All businesses look at Consumer Behaviour as a critical aspect of their business. If you have ever been invited to any event all about Sales, Marketing and Branding you may have heard about the importance of Consumer’s behaviour as a key component in any good marketing mix.

Consumer behaviour plays a vital role in the marketing strategy. Consumer behaviour is a term that has been defined by a number of researchers and researchers. The consumer behavior is a specific set of actions and reactions that someone takes, as well as his response to information and instruction that he consumes. Consumer behaviour is often studied as important concept in social sciences and marketing studies because it can be used to understand how consumers make decisions about products, brands and services and also how current marketers can influence consumers in the future.

Importance of Consumer Behaviour in Marketing Decisions

Helps in Understanding Consumers

Consumer behaviour plays a major role in marketing decisions. Understanding your customer’s needs and wants helps you to make better decisions for your products and services.

For example, if you had a product that was very popular with women, but men didn’t want it, then you would need to rethink your marketing strategy. You could try marketing it to men, or perhaps even offer both men and women discounts or coupons for the product.

This is just one way that consumer behaviour can influence your marketing decisions.

Consumer behaviour helps in understanding consumers, their needs and wants. These factors influence how they make decisions, which forms of marketing they prefer and how they respond to marketing offers. There are two types of consumer behaviour: one is personal and the other is institutional. Personal consumer behaviour refers to all those actions or choices that individuals make on their own without any external influence or guidance. Institutional consumer behaviour refers to all those actions or choices that are made on behalf of someone else such as a company or an organization.

Helps in Analysing the Market Situation

The importance of consumer behaviour in marketing decisions is that it helps in analysing the market situation. This helps in understanding how to reach out to consumers. The question that arises here is how do you identify your target audience?

Market research helps by identifying the type of person who is likely to buy your product. For example, if you intend to sell a product that will help people lose weight then you can start by identifying those people who are obese and want to lose weight. You can also identify those who are on a diet and want to lose weight but have not been able to do so because they lack willpower. You can also identify those who have tried dieting but failed and now need advice from a nutritionist or doctor before they try again with your product.

Consumer behaviour is a very important aspect when it comes to marketing. The market situation is analyzed by considering the consumer behavior in order to make the right decision on which product or service should be used.

This is because consumers are always looking for products that are new and innovative and this gives them an incentive to buy them. Consumer behaviour helps in analyzing the market situation and making decisions on what product to buy, how much money to spend and how many times someone will use it.

It is important for marketers to consider a number of factors when analyzing the market situation. These factors include demographics, geographic region, spending habits, lifestyle and other factors that influence buying decisions by consumers.

Helps in Effective Decision-Making

Consumer behaviour is a key part of marketing decisions. It helps in effective decision-making and helps in creating customer loyalty. Consumers are the target market for businesses and they can decide whether or not they want to purchase a product or service based on the company’s marketing strategy.

Marketing strategies are designed to target the right people at the right time with the right message, in order to buy what they want, when they want it – and how much they want it!

Consumer behaviour is the key to successful marketing. It helps in effective decision-making and helps us understand how the consumer feels about a product or service. Consumer behaviour is an important part of marketing because it helps in shaping the buying habits of consumers. It helps in understanding consumer needs and their willingness to pay for a product or service. This can also be used to measure consumer satisfaction with a product or service.

Consumer behaviour is also important because it helps in identifying what works well for customers and what does not work well. It also helps in making predictions about future sales and profits which can be used as inputs into other calculations such as budgets and forecasts (Boyd, 2005).

Staying Relevant in The Market

Looking at the rapid changes happening in the current situation, one of the biggest challenge being faced by the Organisation right now is staying relevant in the Market. One of the main reason for this rapid change is the constant shift in consumer behaviour. Consumers today have an enormous supply of information resulting in rapid switches between different products different companies etc. to Overcome the issue, it is of great importance to regularly study consumer behaviour to get to know the changes in consumer attributes to stay relevant in the market.

To Optimize Marketing Strategies

The theories and concepts of Consumer behaviour help marketers to optimize their sales and to create efficient marketing strategies. Moreover, these theories provide marketers with information on the consumer’s behaviour on expenditure. The study helps to know what influences the consumers to spend more money on a product. These two factors ultimately help decision makers to plan strategies that should be practised by the marketers for successful marketing of a product

 Improve Customer Service

Each individual consumer will have individual and different customer service needs, understanding this distinct difference between each consumer’s needs requires an extensive and detailed consumer behaviour study. It will not only help to bifurcate different types of consumers but will also help to target each group based on different strategies.

To Create and Retain Customers

Another main aims of consumer behaviour is to create and retain customers. If the consumers are satisfied with the product, he or she will buy the same product again. Therefore, the product should be marketed by an organisation in such a way that it convinces a customer to buy the product. Consumer behaviour helps marketers in this regard to know what ticks the consumers the first time to buy a particular product and what satisfies them enough to keep buying the particular product or services again and again.

Takeaway: As a marketer, being knowledgeable of consumer behaviour is critical to your business’ success.


Now that you know about consumer behaviour it is important for you to analyze and apply them in your business plans the next time you are thinking of launching a product . It is also important to understand that consumer behavior is constantly changing and flourishing. This is because there are many factors that affect consumer behaviour like the socio-economic environment, cultural aspects and even technological changes. As such it is important for marketing managers to keep their fingers on the pulse of how these factors influence consumer behaviour.

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