After acquisition, consumption or disposition, consumers may feel some uncertainty in regards to the decision made, generating in some cases regret. It ensures an exact use of resources for achieving maximum efficiency. Thus, the study of consumer behaviour is the base for developing a new product successfully.
Effective Use of Productive Resources: As a result, new substantive knowledge was added to the marketing discipline - including such ideas as opinion leadership, reference groups and brand loyalty.
Influences on purchase decision[ edit ] Purchasing is influenced by a wide range of internal and external factors. In practice, the consideration set has assumed greater importance in the purchase decision process because consumers are no longer totally reliant on memory.
This is also known as "post-purchase intention". Businesses and marketers that do not search for consumer insights, or who fail to understand their anthropological backgrounds, will not be able to connect or engage with prospects and won't be able to motivate them to become customers.
The decision model situates the black box in a broader environment which shows the interaction of external and internal stimuli e. Related products The purchase of one product may trigger the need for accessories, spare parts or complementary goods and services e.
Consumer behaviour can also aid in projecting the future market trends.
Social theory suggests that individuals have both a personal identity and a social identity. A typical strategy is to look to peers or significant others for validation of the purchase choice. These sources could be friends, websites, online reviews or influencers.
What was going on as each generation was growing up? Sales promotions such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now rather than defer purchases for a later date. Taking the example above customers may have a tax problem and need advice.
More Relevant Marketing Programme: In order to develop the best-fit product, a marketer must know adequately about the market. Routinized problem-solving Repeat purchases or habitual purchases Consumers become aware of a problem in a variety of ways including: Each unit of resources can contribute maximum to objectives.
Market segmentationespecially demographic segmentation based on socioeconomic status SES index and household life-cycle, also became fashionable. Consumers can have both positive and negative beliefs about a given brand. Consumer behaviour focuses on dynamic nature of the market.
Maslow's hierarchy of needs is based on five levels of needs, organized accordingly to the level of importance. Marketing communications can illustrate how a product or brand fulfills these needs.
In practice some purchase decisions, such as those made routinely or habitually, are not driven by a strong sense of problem-solving. There are four stages that consumers go through in the hypothesis testing: They may change their preferences related to their budget and a range of other factors.
Dynamic Nature of Market: Information search describes the phase where consumers scan both their internal memory and external sources for information about products or brands that will potentially satisfy their need. It is useful in improving competitive strengths of the company.The Importance of Consumer Behavior to Marketers Essay The Importance of Consumer Behavior to Marketers Abstract In this report, we are going to discus the importance of consumer behavior study, knowledge and understanding to marketers, and how it will have a positive impact on the organization growth and revenue.
Nov 04, · The Importance of Consumer Insights in Today's Marketing Strategies Businesses need to culturally understand why each group is different. What. Consumer behavior is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service, or company.
The three factors that affect consumer behavior. "All marketing decisions are based on assumptions and knowledge of consumer behavior," (Hawkins and Mothersbaugh, ).
Researching consumer behavior is a complex process, but understanding consumer behavior is critical to marketers-they can use it to. First, learners will see the tools and methods to be able to effectively conduct (or hire) and interpret marketing research.
Second, they will learn the foundations of consumer behavior and the consumer decision-making process and how to use this knowledge in the formulation of effective marketing strategies and tactic.
Consumer behaviour studies the consumer response pattern on a continuous basis. So, a marketer can easily come to know the changes taking place in the market.
Based on the current market trend, the marketer can make necessary changes in marketing programme to adjust with the market.Download