Why is consumer behavior important for a business firm?

3 Answers

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Consumer behavior is extremely important to businesses because consumers are the lifeblood of any business.

The study of consumer behavior is interested in every aspect of consumers' interaction with a product.  It wants to know who buys a product, why they buy it, how often they would buy it and how they use it.  Firms need to know these kinds of things so that they can better understand how to make their products attractive and useful to consumers.  By doing so, the firms can improve their chances of surviving and prospering.

Since businesses cannot live without consumers, it is vital that they understand how consumers behave with regard to the product(s) the firms are selling.

User Comments

jesseldridge's profile pic

jesseldridge | (Level 1) Salutatorian

Posted on

As we know that the business whatever kind of it revolves around the consumer. So while operating as a business firm, it is important for the firm to get a better understanding of its target market. It means that as a business firm, you should have to understand the needs and wants of your customers. So you can successfully fulfill their demands and requirements and thus it can be beneficial to achieve your organizational objectives.

udayanga's profile pic

udayanga | College Teacher | (Level 1) Salutatorian

Posted on

Consumer behaviour means the how ,when,why,where consumers buy goods and services n the market place.Simply it refers the way consumers behave in the market.following importances are there in the study of consumer behaviour.

  • Current and future expectations of consumers can be known
  • The preference to thier own products can be known.
  • Their behaviour can express critics on our products
  • Consumer behaviour can help to marketing planning process.
  • It can help to future business planning