3 Eye-Opening Consumer Behavior Studies
Consumer behavior studies allow market researchers to know how customers react or respond to marketing strategies. Consumer behavior is directly related to psychology. Therefore, psychology has a dedicated branch of studies for recording behavior patterns of customers to products and services. Several psychologists carried out experiments to find out the different colors of consumer behavior. Here are some experiments that successfully manipulated consumer buying behavior under controlled environments.
1. Following Up Generates Great Tips
According to a research issued in the Journal for Applied Psychology, it showed that follow-up services can satisfy consumers even if the main event is average. The experiment was carried out on three different groups. In the first one, the waiters handed out one mint to each person on the table when handing over the checks. Two mints each were given to the second group of people before the check and some more were offered later on. The third group was offered two mints each with the check and some more after the check was paid.
The response recorded was while the first group increased the tips by 3%, the second one increased it by an enormous 14%. However, the increment reached the pinnacle with the third group increasing the tip by approximately 23%. This shows that consumers enjoy following-ups when backed by a good service. This left a critical motif of the restaurant on the consumers. Additionally, the restaurant was successful at building a new customer relationship.
2. Time Sells, Money Doesn’t
A research was carried out on multiple groups of people with different scenarios each time. It was concluded through the experiment that people spend more for ‘time’ and less for ‘price.’ Companies that sell time with their products by incorporating captions like “it’s Miller time” tend to experience a higher sales growth than brands that sell “luxury.” An average person would wish to spend on things that remind them of their precious memories but they won’t buy something solely because they want to spend. The simple reason behind this is that time is more personal to people. It is a scarce resource. It carries meaning. Money, on the other hand, does not. Therefore, to enhance sales, offer time for money.
3. Fewer Sales When There Are Too Many Choices
Sheena Iyengar carried out an experiment wherein she displayed two different amounts of jams on display. While on one Saturday she offered 24 flavors of jams as taste-test, on another, she offered only 6 flavors. The customer turnout for Saturday #1 was around 60%but the total sale did not cross the bar of 3%. Surprisingly, the Saturday with only 6 flavors experienced only 40% customer turnout, however, around 30% consumers purchased the jams.
It was later recorded that when the customers are given too many varieties to choose from, they get confused and instead choose not to buy anything at all. It was concluded that choice is discouraging when making sales.
Consumer behavior studies are a complex research branch of psychology and marketing. The above experiments show the dos and don’ts of marketing and how the right kind of marketing strategies can manipulate a large group of people. Businesses must ditch these traditional marketing methods and form creative strategies to sell.