Meaning of Consumer Behaviour
Consumer behaviour simply means how consumers behave in the market. It defines the way in which consumers purchase products & services for satisfying their wants. It basically consists of likes & dislikes of customers which influence his decision while purchasing products. It is a concept which consists of many stages starting from arising of a need till purchase of a product for end-use.
Different consumers respond differently in the market. It is an important concept for every business to understand its customers. This helps in better fulfilling of demands of the customers. Businesses use customer relationship management technology to understand their consumers properly. It is a database which collects & store different information about their customers.
This information helps in understanding the behaviour of the customers. Different researches are conducted to gather information regarding consumers. New methods such as ethnography & consumer neuroscience are used by businesses in doing researches. Consumer behaviour has numerous roles for every business which are discussed below. Scope of Consumer behaviour is as follows.
Scope of Consumer Behaviour
Consumer behaviour helps in the forecasting of demands for the business. Business can identify the needs and wants of the customers by understanding their behaviour. They can easily find out their unfulfilled needs and demands. If they get a clear idea of what customer needs, a business can design their products accordingly. It will help them in the forecasting of demands for products by understanding their behaviour. The business will be able to identify the market opportunities available to them.
Marketing has an important role in the successful functioning of every business. Better understanding of customer needs, problems and expectations will help the business in framing sound marketing strategies. If a company is able to do marketing effectively it can attract more and more customers. Understanding customer behaviour will help companies to have better knowledge about their customers. This will ultimately help business in conducting their marketing in a better way.
Selecting the Target Market
Consumer behaviour helps in identifying target customers from the market. Study of customer behaviour identifies all customers segments with unique and distinct needs. It helps in segmentation of the overall market into different groups. Grouping of customers and identification of their needs will help business in serving them better. The business will be able to design their products in a better way as per the needs and wants of their customer. It makes clear to businesses who are their target customers and what they want.
Designing an accurate mix of important elements like product, price, place and promotion are important for every business. It helps in finding out the dislikes and unfulfilled wants of customers. This helps marketers in designing the optimum marketing mix for improving the effectiveness of marketing strategies. The proper marketing mix will help marketers to attract more and more customers thereby increasing the profit.
Consumer behaviour helps marketers to identify how customers spend on their buying decision. By understanding their behaviour marketers can easily guide their customers about how they can improve their buying decisions. They can suggest ways to save their money and guides them with better options available in the market. Customers get aware of different opportunities available to them as per their behaviour.
Assists in Designing Product Portfolio
Designing the right product portfolio is a challenging task for every business. Every business should design such a portfolio consisting of all class of products. Consumer behaviour helps in identifying the class and requirements of peoples. This helps in designing products as per people’s needs and include in the product portfolio of the company. This way business is able to design the optimum product portfolio and able to serve its customers in a better way.