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Consumer buying behavior refers to the study of customers and how they behave while deciding to buy a
product that satisfies their needs
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Understanding consumer buying behavior is most important for marketers as it helps them to relate better to the
expectation of the consumers
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Marketers can understand the likes and dislikes of consumers and design base their marketing efforts based on
the findings
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Importance of Consumer Behavior
Understanding consumer behavior is essential for a company to succeed in its current products and new product
launches
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If a
company fails to understand the reaction of a consumer towards a product, there are high chances of product
failure
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A marketer has to understand the factors that are changing so that marketing
efforts can be aligned accordingly
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This
helps to make a target group of consumers with the same or similar behavior
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Each group of consumers is different, and their needs and wants differ from other
groups
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Consumer differentiation will help to tailor your strategies to the needs of varying customer groups
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You will be able to
effectively serve a wider group of people
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Retention of Consumers:
“Consumer behavior is of most importance to marketers in business studies as the main aim is to create and
retain customers,” says Professor Theodore Levitt (Kumar, 2004)
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When a customer is happy about a particular product, he/she will repeat the
purchase
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Thus, it is very evident that creating customers and retaining them is very important
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Each campaign can speak
specifically to a separate group of consumers based on their behavior
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You will need to take different messaging approaches for
different consumer groups
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Furthermore, the same motive can be utilized in advertising media to stir the desire to make a purchase
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For example, the recent trend
of consumers is toward convenience and quality food
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By conducting a consumer behavior 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
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Based on consumer behavior, the company decides
on a production strategy that will save on warehouse costs and marketing costs
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Competition:
One of the most important reasons to study consumer behavior 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 behavior facilitates understanding and facing competition
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Can you see the similarities between these products? Yes, they all
failed!!
The sad truth is that most new products and new ideas end up in failure
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Companies consistently strive hard to improve the success rate of their new products or new ideas
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With the help of consumer behavior analysis, Nike realized that most of its target audience is not professional
athletes, but many of them were striving to be more like them
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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
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This message inspired many consumers and had enormous appeal to target consumers
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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
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Today’s consumers have greater choices and opportunities, which means they can easily switch to a company
that offers better products and services
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” Adamson and Steckel, authors of Shift Ahead
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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!!
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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
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