Understanding customer behavior gives you insight to the processes people follow when making a buying decision. Ideally, the information you gain from data diving guides good marketing and management decisions.
By Sarah Murphy:
This article offers a critical perspective on what consumer behaviour data actually means. Specifically, the author begs the question of whether this information tells us more about consumer preferences in and of themselves or about pitfalls of the business processes of a company. The most powerful piece of evidence brought up in the article is the example of a company who asked consumers whether or not they preferred telephone or online ordering from their store. Although their customers did prefer the telephone approach, this was not necessarily because it was one of the company’s strengths. This is because an analysis of the company’s website revealed that their online presence was very weak. Ultimately, this article offers insight into how a “smart” market researcher should design their research approach. Specifically, research questions should seek to combine information about a company’s current marketing tactics (Ie. online distribution approach) with behavioural data and psychographics. The market researcher should anticipate how specific aspects of a business’ current practices might be influencing consumer behaviour and ask questions to both rule out false hypothesis and also to determine the optimal adjustments that should be made if an hypothesis is correct.