KAMIST

Consumer Behaviour for COVID-19

Hello Optimist People!

We are back again with KaMIST! Every week on Thursday we’re going to give you an insight about marketing.

[Consumer Behaviour for COVID-19]

Since the reveal of COVID-19, disrupted nearly every routine in day-to-day life. Social and physical distancing policy forced livelihood to given up some of the daily habits. It is making a phenomenon once in a lifetime where people are mandated to find an alternative in order to make things out.

Now, the COVID-19 crisis has caused consumers to change their behaviours rapidly and in large numbers. Identifying consumers’ new beliefs, habits, and “peak moments” is central to driving behavioral change according to behavioural science. There are five actions the company can do to keep up with continuous changes of the consumers.

First of all, Reinforce positive new beliefs. Consumers are fond and delighted by new experiences, even long-held beliefs can change. It can make consumers more willing to repeat the behavior, even when the trigger is no longer present. Second, Shape emerging habits with new offerings. Companies can attract consumers toward new habits through product innovation. Third, Sustain new habits, using contextual cues. A contextual cue can be a particular task, time of day, or object placement.

Then, Align messages to consumer mindsets. Consumers see messages and actions that are performative and that seek to commercialize social issues. Last but not least, Analyze consumer beliefs and behaviors at a granular level. Companies must also conduct primary consumer-insights work, with a focus on identifying the behaviours and beliefs of consumer to keep track for the dynamic changes.

The pandemic has made a major changes in livelihood. Some of it may continue to outlast. Despite of that, it is mandatory for companies to always observe consumers to best positioned to thrive in the next normal.

Source: McKinsey

Wanna get more insight on marketing? Tune in every Thursday for more KaMIST!

You can reach us at:
LINE: @mistfebui
Instagram: @mistfebui
Twitter: @mistfebui
Facebook: MIST FEB UI
LinkedIn: MIST FEB UI

#optiMIST

General Info:
publication@mist-febui.com

Partnership:
partnership@mist-febui.com

Location:

Management Student Society Office, Student Center Building, 2nd Floor Faculty of Economics and Business, University of Indonesia. Depok, Indonesia

The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.