About The Consumer Behaviour

Published Date: 02 Nov 2017

2.1 Introduction

All consumers visiting the stores to shop are unique in themselves; they have varied needs and wants that differ from one another and also have different patterns & behaviour of consuming things. A marketer is a common link between the consumer and the company that helps in satisfying the needs and requirements of the consumer via means of products and services being offered by various companies. Any firm that exists in the market, needs to survive, compete and grow in comparison to itself and their competitors in the industry; and to do this, it is essential for them to realize and understand the needs, requirements and wants of their target audience better than their competitors. The companies need to have a comprehensive yet in-depth knowledge of consumers and their consumption patterns in order to be successful.

2.2 About the Consumer behaviour

According to Loudon (2002), consumer behaviour can be defined as the process adopted by the consumer for making decisions followed by the physical activity of acquiring the product/ service, evaluating it, using it and finally disposing them off. As further explained by Loudon (2002), Consumer behaviour is not just about the process of buying goods and services that grab’s the attention of the consumer rather it starts even before the consumer acquires it.

The consumer buying process starts in the minds of the consumer that leads to the process of finding alternatives between the product wanted and its preferred alternative that fulfils the advantages, disadvantages and requirements of the user. This is followed by an internal and external research that leads to the process of decision making about purchasing the product and its usage. After the purchase and usage of products/ services comes the post purchase behaviour. Like selling of product, it is essential for the companies to monitor the post purchase behaviour of the consumers. This gives the marketers a better opinion on the success and failure of their product.

Consumer is not restricted to consumption of products and services for personal usage; it also includes business/industrial and organizational consumers. For a company to understand the behaviour of a consumer, it is essential for them to conduct an extensive research on the consumer. These researchers help in understanding –

‘What’ the consumers tends to buy – the goods and services

‘Why’ the consumers buy them – their needs, requirements and wants

‘When’ do the consumers buy them: the time and the day/ week/ month or the year, any specific occasion etc.

‘Where’ the consumers buy it from: the place

‘How often do the consumers buy’ it: time interval/ repetitive purchase

‘How often do the consumers use’ it: frequency of usage

The consumer behaviour is a complex yet dynamic and multidimensional process where all the decisions are undertaken on the basis of the behaviour of the consumers. For the companies to formulate any plans and strategies or achieve any desired goals and objectives, it is essential for them to stick to the marketing strategy and follow them as planned. These marketing strategies include ways of selling product effectively and cost-benefit analysis.

Furthermore, as mentioned by Peter (2005), Consumer behaviour also illustrates the logics and the argumentations behind the purchasing behaviour and consumption patterns of the consumers; it also illustrates the process via which the buyers make their decisions. The study further includes the interaction between the cognizance, impinge and the behaviour that happens within a consumer during the process of consumption of goods and services – selecting of goods, using them and disposing them off.

While conducting the research, there came along various definitions of consumer behaviour that brought the same aspects in different ways. As stated by Schiffman and Kanuk, consumer behaviour is the behaviour of the individual that is displayed during the process of searching, purchasing, evaluating and disposing off the products and services that in the end satisfy their needs and wants. Loudon and Bitta also explained consumer behaviour as the decision making process and physical activity involved by the consumer in evaluating, acquiring, using and disposing off their goods and services.

Wells and Prensky mentioned consumer behaviour as the study of consumers as they trade their products and services in exchange to another product that holds value and satisfies their needs. Engel, Blackwell and Miniard however mentioned consumer behaviour as a actionable process that involves obtaining, consuming and disposing off of products and services along with the decision process that takes place before and after these actions take place.

The American Marketing Association defined consumer behaviour as the dynamic interaction of understanding and consequence and behaviour and the environment that helps the consumers to exchange their products and services.

According to Schiffman (2004), consumer behaviour focuses more on the user than the buyer, while paying attention to other aspects as well. As further explained, buyers and sellers are the two main and most crucial elements in consumer behaviour. They have varied needs and wants and in order to fulfil them go through a complex process of buying and purchasing goods and services. They often get into the process of trading with the seller that leaves both the buyers and sellers satisfied.

2.3 Online Consumer behaviour research

Initially when the concept of online shopping was introduced to the consumers, they hesitated in purchasing products and only availed the option in case of necessary and functional utility items. A basic model suggests that the functional considerations of the consumers influence their attitude towards an e-retailer which in return influences the intentions of the consumers to shop leading to buying and purchasing and hence repetitive purchasing and loyal behaviour. This model is based on the theory of reasoned action – TRA. The theory as stated by Sheppard et al. (1988) was one of the initial models on consumer behaviour and very useful in identifying the ways and techniques of targeting the consumer’s and their changing behaviours.

According to Brown (2003), the initial research on consumers signified that e-shoppers concentrated more on essential products while doing e-purchase. While studying and concentrating on the consumers, various characteristics were identified by the researcher. These were – psychological characteristics as stated by Lynch (2001), demographics as explained by Brwon (2003), perceptions of risk and benefits as stated by Bhatnagar (2004), the motivation for shopping as mentioned by Johnson (2007) and lastly the orientation towards shopping as outlined by Jayawardhena (2007).

According to Wolfinbarger and Gilly (2002), consumers willing to do e-shop emphasize on the image component of e-retailing. This is because – firstly, image helps in overall evaluation of the product/ brand in a way of guiding our actions. E.g. A consumer is more likely to buy products and services from stores that according to them have a positive and better image than the others in the industry. Secondly, as stated by Dennis (2002), this is one of the approaches being adopted by various traditional stores and shopping centres over the years. An old and traditional retailer would have a positive and strong image in comparison to a newly opened e-retail store as mentioned Kimber (2001). Kimber further stated that the loyalty of consumers towards the retail and online store are inter-linked to one another.

According to Kooli et al (2007), the same approach is being used by companies for enhancing their e-image. Therefore, it can be concluded that the attitude of an e-consumer towards the e-retailer is influenced positively by the perception the customer has on the e-retailer image. Hence it can be deduced that the attitude a customer has towards purchasing goods online in retail will be positively influenced by the perception he or she holds about the retailer image. Intentions of an individual directly affect the attitude and hence positive intentions will lead to positive attitude as stated by Lee and Tan (2003).

2.4 Non Profit Organiszation sector

There exists multiple ways for defining an organization that is neither private nor public and is referred to as Non-Profit Organization. It is also called Voluntary organizations or non-government organizations, charitable organizations etc. depending on the purpose for which they have been set up for. Even though the names of these organizations can be interchanged when the organizations have similar meanings, they however possess different aspects which are essential to clarify with the existence.

As mentioned by Sida Policy, Non Profit Organization can be defined as a platform which is different from the government, the marketplace and each individual, a place where people with common interest come together and act to achieve similar goals and objectives. When looked and observed from distant, Non Profit organizations are similar to the profitable ones. Therefore, Salomon (2003) came up with few points of distinction that separated non profit organizations from business firms and other public organizations. The characteristics that are applicable to non-profit organizations are –

They should be organized – Conduct meetings and group activities on frequent basis

Private – They should be separate from government but not completely ignore or avoid public support

They should be self-governing

There should be no returning of profits to owners or directors and includes voluntary participation of all members

Moreover, IBID has developed a classification of non-profit organizations that is acceptable at international level thereby classifying organizations on the basis of their primary activities. This categorization has been recommended by the UN and is as follows , Culture and recreation along with Civic and advocacy , Education and research is included , Philanthropic intermediaries, Health and International, Social Services and Religious Congregations are also included another part is environment, Unions , Development and housing and Other

With the above mentioned categories, it can be observed that the idea of non-profit organization covers a huge range of varied organizations like – environmental groups, organizations supporting human rights, unions, organizations supporting a particular sports club etc.

It is very easy to separate Non-profit organizations from the Profitable ones. Profit organizations have an unbiased goal of achieving profit maximization – inflate value of their shareholder; whereas, non profit organizations on the other hand do not aim at profit maximization, but rather focus on fulfilling the needs of individuals living in the society. As mentioned by Helmut (2006), the goals and objectives set by the non-profit organizations are less definite and more complex. The non-profit organizations primarily focus on creating an impact on the society as much as possible.

2.5 Online Marketing

Internet is one of the most essential and critical medium of marketing your ideas to the world for any non-profitable organization. Using the web for marketing your organization ensures that the non-profit organizations come in recognition of a large group of interested people in the world. For non-profit organizations to effectively and efficiently convey their message to the audience and encourage them to join in, it is essential for them to use marketing via internet.

Internet is a medium that helps the non profit organizations to provide information to interested target audience about their organization, causes and issues they are dealing with; not only via the texts available on the webpage but also via videos, images and audios.

Your Website and online WebPages is a powerful tool PR tool along with other means of communication like pamphlets, news releases, notifying audiences about events, report generations etc.

The new untraditional ways of internet campaigning in forms of advertisements and other methods allows the non-profit organizations to keep a track on their visitors, clicks, impressions and registrations.

Internet marketing gives the non-profit organizations an opportunity to expand in terms of human resources, acquiring new and fresh talent at lower costs than traditional ways of marketing.

Social Media gives non-profit organizations a platform to read, analyze and influence leading to positive reputation thereby improving the standard in the community.

2.5.1 Importance and Benefits of Online marketing for non-profits organisations

According to Novak (2000), online marketing is the easiest and cost effective way of marketing for non-profit organizations, but it is also one of the least tapped areas in today’s time. It is crucial for non-profit organizations to understand that new age marketing is more than just selling organization products and services or collecting donations for the same. Non-profit organizations also have basic profit making, marketing and strategizing techniques that apply to them. Therefore for any non-profit organization to reach to the mass audience in the most cost effective manner, they need to undergo Social Media Marketing.

Social Media Marketing is a process of using social media for the purpose reaching onto the company’s target audience and giving them knowledge about the products and services being offered to them. While doing business using social media, the non-profit organizations tend to be extra careful as they need to persuade and convince their customers on the social media platform that gives them an opportunity to even interact among each other. Social media helps the customers to indulge into two way conversations where they tend to interact and exchange positives and negatives and alternatives about the products and services being offered by the organization. Therefore, the non-profit organization tends to generate profit once the customers are satisfied with their products and services; leading good word of mouth and eventually a rise in sales.

Apart from conversation, business in today’s time also has its own benefits of using social media marketing. It helps the non-profit organizations to know more about the views of the customers, their likes and dislikes and what the customers are actually saying about their products; thereby leading to feedback generation and Relationship enhancement.

Non-profit organizations started using social media since 2007 due to its cost effectiveness method of marketing themselves without having to spend an enormous amount on funds. As per the research conducted, 89% of the non-profit organizations in today’s time use one of the many forms of social media for marketing themselves. This can be done by using either of the following - blogging, podcasting, message boards, social networking, video blogging, and wikis. Most of the non-profit organizations also stated that social media has played a very crucial role for them in designing and executing their fund raising strategies.

Online Media has a lot of benefits on Social Media Marketing. They are as follows –

Organization Stake holders tend to be active in causes that they can relate themselves to; social media ensures integrated experience for them.

Online marketing also ensures that management at non-profit organizations interact and build relationships with their customers and target audience. This helps them to nurture their existing relationship with very little efforts at cost effective manner with prominent returns on their investment in comparison to traditional methods.

The social media domain helps organizations by providing them with a vent and tool for helping them to grow in their industry by reaching onto individuals who shown keen interest on non-profit organizations.

Like two sides of a coin, social media has its benefits and disadvantages as well. Therefore, when strategizing onto the social media aspect of the business, it is essential for the organization to take proper steps; the medium has proved to be beneficial for many organizations. For organizations to start or step into the social media domain, they must create a plan along with social media policy. The marketing strategies of the organization need to coincide with those of the social media. In case of non-profit organizations, the companies tend to use in-house candidates for managing their social media. It is necessary for the organizations to assign individuals who will be interacting with the customers on social medium, who will keep a check on the changing events happening in the company, keep a check on the activities of the competitors and most importantly deciding which mediums to access from the list.

2.6 Web Analytics

People in today’s time use internet for accessing and reading information about topics they are unaware about; be it health, insurance, sports, information technology etc. Similarly, many libraries, health organizations access their website, blogs and social mediums for interacting with their customers and supply chain distributors to provide any kind of information required by them. Social media adds a new domain into the organization, leading to more hiring and staff that maintain the social media pages and the websites. But despite all the efforts, how do we come to know how effective these efforts have been? How do we know if our target audience is able to access the details and extract the information required by them from our website? How do we know if the user reached here directly or via navigating pages or by the social media medium like twitter, facebook etc? It’s easy and simple. The answer to all these questions is – Web Analytics.

Web Analytics allows the non-profit organizations to measure and study the impact of websites on its users, making it a valuable tool for calculating the presence on the web. Evaluation and assessment can be done casually in day to day routine and also in a specific way, thereby helping in understanding the resources being used by the user to access the visitors on the website as outlined by Daniel (2004). In order to uncover and understand the online behaviour, the web analytics in non-profit organizations can use web server logs and web usability research for e-commerce. They provide them with data that is required to develop and implement strategies for providing a better online experience.

According to Cooley (2000), web Analytics along with the same also helps the organization to keep a track of their visitors, navigation and study the pattern of traffic visiting their website thereby continuously improving them. They keep their focus on analyzing the available visitor’s data, or the referral data along with the pattern being used by users to navigate website thereby giving us information about the traffic being received over a given period of time.

There are a wide variety of analytical tools available across multiple platforms for the purpose of performing web analytics that allows non-profit organizations to improve with the help of the authentic data. According to Voorbdji (2008), web analytic programs help the non-profit organizations to use the generated stats for practical purposes like developing methods for adapting the website or for the purpose of setting up priorities for digitization. They also ensure that the programs keep a track on their website and social media statistics via customizable features.

However, it is important to understand the features and aspects that one will be tracking in the web analytics. There are a few metrics that can be tracked by the help of web analytics. These metrics are divided into three categories – acquisition, behaviour and outcome. The acquisition category for non-profit organizations includes metrics for calculating the visitors that are visiting the website; the behaviour category includes the page views, time mentioned on the website and the bounce rate of website; the outcome category includes the conversion rate of customers on the website.

2.6.1 Importance of Web analytics model

Web analytics in various organizations is measured using the Web Analytics Maturity Model. This model includes necessary elements that are effective for processing disciplines and improving specific path for quality and effectiveness. Defined from variety of models from the field of business intelligence and process optimization, this model helps organizations to focus on the managerial and statistical aspect of Web Analytics.

The founder of Web Analytics Association, Jim Sterne called the Web Analytics method as Business analysis method that allows the organizations to reach to an optimum conclusion which is based on the data available with the organization.

According to Kaushik (2007), Web Analysis helps the non-profit organizations to break the given data or information into small understandable chunks for gaining an in-depth knowledge for the purpose of decision making.Web Analytics Maturity Model helps in re-interpreting web analytics, making it simple to understand and thereby leading to execution of strategies y highlighting the most crucial and essential factors for success. While currently the non-profit organizations use web analytics model for the purpose of expanding their online marketing activities, they will certainly use them for accessing and extracting benefits that are outside the domain of online marketing as mentioned by Waisberg (2009).

Another important aspect of the model is that it can provide growth to the field of interaction and communication along with change management that will lead to managerial and strategic approach for web analytics. Web Analytics Maturity Model was proposed after a comprehensive and extensive study, discussions and debates. The feedback was positive and highlighted the areas that furthermore required research as outlined by Cunningham (2004).

2.7 Types of site metrics that can be used to segment visitors by behaviour

The Web Analytics Association has described three types of site metrics – the unique visitors, visits or sessions and page views that serve as a base for the purpose of understanding and using other related metrics.

Visits/Sessions – It is communication with the website, where the individuals transfer content one or more times.

Unique Visitors – A certain individual visiting the site multiple times but is counted once only during the time or reporting.

Page Views – It is the total number of times the individual requests for the content and is viewed by him.

According to Hawkins (2012), the first and foremost step for any non-profit organization in web analytics is tracking the visits of unique visitors and page views that keep a track of the number of users accessing the website. By tracking the visits, the organizations get a fair idea of visitors viewing their website; it is one of the most accepted and approved methodology to start with that tells us about the least and most popular area of the website. In case of least popular or least accessed areas, the non-profit organization can take initiatives to push it and enhance its presence via social media or by linking them directly to the homepage and other popular pages.

Moreover, unique visits in web analytics can be separated into two categories – New and Returning Visits. In case of ample number of returning visits on the website, the organizations can also set up a new goal for attracting new and unique visitors to the page. It can be useful for the organization when the two groups will be tracked separately because it will give them an idea on the effectiveness of their advertisements and their online presence on the internet; thereby allowing them to understand how frequently visitors re-visit their websites. Kaushik (2011) states that returning visitors ensures that the marketing practices being laid by the organization are working effectively in helping them in interacting with the audience.

Page Views allow the non-profit organizations to know if the individuals visiting the website are able to find the information they are looking for in an easy and efficient manner and if it is relevant to them or not. This also helps them into noticing the change in viewers once the website is connected to social media websites like Twitter, Face-book or LinkedIn. In case there are individuals who view only one or two pages before leaving, the non profit organizations will need to rethink about the placement of information on the website and the relevancy of the content.

These metrics help the non-profit organizations to use Web Analytics effectively thereby contributing to the user patterns. By associating these three metrics with other options, organization can easily evaluate and analyze if the needs of the users are met by the information available in the website as further stated by Hawkins (2012).

2.8 Techniques to measure Website performance

Website performance for any organization is a total of single or small collections of financial measures. It may or may not be multidimensional varying from website to website. Before we understand the techniques for measuring website performance, it is essential to know why it is important to measure performance.

According to Hahn (2001), Kelvin stated that when an individual can weigh what they are talking about and express them in numeric, you get to know something about them, i.e. if the organizations know about the visitors viewing his website, knows about their needs and requirements they can pay more attention to the same. Anon further added that - if you cannot measure it, you cannot manage it, i.e. if the organization cannot measure or count the number of visitors visiting their website, they cannot manage them as per their goals and objectives as stated by Kauffman (2001). In today’s time, measuring the performance of the website is very crucial for maintaining continuous improvements. It helps in –

Analyzing and tracking the progress of the website against the goals and objectives of the organization.

Recognizing the opportunities available with the organization for improving their website

Comparing the performance of the website against the standards set.

While reading and analyzing the various aspects of performance, it has been proved that financial measure is not the only criterion for measuring the returns on a website as outlined by Chung (2005). There are other factors as well that judge the performance of the website. These are –

Usage – It measures the information of the visitors viewing the website by means of web analytics. It has been categorized into 6 metrics that help non-profit organizations to monitor the website - repeat visitors, relevance, stickiness, navigation tracking, user environment, and reach.

Increase in the financial Benefits of the non-profit organization by use of the website. It can be measured in terms of – Cost reduction, return on investment, and profit from website.

The satisfaction of the owner with the outcomes of the website. These can be measured by – Competitive advantage, number of customers, search engine rankings, and overall performance represented owner satisfaction.

According to the research by Bremser (2005), these three factors help in demonstrating the performance of the website. Moreover, he further explains that these points are interconnected to each other in the same sequential manner. Any change in the performance of website will be an impact of any of these dimensions. Therefore, assisting the website performance can be measured by 14 sub categories of the three factors.

2.9 KPI’s benefits for Non-Profit Organization websites-

Non-profit organizations in today’s time emphasize more on humanitarianism and social causes, thereby addressing complex issues like poverty, inequality etc. as mentioned by Brest and Harvey (2008).

Various models in profit organizations are driven by methods of measuring profit and wealth of shareholders that can be captured by using profit margin, return on asset and return on equity. As outlined by Trelstad (2008) KPIs are specific to projects and campaigns, while there are some that are appropriate for all non-profit organizations. These include –

Bounce rate – calculating and analyzing the number of visitors that visit only one page in comparison to individuals measuring more than one page on the website

Time gap between visits to the website – comparison of the no. of times an individual visited the website last year/ last month or last week

Number of visitors that use the search option on the website

Calculating the average number of searches occurring during each visit

Therefore it can be concluded that these are most frequently used KPIs that help in monitoring the usage of website; that are different and unique from the regular ones of calculating page views, number of visits etc.

2.10 Web Analytics for improving website performance

Web analytics help non-profit organizations to monitor and measure websites – decide site designs and its usability to the audience and also support decision making process with the help of information provided on the website. However, it is not enough to only implement the web analytics package rather required measures and continuous checks need to be done to ensure website performance.

For successfully application of the website, it is essential for multiple resources in web analytics to work in coordination with one another thereby accomplishing data for marketing. This can be done by the process of – implementation, analysis and action. When you aware of the areas to look for in web analytics, it becomes easy to analyze. The approach for the same is as follows –

2.10.1 Data Analysis

Once the organization ensures that the website data is accurate and generates correct reports, multiple reports can be generated to produce data for the purpose of analysis. It is essential for the analyst to understand how to generate reports and extract data from them.

2.10.2 Action on data

Various steps and measures can be taken after doing a thorough analysis of the data collected via web analytics. For successful analysis the non-profit organizations should ensure that there is a dedicated team of analysts that understand the goals and objectives and thereby extract the accurate information for decision making and business analysis.

2.11 Conclusion

There exists multiple ways for defining an organization that is neither private nor public and is referred to as Non-Profit Organization. They are similar to profitable organizations only with distinctive characteristics working on cost effective manner for fulfilling their goals and objectives. Non profit organizations work with limited budget and therefore use online marketing and social media for the purpose of marketing their organization, creating awareness and reaching to the mass audience instead of using the traditional ways of marketing.

Non-profit organizations started using social media since 2007 due to its cost effectiveness method of marketing themselves without having to spend an enormous amount on funds. As per the research conducted, 89% of the non-profit organizations in today’s time use one of the many forms of social media for marketing themselves.

For measuring and monitoring the website and its usability to individuals the non-profit organizations use Web Analytics. It allows the non-profit organizations to measure and study the impact of websites on its users, making it a valuable tool for calculating the presence on the web. Evaluation and assessment can be done casually in day to day routine and also in a specific way, thereby helping in understanding the resources being used by the user to access the visitors on the website.

No of visits, unique visitors, bounce rate and conversion rates are some of the key performance indicators identified to guage the website success. Calculating the number of relevant users and analyzing their needs and requirements in terms of data will help the non-profit organizations to ensure traffic flow and improve their websites from time to time. However Web Analytics is a complex and growing field that is evolving with change in technology and therefore needs to be revised from time to time.