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Buyer psychology is a study of the way the customers are reacting towards a certain product or service. It explains in depth the reasons as to why the customers start or stop buying or using certain products or services. It also helps the business owners to understand how to analyze the business and make it profitable in a long run. Also, understanding the way customers think will help marketers come up with a strategy as to what products are performing well on the market.

As we can already see, understanding the buyer psychology is important although how could the marketers benefit from the knowledge? First and foremost, having an idea of what others think about the product or service help leaders create a better marketing strategy. For example: if we are selling two different sizes of water and the big bottles of water are selling better than the small bottles of water and we understand that this happens because water is a necessity and people simply drink a lot of water than we as marketers have to increase the number of big bottles of water that we buy from the distribution center  and maybe even decrease the number of small water bottles bought to be able to accommodate the demand that rises. 

This is just a simple example of how the understanding of buyer behavior can benefit the business, although let’s take a look of how companies are implementing the knowledge of buyer psychology every day. I would like to talk about Ralph Lauren as an example. 

Since I work for the company, I have good insight on how the company is reacting to people’s actions. As we all know, we recently came out of a worldwide lockdown due to Covid-19. When the stores first reopened, the customers were intensively shopping even though we did not have any new arrivals and were not receiving shipment like we used to before the pandemic. We came up with the conclusion that people were shopping only because they had nothing else to do and were fed up with sitting at home.  3 months went by, and we started to see a drastic decrease in traffic and sales: we were getting less foot traffic and had a lot of “browsers” instead of productive shoppers. This is when, by analyzing customers’ behavior, the company started to come up with the ways to get people to shop with Ralph Lauren. They started doing better promotions, launched a “More Ways to Shop” program and started elevating the experience inside the stores by providing a better customer service. These things have successfully contributed to staying successful and competitive on the market for Ralph Lauren as a company and even though the changes were recently implemented, we are already able to see the result. If you guys would like to know more about Ralph Lauren’s attitude towards consumer behavior and its marketing strategy, feel free to visit this link:

https://prezi.com/egjo2kajkcui/demonstrate-how-5-theories-of-customer-behaviour-have-contributed-to-the-marketing-of-ralph-lauren/

Overall, understanding of buyer psychology is just as important as the ability to read the business reports. It can help us to correct our marketing approach and make the business more successful in a long run. It is crucial to know what people think about our products and services, but it is even more important to understand why people think or act a certain way. While it is easy to change the strategy, it is extremely challenging to change an opinion of our clients. Also, here are some tips to help you better understand your client base:

https://www.indeed.com/career-advice/career-development/buyer-psychology

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