Why is consumer behavior important for a business firm?

Expert Answers info

Steph Müller eNotes educator | Certified Educator

calendarEducator since 2018

write444 answers

starTop subjects are Literature, Business, and Social Sciences

Simply put, consumer behavior is important because customers are the heart of any business. Without customers, any business would be forced to close its doors immediately. Understanding consumer behavior is therefore a cornerstone of any successful business, because without understanding who your customers are, you will not know what they want or how best to speak to them.

To provide a basic definition of consumer behavior, this field of study looks at what makes a consumer make the decisions that he or she does. It looks at the motivations and the psychology behind each factor. Without knowing...

(The entire section contains 3 answers and 508 words.)

Unlock This Answer Now

check Approved by eNotes Editorial

Ollie Kertzmann, M.A. eNotes educator | Certified Educator

briefcaseCollege Professor

bookM.A. from Radford University

calendarEducator since 2017

write1,383 answers

starTop subjects are Literature, History, and Law and Politics

check Approved by eNotes Editorial

pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

check Approved by eNotes Editorial

jesseldridge | Student

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 | Student

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