Importance of Studying Consumer Behaviour

Role or importance of study of consumer behaviour can be explained with reference to the points stated as under:1. Modern Philosophy:It concerns with modern marketing philosophy identify consumers needs and satisfy them more effectively than competitors. It makes marketing consumer-oriented. It is the key to succeed.2. Achievement of Goals:The key to a companys survival, profitability, and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitors. Thus, consumer behaviour helps in achieving marketing goals.3. Useful for Dealers and Salesmen:The study of consumer behaviour is not useful for the company alone. Knowledge of consumer behaviour is equally useful for middlemen and salesmen to perform their tasks effectively in meeting consumers needs and wants successfully. Consumer behaviour, thus, improves performance of the entire distribution system.4. More Relevant Marketing Programme:Marketing programme, consisting of product, price, promotion, and distribution decisions, can be prepared more objectively. The programme can be more relevant if it is based on the study of consumer behaviour. Meaningful marketing programme is instrumental in realizing marketing goals.5. Adjusting Marketing Programme over Time: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.6. Predicting Market Trend:Consumer behaviour can also aid in projecting the future market trends. Marketer finds enough time to prepare for exploiting the emerging opportunities, and/or facing challenges and threats.

7. Consumer Differentiation:Market exhibits considerable differentiations. Each segment needs and wants different products. For every segment, a separate marketing programme is needed. Knowledge of consumer differentiation is a key to fit marking offers with different groups of buyers. Consumer behaviour study supplies the details about consumer differentiations.8. Creation and Retention of Consumers:Marketers who base their offerings on a recognition of consumer needs find a ready market for their products. Company finds it easy to sell its products. In the same way, the company, due to continuous study of consumer behaviour and attempts to meet changing expectations of the buyers, can retain its consumers for a long period.9. Competition:Consumer behaviour study assists in facing competition, too. Based on consumers expectations, more competitive advantages can be offered. It is useful in improving competitive strengths of the company.10. Developing New Products:New product is developed in respect of needs and wants of the target market. In order to develop the best-fit product, a marketer must know adequately about the market. Thus, the study of consumer behaviour is the base for developing a new product successfully.11. Dynamic Nature of Market:Consumer behaviour focuses on dynamic nature of the market. It helps the manager to be dynamic, alert, and active in satisfying consumers better and sooner than competitors. Consumer behaviour is indispensable to watch movements of the markets.12. Effective Use of Productive Resources:The study of consumer behaviour assists the manager to make the organisational efforts consumer-oriented. It ensures an exact use of resources for achieving maximum efficiency. Each unit of resources can contribute maximum to objectives.It is to be mentioned that the study of consumer behaviour is not only important for the current sales, but also helps in capturing the future market. Consumer behaviour assumes: Take care of consumer needs, the consumers, in return, will take care of your needs. Most of problems can be reasonably solved by the study of consumer behaviour. Modern marketing practice is almost impossible without the study of consumer behaviour.

Who is a consumer?Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market.The consumer is the end buyer of a products and therefore, not necessarily the same person who buys the product. In practice we use the word consumer for individuals who are buying for their own and family benefits. But we should not use word consumer for purchasers made on behalf of business organization. For organizational purchases use the word customer.Example Sudhir might purchase a bicycle for his son or Arjun might buy a shirt for himself. Here both Sudhir and Arjun are consumers.What is consumer interest?Every customer shows some inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase a products and services as per their taste, need and ofcourse pocket.What is Consumer Behaviour?Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use. In laymans language, consumer deals with the buying behavior of individuals. Thus consumer behavior are actions that a person takes in: Purchasing and using a product or service. The mental and social process that proceeds and follow these actionsConsumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs. It also study the impacts that these buying processes have on the consumer and society. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand peoples wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.Customer behavior study is based on consumer buying behavior. Customer play three distinct roles of: User Payer BuyerA great importance need to be placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing.It must be noted that consumer behavior does not end with purchase of goods or service, but also post purchase activities are included in consumer behavior. Consumer behavior plays a very important role in the success or failure of a product. If a consumer is satisfied from the product then his behavior would be positive towards the product and if he is not satisfied from the product then his behavior would be negative towards the product. Positive consumer behavior will lead to repeat purchase and satisfied consumer will also recommend your product to others. Todays global companies truly believe on this idea that a consumer must be fully satisfied. For this purpose they have the special departments like Research and Development. These global companies keep on doing research on the products and their customers. From research and surveys companies get the true picture of its standing in the market. According to the consumers feedback they further develop and improve their products..The study of consumer behavior explains:1. Why and why not consumer buys a product.2. Who buys3. What are their choice criteria4. When a consumer buys a product.5. where a consumer buys product6. How a consumer buys a product.7. Why consumer make a purchase that they make.8. What factors influence consumer purchase.9. Why consumer behave as they do.10. what are mental process involved.11. Buyers likely reaction to a marketing strategy.All these are important questions, which are to be known to the companies so that they can design, and implement marketing strategies to satisfy the customers.Why study consumer Behavior:There are several reasons behind study of consumer behavior. Below are some important reasons:1. Consumer do not always act as the theory would suggest.2. Consumer preference are changing and becoming highly diversified.3. Meeting of special needs of consumer requires market segmentation. Consumer behavior help in market segmentation process.4. The marketing concept stress that a firm should create a marketing mix that satisfies customers. Therefore, a firm need to analyse what, where, when and why customers buy.5. Understanding consumer behavior is essential to the development of marketing strategies, especially in pricing, product design, segmentation, targeting, positioning and promotion.6. The main role of marketing manager is to satisfy needs and wants of the customers. This can be done by the study of consumer behavior.7. Customer is the most important person to the marketer because the marketer takes into consideration on the liking and the disliking of the consumer. Goods and services must be produced according to likes and dislikes of customers. Likes and dislikes of customers can be known through study of consumer behaviour.8. The more the consumer behavior learnt, the more needs and wants are fulfilled.9. Marketing concept calls for the need of consumer behavior for formulating effective marketing mix.

The study of consumer behavior help us:1. To design the optimal product or service for customers.2. To determine where the product or Service should be available that would easy for the customers to buy3. To determine what price will the customers give up purchasing product or service.4. To determine which method of Promotion would be most effective for getting the customers to buy a product.5. It helps in changing the behavior of the consumers.6. To improve performance of the organization.7. To achieve the organizational objectives.8. Help in formulation of production policies.9. Help to retain customers.