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What is the importance of consumer behavior for a business firm?

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pohnpei397 eNotes educator | Certified Educator

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Consumer behavior is important to any business firm that wishes to sell goods or services to consumers.  The study of consumer behavior tells firms many things that they need to know.  It tells them what kinds of things consumers want to buy.  It tells them why consumers want to buy certain things.  It tells them when consumers are likely to buy and how often they will do so.  This is vital information for a business since the whole purpose of the business is to get consumers to buy products.  The more that you know about how consumers behave and why they behave that way, the more likely you are to be able to get them to buy from you.

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amy-2014 | Student

Consumers would be very important because they are the ones that truly run a company or business firm.  They are the ones that try to benefit from products and services.  They are important because they are the ones who make the flow of money possible, because profits go to the company to spend and to distribute among employers and employees, eventually making their way into the system again.