In the tail of the 80s, Coca-Cola was able to come up with an innovation that was called coupon. It started as a handwritten ticket that offered its consumers one free glass of the Coca-Cola drink. Ten percent of a number of random Americans who bought the syrup tonic had a chance of getting a free glass. This became a wide operation, such that, between 1894 and 1913 a total of about 8,500,000 free drinks were given out. This was how the organization was transformed from a small company into a worldwide brand that is sold, in every part of the world.
The marketplace is an evolving space. Over the years, in marketing, both the marketers and the consumers have triggered evolution as a phenomenon. The way in which consumers react to offers and how their choices are influenced is generically described as consumer behavior (also known as customer behavior). For instance, when there are bonus offers like “buy two and get one free”, a consumer would pause to think, “Can I afford two?” “By getting an extra, I will be able to save a deal of expense and time to purchase another one when I’m done with the two.” “How important is this product to me?” These thoughts and other mindful queries are the things that a consumer engages his mind to peruse. That means the offer was appealing to him.
Customer behavior is a topic that has gained interest in the social world and among macroeconomists. People make decisions and choices about their specific needs. Some other times, they do what they do for the sense of humanity and the benefits of others. For example, TOMS, a world-brand shoe producer, founded by Blake Mycoskie launched a campaign that said, for every shoe bought from them, they were going to donate a pair of shoe to people who cannot afford shoes. The result? A sales record of over 60 million pairs of shoes was recorded after the campaign! Ether for the consideration of self or others, something interesting holds; a marketer can influence consumer choices and decisions.
In the past, people simply went for what was available in the market; so far it met their needs. Especially, if there was no competition in the market, consumers had to make do with whatsoever product or service that was offered and made available by the manufacturers. When Indomie was introduced into the African market from Indonesia, they had a monopoly of such (noodle) market. After they were are able to earn the individual trust and form a market base. They maintained a product type for a long time. However, when competition came, they realized that their customers are capable of more than their purchase.
Humans are known to go for the things that are able to develop them and improve their ways of living for a particular desired value. These values are found in a product by its quality, quantity, ease of access, price, and promotional offers. While this holds, This behavior works because they appeal to the customer emotionally. Just like Simon Sinek who brought the concept of Golden cycle said,“People don’t buy what you do; they buy why you do it”. That is, a marketer develops a strategy that can trigger a customer’s reaction and delight when by giving them an appealing “WHY” factor. Eventually, when the Indomie brand had varieties, there is an improvement worth, of $600million a year, in just one country –Nigeria.
Three factors that influence consumers’ reaction to markets include:
Personal factors: This refers to instances that concern a particular individual that is not common to others who are potential users of a product or service. It depends on interests, habits, financial status, health conditions, or opinion. It can also be by gender, age or any other of such factor. An example of a marketing campaign that beats this is the COMFIT sanitary towels’. It is meant for women. However, the company increases their selling chance by rooting for antenatal and postnatal women, and those with heavy menstrual flows. They specify how absorbent their pads are, hence helping a category of people with personal conditions to decide.
Price perception is worth a big deal. If the consumers are sure that they have their personality, especially considered, they tend towards loyal and persistent purchase.
Psychological factors: Consumers naturally tend to make product decisions by their perceptions and attitudes. Hence, what they think of a particular product or service determines if they prefer to use it. A marketer’s way of cutting around this edge is by supplying as much information about the product as possible, in a simple way. For instance, radio and TV channels create stories around a product in a simple format, highlighting the function, the benefit, and a specific category of people as their target. They present the “WHY” and “WHAT” factors.
Social factors: This refers to how social influencers make people desire to use a particular product or service provider. Typical examples are Yolanda Gampp who shows “How-to” of cake production, teaching cake tricks to its bakers, Amr Hussein–a Qatar based entrepreneur, who influences restaurant offers in Qatar, and Ali Maffucci, who influences kitchen tricks as with various media channel. Business owners in countries where social functions hold can also use social factors as an appealing means to their consumers. For instance, a place like New Orleans can use a wrestler for the WWE campaign to apply to its visiting guests.
According to Coupon Sherpa, more than 700 American corporations give discount coupons on their respective products and services. About $3 billion is generated, yearly, from transactions where there are bonus offers for consumer packages.
According to Marketing Tech Blog, about 91 percent of consumers revisit after a retailer offers them a discount or promotional coupon. Retailers and sellers use this customer attracting technique because, for a surety, people love to save.
According to Visually, about 56% of business owners agree that flash sales with short duration are known to propel sales more than regular campaigns. In fact, about 50% of such flash sales were noticed to take place within the first hour of launch.
More than this can be expected in markets when they give a considerable amount out for customers to save, by procuring their products. Discount and promotional offers do not just captivate consumers’ attention, such that they leap; producers and marketers get to make more sales in times when these offers are on. A time worthy or targets for business investors and owners is 2022, where the next world cup would be held in Qatar. Preparation can be made via social appeals, to launch promotional campaigns. Being able to use social influencers such as prominent people or figures about promotional offers is a known fact of how customers get excited about promising deals.
Among the many market strategies, macroeconomists recorded that offers and quality features have triggered consumers’ behavior the most. More interesting markets would be seen if such offers are done in strategic seasons and for such purposes.