Importance of Understanding Consumer Behaviour

1. Importance of Understanding Importance of Understanding Consumer Behaviour Consumer Behaviour Consumer behaviour is relatively a new field of study that defines how individuals make decisions while spending their available resources i.e. time, money, and effort or on consumption related facets i.e. what/when/how they buy? Broadly speaking, it is a general study of individuals or organizations and the processes used by consumers while they search, select, use and place products, services, experience, or ideas to meet their needs and their impact on the consumer and society. Fig 1: Factors of Consumer Behaviour Consumers and their Motives The consumer is a person who usually works- searching, selecting, using and disposing of products, services, experience or ideas. The motive of consumers is the reason behind buying a particular product. Motive is a strong sense, urge, instinct, desire or emotion that influences the purchaser in their decision to purchase. Thus buying motive is defined as those considerations or influences that stimulate buyer’s purchasing decision, action or determine the choice of goods or services. The buying motives may be categorised into two: a) product motives and b) patronage motives. Why Understanding Consumer Behaviour is Important for Business Managers: Understanding of consumer behaviour is very crucial for any organization before launching any product. As every consumer has different mind-set and attitude towards purchasing, consumption, and disposal of product, to understand consumer behaviour properly is very difficult and complex. Study of consumer behaviour helps in many ways. Within this constantly changing scenario in living standards, fashion, technology, and so on, consumer’s attitude towards purchasing the product also varies significantly. So, marketing a product is largely dependent on the factors related to consumer behaviour.

2. Fig 2: Influencing factors of consumer’s behaviour Understanding of consumer behaviour helps business managers, sellers, and marketers in the following ways- •Design the best product or service possible that fully meets the needs and demands of the consumer. •Decide where the services or products would be made available to consumers for easy access. •Decide at which price consumers would be prepared to purchase this product or service. •Find the best way to promote a product that is effective in attracting customers. •Understand why, when, how, what and other factors influencing consumer decision- making. Why Understanding Consumer Behaviours is Important for Marketers: Understanding of consumer behaviour is important for marketers to investigate and comprehend consumer’s pattern of behaviour so that they can position their products for specific groups of people or targets. In today’s competitive market, consumers are very aware and particular in choosing, using, or purchasing any product. Therefore, to sell a product or convince a consumer, marketers need to research properly. The following defines why understanding of consumer behaviour is important for marketers- •Comprehend the influencing factors of consumer’s purchasing behaviour. •Comprehend consumer’s decision to dispose products or services. •Create and hold consumers through online platforms. Video links: https://www.youtube.com/watch?v=v1q1nnPCcKw Brainware University