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debakshi gupta
CRM and English Skills expert
Asked a question last year

Why is consumer behaviour important?

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debakshi gupta
CRM and English Skills expert

A consumer behavior analysis should reveal:
 

  • What consumers think and how they feel about various alternatives (brands, products, etc.);
  • What influences consumers to choose between various options;
  • Consumers’ behavior while researching and shopping;
  • How consumers’ environment (friends, family, media, etc.) influences their behavior.

Consumer behavior is often influenced by different factors. Marketers should study consumer purchase patterns and figure out buyer trends.

Importance of Consumer Behaviour

(i) New Philosophy:

Consumer behaviour is a modern and new philosophy. It helps the marketers in identifying the needs and wants of the consumer and developing goods and services accordingly. Thus, a marketer by satisfying the needs and wants of the consumers can lure them away from the competitors. Hence it acts as an important tool for marketing success.

(ii) Achievement of Goals:

The ability to identify and satisfy the unfulfilled consumer needs is the key to a company’s survival, profitability and growth. Hence study of Consumer behaviour helps the company in achieving its marketing goals.

(iii) Helps Dealers and Salesmen:

The study of Consumer behaviour is very useful for dealers and salesmen. It helps them in meeting consumer needs and wants successfully. Hence, knowledge of Consumer behaviour is necessary for improving the performance of the entire distribution system.

(iv) Better Marketing Programme:

Marketing programme includes various elements like product, price, place and promotion. The study of consumer behaviour helps the marketers in preparing a better and more relevant marketing programme. Relevant and effective marketing programmes are essential for achieving marketing goals and objectives.

(v) Predicting Market Trend:

Consumer behaviour can also help in projecting the future market trends. Thorough analysis of Consumer behaviour helps the marketers in identifying various opportunities and threats existing in the marketing environment.

(vi) Consumer Differentiation:

Market consists of different kinds of customers. The needs and wants of every consumer segment is different from one another. For each and every segment a separate marketing programme is required.

It is essential for a marketer to collect information regarding the different consumer segments existing in the market. Consumer behaviour study provides great deal of assistance to the marketers in collecting information about consumer differentiations.

(vii) Competition:

Consumer behaviour study helps the marketers in facing intense competition in the market. After analysing the behaviour of the consumer a marketer can offer better goods and services to the consumer than that being offered by the competition. Therefore, consumer behaviour is useful for the marketers in maintaining their competitive strengths.

(viii) Creation and Retention of Consumers:

Marketers who offer goods and services as per the needs and wants of the consumers perform better in the market. Such marketers find it easy to sell their products.

Marketers who continuously monitor the behaviour of the consumers are in a better position to meet the changing tastes, expectations and preferences of the consumers. Such marketers can easily create new buyers and can conveniently retain the existing ones.