What Is Consumer Behaviour? "Consumer behaviour is the actions and the decision processes of people who purchase goods and services for personal consumption" - according to Engel, Blackwell, and Mansard, Consumer buying behaviour refers to the study of customers and how they behave while deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers that drive them to buy and use certain products. The study of consumer buying behaviour is most important for marketers as they can understand the expectation of the consumers. It helps to understand what makes a consumer buy a product. It is important to assess the kind of products liked by consumers so that they can release it to the market. Marketers can understand the likes and dislikes of consumers and design base their marketing efforts based on the findings. Consumer buying behaviour studies various situations such as what do consumers buy, why do they buy, when do they buy, how often do consumers buy, for what reason do they buy, and much more. For example, consumer buying behaviour is studied by consumer researchers and their aim is to know why women buy moisturizers (to reduce skin problems), the most preferred brand (Olay, L'Oral), how often do they apply it (twice a day, thrice a day), where do the women prefer to buy it (supermarkets, online) and how many times do they buy it (weekly, monthly). Importance of Consumer Behaviour Understanding consumer behaviour is essential for a company to find success for its current products as well as new product launches. Every consumer has a different thought process and attitude towards buying a particular product. If a company fails to understand the reaction of a consumer towards a product, there are high chances of product failure. Due to the changing fashion, technology, trends, living style, disposable income, and similar other factors, consumer behaviour also changes. A marketer has to understand the factors that are changing so that the marketing efforts can be aligned accordingly. What is the importance of consumer buying behaviour?

What Is Consumer Behaviour? "Consumer behaviour is the actions and the decision processes of people who purchase goods and services for personal consumption" - according to Engel, Blackwell, and Mansard, Consumer buying behaviour refers to the study of customers and how they behave while deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers that drive them to buy and use certain products. The study of consumer buying behaviour is most important for marketers as they can understand the expectation of the consumers. It helps to understand what makes a consumer buy a product. It is important to assess the kind of products liked by consumers so that they can release it to the market. Marketers can understand the likes and dislikes of consumers and design base their marketing efforts based on the findings. Consumer buying behaviour studies various situations such as what do consumers buy, why do they buy, when do they buy, how often do consumers buy, for what reason do they buy, and much more. For example, consumer buying behaviour is studied by consumer researchers and their aim is to know why women buy moisturizers (to reduce skin problems), the most preferred brand (Olay, L'Oral), how often do they apply it (twice a day, thrice a day), where do the women prefer to buy it (supermarkets, online) and how many times do they buy it (weekly, monthly). Importance of Consumer Behaviour Understanding consumer behaviour is essential for a company to find success for its current products as well as new product launches. Every consumer has a different thought process and attitude towards buying a particular product. If a company fails to understand the reaction of a consumer towards a product, there are high chances of product failure. Due to the changing fashion, technology, trends, living style, disposable income, and similar other factors, consumer behaviour also changes. A marketer has to understand the factors that are changing so that the marketing efforts can be aligned accordingly. What is the importance of consumer buying behaviour?

to make a purchase. Moreover, marketers should take decisions regarding the brand logo, coupons, packing, and gifts on the basis of consumer behaviour. 4. Predicting Market Trends: Consumer behaviour analysis will be the first to indicate a shift in market trends. For example, the recent trend of consumers is toward environment-friendliness and healthy food. This changing market trend was observed by many brands including McDonalds. Based on consumer behaviour, McDonald's brought healthy food options. By conducting a consumer behaviour study, a company saves a lot of resources that might otherwise be allocated to produce a product that will not be sold in the market. For example, in summer a brand will not waste its resources producing a product that will not sell in summer. Based on consumer behaviour the company decides on a production strategy which will save on warehouse costs and marketing costs. 5. Competition: One of the most important reasons to study consumer behaviour is to find out answers to some of the questions: Is the customer buying from your competitor? Why is a consumer buying from your competitor? What features attract a consumer to your competitor's products? What gaps are your consumers identifying in your products when compared to your competitors? Studying consumer behaviour facilitates understanding and facing competition. Based on consumers' expectations, your brand can offer competitive advantages. 6. Innovate New Products: We all know some of the big names such as New Coke, Crystal Pepsi, Colgate Kitchen Entres, Earring Magic Ken Doll, and Wheaties Dunk-a-Balls Cereal. Can you see the similarities in these products? Yes, they all failed!! The sad truth is that most new products and new ideas end up in failure. There is an estimate of new product failures - they range from 33% to 90% based on the kind of industry.

Companies consistently strive hard to improve the success rate of their new products or new ideas. One of the most important ways is to conduct a sound and thoughtful consumer behaviour study. With the help of consumer behaviour analysis, Nike realized that most of its target audience is not professional athletes, but many of them were striving to be more like them. So at the 2012 Olympics in London, Nike introduced a campaign to encourage athletics called 'Find Your Greatness'. It aimed to promote the aspirations of being an athlete, not just with high-performing athletes but wanted to include all people regardless of their physical capability. The campaign was well planned and was data-driven, of course, carefully analyzed before taking any action. This message inspired many consumers and had enormous appeal to target consumers. 7. Stay Relevant in the Market When the world is changing as rapidly as it is happening today, the biggest challenge we all face is staying relevant to our target market. And do you know what is the main reason behind the rapid changes? It is the ever-changing behaviour of our customers. Today's consumers have greater choices and opportunities, which means they can easily switch to a company that offers better products and services. "The pre-eminent skill required to shift ahead in the twenty-first century is the ability to see and seize." -Adamson and Steckel, authors of Shift Ahead. Losing relevance will only cost the company its market share. Haven't we seen Sony Walkman failing to stay relevant in the digital music era, and the taxi industry doom with no preparedness to battle the UBER uprise!! 8. Improve Customer Service Consumers require different levels of customer service and understanding the differences within your customer base will help you provide the most appropriate service for individual needs. For example, if you own an electronics store, high school or college students who buy a new laptop are more likely to understand the features they're looking for than a person buying his first computer. With the first demographic, your service goal will be to provide information about the latest trends in technology, while with the second demographic, you'll need to spend more time educating the customer, finding out what his specific needs are, and even teaching him how to use the features of his new electronic device.

Conclusion Leading companies such as The Coca-Cola Company and Barclays, have constantly improved its existing products and focused on developing new products. The Coca-Cola Company aligns its corporate strategy of 'refreshing everyone who is touched by our business, by conducting market research to identify consumer behaviour. Similarly, Barclays conducted a consumer behaviour study to better understand the needs of this target market. Consumer behaviour analysis has emerged as an important tool to understand your customers. By looking into consumer psychology and the forces behind customer buying behaviour, companies can craft new products, marketing campaigns and increase profitability. Companies should talk to consumers, watch out for frustrations, and most importantly, identify their needs and expectations! Adapted from: https://www.clootrack.com/knowledge_base/what-is-consumer-behavior.

QUESTION 1.2

With the use of relevant examples from the article, determine the different aspects of consumer behaviour that aids the marketing function.

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Answer rating: 100% (QA)

There are several aspects of consumer behavior that aid the marketing function Here are some examples mentioned in the article 1 Understanding Consume... View the full answer