Need for studying consumer behavior
Javier Ramirez
Liberty University
BUSI 520: Strategic Marketing Management
Muriel Wilson
January 6, 2022
Need for studying consumer behaviour
Buyer behavior is studied to predict buyers’ reaction in markets. If a firm
understands its customers, it becomes successful in the market place. The success of
any business is based on understanding the consumer and providing the kind of
products that the consumer wants.
Need for studying consumer behaviour
Buyer behavior is studied to predict buyers’ reaction in markets. If a firm
understands its customers, it becomes successful in the market place. The success of
any business is based on understanding the consumer and providing the kind of
products that the consumer wants.
Need for Studying Consumer Behavior
The consumer decides what to buy, when to buy and also what not to buy. One
cannot thrust a product on a consumer. A marketer sells what the consumer wants.
So, emphasis is placed on knowing what the consumers’ wants are.
Studying consumer behavior is very much emphasized for the following reasons.
1. To satisfy need of customers
Consumers respond favorably while evaluating the products that best satisfy their
needs. A marketer studies how consumers spend their available resources on the
consumption of related items. It includes the study of what they buy, when they buy
it, where they buy it and how often they use it. So, a knowledge of consumer behavior
will be of immense help to the marketer which will help to satisfy their needs.
He can understand the consumer’s reaction to a firm’s marketing strategies. It
would help in planning and implementing marketing strategies.
2. Helps to understand consumer psychology
The study of consumer behavior enables the marketer to understand the
psychology of consumers. Consumer psychology is based on his knowledge, attitude,
intention and motive. The psychology of customer develops on the basis of knowledge
he has. Sales promotion plays an important role to provide the knowledge of the
product to consAttitude is a state of mind or feeling. Attitude explains behavior.
Intention means a desire to do something. A marketing programme is formulated only
after understanding the intention of consumers. Motive is the integral state which
directs the behavior of a person.
3. Helps to understand consumer motives
A study of the behavior of a consumer is essential to understand his/her buying
motives. A motive is an urge for which an individual seeks satisfaction. In the words of
R.S. Davar
a motive is an inner urge that moves or prompts a person to action.
Consumers have several motives. All these motives may not have the same
intensity of purchase. Only a few motives prompt the consumer to buy a product or
service. The study of consumer behavior involves both motives and purchases.
4. Helps to understand consumer choices
It is important for the marketer to understand how consumers make their
choices. Human beings are usually very rational. They make systematic use of
information available to them before they buy. A marketer studies the behavior of the
customer and accordingly alter his presentation, enticing the customer to go for the
product.
5. Helps to understand consumer preferences
A business firm which is ignorant of consumer preferences cannot succeed in the
market place. According to Peter F. Drucker
“It is the consumer who determines what a business is”
Adam Smith has stated that consumption is the sole end and purpose of all
production. So, a firm must plan its production and distribution to suit the needs of
consumers. Thus, the extent of consumer understanding determines the effectiveness
of marketing mechanism.
To conclude
The study of consumer behavior helps the marketer to
1. Satisfy need of customers
2. Understand consumer psychology
3. Understand consumer motives
4. Understand consumer choices
5. Understand consumer preferences
Classification of Customers on the Basic of Area
The customers can be classified on the basis of the area they come from. The
demand and needs of customers living in villages are not the same as the customers
living in towns and cities. Accordingly, customers can be classified as urban and rural.
