Customer behavior plays a vital role in the Marketing strategies of every Business. Focusing on researching specific Customer behaviors helps optimize product advertising campaigns and build Brands more effectively. But what is Customer behavior? Let’s explore it in this article!

1. What Is Customer Behavior?

Customer behavior is simply how they interact with a Business’s products, services, and marketing campaigns. It’s based on thoughts, perceptions, and habits formed through past shopping and experiences. However, Customer behavior can change based on interactions with new information and stimuli. Customer behavior can involve receiving, using, or discontinuing the use of products or services.

Studying Customer behavior is the process of researching, selecting, using, and evaluating products and services, including emotional reactions, attitudes, and consumer behavior. This behavior depends on psychological, social, and economic factors that consumers face, changes over time, and interacts with the surrounding environment.

What Is Customer Behavior?

What Is Customer Behavior?

2. Classifying Customer Behavior

2.1. Routine Response Behavior

Brand recognition plays a significant role in this shopping behavior. Customers often prefer to buy products from Brands they are familiar with and have experienced before. For example, when choosing a beverage, consumers easily select a familiar or favored Brand. Typically, this behavior doesn’t require much thought.

2.2. Limited Decision Making

Consumer purchasing behavior that isn’t frequent, moderate in scale, usually falls under limited decision making. In this case, buyers need to conduct research, carefully consider, and think before making a decision. For example, a customer considering purchasing a new car will engage in limited decision-making by researching online, setting a budget, accepting feature limitations, researching associated costs, prioritizing savings, and exploring flexible financing solutions. This helps them make a well-considered purchase decision.

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Các quyết định mua không thường xuyên

Các quyết định mua không thường xuyên

2.3 2.3 Decision to Expand

“Decision to expand behavior” is the process in which customers consider and decide to purchase or use additional products, services, or options after they have already purchased the original product or service from a specific Brand. This often occurs after customers have had a positive experience with the basic product or service and want to expand their experience or leverage additional value from the Brand.

For example, John is a music enthusiast who owns basic headphones. After being dissatisfied with the sound quality, he conducts research and compares various high-end headphones. John makes the decision to purchase new headphones from a reputable Brand, satisfying his passion for music with a better experience.

2.4 Impulse Buying Behavior

Impulse buying is not planned in advance. It is a form of shopping done impulsively and without careful consideration. Typically, it lacks theory and occurs right at that moment. For example, if you are waiting in line to buy lunch and see a beautifully packaged candy bar within reach, you might quickly grab and buy it without much thought.

Impulse Buying Behavior

Impulse Buying Behavior

3. Factors Influencing Customer Behavior

Customer behavior is often influenced by various factors. Marketers need to understand consumer shopping models and track their buying trends. However, Brands typically only have the ability to influence Customer behavior through factors they can control. So, what factors can drive consumer conversion? Below are four types of factors influencing Customer behavior:

3.1 Value Factors

Product or service value: Customers will decide to purchase or use a product or service if they perceive its value to be worth the investment. If the product or service provides higher benefits compared to its price, customers are more likely to shop or use it more.

Value Factors

Value Factors

3.2 Quality Factors

The quality of a product or service plays a crucial role in a customer’s purchasing decision. If a product or service delivers enough quality to meet the needs and expectations of customers, they are more likely to become loyal customers.

3.3 Brand Factors

The Brand and reputation of a company or product can have a significant impact on customer decisions. A Brand with a positive reputation and respect often attracts more customers.

Brand Factors

Brand Factors

3.4 Experience Factors

When customers have a positive experience with a product or service, they are more likely to become loyal customers. Service experience, interaction with staff, and the shopping process can all influence buying behavior.

3.5 Personal Factors

Each customer has unique needs and expectations. This factor depends on their individual circumstances, finances, and goals. This can alter the shopping decisions of each customer.

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3.6 External Influence Factors

Family and friends can have a significant impact on a customer’s shopping decisions. Recommendations from close acquaintances can encourage them to shop or use a product or service.

Yếu tố từ tác động xung quanh

Yếu tố từ tác động xung quanh

3.7 Marketing Factors

Family and friends can have a significant impact on a customer’s shopping decisions. Recommendations from close acquaintances can encourage them to shop or use a product or service.

3.8 Economic Situation

The economic and personal financial situation can influence a customer’s ability and intention to shop. When finances are stable, they are more likely to shop more.

3.9 Convenience Factors

Convenience in shopping and using a product or service is also an important factor. If the shopping and usage process is easy and hassle-free, customers are more likely to continue shopping and using.

4. 9 Benefits of Customer Behavior Research

4.1 Brand Positioning

The race in advertising and communication to occupy a prominent place in the minds of target customers is one of the fiercest battles in today’s era. In the abundance of information, understanding customers is the best way a Business can align with their perspectives. Customer behavior research helps the Brand accurately identify the points that consumers care about, make them feel connected to the product or Brand, and stimulate their purchasing decisions.

Brand Positioning

Brand Positioning

4.2 Customer Understanding

Conducting Customer behavior research has the significant benefit of helping Businesses gain a deeper understanding of their customers. This allows for the customization of products and services, the development of effective marketing strategies, the building of long-term relationships, the improvement of the customer experience, and the prediction of future trends. In summary, understanding Customer behavior helps Businesses provide better value and create sustainable Business opportunities.

4.3 Improving Product and Service Quality

Understanding Customer behavior brings many benefits, among which improving the quality of products and services is a highlight. By understanding the needs and expectations of customers, Businesses can adjust and optimize products and services to better meet them. Evaluating feedback from customers helps them enhance strengths and address weaknesses.

Through Customer behavior research, Businesses also develop effective marketing strategies and build long-term relationships with customers. In conclusion, Customer behavior research contributes to delivering high-quality products and services, providing real value, and strengthening a Business’s competitive position in the market.

Improving Product and Service Quality

Improving Product and Service Quality

4.4 Seizing Business Opportunities

From researching past consumer behavior, marketers will have accurate statistical data on sales volume, website traffic, success and rejection rates of transactions, as well as customer shopping times. Based on this information, Customer behavior research helps Businesses capture new emerging needs from customers, thereby developing additional Business opportunities.

4.5 Crafting Appropriate Business Strategies

Customer behavior research helps marketers gain a deeper understanding of the evolution of customer perceptions, psychology, and thinking towards products and Brands. Specifically, this research helps answer critical questions such as: What do customers care about? How do they evaluate your product compared to competitors? Where do they seek information, and how? How do they behave on your website? Understanding these aspects allows you to propose solutions to improve and adjust communication and marketing strategies, optimizing your Business’s performance.

4.6 Increasing Customer Loyalty

When understanding the characteristics of Customer behavior, marketing experts can develop optimal strategies to satisfy their needs and desires for the product. This helps build Brand loyalty, increase favoritism, and enhance opportunities for sales and word-of-mouth marketing.

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Increasing Customer Loyalty

Increasing Customer Loyalty

4.7 Enhancing Competitive Position

Businesses will gain a deeper understanding of Customer behavior, which can lead to the development of optimized Business strategies and products. As a result, products become more aligned with customer needs and desires, possibly even surpassing their expectations. Moreover, this also helps Businesses create unique and differentiated products or services, making them stand out from competitors. Customer behavior research is not only applicable to products but also to advertising and communication campaigns, contributing to the success and sustainable growth of the Brand.

4.8 Predicting Revenue and Consumer Trends

Another benefit of Customer behavior research is forecasting revenue for the Business. By using data on past Customer behavior, marketers can estimate and predict the company’s sales volume in the future. Experts often believe that these figures are typically based on the overall market value. Sales forecasting can be done in two ways: based on quantitative forecasting, predicting the quantity of products sold based on past Customer behavior, and based on qualitative forecasting, using expert opinions.

4.9 Personalizing User Experiences for Specific Audiences

Customers today have higher expectations when choosing products and services. Personalizing the user experience and content tailored to customers has the potential to increase marketing campaign effectiveness by up to 30% and save up to 15% of the budget. So, how can content be personalized? The analysis of Customer behavior plays a crucial role in helping Businesses gain a better understanding of their target audience. By categorizing customers into groups based on similar behavior, Businesses can optimize products, services, and policy designs that are suitable for each specific customer group.

Personalizing User Experiences for Specific Audiences

Personalizing User Experiences for Specific Audiences

5. Accessing and Researching Customer Behavior with Kompa

Kompa is one of the pioneers in integrating AI and building a data culture for Businesses. Kompa is fully capable of providing timely and feasible data solutions for Businesses. Kompa’s data solutions help Businesses integrate, analyze, and evaluate consumer behavior comprehensively.

By applying data technology (AI, machine learning) on big data platforms, Kompa provides data analytics solutions and equips customers with valuable information to optimize their Business operations in communication and Branding.

Kompa has been partnering with hundreds of large and small Businesses in Vietnam for over 10 years, including Vingroup, Masterise Homes, Vinamilk, SSI, MB bank, Tân Hiệp phát, Shopee, Vietjet Air, and more.

In Conclusion

Through this article, we have seen the importance of and factors influencing Customer behavior. Furthermore, the benefits of consumer behavior research also help Businesses increase the success rate of marketing campaigns, ensuring sustainable development and competitiveness in the market.

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