tools and platforms are available for managing mobile marketing campaigns, including mobile advertising platforms, SMS marketing software, analytics tools, and customer relationship management (CRM) systems. Choosing the right tools depends on specific campaign objectives, target audience, and budget constraints.

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To create and retain customers though online stores. Professor Theodore Levitt says that consumer behaviour is of most importance to marketers in business studies as the main aim is to create and retain customers (Kumar, 2004). If the consumers are satisfied with the product, he or she will buy the same product again.
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67 Mobile Marketing Statistics: Unlocking the Power of Mobile Advertising
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