Consumer behavior is a hot topic for businesses, and perhaps even more so for million dollar industries who are striving to maximize profits by cracking the code of the human psychology. You don’t know how every generation will alter their purchasing power, depending on the economy and the trending product during a specific era. According to statistic studies, Millennial is more likely to spend on travelling trips and be made impulsive purchases on online mobile apps. It’s the prime era to advertise your business on social media. For most people, it’s fast and convenient.
Although Millennial love making online purchases, they nonetheless tend to make the occasional in-store errands, despite shopping malls might disappear in the next thirty years. We might see a revolution for Generation Z and the farther future, whereas you see a transition from using Facebook and Instagram to using the next big thing, nobody can deny that business can adapt to the ever changing society and stay relevant and innovative. Here are some easy ways for business to implement small techniques by understanding the human behavior.
Some Interesting Statistics
- By 2018, Millennials will have more spending power than the Baby Boomers and by 2020 Millennials will have a collective spending power of $1.4 trillion. (Source: Fool.com)
- 4. Millennials are the most ethnically and racially diverse generation, with 19% being Hispanic, 14% African-American and 5% Asian. (Source: Marketing Charts)
- Coloring of the Identity Brand can influence a purchasing decision
For the Millennial Generation (18 –35 years old), a huge ethnic diversity is spreading across online shopping. Hence, picking a logo brand and the color scheme of a website is a very important initial step for a business success. Different cultures will lead to subjective opinions when it comes to an attractive color. Targeting towards a specific consumer audience (ex: Japan) might help choose an identity that matches your marketing slogan. If you already know, Rhianna Beauty. Inc is an up and coming cosmetic brand owned by Rhianna Beauty, in which the net worth is deemed around of 3 billion dollars. Her identity brand is targeted colored working women who love rose gold pink packaging.
Each color holds a universal meaning, despite the difference between cultures.
- Black: Sophisticated &mysterious
- White: youthful
- Red: passion &excitement
- Natural & Organic
- Humans are driven by emotions
Let’s be honest, we all made a 2 am shopping spree, without knowing the cause of why we bought a three hundred dollar teapot. We’re strolling through Amazon, promising ourselves that we wouldn’t buy anything, only thirty minutes later, three items have already sneaked into our shopping chart. Why is that? Naturally. We’re human beings who make irrational purchases. Being emotionally driven by desires, marketers cave into the human psychology of knowing which strings to pull, and we fall into the shopping trap. You can insert some fun marketing strategies to make people smile more or feel drawn by your product.
- Cute dogs and cuddly small animals playing in the parks
- People with different diversities telling their great experiences
- Great Reviews on your main website
- Supply & Demand on A Future Product
People only spend money if you’re creating an innovative product ahead of its times. It’s the only way to stay relevant. Whether it’s music, B2, fashion or real instate, keeping up the trend is important, but’s even more surprising is the people who are the most successful are the ones who can predict a consumers’ future behavior. Take an example for online dating, twenty years ago, we would have never imagined that humans are posting online profiles to find a potential partner. On the business point of view, it’s a booming business that will only progress in the next thirty years.
Three criteria to predict consumer behavior
A high demand in the market
- Potential trends that will elevate into innovative technology
- A popular industry (ex: beauty, medical care, technology)