Features and importance of Consumer Behaviour
Consumer Behaviour Features:
Features and importance of Consumer Behaviour: 1) Consumer behaviour and marketing management: Effective business managers understand the significance of marketing to their company’s success. Any marketing program’s long-term effectiveness depends on a thorough grasp of customer behaviour. In fact, it is regarded as a cornerstone of the marketing idea, as well as a significant philosophical orientation for many marketing executives. The heart of the marketing idea is encapsulated in three interconnected orientations: customer requirements and desires, corporate integrated strategy, and business integrated marketing strategy.
2) Consumer behaviour and non-profit and social marketing: Even non-profit organisations such as government agencies, religious sects, colleges, and philanthropic institutions must advertise their services and ideas to a “target group of customers or institution” in today’s society. At other times, these organisations are compelled to make public appeals for support of certain causes or views. They also contribute to the elimination of society’s issues. As a result, a thorough grasp of customer behaviour and decision-making will aid these efforts.
3) Consumer behaviour and government decision-making: Consumer behaviour concepts have become more relevant to government decision-making in recent years. There are two key areas of activity that have been impacted:
- (I)Government services: An knowledge of the customers, or users, of these services is becoming more important in government provision of public services.
- ii) Consumer protection: Many government agencies at all levels are active in regulating company activities in order to safeguard the welfare of customers.
4) Consumer behaviour and demarketing: It’s becoming more evident that some natural gas and water are becoming scarce. Due of the scarcity, marketing have emphasised conservation rather than consumption. In other cases, customers have been urged to reduce or eliminate their use of certain commodities that are thought to be dangerous. Examples include programmes aimed at reducing drug misuse, gambling, and other forms of conception. Government agencies, non-profit organisations, and other private groups have all taken part in these initiatives. All attempts to urge customers to lessen their usage of a specific product or service are referred to as “demarketing.”
5) Consumer behaviour and education: Consumers will immediately benefit from systematic research of their own behaviour. Individually or as part of more formal educational programmes, this may happen. Consumers may be more ready to plan effort to save money if they understand that a big amount of the billions spent yearly on food items is spent on impulsive purchases rather than according to a pre-planned shopping list. In general, customers have the potential to better understand how they impact their own behaviour as marketers who can influence their purchases.
Consumer behaviour is crucial:
1) Business production policy: The study of how customer behaviour affects enterprise production practises. Customer behaviour uncovers consumer behaviours, interests, and preferences, allowing businesses to plan and produce goods that meet these requirements. An organisation must keep track of changes in customer behaviour in order to make appropriate product modifications.
2) Price policies: Having price rules is as vital as having buyer behaviour. Buyers of various things do so only because some articles are less expensive than competing products on the market.
3) Networks of distribution decision: The commodities that are sold entirely on the basis of low-cost mast and low-cost distribution channels. In the case of certain products, such as television sets, refrigerators, and so on, various distribution channels are required. As a result, choices about distribution channels are made based on customer behaviour.
4) Sales promotion choices: Understanding customer behaviour is very important when making sales promotion decisions. It allows the producer to determine what motivates a customer to make a purchase, and this information is then used in promotional efforts to pique the customer’s interest in making a purchase.
5) Taking advantage of marketing opportunities: Understanding consumer behaviour allows marketers to better grasp the requirements, desires, expectations, and challenges of their customers. Marketers will be able to utilise this information to take advantage of marketing opportunities and handle market obstacles.
6) Customers may not always respond or react in predictable ways: In the past, consumers reacted to price levels as though price and quality were linked. Today is a week of good value for money, with a lower price but better features. The reaction of the customers suggests that a change had happened.
7) Diverse customer preferences: This trend has happened as a result of the increased availability of options. As a result, studying customer behaviour is critical to comprehending the changes.
8) Rapid launch of new products: As technology advances, the role of monitoring customer behaviour has become more important. For example, in the personal computer business, information technologies are rapidly evolving.
9) Implementing the “Marketing concept”: This entails researching consumer behaviour and prioritising all consumers. To achieve the intended level of customer happiness and joy, it is necessary to identify the target market prior to manufacturing.
Features and importance of Consumer Behaviour
Consumer behaviour applications include:
1) Market opportunity analysis: A consumer behaviour research may assist in finding unmet customer requirements and desires. This necessitates an examination of the Marketplace’s friends and circumstances, as well as customers’ lifestyles, income levels, and energy impacts. This might suggest unmet needs and desires. Mosquito repellents were developed in response to a real and unmet demand among consumers.
2) Choosing a target market: Analyzing market prospects may assist find district customer categories with distinct and different demands and requirements. The marketer may build and advertise items or services that are specifically tailored to their desires and requirements by identifying these groups, how they act, and how they make purchasing choices. Please sleep, for example, found that many present and future shampoo users preferred a low-cost package including enough amount for one or two washers to a high-cost product containing enough quantity for one or two washers. This led to LED firms introducing shampoo sachets, which proved to be a hit.
3) Product, pricing, distribution, and promotion decisions: Once unmet needs and desires have been discovered, the marketer must select the best product, price, distribution, and marketing combination. Whereas, consumer behaviour research is quite useful in determining the solutions to a plethora of perplexing concerns. The following are the elements that influence marketing mix decisions: I product, ii) pricing, iii) promotion, and iv) distribution.
4) Application in social and non-profit marketing: Consumer behaviour studies may be used to help social, governmental, and non-profit organisations develop marketing strategies to improve the effectiveness of their programmes, such as family planning and AIDS awareness.