Businesses across the world face not only the global downtown financial situations but also the stiff competition from other similar business. All over the world, no single business enterprises can claim monopoly of a product or a service. With ever changing buyer preferences, businesses are forced to strategize on how to maintain the existing customers and attract others. Furthermore, technology has changed the way businesses do marketing of their products and services. Buyer behavior has come to the center stage of marketing departments and there is increasing need to understand how buyers decide on a particular product or service. Similarly, there is need to understand how culture, social status, and geographical locations may influence one to buy particular product. The ability to attract and retain a buyer is therefore very crucial in the success of a business venture. This paper discusses how businesses analyze buyer behavior simulation and the factors considered in the analysis.
Every business exist with the sole purpose of making profits and this can only happen if it understands how buyers decide on which particular product or service to purchase. According to Pride, Hughes & Kapoor (2012), understanding of buyer behaviors is important in positioning a business enterprise as a competitor in a given industry.
Phases in the Simulation: Decisions and Results
Analysis buyer simulation commences with the ability to recognize a need by the buyer. The recognition of the need then signals the marketer to provide a product or service that helps the buyer to meet that need. Need recognition will also help in the next phase which is the identification of the available options for the buyer. These alternatives will ensure that the seller is cushioned against the hindrances such as taste and pricing on the side of the buyer. The result of this is that the buyer and the seller can meet on a product that is relevant to the buyer (Pride, Hughes & Kapoor, 2012).
Business marketers must clearly defined phases in the simulation of buyer behaviors. For instance, the way buyers search for information about a product can point to to the the preferences that buyers attach to that product. Business marketers can use the modern means like online advertisement to reach the buyers. However, the information provided by the seller must go a long way in helping the buyer in decision-making. As a consequent, the marketer need to make explicit recommendation of the product in the information that he/she provides to win the buyer (Pride, Hughes & Kapoor, 2012).
In view of attracting referral customers, the marketer needs to make a follow up to their customers to ascertain after sale satisfaction of the buyer. This is because buyers have the tendency of making referrals or discouraging other buyers to the business depending on the satisfaction level. To a marketer, this is important and can include provision of information the use of the products (Pride, Hughes & Kapoor, 2012).
External/Macro Factors Considered In Analysis of Buyer Behavior Simulation
Pride, Hughes & Kapoor (2012) identify the economic conditions as not only defining what a buyer purchases but also how, when, and why he/she purchases a particular product. One’s economic conditions normally determine his/her ability to purchase certain products and how buyers select and interpret information regarding some products and services. Similarly, economic conditions have a relation to the buyer income and therefore impact directly on the kind of products that they are purchasing especially as far as pricing is concerned.
Another external factor is the wellbeing of the buyer in terms of health. According to Sheth (2011), most buyers tend to be sensitive to products and services that concern their health. To this end, health is an important external factor that marketers must pay attention to while analyzing the buyer behavior simulation as it will always influence the kind of products that a buyer purchases. For instance, many buyers will tend to twit their noses in reaction to a certain smell while in such places as a perfume store. This should be a pointer to the marketing department to the need to identify the preferences of their buyers in relation to the smell.
Another factor is fashion. Sexton (2011) observes that many buyers tend to move towards fashionable products on the market. For instance, a release of an upgraded version Apple’s iPad makes some buyers to dumb their gargets not because they have become faulty but because there is a new fashionable product on the market.
Social and Cultural Factors Considered
Sexton (2011) explains that the social and cultural factors are very important tools of analyzing buyers’ behavior because their level of influence is very high. This is especially so on the decisions made prior to the purchasing of a product. They include the cultural and political settings that buyers found themselves in and therefore a predisposition in purchasing certain products and services.
For instance, a trend in many of vehicle manufacturing businesses is to use a female model to advertise the release of new model of their cars. This is important since it is likely to influence the people who are going to purchase that car. In addition, studies have found out that the use of models and celebrities, for example that of Didier Drogba in advertising for Samsung makes buyers to identify themselves with such products and thus make purchases of the same.
Equally, Sexton (2011) observes that family unit as a composite of family interactions and individual decision-making exerts pressure on the kind of decisions that a family member makes with regard to the services and products purchased. For instance, it is almost certain that a family with a young child will be forced to purchase products that are geared to the baby.
Similarly, religion and cultural practices of the buyer also influence their behavior when it comes to purchasing. As a determinant of the norms and lifestyle, culture defines what people eat and wear as well as where they reside. This is important especially in view of the marketing mix that requires a business enterprise to bring the product closer to the buyer.
Variations in Different Geographic Regions
Buyer behavior varies from one geographical region to the other. This is mostly attributed to the environmental, political, and socio-cultural factors that are diversified geographically. As Sheth (2011) points out a study of buyer behavior in a particular region will go a long way in helping marketers to understand the buyer behaviors. A classical example is the fashionable clothes that cover half of the body. Such products are not likely to be received in cold regions and those areas dominated by Islamic religion where decency in dressing is overemphasized.
Methods to Encourage Loyalty among Existing Customers
Retaining existing customers is a skill that every business must cultivate. Pride, Hughes & Kapoor (2012) observe that giving guarantee and after sale service are used allover as a way of retaining existing customers. Additionally, software techies normally give new software products or even upgrades to their customers before they are released for purchase. Similarly, businesses are using customer-buying allowances to give bonuses for large quantity purchases.
In conclusion, analyzing buyer behavior simulation is the backbone of any business. However, there is need for marketers to continue identifying external, social and cultural factors that influence the behaviors of buyers especially in light of globalization and widespread use of technology.