Understanding Customers Assignment Sample

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Introduction

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Understanding and knowing the needs of a customer is the key point for establishment of a successful business that can be in case of direct approach towards customers through sells or any kind of business (Hornik and Zakay, 1996). Once, a business person inculcate their knowledge, they can easily enhance the potential which will allow the existing customers to purchase the goods or services on a surplus amount due to growing interests on the available goods and services (Sousa, and Rodrigues, 2019). Along with understanding customers one must also have knowledge regarding their competitors in the market and for that a company can follow few steps like- using the source of alliances in the market for research to gain the 360-degree view through the medium of surveys or reaching out to online data, coming up with questions like- who is the customer? what does customer want to buy? The particular place or area customer mostly access to, the payment making procedure and what cost the customers are willing to pay for a service (Jisana, 2014). Identifying important customer segments, evaluate the source of motivation, go through a process of competitive analysis and lastly must keep an eye on indirect competitors.

Contemporary Perspective on consumption

People born in an era of advanced cyber world are highly addicted to the reach of internet even while making decision for making a purchase of any good or services (Cohen, Prayag, and Moital, 2014). There are few features of modern customers such as supremacy of consumer, maintaining a constant connection with customers, tendency of customers to compare products on global platform for attaining best quality, customer prioritize the procedure of direct interactions, customers have an tendency of “I want it now”, modern customers are highly opinionated. Factors that put an effect on the perspective of consumption are-

Conspicuous type of consumption

In this type people usually look for such goods and services that provide gratification to their psychological and factors including the safety needs of an individual. Although, few people love to showcase their capital strength, class and status in social strata which enhance the factors for production.

Consumption hikes due to brand value

There are some products which are popular in the market and are high on demand just because of their brand value which defines the luxurious quality of the products and services, which becomes a point of attraction for and enhance customer interest in purchasing the products and services (Kastanakis and Balabanis, 2014). These, kinds of products also help few customers to hold up their status in a high-class society.

Addictive Consumption

Sometimes people get addicted to goods and products due to amount of satisfaction derived from the utilization of product, which even leads to such a stage where customers even does not get bothered about the cost imposed on the products as they are addicted and dependent on the product for attaining satisfaction of their needs.

Individual Decision-Making and Involvement

Decisions made by an individual always reflect the choices made by them, which is different in case of group decision making as many individuals are involved for examining the problems, find alternatives and comes up with best outcomes (Menne and Whitlatch, 2007).

Characteristics of decision making

• Mental and intellectual process

Decision making is regarded as mental and intellectual process, while taking decision a person thinks logically for a rational outcome for which one must utilize intelligence, their knowledge about the goods, their experience, and psychological condition of an individual.

• An indicator of commitment

Decisions making always comes with a responsibility of accepting the result derived from the decision, which can be good or bad depending as per there experience. 

• Continuous and dynamic process

Decision making is a continuous process be it as a service provider or a service taker, it is dynamic because there can be such situations when a person has multiple choices and selecting the best is needed.

• It is a human and social process

As decision making goes through a social process because all human factors are needed to be kept into consideration, before the final selection of any specific alternative, in the decision- making process.

Importance of Perceptual Processes in understanding individual consumers

Perception of a customer is all about what a customer feels regarding the product or brand. It’s an opinion that has been constructed through the experience derived from interaction with service provider it can be direct or indirect procedure (Stávková, Stejskal and Toufarová, 2008). Understanding the perception of the customer can help to improve the business which includes marketing strategy, emergence of opportunities to improve the delivery services.

Perception of a customer is important because it deals with factors like

Value alignment: when a customer finds an alignment in the perception with service provider, which will inflate the rates of purchase of any product. “A 2020 consumer culture report found that 71% of consumers prefer buying from brands that align with their values.”

Trust signals: A positive perception is an assist in building trust. If a business is seen as trustworthy, customers are more likely to purchase more to meet their satisfaction level “trusted companies are much more resilient in the face of a crisis or risk.”

Factors that influence customer perception

• Customer review: Maximum number of customers goes through the online reviews before making purchase, which means review positive and negative reviews both, plays a vital role and creates a huge impact on the prospective of customers. 

• Marketing: Marketing strategy plays a vital role in building the value of brand through the medium of website, advertisement, utilizing social media platform. A proper message to be delivered to the customers regarding the services, goods or products.

• Company value : Customers always approach such brands where they see a similarity with their value, as that seems to be an influencing point for them.

• Customer support quality : The way a company provides support to their service holder speaks a lot regarding the company. An excellent customer service provider always prioritizes the experience of their customers and vice versa in case of poor customer service support.

Consumers in Society

Its consumer who pay off their bills for the services they enjoy, which reflects that they play a vital in building economic strength of the nation. This even plays an important role in motivating the producers for showing their skills through innovation while introducing new products and services to their customers (Harrington, 1994). As society plays a vital role in changing the needs and demands of customer in which modernization is leading a role of helping hand (Belk, 2013). There are few factors which are responsible for this-

Reference groups- Every individual have someone as a role model in their life and they can play a role of influence in their life (Sherif, 1953). Even people get influenced by group like- Friends, family, and relatives etc.

Role to play in social strata- Every individual has different role to play in the social strata and the demands and needs do change as per the situation demands (Barbalet, 2001). 

Social status- There are few people in this social stratum who believe in purchasing luxurious products and services only just to maintain their class and status but the people belonging to middle and low class the scenario is something else.

Future Trends in Consumer Behavior

Emergence of pandemic has modified many things especially in business industry. It has enhanced their creativity and improved their flexible approaches towards the customer for enhancing their business in the market (MCDERMOTT, 2017).

Homes become hubs

After pandemic people has started to operate their world on a global platform by the access of internet which includes access to their work place, groceries, dress and many more (Delen, Eryarsoy and Davazdahemami, 2020). Due, to which the physical shops have faced many challenges, which has pushed them to emerge themselves with online platform for building their networks and business at a same time.

Customers want value in more than one way

The experience that a customer receives from the quality of products matters a lot as in return of investing capital on goods and services a customer always think to attain maximum profit from it which can lead to shifting from one brand to another (Osterwalder et al, 2015).

Hybrid view of shopping

People have started involving more on online platform for availing any kind of services, which has even become the new normal due to emergence of emergency caused by health- crises in present scenario (Romadhony, Al Faraby and Pudjoatmodjo, 2013). Businesses has developed its process of enhancing its platform by providing flexible services like- smart payment procedures, quick delivery and many more.

Conclusion

From the above discussion it is to be concluded that for understanding and knowing the needs of a customer is the key point for establishment of a successful business that can be in case of direct approach towards customers through sells or any kind of business and along with understanding customers one must also have knowledge regarding their competitors in the market. Further topics discussed in the essay are contemporary perspective on consumption, which has its following points Conspicuous type of consumption in this type people usually look for such goods and services that provide gratification to their psychological and factors including the safety needs of an individual. Consumption hikes due to brand value there are some product which are popular in the market and are high on demand just because of their brand value which defines the luxurious quality of the products and services, which becomes a point of attraction for and enhance customer interest in purchasing the products and services. Individual Decision-Making and Involvement, how society is influencing consumers, in ending the future trends in consumer behavior has been discussed. All the points give an idea regarding how one can grow their understanding regarding customers.