What is Customer Perception?
The ultimate aim of every business is to increase sales by finding out the factors that drive consumer’s buying decisions. Consumer perception theory tries to analyze and explain consumer behavior. The perception of the same product or service by different consumers would vary. This is exactly what consumer perception theory analyses by finding out what exactly motivates or influences a consumer behavior in purchasing or not purchasing a specific product.
Need for Consumer Perception theory?
A consumer’s perception of a product or service offered may differ from what the producer or marketer had intended to offer. This is neither helpful nor favorable for both the parties in today’s competitive environment. Also, it is likely to have more serious result in seeking consumer attention as today’s consumers have greater exposure to the minute, diverse and extensive information. This makes it very difficult for the offering to gain the complete attention of the consumer especially in situations where the consumer perception is not the same as that of the offering. Getting a second innings to make a better influence becomes all the more difficult.
Benefits of Consumer Perception for businesses
With competition becoming more intense in the global economy making it difficult for products and services to stand out get differentiated from other offerings in the market, even the production, logistics, sourcing, and accessibility to information cost is also rising. Varied products end up facing stiff competition from industry outsiders from new bundles or offerings and substitutes. The result is decrease in prices as most companies want to win over consumers along with closing the product differences.
The modern consumer is more of a mix. Being very sensitive to prices, the modern consumer is constantly in search of discounts and bargains. They are also constantly on the lookout for branded and other luxury products. Being very well-informed, they are even aware and conscious of their powers. This awareness increases their expectations from companies. All these factors together make it more complicated to segregate a product or service by traditional sorting by quality, pricing, and functions.
The only solution available to a business in such situations is strengthening the bond between the company and the consumers. This is likely to a give better competitive advantage as this relationship is not limited to the aspect of price, quality etc. The better experience a consumer has with the company at different stages of interaction such as efficiency and reliability and speed of the process, higher are the chances that he or she is likely to come back again. A problem arising from a single transaction is likely to damage the relationship forever.
Companies should take steps towards making their consumers remain fully apprised about the different offerings of the company and how the offerings are likely to improve the life of the consumers. The companies have to make sure that they are able to convince the consumers about how their products if purchased by the consumers can give more benefit than that of the competitors. This in short amounts to expanding the consumer perception to appreciate the finer aspects of the company’s offerings. But care to not overdo the same as it might affect the company adversely.