Although data suggests that more than two thirds of consumers act with a confidence that companies are aware of their needs and desires, such an assumption is presumptuous. To get an accurate bead on a consumer’s next step requires more than a knack. Nor is it an intrinsic part of being a company. Consumer behavior, which is a sub-study of economics, purporting to explain how and why consumers spend their money, requires serious research. Why buyers elect one brand over another, the venues they choose to shop in and the amounts they decide to spend, are all questions germane to the study of consumer behavior. Analysis has led to the realization that consumer behavior can be rooted in social needs, it can stem from psychological needs, or it can be the natural outgrowth of a certain type of personality. Successful marketers understand these roots of consumer behavior and know how to leverage this knowledge. For example, understanding how the holidays impact spending can increase holiday sales. Researching the consumer’s journey from research to buying can also garner more targeted and successful transitions from prospect to purchase.
- Data suggests that more than 75% of consumers act on the assumption that businesses have a handle on their wants and needs.
- Consumer behavior, which falls under the larger umbrella of economics, is the study of how people spend their earnings.
- It encapsulates such data as how consumers proceed in picking one item over another and what sort of emotions they attach to various brands.
“In other words, customers want companies to understand their behavior. That’s why understanding and influencing consumer behavior is essential for a marketer.”