It is critical for any organization to understand consumer behavior prior to launching any product or service. Failure to analyze how consumers will respond to specific services or products may lead to inherent losses on the part of the company. Consumer behavior is quite complex since every consumer has a distinct attitude and mind with respect to the purchase, intake, or disposal of a service/product.
Knowing the concepts and theories of consumer behavior aids to market the service or product successfully. In addition, studying is important on several fronts. Since there is a persistent change in peoples living standards, fashion, trend, and change in technology; the attitudes of consumers with respect to a product varies. Understanding of such crucial concepts on consumer behavior is vital since any marketing strategy is based on these variables. Hence, consumer behavior acts as a successful instrument for marketers who aspire to realize their sales objectives.
Consumer behavior concentrates on the behavior and thoughts of buyers when they decide to purchase something. Two sets of customers exist industrial customers who buy for their industries or organizations and buyers. In these two cases, marketers must deal with buyer or organization needs as well as their individual and emotional needs. Motivation is critical across the world for consumer behavior.
Consumer behavior is thus an activity that is targeted majorly at the disposal and use of products and services plus the process of decision making that comes before such actions as well as follow them. Currently, the variety of goods and services for consumption has significantly expanded, and the choices of consumers rely majorly on the needs, habits, tastes, preferences, and traditions.
Consumer preferences in this case are the cognizance that some goods or services have more benefits than the others and are mainly subjective. The evaluation of the benefits and usefulness of every chosen product is also subjective. Nevertheless, consumer choice is not only a consequence of their preferences but also dictated by the pricing of the substitute products as well as the financial capability of the consumer.
Limited resources and unlimited customer needs make it necessary for consumer choice. When consumers consume various amounts of similar benefits, it is evident that the more value we consumer, the less satisfied we get from consuming further units of such goods. The law of consumer behavior involves the relationship between the increase in the amounts of service or goods consumed and the relative additional useful unit of such a good or service.
Therefore, there is a probability for us to state some consumer behavior principles within any market since there is a specific framework of their behavior. It is deemed that consumer behavior is rational, as it suggests specific goals and spearheaded by self-interest. During consumer goods selection, they are constrained by their budget limitations.
The consumer behavior model is also not related to common consumer behavior principles in the market such as maximization of the total utility, above all, budget constraint, and the law of diminishing marginal utility. In many cases consumer behavior is immediate and time-sensitive, facing influences as per different variables over time. This helps businesses create and retain consumers, understand what influences their purchasing decisions, and know-how to convince consumers to take products.
The main reasoning behind marketing is to meet the needs of consumers. Since consumers are crucial to marketers, it is important for them to look at the dislikes and likes of consumers for them to offer goods and services that meet these behaviors. Consumer behavior, therefore, helps managers and marketers in coming up with the best service or product that meets consumer needs, aid decision making on where to locate the product or service for easy access, settle on a price that consumers would readily accept and understand the factors that influence consumer purchase decisions.
Areas of utmost concern are the consumer taste and preferences where different products satisfy different consumers differently, price of products with respect to the pricing of substitute products, and features of the product for instance color, benefits, and size/amount. Consumer behavior concepts and theories are of great importance to marketers or salespeople. Since products and services are created to meet consumer needs, the products/services must be marketed carefully for the successful realization of business goals. It also aids businesses in analyzing various factors that have an influence on consumer purchasing decisions. Where marketers fail to adequately understand such variables, doubt is cast on their success.