Consumer Behaviour is therefore classified as a mechanism which incorporates all the activities inclusive of obtaining, consuming as well as disposing of products and services. In other words the term Consumer Behaviour can be explained as the study of how different consumers generate ideas/ thoughts on several factors such as what the consumers buy which can be a product or a service, why they buy which includes specific reasoning for the purchase, when the consumers buy the service or the product, from where the consumers buy it, how often the consumers buy the service or a product and also how often the consumers use the service or a product.
It is also known as a product person situation. (In-Text Referencing, pg. 53)Consumer Behaviour is basically a discipline trading with how and why consumers purchase or do not purchase goods and services. (In-Text Referencing, pg. 52).
An influential cooperation of affect, behaviour and also environmental events in which society or human beings administer the exchange aspects of their lives is defined as consumer behaviour. (Bennett, While, 1995, p. 59). The term consumer behaviour comprises of thoughts as well as emotions the consumers experience in the process of consumption. Consumer Behaviour is the study of processes that basically satisfy their needs, wants and desires when an individual or a group purchase, use, dispose the product.
(Solomon, 2009, pg. 33).As consumer behaviour reflects upon multiple theories while each theory trading with human behaviours from a different perspective. There are considered to be several factors affecting the behaviour of the consumers such as marketing campaigns, consumer’s personal preferences, external factors such as culture, social class, internal factors which involves the need, the reason behind purchasing, consumer’s emotions, social factors such as consumer behaviour which can be strongly persuaded by a family member, or an example can be seen where consumers are influenced by focus groups, personal as well as psychological factors which includes age, perception, an occupation of a consumer is seen having a strong impact on the consumer’s purchasing behaviour, and also consumer’s personal belief as well as attitude. When discussing about consumer behaviour the word consumer has two different meanings. One is an individual consumer or an individual buyer that purchases goods or services for their personal use, and the latter one is a consumer that originally exists in the market. Profit as well as non-profit organisations, government agencies are some examples of the latter type of consumer.Why understanding consumer behaviour is important for organisationsIt is considered very critical from an organisation’s perspective to understand the consumer behaviour.
An example can be seen where if an organisation fails to forecast how consumers are going to respond to a particular product, the organisation can face losses. Consumer behaviour is very complex because each consumer has different mind and attitude towards purchase, consumption and disposal of product (Solomon, 2009). As consumers are the most important person for marketer or sales person, therefore it is important for them to consider the likes and dislikes the consumers so that they can provide them with the goods and services accordingly (Solomon, 2009). Organisations need to be very careful while understanding the consumer behaviour because the focal point on the consumers is the main subscriber to the marketing of any organisation’s practice. It is very evident that marketing teams of any organisation who genuinely understand the needs and wants of their consumers more effectively come up with reasonable products and services. Understanding a consumer behaviour has become a necessity these days if any organisation wants to avoid losses, business collapse and also bad reputation in the market especially before the launch of a product or a service. It is considered that the behaviour of each consumer varies as each of the consumer comprises of different attitudes while purchasing, using as well as disposing the product. Consumers purchase products based on different aspects such as values, situations, for some consumers it is a personal emotion and for some it could mean a particular goal.
Understanding consumer behaviour is very useful and very beneficial for organisations in several ways such as:• Designing the most effective doable product or service that satisfies the needs, wants and demands of the consumers, • In terms of deciding the worth of the product or a service consumers are willing to pay, and • Also looking for the most effective methodology of promotion through which consumers can be persuaded to purchase a product. https://www.ukessays.
com/essays/marketing/importance-of-consumer-behaviour-to-business-managers-marketing-essay.php#citethisThe needs and wants of the consumers are different. For example for some consumers that need is physical for some consumers the need is based on love, affection. Therefore understanding consumer behaviours help organisations to understand whether the consumers will purchase the product just on the basis that it is new in the market as well as more popular or the consumers will purchase the product because the product is something that the consumers are genuinely after.
(Shethna, Jesal, 2017). If an organisation claims that there products will make consumers more competitive there are higher chances that consumers will be more willing to buy those type of products. https://www.educba.
com/consumer-behavior/In order for an organisation to make sure that there products and services are embraced as well as purchased they need to make sure that they are understanding the needs and wants of the consumers. Without actually understanding the consumer behaviour it will be very difficult for the organisations to assume that the consumers will like their product or service and the likelihood for an organisation being not successful will also increase. According to Parkinson (1982) consumer behaviour determines the organisation’s success as well as an organisation’s failure/collapse. Organisations such as Apple, Samsung, and YouTube have all understood the needs and wants of the consumers.
Such organisations have created the needs and wants that consumers will purchase such as smartphones, laptops, tablets, portable music devices. Another example can be seen where a consumer purchases a product or downloads ITunes Apple has an access to knowledge the company leverages. Apple then uses such data to realise vital insight into the buyer and what drives purchase behaviour. (Zoller, Stephen, 2018). Understanding ideas of client behaviour at a high-level involves a framework to realise unjust insight from market research. The wheel of client analysis provides a framework to check client behaviour that comprises of affect and knowledge, consumer behaviour and setting.
Therefore, consumer behaviour is very important from an organisation’s perspective as products and services are made to meet the needs as well as wants of the consumers. The understanding of consumer behaviour helps organisation in analysing several factors that has an influence on the purchasing decision of the customers.