Significance of Consumer Behaviour
A study of consumer behaviour is significant (or rather imperative) for the following reasons:
(i) Realistic Implementation of the Marketing Concept: The modern marketing concept is consumer-oriented. To give a realistic implementation to this concept, a study of consumer behaviour is imperative. More specifically, a study of consumer behaviour is a must for developing an ideal marketing-mix; which is the cornerstone of the concept of marketing.
It is, in fact, very true to state that unless the marketer knows what consumers buy and why; it is not possible to design and implement a successful scheme of marketing-mix to, beat the completive elements.
(ii) Planning Product Differentiation and Market Segmentation: For planning product differentiation strategies (i.e. making the product so differentiated and unique that consumer may be tempted to buy only that product due to its unique features); a study of consumer behaviour is very significant or necessary.
Again, for designing schemes of market segmentation (a process of dividing a potential market into distinct sub-markets of consumers with common needs and characteristics), a study of consumer behaviour is very necessary.
As a matter of fact, the success of marketing management depends on designing schemes of product differentiation and market segmentation, the background data for which is furnished by a study of consumer behaviour.
(iii) Selection of Distribution Channels: A study of consumer behaviour not only includes what consumers buy; but also the source from where they buy. For example, men of status in society may never buy things from ordinary shops and ordinary markets. They may prefer to buy from prestigious stores and markets; even though they may have to pay a higher price and so on for various categories of consumers. Thus a study of consumer behaviour guides the marketer to select suitable channels of distribution, to provide maximum convenience and satisfaction to different groups of consumers.
(iv) Designing Promotional Techniques : Promotional techniques include advertising message and media, personal selling approaches and special sales promotional devices. Designing promotional techniques is much facilitated by a study of consumer behaviour, which may throw light on the psychology of people as to the factors which affect their buying decisions. Those factors which affect consumers’ buying behaviour may be suitably incorporated into the promotional techniques of the organisation.
(v) Trade-Off between Price and Quality: A study of consumer behaviour is likely to reveal whether target consumers of the enterprise emphasize more on the price of the product or its quality. On this basis, the marketer can device suitable pricing stratégies and programmes aimed at upgrading the quality of organisation’s products to suit the needs, habits and behaviour of consumers.
