Consumer Behavior

When discussing consumer behavior, we know that its main purpose is to understand people and how they select and use the products that there are investing in. Consumer behavior is a study that focuses on the behavioral reaction that the consumer shows when presented with different alternatives and methods being used as opposed to what they were initially used to. We have many areas to address when discussing consumer behavior, the first being need. Whenever we see a new product in the market, the first two things that we ask ourselves is, do we need it? And what is the cost? Very rarely will a person need something they just saw in an ad and say they absolutely need it. Our motivation and drive will determine the amount of willingness we are to spend for that good or service. It is the manufactures job to figure out what generated the consumer's interest in the first place.

As consumers, we have to make decisions and these decisions will typically involve a process. First, we identify the issue, suppose you're trying to figure out what pick to buy for the wedding. We realize it's not that difficult of a choice because any shirt will look great, the hard part is matching it with the pants. Then we pick out a couple shirts that best suits our needs at the time, after gathering all the shirts together we evaluate each alternative with the goal in mind of choosing the best shirt. We pick out a shirt and are ready to roll. Likewise, when first presented with a new item that we really want but maybe we don't need, we always evaluate alternatives, whether it be price or taste the decision is never an easy one. Or perhaps we don't make it one, but we understand that consumer behavior is so beneficial to a company's success and in large part due to how much wiggle room they have to alter their products.

It is important to understand how consumers make decisions because the best way to keep customers is to understand what keep them engaged in your products. Being able to understand the market you are dealing with will give you an overall feel for how much is too much change? This is how companies are able to keep retaining customers and keep on adding more customers which is how you are continuously growing as a business.