A customer behavior audit is important in an organization as it affects the decision making process. It tackles both external and internal aspects that influence an organization. Moreover, it deals with factors that may manipulate the decision making process of a firm. It evaluates all stages in a company from production to distribution. Furthermore, it entails pricing, marketing and promotion. To start with, it evaluates all the dynamics involved in market fragmentation (Hawkins 45). For example, a society’s cultural influence may divide the market of a certain commodity or service. In such situations, the gender of an individual may dictate his or her suitability to consume or even buy a certain commodity. For instance, in some cultures, men do not apply body lotion. Other factors that may influence the customers’ consumption of a certain commodity include religion, type of job, financial status, as well as educational background of a person. For example, illiterate individuals may not buy a newspaper because of their low educational level. Moreover, products such as cars may only attract people who have a high income (Krishna 111).
Likewise, this evaluation process includes the analysis of a brand’s position in relation to other trademarks of the same product. Evaluation of the company’s rivals needs consideration in terms of their inspiration and competence. The fame of the brand in each market section is crucial in providing a competitive edge to the company over its competitors. For example, families with young children may buy a certain brand of milk due to their child’s love for its advertisement. Moreover, every market section has its model version of a certain product’s brand. Realization of these different ideals will help the manufacturing company to customize its products for each group of individuals. Despite each person having a specific preference in relation to a certain brand, the taste of one individual may affect other people’s decisions. For example, if a mother prefers a certain variety of wheat flour, chances are that the rest of the family members will soon adapt to the same brand (D’Souza 35).
Evaluation of the company’s price-related guidelines is also an important aspect of customer behavior auditing. Certain factors that may influence these policies include the consumer’s purchasing power. A customer may desire to buy a certain product but lack sufficient money to do so after catering for all his basic needs. Additionally, it is essential to evaluate if temporary reduction of prices will lead to sufficient diffusion of the brand by the consumers. This is to ensure that the company still acquires substantial profit using this strategy (Neef 59). It is also vital to analyze if temporary reduction of prices will affect the customer’s view of the brand’s grade. This will ensure that the company does not lose more of its customers by use of strategies that could attract more of them if properly implemented.
Analysis of the distribution approach by a company is crucial during auditing of the customer’s behavior. This is mainly by understanding the market’s requirements in distribution of certain goods or services. For example, a certain food store may require the distributor to package the products in a certain manner. Moreover, one should analyze the type of stores he/she wants to collaborate with in terms of selling certain products or services on their behalf. This should be in relation to the status, location, capacity, as well as potential of the store where the company’s products are to be distributed (Reichheld 23).
D’Souza, Sean. The Brain Audit: Why Customers Buy (and Why They Don’t). Auckland, N.Z: Psychotactics, 2009. Print.
Hawkins, Del I, and David L. Mothersbaugh. Consumer Behavior: Building Marketing Strategy. Boston: McGraw-Hill Irwin, 2010. Print.
Krishna, Aradhna. Customer Sense: How the 5 Senses Influence Buying Behavior. New York: Palgrave Macmillan, 2013. Print.
Neef, Dale. The Supply Chain Imperative: How to Ensure Ethical Behavior in Your Global Suppliers. New York: American Management Association, 2004. Print.
Reichheld, Frederick F. The Ultimate Question: For Opening the Door to Good Profits and True Growth. Boston, Mass: Harvard Business School Press, 2006. Print.
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