Importance of study of consumer behavior can be explained with reference to the points stated as under:
- Modern Philosophy:
It concerns with modern marketing philosophy identify consumers’ needs and satisfy them more effectively than competitors. It makes marketing consumer-oriented. It is the key to success.
- Achievement of Goals:
The key to a company’s survival. profitability and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitors. Thus, consumer behavior helps in achievino‘arketing goals.
- Useful for Dealers and Salesmen:
The study of consumer behavior is not useful for the company alone. Knowledge of consumer behavior is equally useful for middlemen and salesmen to perform their tasks effectively in meeting consumers needs and wants successfully. Consumer behavior, thus, improves the performance of the entire distribution system.
- More Relevant Marketing Programme:
Marketing programme, consisting of product, price. promotion. and distribution decisions can be prepared more objectively. The programme can be more relevant if it is based on the study of consumer behavior. Meaningful marketing programme is instrumental in realizing marketing goals.
- Adjusting Marketing Programme over Time:
Consumer behavior studies the consumer response pattern on a continuous basis. So. a marketer can easily come to know the changes taking place in the market. Based on the current market trend, the marketer can make necessary changes in marketing programme to adjust to the market.
- Predicting Market Trend:
Consumer behavior can also aid in projecting the future market trends. Marketer finds enough time to prepare for exploiting the emerging opportunities and facing challenges and threats.
- Consumer Differentiation:
Market exhibits considerable differentiation. Each segment needs and wants different products. For every segment, a separate marketing programme is needed. Knowledge of consumer differentiation is a key to fit marking offers with different groups of buyers. Consumer behavior study supplies the details about consumer differentiation.
- Creation and Retention of Consumers:
Marketers who base their offerings on a recognition of consumer needs find a ready market for their products. The company finds it easy to sell its products. In the same way, the company, due to continuous study of consumer behavior and attempts to meet changing expectations of the buyers, can retain its consumers for a long period.
Consumer behavior study assists in facing competition, too. Based on consumers’ expectations, more competitive advantages can be offered. It is useful in improving competitive strengths of the company.
- Developing New Products:
The new product is developed in respect of needs and wants of the target market. In order to develop the best-fit product, a marketer must know adequately about the market. Thus, the study of consumer behavior is the base for developing a new product successfully.
- Dynamic Nature of Market:
Consumer behavior focuses on dynamic nature of the market. It helps the manager to be dynamic, alert, and active in satisfying consumers better and sooner than competitors. Consumer behavior is indispensable to watch movements of the markets.
- Effective Use of Productive Resources:
The study of consumer behavior assists the manager to make the organizational efforts consumer-oriented. It ensures an exact use of resources for achieving maximum efficiency. Each unit of resources can contribute maximum to objectives.