A consumer:

is an individual who purchases goods and services for end-use. He is the person who consumes goods and services available in the market.

Consumer behavior is the study of how organizations, individuals, and groups select, buy, use, and dispose of goods and services. It focuses on how consumers decide to spend their available resources, i.e, time, money, and efforts. This study helps organizations to improve and introduce new products and services, and setting prices.


The study explains:

  • What do they buy?
  • How often they buy it?
  • From where do they buy?
  • How often they use it?
  • When do they buy?
  • How they dispose of it?


consumer Behavior

The scope of Consumer Behavior:

Consumer Behavior and Marketing Management:

CB is essential to understand for long-run success of an organization. Marketing management is related to consumer behavior in three things: wants a company’s objective, and strategy.

Consumer Behavior and Government Decision Making:

 The relevance of consumer behavior in decision-making has become quite evident. Two major areas of activities have been affected are-

(i) government securities and

(ii) consumer protection.

CB and Demarketing:

 Consumers are entering the era of scarcity of natural resources (gas and water). These have led to promotions and stressing conservations rather than consumption. Consumers reduce the consumption of that product and service which is harmful.


CB and Consumer Education:

 Consumer education helps the consumer to know their behavior. Consumers benefits by knowing their behavior. This can occur by organizing educational programs.

CB and non-profit and social marketing:

 Non-profit organizations have to market their services or ideas to target the group of customers. Sometimes they also have to do appeal to the general public to do contributions for problems coming to society. A clear understanding of consumer behavior will help them in achieving their goals.

Importance of Consumer Behavior: 

Consumer behavior deals with buying behavior of individuals. Following are the importance of consumer behavior:

Production Policies:

Studying consumer behavior will help the organizations to know more about their tastes, preference, need and wants. According to their needs and wants, production policies have been made. It is much more critical for the organizations to be in touch with customers.


Price Policies: 

Consumers purchase some products because they are cheaper than other competitive articles and vice-versa. Some articles are purchased because of emotions. For example- Khadi is purchased by Gandhi followers.


The decision regarding Sales Promotion: 

It enables the producer to know the motives of the consumer to purchase the goods and services. They make the desire to awake the need of purchase by doing promotions.


Implementing the “Marketing Concept”:

Identification of target market before production is beneficial for organizations. This leads to customer satisfaction.


Rapid Introduction of New Products: 

By way of technological advancement, the study of consumer behavior is natural. Organizations will able to know more about their needs and wants. From which they produce new products.


Decisions regarding Channel of Distribution: 

Goods which are sold at low price products have tended to be cheap and economic distribution channel.

Consumer Behavior Process:

 consumer behavior process

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