The Benefits or Significance of Consumer Behaviour Studies

Consumer behaviour studies are relevant to businessmen, marketers and policymakers. Many business organisations and marketers are spending much resources(money,time and effort) in the consumer behaviour studies.

Here are some benefits or significance of consumer behaviour studies :

1) The study of consumer behaviour helps marketers to learn what to satisfy consumers, thereby enhancing the implementation of the marketing concept. To gain insight and understanding into what satisfies consumers, markets examine the main factors that affect whether, what, where,when and how consumers buy.

2) Also by gaining better understanding of the factors that influence a consumer's buying and consumption process, marketers are in a better position to predict how consumers will respond to their marketing strategies.

3) Studying consumer behaviour contributes to the entire strategic planning process in marketing. As suggested by the marketing concept,the development of marketing strategy begins with an assessment of consumer needs and wants. It is imperative, therefore, that a marketer thoroughly grasp the nature of those needs and wants, why they exist, and how they can best be satisfied.

4) The study of consumer behaviour is crucial in defining, analyzing and understanding market segments. This is because through market segmentation, a firm can choose its market segment or target market based on such behavioural variables as consumers' buyer class, price sensitivity, buyer motive, end use, brand loyalty and other psychological profile such as personality traits, perception or product attributes, and learning.

5) The applied disciple of consumer behaviour is useful in development of more efficient use of marketing resources and in arriving at solutions to the problems of marketing.

6) Knowledge of consumer behaviour helps marketers remove the uncertainty inherent in all marketing programme. In this case it enables the firm to visualise how its marketing decision variables with affect customers. Using its knowledge, outcome of a specific marketing strategy can be realistically predicted. The organisation can then budget, implement and manage the marketing strategy most likely to succeed.

7) Understanding consumer behaviour helps a firm to measure the effect of a strategy. Thus it is a basis for performance evaluation. It allows the assessment of more than just volume of sales or profit.

8) It is used for evaluating a new market opportunity, which constitutes the firm's potential market, i.e Those who are not aware of the firm's product, patronise competing firm's offerings and lack the current means of purchasing the firm's products. Knowledge of consumer behaviour therefore helps the firm to evaluate consumer group with unsatisfied needs and wants and to draw them towards the firm.

9) It helps to improve retail performance. This is because retailing is the final link in the buying process of moving products from the producers/wholesalers to the final consumers. Much emphasis on the need for consumer analysis and satisfaction becomes very necessary.

10) Understanding consumer behaviour is not restricted to business organisation. It is also relevant to administrators who use it in formulating public policy designed to protect customers. We find out that government agencies such as standards organisation of Nigeria, (SON), National Agency For Food and Drugs Administration and Control ( NAFDAC), etc. develop policies that benefit consumers.