Reasons why people study consumer behavior are diverse. The field of consumer behavior
holds great interest for us as:
- Consumers,
- As business entities
- As schools of human behavior.
i) As consumers:
- We benefit from insights into our own consumption related decisions:
- What we buy
- Why we buy
- How we buy and the
- Promotional influences that persuade us to buy.
- The study of consumer behavior enables us to become better, i.e. wiser consumers.
ii) As business entities
- It is important for us to recognize why and how consumers make their
consumption decisions for a number of reasons:
i. So as to make better strategic decisions.
If business entities understand consumer behavior, they are able to predict how consumers are likely to react to various informational and environmental cues and are able to shape their marketing strategies accordingly.
ii. Business entities who understand consumer behavior have greater
competitive advantage in the market place.
iii. Customers are the reason for any business existence since without them, a business
cannot exist.
iv. Meeting the needs of the customers more effectively than competitors do is the key
to continued profitable existence for any business.
v. It is important that each customer who deals with an organization is left with a
feeling of satisfaction. This may lead to increased sales or willingness to pay higher
prices thus higher profits.
vi. Anyone who buys takes a risk. Everyone likes to get value for money. It is
important that business entities help reduce the risk for consumers so that they are
more likely to become regular customers.
vii. Loyal customers will support the organization in hard times.
viii. Customer loyalty is a source of company’s goodwill.
(iii) As scholars of human behavior, we are concerned with understanding consumer
behavior with:
- Gaining insights into why individuals act in certain consumption-related ways and
- With learning what internal and external influences impel them to act as they do.
Titany answered the question on November 3, 2021 at 07:20