Understanding Consumer Psychology Helps to Dominate the Market

Nowadays, business owners often make a mistake: they target consumers according to subjective thinking instead of knowing their customers based on market researches. From the perspective of consumer psychology, consuming behaviors are actually determined by consumption value, self-experience, lifestyle, social culture and other relevant factors.

Considering the fast evolution of the domestic market, it’s not surprising to find that those of the 80s and 90s will grow to be the most generous consumer groups.   The author (Ding Jiahui, 2014) deeply researched on the mainstream consumers in China’s most developed coastal cities, and he came up with three major conclusions, reported below: 1. Young age. Generally, this consumer group is under 35 years old, ranging between 25 to 30. 2. Highly educated. These consumers usually have a bachelor degree or above, especially those graduated in the post-90s period. 3. Decent jobs with good salary. Their DPI is expected to be around 40-80 thousand per year.

Theories of Consumer Psychology and praxeology explain that the wealthy, sometimes, are not the drivers of the consuming market since they may invest in other fields. Compared to them, that group of consumers born in the 80s and 90s is playing a much more active role in the retail market.  

In an industrialized society, living standards are usually judged by the total quantity of material products one owns; on the other hand, people in the post-industrial society are more concerned with the quality of life. As a result, a spiritual fulfillment and psychological satisfaction are what people mainly pursue.

If competitors have same quality of products and services, experience will become the key to evaluate the real value of such products, which is the main key to draw people to use their purchasing power.

At this point, we need to mention consumer’s self-concept, which includes three basic concepts: real me, ideal me and social me. The three are influencing and complementing each other. Research data shows self-concepts have a significant effect on consumers’ purchasing decisions, which means a product that matches their style is likely to be purchased or receive good comments. 

Lifestyle is another key to analyze people’s purchasing behaviors. It usually refers to how people live or spend their time and money, which reflects the interests and viewpoints of a person. In other words, lifestyle reflects one’s activities, interests and opinions. It naturally follows the conclusion that a business opportunity can be seized only if business owners are able to satisfy customers’ demands on a daily basis.

Operators should have a clear view of the trends of a determined lifestyle, and it would even more profitable if they could lead the way towards the promotion of new concepts and movements. By instructing marketers on how to hold events, take advantage of celebrity’s wide popularity and set a good model, it’s possible for business owners to create an unprecedented lifestyle experience.

Bear in mind that a deep understanding of your customers’ psychological characteristics, especially for the most potential consumer groups, will facilitate your business to change from ordinary to extraordinary.