Reasons for Studying Consumer Behavior

The study of consumer behavior in recent decades has been one of the most important subjects of attention of marketing researchers. The variety and variety of consumer behavior is due to the variety of factors affecting individual behavior and individual motivation to buy. The existence of different consumer groups for the markets of a product indicates wide differences. Today, the consumer is considered as the main key to the success or failure of a company. Therefore, understanding the study of consumer behavior is very important. A consumer’s purchase decision can be influenced by various factors that are either internal or external. Factors such as cultural, economic, political and legal factors and factors that are within the power of the company can be considered as external factors. Motivation, perception, personality and such factors, which are unique and originate from the inside of a person, are classified as influential internal factors. In this way, it is very important to investigate the influence and role of reference groups in the purchase decision and consumer behavior.

The meaning of consumer behavior

The general perception is that consumer behavior is how people buy goods and services, but actually consumer behavior is more than buying goods and services. Consumer behavior is generally defined as follows: the final decision of the consumer regarding the acquisition, consumption and disposal of goods, services, time and opinions of different parts of decision-making in a period of time. There are various other definitions of consumer behavior. For example, the American Marketing Association defines consumer behavior as “the dynamic interaction of influence and cognition, behavior, and the environment in the way that people interact in their lives.”

The knowledge of consumer behavior includes the knowledge and feelings that people experience and the actions they take in the consumption process. It also includes components of the environment that influence this knowledge, feelings, and behavior. Also, as stated in the above definition, consumer behavior is dynamic, because the knowledge, thoughts and feelings and behavior of consumers individually, target consumer groups and society as a whole are constantly changing. The dynamic nature of consumer behavior makes it difficult to develop marketing strategies. Consumer behavior includes interactions between thoughts and feelings and human behavior and the environment. Therefore, marketers need to know about things such as what products and brand names mean to the consumer, how the consumer buys and what factors affect the purchase and consumption.

The concept of marketing implies the idea that industry is a process of customer satisfaction, not a process of producing goods. An industry starts with the consumer and their needs, not with royalties, raw materials or salesmanship. Only when the organization can continue to survive if it can meet the needs and wants of the consumer with a correct and comprehensive understanding from its counterpart, which shows the importance of consumer study.

The reason for studying consumer behavior

Consumer behavior does not only include how to buy goods, but also includes the use of services, activities and opinions. Activities such as traveling, going to the dentist, registering for training classes, etc. are all part of the consumer behavior.

For this reason, consumer behavior includes goods, services, activities, and opinions, and marketing efforts to meet people’s needs are called offers. Although buying mode is very important for marketers, consumer behavior does not include only buying. Rather, consumer behavior includes the three activities of acquisition, consumption, and disposal.

Consumer behavior does not necessarily reflect the behavior of a particular person. Deciding on buying a car, going to a certain restaurant, renting a house are behaviors that can include a group of friends, a number of colleagues or all family members. Having a proper understanding of consumers and the buying process has many advantages. These advantages include helping managers to make decisions, providing a cognitive basis through consumer analysis, helping legislators to enact laws related to the purchase and sale of goods and services, and finally helping consumers to make better decisions.

The study of consumer behavior is of great importance because it helps businesses and organizations to gain a deeper understanding of their customers’ needs and desires. Below are some of the main reasons for studying consumer behavior:

1. Understanding needs and desires: The study of consumer behavior helps businesses to better understand the needs, desires and aspirations of customers. With a deeper understanding of the purchasing patterns and decision-making factors of customers, better strategies can be made in product design, service delivery and marketing.

2. Predicting consumer behavior: By studying consumer behavior, it is possible to predict purchasing patterns and customer preferences. This information helps businesses to choose the best solutions in the field of production, distribution and sale of their products.

3. Improving the marketing strategy: By studying consumer behavior, marketing strategies can be improved. In-depth understanding of factors influencing customer decision-making, such as price, quality, advertising and content, competitive position and other factors, helps businesses to implement more effective strategies.

4. Being competitive: Markets are full of competitors, and studying consumer behavior can help businesses think competitively and implement differentiating strategies. By knowing your customers better and their needs, you can offer products and services that differentiate and attract customers.

5. Increasing customer satisfaction: Studying consumer behavior helps businesses provide the best possible customer experience. By knowing the needs and preferences of customers, you can provide products and services that have the best performance and quality. This issue will increase customer satisfaction, retain previous customers and attract new customers.

6. Improved pricing strategy: By studying consumer behavior, you can choose the best pricing strategy. By knowing your customers’ needs and values, you can set more competitive prices and choose the right pricing strategy to attract customers and increase your revenue.

7. Improving communication with customers: Investigating consumer behavior helps businesses better connect with their customers. By knowing the needs and desires of customers, you can communicate with them in an optimal way and meet their needs correctly. This issue can create a lasting relationship with customers and lead them to repeatedly and continuously buy from you.

8. Knowing the market trend: By studying consumer behavior, you can predict market trends and developments. Understanding customer patterns and behaviors can help you adapt to rapid market changes and enable optimization of strategies and decisions.

9. Brand promotion: By studying consumer behavior, you can improve your brand. By knowing the values and preferences of customers, you can optimize content, design and brand experience and present your brand as an attractive and popular option in the market.

10. Improving financial results: Investigating consumer behavior helps businesses improve their financial results. With a better understanding of customer behavior, you can optimize strategies to increase sales, reduce product return rates, and increase profits.

11. Improve weaknesses: Consumer behavior allows businesses to identify and improve their weaknesses. With a detailed understanding of customer needs and problems, you can make necessary improvements to products, services, or purchasing and delivery processes.

12. Improving customer experience: Studying consumer behavior helps businesses improve customer experience. With a deeper understanding of the needs, preferences and expectations of customers, you can make the shopping experience better and more enjoyable, which will lead to a positive result in the level of customer satisfaction and loyalty.

13. Creating a competitive advantage: By studying consumer behavior, you can create a competitive advantage for your business. By better understanding your customers and their needs, you can offer services, products or experiences that are different from your competitors and attract and retain customers.

Dimensions of consumer behavior

Consumer behavior has a multidimensional nature and is influenced by the following factors:

“psychology”: It is a branch that is related to the study of mind and behavior and helps in understanding people and groups through creating a general product and researching specific cases. Psychology plays a vital role in understanding consumer behavior during shopping.

“Sociology”: Studying groups, when people form groups, their actions are different than when they act individually.

“Social Psychology”: It is a combination of psychology and sociology and explains how a person works in a group. Factors and forces affecting the group play an important role in purchasing decisions. The opinions of peers, reference groups, and family influence people’s behavior.

“Cultural Anthropology”: It is the study of humans in society and explains the development of values, customs and basic beliefs that people inherit from their parents and affects their buying patterns.