What are the advantages of studying consumer behaviour?
- Protect from Product Failures:
Chances of product failure can be reduced by proper study of consumer behaviour it is more important for multinational and global companies where socio-culture environment differ from one country to other.
- Helpful in Making Marketing Strategies:
Marketing strategy of a company depends on buying pattern and demand potential in market, therefore analysis of consumer behaviour is a prerequisite of and effective marketing strategy.
- Segmentation of the Market:
By studying the consumer behaviour, the marketer comes to know about the factors which motivate a consumer to purchase a product or service. Needs and requirement of each segment is different this can be identified by the study of consumer behaviour. For example social need of upper class in society is different from lower class.
- Helpful in Advertisement Planning:
Advertisements are planned according to target audience, the copy and message of any advertisement depends on characteristics of target segment and consumer behaviour belongs to that segment. Advertisements are helpful in motivation and in flow of information from producers to customers.
- Development of New Products:
Business firms can develop their products according to changing behaviour of customers; by the help of post purchase behaviour of customers they can modify their products and services for high consumer satisfaction and retention.
- Helps in Sales-Promotion:
After studying the behaviour of consumer, the marketer becomes able to know the factors which influence the buying behaviour of the consumer. Accordingly he will be able to shape the company’s sales promotion campaign.
