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Importance of Consumer Behaviour in Marketing Strategy

Consumer behaviour is one of the most important tools to firms in firms in designing their marketing strategy. It assists marketers in determining how to get and keep customers. There are many factors that influence the way consumers buy goods and services. Most of these variables can be explained by consumer behavior, which include:

The importance of consumer behaviour in marketing strategy is being increasingly recognized globally. It is absolutely essential for success. In a nutshell, it means that just knowing consumers is not sufficient. Rather, you have to understand how they behave and what influences their decision making.

What is the meaning of consumer behavior?

Consumer behavior is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers’ emotional, mental, and behavioral responses.

Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry, and economics.

In this guide, we’ll take a look at the different aspects and facets of consumer behavior, and we’ll discuss the most effective types of customer segmentation.

Importance of Consumer Behavior

 Consumer Differentiation

In marketing, consumer differentiation is a way to distinguish a consumer from several other consumers. This helps to make a target group of consumers with the same or similar behavior.

Though you have a targeted customer demographic in your business, you can still have variations between individual customers. Each group of consumers are different and their needs and wants differ from other groups.  When a marketer is knowledgeable about differentiation of each group of consumers, he can design separate marketing programes.

Consumer differentiation will help to tailor your strategies to the needs of varying customer groups. When consumer differentiation is done, you can expand the width and breadth of your services. You will be able to effectively serve a wider group of people.

Retention of Consumers

“Consumer behavior is of most importance to marketers in business studies as the main aim is to create and retain customers” says Professor Theodore Levitt (Kumar, 2004). 

Consumer behavior is not just important to attract new customers, but it is very important to retain existing customers as well. When a customer is happy about a particular product, he/she will repeat the purchase. Therefore, marketing the product should be done in such a way that it will convince customers to buy the product again and again.

Thus, it is very evident that creating customer and retaining them is very important. This can be done only by understanding and paying attention towards the consumer’s buying behavior.

To understand Buying Behaviour of consumers

The study of consumer behaviour helps marketers to recognize and forecast the purchase behaviour of the consumers while they are purchasing a product. The study of consumer behaviour helps the marketers not only to understand what consumer’s purchase, but helps to understand why they purchase it (Kumar, 2004). Moreover, other questions like how, where and when they purchase it are also answered. The consumption and the reasons behind disposition of that particular product or services help marketers to be fully aware of the product that is marketed. The consumer behaviour studies also help marketers to understand the post purchase behaviour of the consumers. Thus, the marketers become fully aware about every phase of consumption process i.e., pre-purchase behaviour, behaviour during purchase and post purchase behaviour. Many studies in the past shows that each consumer behaves differently for a product i.e., they buy the product for different reasons, pays different prices, used the product differently and have different emotional attachments with the product (Solomon, 2009).

To create and retain customers though online stores

Professor Theodore Levitt says that consumer behaviour is of most importance to marketers in business studies as the main aim is to create and retain customers (Kumar, 2004). If the consumers are satisfied with the product, he or she will buy the same product again. Therefore, the product should be marketed by markers in such a way that convince customer to buy the product. Thus, creating customer and the retaining those customers are important. These can be done through understanding and paying close attention towards the consumer’s behaviour while making purchase decision or buying a product in market place. Moreover, the information published on the websites largely influence the customer’s buying behaviour. Such information on published sources arouse consumer to buy a product or service. Moreover, updating such information will help the consumer to retain to a product or re try the product if the product has dissatisfied them.

To understand the factors influencing Consumer’s buying Behaviour

It is important for marketers to consider the factors that affect the buying behaviour of consumer before entering the market. There are many factors that can influence the purchase decision of consumers such as social influence, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps marketers to market the product on right time to the right consumers. For example, if marketer is marketing a product which is Halal. The marketers first consider all the factors that can influence consumers to buy Halal products, where they can target specific areas where Halal food is more sold.

The marketers need to pay attention to cultural influences such as religion, values and norms of the people or societies targeted and lifestyle of the targeted consumers. The marketers can propose different strategies that convince the targeted consumers to buy marketed products or services.

Moreover, the marketers should be ascertain the factors that influence and affects purchase decision of consumers (Solomon, 2009). If the marketers failed to understand the factors that might influence consumers, they will fail to convince the consumer to purchase that product or will fail to meet the demands of consumers. Some variables cannot be directly observed (Super Professeur, 2011). In such case, thorough understanding of concepts and theories of consumer behaviour helps marketers to predict the consumer’s buying behaviour to a reasonable extent. Thus, understanding consumer’s behaviour to buy a product is complex and requires marketers to continuously understand and apply various concepts and theories for successful marketing.

Design Relevant Marketing Programe

Understanding consumer behavior allows you to create effective marketing campaigns. Each campaign can speak specifically to the separate group of consumers based on their behavior.

For example, while targeting kids market, you may have to look out for venues such as TV ads, school programes and blogs targeting young mothers. You will need to take different messaging approaches for different consumer groups. 

A study of consumer behavior enables the marketers to understand what motives consumers to make purchases. Furthermore, the same  motive can be utilized in advertising media to stir the desire to make a purchase. Moreover, marketers should take decisions regarding the brand logo, coupons, packing and gifts on the basis of consumer behavior. 

Predicting Market Trend

Consumer behavior analysis will be the first to indicate a shift in market trend. For example,  the recent trend of consumers is towards environment friendliness and healthy food.  This changing market trend was observed by many brands including McDonalds.  Based on the consumer behavior, McDonald’s brought healthy food options. 

By conducting consumer behavior study, a company saves a lot of resources that might otherwise be allocated to produce a product that will not be sold in the market. For example, in summer a brand will not waste its resources for producing a product that will not sell in summer. Based on consumer behavior the company decides on production strategy which will save on warehouse costs and marketing costs.


It covers the basic concepts of Consumer Behavior with a clear and systematic approach,dealing with the more advanced topics which are rarely found in other texts.

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