Consumer Behavior

Definition:

The Consumer Behavior is the observational activity conducted to study the behavior of the
consumers in the marketplace from the time they enter the market and initiate the buying
decision till the final purchase is made.

In other words, consumer behavior is the study of how the consumers, make purchase decisions
and what are the underlying factors that influence such decisions. The marketers believe that by
understanding what compels an individual to buy a particular product or service over the other,
it is easy to identify which product are in need and which have become obsolete and accordingly
the marketing strategies could be designed.

Importance of Consumer Behavior

 It is essential for the marketer to study the behavior of the consumers in order to make better
strategic marketing decisions. If the marketer has complete knowledge about the consumer’s
likings or disliking, then he can predict the response of the potential customers towards his
offerings.
 Thus, by studying the consumer behavior before and during purchase helps in production
scheduling, designing, pricing, positioning, segmentation, advertising and other promotional
activities.
 The study of consumer behavior is equally important for the non-profit organizations such as
governmental agencies, hospitals, NGO’s, charitable organizations. For example, the polio
campaigns can be designed for the vulnerable sections of the society who cannot afford the
basic livelihood.
 The Government also studies the consumer behavior to provide them with the necessary goods
and services, understanding the potential future problems, such as pollution, anti-plastic drive,
Swacch Bharat Abhiyan, traffic, etc


 For legislation, it is again essential to understand the consumer behavior, then only the
protective measures against the consumer exploitation can be taken. Such as mandatory
information on the packaging related to manufacturing date, expiry date, terms of use, etc.

 The understanding of a behavior of a consumer is necessary before the launch of the

demarketing programme. For example, motives, attitude, behavior of the customers behind
the purchase of injurious products Viz. Cigarettes, Tobacco, etc. should be properly understood.
 Thus, marketers try to understand the consumer psychology with respect to their purchase
decisions and identify the factors influencing the consumer behavior.
 Next-day delivery, ecommerce, mobile shopping some consumer trends are driven by
technology and convenience. Others are moral decisions. Just look at the recent boom in
consumers opting against plastic packaging.
 The world has had plastic for more than a century. It’s been popular since the ‘60s and we’ve
known about its harmful effects on the environment for decades. But only in the past few years
have the majority of businesses decided to go plastic-free.
 Today, consumer trends change quickly and businesses are forced to act just as swiftly to keep
up with them. Should they fail to adapt to the new normal, they’re likely to be hit hard
consumers famously vote with their wallets, after all.
 Every industry feels the effects of very specific trends, many of which are hard to see coming.
It all comes down to knowing your customers, something your business apps continuously help
with.
 Trends shouldn’t be feared, though. Act quickly enough and it’s a great way to stand out from
the competition. So, here are 10 consumer trends to be aware of today, as they're almost
 certainly having an effect on your business—as well as three growing trends to watch out for
in 2019!

10 consumer trends you should know about

1. eCommerce is not everything

Some 82% of UK consumers believe going into a store to physically buy something gives them
more security when it comes to expensive or recurring items or services.

2. But it is essential

People use e -Commerce platforms consecutively with bricks-and-mortar stores, with 47%
preferring to at least research products online to help them make a decision before buying in
store.

3. Mobile taking poll position

Since 2014, there’s been a 39% increase in consumers using their mobile phones to make online
purchases.

4. Though your competitors might be getting it wrong

A third of our younger generations—the ‘digital natives’—find mobile websites difficult to use.
What chance do your less tech-savvy customers have if your business’ website is not up to
scratch? Get it right and the digital experience is a fine way to make your business stand out.

5. Newer communication channels are proving very effective

Three in four consumers have interacted with a retailer via social media—and 40% say they’ve
spent more as a result2. Are you on the communication channels your customers prefer? And are
you being alert and responsive enough to make them successful in your business?
6. Retailers: don’t underestimate your return policy…

Having a good—attractive, clear and visible—return policy encourages 68% of people to buy
more when using your online store.

7. But prepare for consumers to misuse it

There’s an important consumer trend cutting into retailers’ profits, with 30% of people admitting
to deliberately over-purchasing unwanted items and then returning them—often at the expense
of the company, not the customer.

8. Honesty is still the best policy

When asked what are the most important behaviours businesses can display, 91% of consumers
choose honest communications about their products and services. For many sales and support
teams, the hard sell is long dead.

9. Marketers say we’re rising to the challenge

Good news! Many believe they’re meeting the challenges laid down by quickly changing
consumer preferences, with 82% of marketers saying they actually have a deep understanding of
their customers, thank you very much.

10. But consumers say differently!

Bad news! Just 23% of consumers think the same someone is wrong, and it’s not the customers.