07 Apr Influence of Consumer Perception on the Performance of a Business
Influence of Consumer Perception on the Performance of a Business
The attempt made to understand how a consumer’s insight about a specific product or service can influence his or her behavior can be termed as consumer perception.
What is the objective of companies in undertaking study about consumer perception?
The main objective of businesses behind undertaking consumer perception study is purely to understand the decisions made by consumers and take appropriate measures to influence them. Consumer perception theory is undertaken by companies prior to the launch of a specific product or brand.
How consumer perception influences business?
The success or failure of a business to a great extent is influenced by consumer perception. Though a consumer’s perception about a product or service to some extent is said to be based on his or her actual experience obtained from the use of specific goods or service, it is also to a great extent influenced by a variety of other factors such as price, quality, and reputation of the manufacturer, branding, and packaging including other complex psychological factors.
For instance, the positive opinion about a specific food joint in town will result in greater business while a negative view about a specific product or company will lead to its losses. Thus, consumer perception not only influences consumer behavior but also affects the performance and profitability of the business. This is the reasons why large business houses spend huge amounts of money to influence the perceptions of consumers.
Consumer Perceptions & the Affecting Factors
1. Pricing of a product or service
Pricing of a product has a key effect on consumer perception. Though a large majority of consumers appreciate and favor a low or reasonably priced item, there are also cross sections of sophisticated and skeptical consumers who look down up a product that is considerably low priced than the other available alternatives.
Many such sophisticated consumers tag the product as cheap and not fit for use though the product may be of the same good quality. Hence pricing of a product or service should form the basis of a larger marketing plan. By doing so, even low priced products can be marketed as favorable ones with good quality and at a better price.
2. Quality of a product
The importance of the quality of a product or service from the perception of a consumer can never be undermined. Any feature of the product such as its use, durability and how reliable the product is in satisfying or disappointing the consumer can be described as its quality.
Marketing to a great extent helps in influencing the consumer’s perception about the quality of product but even word of mouth communication about quality of a product is equally effective and travels fast.
Though marketing plays a greater role in influencing the consumer’s opinion about quality of a product, it is the consumer’s inherent opinion from the use of a specific product or service that will determine the awareness about quality.
3. Branding and Packaging of a Product
First impression is the best impression very aptly applies to consumer perception of a product especially at the time purchase. How a product is attractively packaged to exhibit the display quality by the manufacturer determines the perception of the product. Even branding messages such as reliable, long lasting, tough are of great help in promoting the product perception.
Businesses regularly conduct market research to obtain insight about consumer preferences and perceptions. This forms the basis to understand how and why consumers prefer some products over others. This further helps businesses to provide and promote such products and services effectively that are in demand from consumers.
4. History & Reputation
History and reputation of a company and its products and services plays an equally important role in the consumer perception. Age old businesses with strong reputation and history are always preferred by consumers whereas new products are always tried with caution and based on public opinion and reviews.
Online as well as offline reputation of a company and products and services largely influence the consumer perception. Any negative reviews and opinions online or by word of mouth can strongly affect the overall performance of any business. If any product has not performed well in the past or if any company has been alleged for any unscrupulous activity will strongly affects its performance for long period of time.
To sum it up all, it is mandatory for business to conduct market research and understand consumer perception to better position themselves in the competition and drive increased customers and sales. With the help of a reliable market research services provider such as iResearch Services, businesses can very well keep a track of their business performance by monitoring influence of consumer perception.