Description
Perhaps the most challenging concept in marketing deals with understanding why consumers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of consumer behaviour will help shed light on what is important to the consumer and also suggest the important influences on consumer decision-making
IMPORTANCE OF STUDYING CONSUMER
BEHAVIOUR
Perhaps the most challenging concept in marketing deals with understanding why
consumers do what they do (or don’t do). But such knowledge is critical for marketers since
having a strong understanding of consumer behaviour will help shed light on what is important
to the consumer and also suggest the important influences on consumer decision-making. Using
this information, marketers can create marketing programs that they believe will be of interest to
consumers. The reason for studying consumer behaviour seems very simple – to understand the
consumers’ mindset and the factors that influence it. But, just that much is not enough; today, we
need to study consumer behaviour in detail, looking into the smallest nuances of it so as to
identify what exactly the consumer desires because in today’s times with so much of competition
in every market segment we cannot afford to take the consumer for granted. With a range of
choices in every product, if the consumers’ desire is not looked after they will surely move on to
any one of the competitors. According to a recent study:
? Out of 11000 products introduced by 77 companies, only 56% are present 5 years later.
? Only 8% of product concepts offered by 112 leading companies reached the market. Out of
that 83% failed to meet marketing objectives.
Now, the question that comes to my mind here is – Why exactly did this happen?
The answer is the lack of understanding of consumer behaviour. Not only is launching a
new product and getting the product noticed by the consumer important but what is more
important is to make sure that the consumer is hooked on to the product and comes back for it
time and again We can sell a product to a consumer again and again only if the consumer feels
that this is the ‘best product’ in the market to satisfy his needs and maybe even give him some
delight and in order to design the ‘best product’, it is necessary to understand not just the physics
and chemistry of the product, but also the psychology of consumers and the sociology of
consumer groups or networks. This is exactly why all managers must become astute analysts of
consumer motivation and behaviour. A fundamental understanding of consumer behaviour
underpins all marketing activity and is a necessary prerequisite to organisations being marketing
orientated and thus profitable.
Basic Model of
Consumer Decision
Making
doc_729748709.docx
Perhaps the most challenging concept in marketing deals with understanding why consumers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of consumer behaviour will help shed light on what is important to the consumer and also suggest the important influences on consumer decision-making
IMPORTANCE OF STUDYING CONSUMER
BEHAVIOUR
Perhaps the most challenging concept in marketing deals with understanding why
consumers do what they do (or don’t do). But such knowledge is critical for marketers since
having a strong understanding of consumer behaviour will help shed light on what is important
to the consumer and also suggest the important influences on consumer decision-making. Using
this information, marketers can create marketing programs that they believe will be of interest to
consumers. The reason for studying consumer behaviour seems very simple – to understand the
consumers’ mindset and the factors that influence it. But, just that much is not enough; today, we
need to study consumer behaviour in detail, looking into the smallest nuances of it so as to
identify what exactly the consumer desires because in today’s times with so much of competition
in every market segment we cannot afford to take the consumer for granted. With a range of
choices in every product, if the consumers’ desire is not looked after they will surely move on to
any one of the competitors. According to a recent study:
? Out of 11000 products introduced by 77 companies, only 56% are present 5 years later.
? Only 8% of product concepts offered by 112 leading companies reached the market. Out of
that 83% failed to meet marketing objectives.
Now, the question that comes to my mind here is – Why exactly did this happen?
The answer is the lack of understanding of consumer behaviour. Not only is launching a
new product and getting the product noticed by the consumer important but what is more
important is to make sure that the consumer is hooked on to the product and comes back for it
time and again We can sell a product to a consumer again and again only if the consumer feels
that this is the ‘best product’ in the market to satisfy his needs and maybe even give him some
delight and in order to design the ‘best product’, it is necessary to understand not just the physics
and chemistry of the product, but also the psychology of consumers and the sociology of
consumer groups or networks. This is exactly why all managers must become astute analysts of
consumer motivation and behaviour. A fundamental understanding of consumer behaviour
underpins all marketing activity and is a necessary prerequisite to organisations being marketing
orientated and thus profitable.
Basic Model of
Consumer Decision
Making
doc_729748709.docx