Why is consumer behavior important for a business firm?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

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 who your customers are and how they think, a business cannot succeed. That is why analyzing consumer behavior is so vital to every business.

Other elements of consumer behavior involve thinking about what your consumers's opinion of competitors's products and services are and how you can adapt your marketing campaigns to increase your market share.

Consumer behavior is important for businesses...

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

Unlock This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial
Approved by eNotes Editorial Team

Posted on

An illustration of the letter 'A' in a speech bubbles
Approved by eNotes Editorial Team

Posted on

An illustration of the letter 'A' in a speech bubbles
Approved by eNotes Editorial Team

Posted on