The Role of Consumer Behavior in Marketing Decision

The Role of Consumer Behavior in Marketing Decision

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The Role of Consumer Behavior in Marketing Decision

Introduction

For many years, executive and managers have ignored the buying behaviors of the consumers. This has resulted in them losing the competitive edge they had in the market to their competitors. As it is well known, the consumers are the kings of the business. In this case, the customer is the one who keeps an organization or a company running. Without the customers, the company or organization is doomed to fail and the only option remaining is closure. Therefore, any behavior they portray towards a certain product should be studied by the executives or the management of the business. For this reason, consumer behavior has been a smashing success for organizations and companies due to its principles.

Discussion

Consumer behavior can simply be described as the process an individual, a group or an organization uses to select a certain product, how they dispose the product and the significance of this process for the consumer and community (University of Southern California, 2010). Consumer behavior is a valuable marketing strategy to organizations and companies that use it. This is because it has had an immense impact on the companies and organizations that are using it. However, the critical question remains, what makes it successful? There are factors that make it successful making a company or an organization have a considerable amount of profits.

The buying culture of the consumer can be described as the first factor. A company is prone to notice that consumers often have a certain culture or habit of buying goods and services (Deshpandé, 2010). For instance, it has been demonstrated that the Latinos have a certain culture of gambling. They tend to associate with their own members, and they do not refer gambling as a problem. Additionally, the casino has demonstrated that the Latinos have a gambling culture (Medina, 2011). Therefore, due to this realization by the casino, they have learn the behaviors of the Latinos thus providing them with what they want. In this case, the strategy has become a success.

The other factor that has made the strategy a success is that it has eliminated the unnecessary costs. When companies use this strategy, they can learn the different types of consumers, those that are likely to buy and those that are not likely to buy the products. This will save the company from using unproductive marketing advertising strategies saving on costs. For instance, the casino companies have demonstrated this by showing that the high spenders might not be the most productive customers. The executive believe that those people who spend one thousand dollars and above per day are high spenders (Medina, 2011). For this reason, they are concentrating on the on this kind of consumer thus becoming successful