Answer to Question #206561 in Management for GOG

Question

SUBJECT : CONSUMER BEHAVIOUR 

Explain relevance of consumer behavior in modern marketing in 7 points with elaboration ?

Answer 1

Relevance of Consumer Behavior in Modern Marketing

Consumer Differentiation: This refers to how a consumer is distinguished from others. Consumer differentiation helps marketers to identify the target group easily because they have similar behavior.

Retention of Consumers: Consumer behaviors also enable marketers to retain customers. This is because they can easily recognize them based on their behaviors.

Designing Relevant Marketing Program: Understanding consumer behavior enables marketers to design the most appropriate marketing program. This is the marketers will design the program based on their knowledge regarding the characteristics of the consumers.

Predicting Market Trend: Consumer behavior is the first thing to show any shifting of the market trend. When the consumers’ behaviors shift from the previous to the new ones, an individual can predict the market trend understand how to change.

Competition: Consumer behavior is also critical in indicating whether there is competition with other marketers. For example, if the consumers shift and start buying products elsewhere, the marketer will understand that competitors are available for the same product.

Innovating New Product: In most cases, consumer behavior determines the type of product to be made. When consumers' demand for a particular product minimizes, the producer may be influenced to change the product's condition to avoid losing the customer.

Improve Customer Service: The producers usually aim at producing the best product and service. When the consumers lose interest in a particular product or service, the producer has to find out the reason, thus improving.