Understanding Consumer Needs and Behavior
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Understanding Consumer Behavior: Focusing on Needs
Understanding consumer needs is the crucial first step in implementing the marketing concept, as it is difficult to meet customer needs effectively otherwise.
Defining Consumer Behavior
Consumer behavior refers to the activities carried out by a person or organization when they perceive a need to purchase and use a product or service. A distinction is often made between final consumer behavior and the behavior of organizations.
Studying End-User Behavior
The study of end-user behavior includes these aspects:
- The purchase behavior of individuals or groups for their own consumption or that of third parties (e.g., family members). It includes the activities undertaken to obtain a good or service.
- The usage behavior of those who acquire goods and services for themselves or someone else.
- Internal and external factors that influence a person's decision to purchase or use the product.
Studying Organizational Behavior
The study of organizational behavior includes the purchase and consumption activities of businesses and other entities for goods and services that they incorporate into their production processes.
Purpose of Studying Consumer Behavior
It is important to understand how to motivate consumers and how they purchase and use products. This understanding helps to:
- Identify current and future needs.
- Improve communication with clients.
- Gain their trust and ensure their loyalty.
- Plan business actions more effectively.
Benefits of Understanding Consumer Behavior
Understanding consumer behavior benefits both parties involved:
For the Consumer
It makes the purchase and consumption of products easier and more satisfying. Consumers feel more comfortable when their needs are met at prices they are willing to pay.
For the Company
A business strategy aligned with consumer behavior can increase demand for the products offered, thereby increasing market share and company profits.
Characteristics and Challenges
Studying consumer behavior presents certain difficulties:
- Complex: Many internal and external variables influence behavior.
- Changes with Product Life Cycle: Consumer behavior evolves throughout the product life cycle (the sequence of stages a product passes through from market launch to withdrawal). When a product becomes established and mature, consumers typically have more experience with its features and benefits.