Importance of Consumer Behavior

[amandeep kathuria]

Importance of Consumer Behavior

[amandeep kathuria]

1. Consumer behavior theories are concerned with modern marketing theories that involve identifying the customer’s needs and satisfying them more effectively than competitors. It allows the market to be consumer oriented and also it is a key to success.
2. Organization’s goal of profitability, survival, and growth can only be possible when they will make their customers happy. Thus, consumer behavior helps in achieving the organizational goals and satisfies the needs of the consumer better than their competitors.
3. It also improves the performance of the distribution system. Consumer behavior is not only useful for marketers but it is equally important for the middlemen and salesman.
4. Advertising programs, price, quality and decisions related to price, place and product can be prepared more objectively. Relevance will be more if all these decisions are taken on the basis of the consumer behavior.
5. As Consumer behavior comes under the Human behavior, which is uncertain. It keeps the marketer in touch with the changes in consumer’s taste and preferences and it also makes sure that there isn’t any deviation.
6. For an organization, competition will always be there. To face this competition, the organization needs to understand the demand and expectation of the consumer. So, consumer behavior also helps in taking competitive advantages.
7. Consumer behavior is equally important for developing a new product.
8. Consumer behavior helps the manager inefficient use of resources. It ensures an exact use of resources for achieving maximum efficiency. Each unit of resources can contribute maximum to objectives.

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