Qualification Graduate Diploma in Management

Module Name Marketing Management

Module Number GDM 404

Assignment Title
Consumer Buying Behaviour
Name of Candidate Abieshek Udayakumar

Candidate No. 465122131

Submission Date 12/06/2022

Word Count 2643 words

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Consumer Buying Behaviour

The Internet, developing technology, and social media have all contributed to the change of
consumer behavior in recent decades. Businesses must also cope with various possibilities
and problems presented by the shifts in consumer behavior brought on by digital
technologies. Companies may interact with their consumers more easily if they have a better
understanding of their behavior and can employ techniques like content marketing, user
experience (UX), influencer marketing, user-generated content (UGC), or electronic word of
mouth (eWOM). These tactics are crucial for increasing sales and growing online businesses
since they promote user engagement and have a behavioral impact. By concentrating on the
examination of customer behavior in the digital era, this article adds to the body of
information already known about digital marketing tactics, online consumer behavior, and
completely new business models like mobile applications or the shared economy.

Abstract
This study intends to shed light on the customer behavior that has grown incredibly complex
as a result of the emergence of the social media industry. Despite this, recent consumer
behavior research has sought to understand how customers behave online. Marketers and
academics run the risk of transferring their knowledge of the market to algorithms, keeping
them in the dark, and losing the capacity to comprehend their customers' emotions. The
capacity of enterprises to develop a marketing direction may be hampered and projected
customer responses may be negatively impacted by a lack of awareness of how consumers
view and feel about social media suggested ads produced by recommender systems. In order
to comprehend the consequences of the factors under consideration, structural equational
modeling was carried out. The results showed that good attitudes regarding suggested
advertisements, which are impacted by both their formativeness and believability as values
reflected from them, had an impact on impulsive purchase. The administrators, advertisers,
promoters, and customers of F-commerce may all benefit from the study's valuable practical
consequences.

Keywords
Attitude, Consumer Behavior, Social media, Marketing Direction, Advertisements,
Consumer Behavior of Digital Marketing

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Introduction
The consumer environment of today is a little different than the one our parents experienced
growing up. In actuality, it differs from the one from our childhood as well. Because of how
swiftly digital technology has advanced, items that were previously novel and thrilling have
become quickly ingrained in customers' expectations. Maintaining customer behavior may
seem like an unappreciative duty as a result, and perhaps our audience won't congratulate us
for doing so, but the choice is much, much worse.

Let's use digital technology as an illustration. The idea of making a purchase via a mobile
device would seem novel and cutting edge not so long ago, but today, it's almost become a
normal requirement among consumers. Despite if they like the company, 50% of buyers now
say they won't visit a website that isn't mobile-friendly.

Consumers of today want a sophisticated and user-friendly user interface (UI), prompt
delivery of goods and services, round-the-clock real-time assistance, simple site navigation,
quick page loads, and many other things. If we can provide our consumers this wonderful
experience that is suited to their preferences, 72% of them will tell at least six other people
about it. However, if you don't supply this, just around one in every 26 consumers will really
let realize that we messed up; the other 25 will silently go to a competitor.

Consumer Behaviour in digital age

The Internet has significantly altered our lives over the past three decades in many facets,
undoubtedly including buying behaviors and patterns. Without social media, instant
messaging, e-commerce, short/long videos, taxi-hailing, food delivery, and other
applications, it is impossible for us to conceive how we would get by. The introduction of
internet technologies into daily life to preserve social distance has been increased by the
global proliferation of COVID-19.

Businesses and stock investors have already made enormous sums of money thanks to the
internet. A number of internet and computer behemoths, including Apple, Amazon,
Microsoft, Google, Facebook, Tencent, and Alibaba, have supplanted the conventional
energy and finance organizations to become the most valuable businesses in the world during
the past 10 years. The social and psychological outcomes of the internet on consumers and

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how it complements, improves, or even refutes the current consumer concepts are still not
fully understood.

The internet has already helped businesses and stock investors make sizable profits. The
traditional oil and banking organizations have been replaced by a variety of internet and
computer powerhouses, including Apple, Amazon, Microsoft, Google, Facebook, Tencent,
and Alibaba, to become the most valuable companies in the world during the previous ten
years. We still don't completely understand the social and psychological effects of the
internet on buyers and how it supports, enhances, or even contradicts the notions of the
modern consumer.

What is digital behaviour?

In regards to marketing research, a person's online activities are essentially what constitutes
digital consumer behavior. What platforms they use, which websites they visit, which adverts
they interact with, which pages they travel to, when and how they depart, and so on. It is
logged whenever a consumer clicks on something, and occasionally even when they don't.

Importance of Digital Marketing:

Marketers have the opportunity to connect with their client using online platforms and
broaden their visibility because there are almost 8.5 million active social media users in Sri
Lanka alone. Digital marketing can assist in capturing sizable audiences and influencing their
purchasing decisions because to its sizable user base.

The shift from conventional to digital marketing has resulted in significantly altered and
more simplified customer behavior. Because information is readily available online,
regardless of the day or hour, customers may purchase, read reviews, compare, and do many
other things concurrently.

How Digital Marketing impacts consumer behaviour:

Consumers conduct online research before making a purchase
Due to the ease of using the internet, customers are more inquisitive and want to do extensive
research before making any online purchases. Since practically every company now markets
its goods and services online, it is now simple for customers to do their homework, evaluate
options, try things out, and then decide which product is best for them. The information

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customers obtain online has a significant impact on their choice, thus it is essential that
companies have a good online presence.

Customer loyalty and digital marketing go hand-in-hand

Brands may now establish open communication with customers and give them more
information about their products and services. The introduction of digital marketing has
exposed consumers to a wide range of goods and information from all companies. They
desire high-quality goods with superior financial returns. Customer loyalty may be increased
through consumer interaction, promotions, and customer service.

The power of digital word-of-mouth

Influencer marketing, commonly referred to as digital word-of-mouth, is a reliable kind of
endorsement. Consumers now rely their decisions on what the role models support or what
others suggest. Consumers are more likely to trust businesses when they receive
recommendations from other sources like customer reviews, influencer marketing,
testimonials, and comments. Customers are more inclined to trust a company and make more
purchases if there is positive digital phrase of mouth about it.

Digital marketing driving impulse buying decisions

With the help of digital marketing, businesses may promote their goods at the precise
moment and location where customers are ready to make an impulse or spontaneous buy.
Brands utilize strategies like online offers, deals, and discounts to persuade customers to
purchase their items right away.

It offers a curated shopping experience:

Customers may enjoy a customized purchasing experience thanks to digital marketing.
Companies have observed that several clients favor quick results over investing a huge
amount of time in learning about new things. To give customers a customized purchasing
experience, brands have built and altered their digital content. This has a significant impact
on consumer spending.

Lower patience amongst consumers

Consumers increasingly want prompt resolutions to their questions and complaints. Digital
marketing is used to achieve this. Customer feedback and inquiries may be submitted with

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ease via social networks to a wide audience. The opinions of consumers are highly impacted
by both favorable and negative evaluations.

Therefore, digital marketing empowers customers, provides them with individualized

experiences, and aids firms in developing better, more open relationships with them. Thus,
digital marketing accounts for a sizable share of consumer purchasing.

4 main factors of digital marketing

The days of marketers running a polished television ad to promote products and services are
long gone. Consumers who use the internet often are constantly bombarded with digital
material.

Social networking sites have undoubtedly made their way into people's lives and cultures.
The requirement for marketers to comprehend customer purchasing behavior is continual due
to changing usage patterns. Today, with virtually every business advertising their items
online, customers have an edge when doing brand research and comparison. Their
relationship with the brand and other online rivals has a significant impact on their
purchasing decision. When purchasing a product, buyer behavior varies depending on a
number of circumstances. Marketers must research these behaviors in order to comprehend
similar ones. Cultural, social, personal, economic, and consumer psychology are just a few of
the elements that must be taken into account.

Cultural Factors
Cultural Aspects the importance of culture cannot be overstated since it influences how
people from a given group think. Culture is made up of elements like origin, religion,
customs, family structure, and ideas. A woman from Maharashtra, for instance, might choose
a navvari saree over a half saree or a skirt and blouse to attend a wedding.

Social Factors
Social Elements Humans are social creatures that are affected by examples. The behavior of
others around a person has the power to alter their whole preference. Trends have a role in
this situation. Everyone has someone they admire for a variety of reasons. The people with
whom consumers spend the most time or who they hold the highest regard have a significant
influence on their decision-making. For instance, the demand for a certain piece of jewelry
inevitably rises when social media celebrities wear it since so many people are inspired by it.

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Personal Factors
Personal aspects Age, profession, lifestyle, and personality type are all considered personal
determinants. All of these traits contribute to or directly determine a person's preference. A
person's age might offer an indication of the fashion they prefer, their employment can define
their needs, and their lifestyle and personality can reveal more about their likes and dislikes.
A brand's target market ought to vary depending on the product. An office worker could need
a more formal outfit than a college student, for instance.

Economic Factors
Consumers' purchasing patterns will reflect their income. For instance, a person with a six-
figure salary could buy expensive goods, but a person from the middle class might choose to
shop in neighborhood stores. The capacity to buy is closely correlated with the ability to
spend.

Over time, there have been significant changes in consumer attitudes. Compared to earlier,
they are now more drawn to products and companies that provide favorable provisions.
These new brands can now engage with customers more easily thanks to the internet. The
patterns of behavior have evolved over time. Customers' thinking has changed dramatically.
They have become more receptive to goods and companies who consistently launch fresh
marketing initiatives. Such efforts completely alter the playing field in the digital sphere.
This is only possible because to digital marketing, which has made it easier for both
established and emerging firms to communicate directly with consumers. Customers
frequently change brands.

Brand loyalty used to be something that was constant in the past. Previously, customers
seldom changed brands. Customers now have less resistance since there are so many options
available online. Digital word of mouth, as opposed to traditional word of mouth, is now
more respected and trusted by customers. Today's consumers are not adamant about their
choices, but they also do not accept anything less. If they have any inquiries or concerns,
they want a prompt answer. They openly communicate their preferences, demands, and
viewpoints, which serve as a brand's decision factors.

Customer behavior in the modern day is always evolving and changing. Consumers are
knowledgeable and prioritize getting value for their money. They would rather have a better

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offer. Customers are highly aware of your rivals and conduct comparison shopping before
making any purchases. Consumer purchasing behavior is significantly influenced by brand
reputation, which also plays a significant role.

Despite the fact that technology is advancing, marketers must not ignore their target market's
lack of familiarity with digital technologies. Consumers are drawn to trends the most.
Consumers tend to trust what they see, which is vital to understand. Review and rating
content has a significant impact on them. Your brand is reflected in the way you treat your
customers. Consumers like interesting content. It aids in creating a bond between the brand,
consumers, and the target market.

Conclusion
Digital marketing thereby empowers clients, offers those tailored experiences, and helps
businesses build stronger, more honest connections with them. Thus, digital marketing
accounts for a sizable share of consumer purchasing.

Every industry throughout the world has been impacted by the technology's fast growth over
time. Customers are seeking for data that is easily accessible as a result of the massive
industrial transformation that has taken place today. As a result, pre-purchase decisions made
by customers have been influenced by a number of venues, most notably social media.
However, a number of studies have examined how people make purchases. This research
investigates the wide implications of social media on consumer purchasing behavior.

As a result, this study has taken into account recently identified aspects that influence
customer purchasing behavior, such as social media and online community marketing,
increased information accessibility, and online ordering systems. To determine the factors
and measures used in the surveying tool and journal article, this study employed the critical
review procedure of secondary sources.

However, social media's ease of access to information has no beneficial effects on how
customers behave while making purchases. An extensive analysis of user behavior in the
digital age is given. The studies that make up this article use a variety of strategies to try to
understand how people behave online. It is important to note that user behavior online is
related to the tasks they do on the digital services they use most frequently. The results of the

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preliminary study mentioned in this article demonstrate how user online activity differs by
industry.

Understanding user behavior both before and after a purchase, as well as user involvement
and interactions in online communities, is crucial for understanding this ecosystem.
Companies must appropriately address the important concerns of data protection and
management if they want people to feel secure when using digital platforms. It would be vital
to examine how consumers make decisions online as well as which digital marketing
strategies they believe to be safer in future studies.

Acknowledgement
This paper is written by Abieshek Udayakumar to complete Marketing Management
assignment for Graduate Diploma in Management in BMS.

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