Changes in the market sometimes result from changes in terms of the customer; these may be related to demographic and behavioural facts. Demographic changes can be recognized by the aging of the population. The population is older partially because the birth rate is falling. In addition, immigration, as seen in Europe, leads to a diversity of cultures.
Individual consideration of consumers is necessary, because households are made up of an ever expanding variety of demographics. An obvious and extreme alteration in consumer behaviour is that of women. 60% of women are now in full time work, even if they have children (Kumar, Reinartz, 2012, pp. 6–7).
Many different social developments are accelerating changes. Size and composition of households are changing because of the trend of more single households. In addition, the changed role of women in society is having an effect on buying patterns. Furthermore, customers experience a permanent lack of time and therefore want to buy on demand and appreciate top services from companies that save them time (Berger, 2015, p. 119).
The transition of power in the markets is not a new situation. Historically, there have always been attempts by customers, but also sellers, to achieve a stronger negotiating position (Pires et al., 2006 p. 938).
There was a big change in customer behaviour at the beginning of the 21st century with huge implications concerning the business dynamic and trade. Since then, customers do not act in predictable ways, but in a manner that is based on various aspects like emotions, prices, or their geographic location at the time of shopping. This unpredictable behaviour makes it increasingly difficult for suppliers to make a segmentation in the market and prepare a communication concept with specific target groups (David, Hilpert, 2016, p. 189).
Changes in the diversity and behaviour of customers are difficult to manage. This is also an argument for a strategic CRM implementation. Diversity itself is changing in nearly all industrialized nations. This changed situation leads to changed market participants and thus changed requirements from the market. Suppliers are forced to respond to the needs of new markets. Customers are more time sensitive, they expect twenty-four-seven support.
Communication and interaction between company and customer must be short and efficient.
Furthermore, customers are expecting top service and do not accept bad service quality. The reason for that is the development of the internet and the growth of consumer knowledge.
Customers are well informed and know what they can expect for their money. Unfortunately, there is a trend of disloyalty recognised in the modern customer (Kumar, Reinartz, 2012, pp.
6–10).
There is another trend observed called multi-option society. Due to the wide range of products and services offered, customers are granted a multitude of options to choose from.
This is on the one hand a comfortable position for customers – a kind of opportunity for self-realisation – but on the other hand it creates an attitude of cognitive dissonance on the customer side. The large selection of options puts additional pressure on companies when it comes down to improving relationships with existing customers.
It is evident that life is getting faster and people are longing for a deceleration. A kind of non-stop lifestyle is predominant, however, and induces new approaches and strategies for achieving sustainable success from the vendors point of view (Belz, Bieger, 2006, pp. 59–
60).
Environmental influences also inspire customer behaviour changes and companies have to react to these accordingly. When considering the impact of environmental influences on the four Ps (product, price, place, promotion) the following issues must be addressed and incorporated into a company’s marketing strategy. Product development is becoming more complex because the composition of materials is significant in terms of the footprint they leave behind. Particular attention is paid to the product packaging, which should be biodegradable. The price calculation must take into account regulations regarding environmental protection. Companies point out the environmentally friendly aspects in their services. Customers are willing to spend more money on environmentally friendly products.
The location of the company's buildings also has an impact on the environment and thus on the attention paid to customers. The aim is therefore to produce close to the sales markets.
Advertising is increasingly shifting from the print version to the online version. This saves paper production, which benefits the environment and ensures sustainability (Kotler, 2011, p. 133).
However, this study intends to critically examine customer perceptions while exploring what the companies belive in regards to their customer relationships. Figure 2 details the results of a customer survey that was carried out in Austria in 2016 which identifies deviations.
Figure 2. Empathy report 2016.
Source: Reference Marketagent, Strategie Austria, Statista, 2016
In the survey, large differences can be identified between the customer’s desire for a more customer orientated approach and the actual customer orientation. The evaluation proves that there are definitely differences in the various sectors with regard to the customer's desire for more attention. What is sobering is that, according to this survey, the customer’s perception of the industries’ understanding of them is consistently very low. In any case, the percentage describing the perceived customer orientation is always below 10%. A look at the data in the automotive industry shows that 28% of customers would like to see the
In which industries is the understanding of customers particularly important to you, the customer, and to what extent do you feel
understood?
Perception of understanding Desire for understanding
industry become more customer orientated, which contrasts with the 6% who perceive adequate customer orientation. There is a very large potential for companies to improve as customer orientation seems to be far from being fulfilled (Bruhn, 2016, pp. 4–6).
Customer orientation requires companies to anticipate what their customer really needs.
Companies need to react and provide quality answers, solutions and services that exceed expectations. This will help them establish a one-to-one customer relationship. Close customer relationships are success factors for companies and therefore require appropriate attention (Peppers, Rogers, 2001, p. 47).