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.
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 consumers.
Attitude 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.
The study of consumer behavior helps the marketer to
Satisfy need of customers
Understand consumer psychology
Understand consumer motives
Understand consumer choices
Understand consumer preferences
Infographic on Need for studying consumer behavior