Understanding Customers Assignment Sample

Customer Behavior and Its Impact on Business Success

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Introduction of Understanding Customers and Purchasing Behaviour in Business

Customers refers to the individuals or the business organizations who purchase the products or services in the marketing environment (Ki, and Kim, 2019). Customers play an important role in maintaining a successful business as they help to drive the revenue and increase the profit margin of the company for the long term. In relation to this, the companies compete with each other to gain and attract more customers according to their scope in the marketplace through which their sustainability can be determined. The main measures of attracting the customers includes elevating as well as innovating new products and services or reducing the prices of the particular products can also be helpful for the managers of the company (Naderi, and Van Steenburg, 2018). The study in this case will discuss the significant concepts related to the customers and their purchasing behaviour. In this case, the difference between customers and consumers are also provided in the study in context to the tourism companies.

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Discussion Between Customers and Consumers

The customers ate the individuals who purchased the products and services from its seller or manufacturer for daily use through which their needs are satisfied for the long term. In many cases the customers are also referred to the consumers if they purchase the product as per the requirements of their family members (Lin, and Niu, 2018). For example, a man purchases a shampoo where he is the customer but the whole family uses it and they are considered as the consumers. Customers in this case are categorized into two types which are the trade and the final customers. The trade customers are the ones who buy the products for further reselling it to the needy ones such as the wholesalers or the retailers and the final customers are the ones who buy the goods to fulfil their desires or wants (Hsu, and Chen, 2018). However, according to the product satisfaction and the influence on the relationship of the company with the customers it can be divided into three different types which are present, former and potential customers. On the other hand, the consumers are the ones who purchase the products for further consumption and are unable to resell it as per their self employment criteria. There are various types of consumers such as commercial, discretionary spending, extroverted and inferior goods consumers through which the companies are able to gain profit margins in the competitive marketing world (Balderjahn et al., 2018).

Customers are quite important for any businesses including construction, consumer goods manufacturers or the tourism companies because they are the main source of revenue for the firms. In association with this, the retention of the customers towards a particular product also helps to determine the brand image of the company in the competitive world. Customers are also crucial for the business as poor satisfaction can be considered as a major failure for the managers and owners of the firms (Ki, and Kim, 2019). For example, retaining the needs and interest of the customers are one of the main goals for the tourism companies like Airbnb because it helps to gain the competitive advantage which can also contribute to an increase in the demand for the services provided by the company for a long period of time. One of the key measures to enhance customer satisfaction by the managers of the companies includes that they should create advanced feedback channels through which the constantly changing needs of the customers can be addressed on time (Naderi, and Van Steenburg, 2018).  

Consumer behaviour refers to the study of the perceptions and thoughts which an individual gets while buying a product or service regarding its quality as well as price margin which is further related to satisfy their needs or wants (Lin, and Niu, 2018). In simpler words it is the actions of the consumers through which the long term goals of the company can be determined. The managers of the company in various fields such as the tourism industry believe that obtaining real time data on the consumer buying behaviour can help it to maintain a positive brand image in the competitive world and can also increase their growth (Hsu, and Chen, 2018). The nature of the consumer behaviour in this case shows that it is influenced by both the external and internal factors of the company such as the packaging and the quality of raw materials used for the process of manufacturing as well as market segmentation used by the company. On the other hand, the behaviour of the consumers also vary from one individual to another which is ruled by various factors such as the age, gender, caste, likes and dislikes of the individuals in the marketing world (Balderjahn et al., 2018). 

The four different types of consumer behaviour includes complex, dissonance, habitual and variety seeking buying behaviour. The complex behaviour is basically noted in the customers who opt for expensive products and this type of behaviour is highly risky in which the buyer actually does not have any knowledge regarding the product (Hollebeek, and Macky, 2019). For example, the consumers who want to build a house do not have any knowledge regarding the price of raw materials used in the construction process. Dissonance reducing buying behaviour refers to the customers who buy the less demanded products and it can also lead to the dissatisfaction of the customers where the brand image of the company can be lowered (Park, and Yoo, 2020). For instance, the customer renovating his house buys floor tiles from a tile manufacturer based on its price and the quality is considered as extremely poor. Habitual buying behaviour is basically referred to the products which are brought frequently by the customers and the buying decision is purely related to the brand image. For instance, to buy a shampoo the customers chooses P&G over any other company. Lastly, the variety seeking behaviour refers to the brand switching power of the customers which can also be a result of their dissatisfaction from the existing purchase of goods or services (Hollebeek, and Macky, 2019). For example, customers prefer buying makeup cosmetics from MAC rather than any other company. 

Information technology helps (IT) to enhance the customer base for the company as it analyses the real time data in terms of the current trends and demands of the customers as well as stores is appropriately through which the employees are able to innovate new products and enhance the sustainability of the company for the long term. It also helps to enhance the knowledge of the employees and create information for the company through which the performance of the company is improved (Park, and Yoo, 2020). Apart from this, the IT team also set different tools for the company which can help to transfer the information to the production department efficiently. For example, the tourism companies use artificial intelligence in their information technology department to enhance customer satisfaction by providing them clean rooms after every use. On the other hand, the IT department also plays an important role in maintaining high communication in the internal structure of the company through which the employees are able to coordinate among tier tasks for ensuring better productivity as well as performance (Steenkamp, 2019). 

It is also useful to maintain a positive relationship with the target audience as it maintains a user-friendly website for the company through which the customers' needs and demands are addressed easily (Balderjahn et al., 2018). For example, the managers of the tourism companies like Airbnb supports the motivation of the employees through tracking their performance from its IT department and also transfers the important information through emails efficiently. This further helps the company to save their time and money which brings long term sustainability in the competitive world. For further improving the performance of the staff members in the companies like Bay Farm Tours the managers use the voice over internet telephones (VIOP) which maintains a smooth communication channel in its internal structure. IT also helps to manage and store every detail of the organization properly through which the data bases of the company are secured. This further helps to improve the decision making process of the company which can increase its profit margin for the long term (Steenkamp, 2019). For example, the IT department helps the managers of the Ultimate Travel Company to enhance the processing responsibility of the information by using the Online Analytical Processing (OLAP) for attaining long term sustainability.                                    


The study concludes that the customers are important for every business as it helps the company to enhance their valuation and flow of finances in the competitive world. On the other hand, achieving the appropriate behaviour of the customers can help the employees to increase the growth of the company so that it is able to achieve its long term goals efficiently. Consumer buying behaviour also shows the reputation of the company in the marketing environment as per the study through which the wider scope of the buyer and the initiatives which can help to influence them can be determined. Lastly, it is also noted from the study that the IT is responsible for attracting and maintaining advanced relationships with the customers through which the managers of the  company will be able to enhance the decision making process which can promote its long term sustainability.


Balderjahn, I., Peyer, M., Seegebarth, B., Wiedmann, K.P. and Weber, A., 2018. The many faces of sustainability-conscious consumers: A category-independent typology. Journal of Business Research, 91, pp.83-93.

Hollebeek, L.D. and Macky, K., 2019. Digital content marketing's role in fostering consumer engagement, trust, and value: Framework, fundamental propositions, and implications. Journal of interactive marketing, 45, pp.27-41.

Hsu, C.L. and Chen, M.C., 2018. How gamification marketing activities motivate desirable consumer behaviors: Focusing on the role of brand love. Computers in human behavior, 88, pp.121-133.

Ki, C.W.C. and Kim, Y.K., 2019. The mechanism by which social media influencers persuade consumers: The role of consumers’ desire to mimic. Psychology & Marketing, 36(10), pp.905-922.

Lin, S.T. and Niu, H.J., 2018. Green consumption: E nvironmental knowledge, environmental consciousness, social norms, and purchasing behavior. Business Strategy and the Environment, 27(8), pp.1679-1688.

Naderi, I. and Van Steenburg, E., 2018. Me first, then the environment: Young Millennials as green consumers. Young Consumers.

Park, M. and Yoo, J., 2020. Effects of perceived interactivity of augmented reality on consumer responses: A mental imagery perspective. Journal of Retailing and Consumer Services, 52, p.101912.

Steenkamp, J.B.E., 2019. Global versus local consumer culture: Theory, measurement, and future research directions. Journal of International Marketing, 27(1), pp.1-19.

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