Introduction

Consumer behavior is very complex because each consumer has different mind and attitude
towards purchase, consumption and disposal of product (Solomon, 2009). Understanding
consumer behavior theories and ideas assist in the successful marketing of a product or service.
Furthermore, understanding consumer behavior is beneficial in a number of ways. As there is
constant change in the living standards, trend, fashion and change in technology; consumer’s
attitude towards the purchase of product varies (Kumar, 2004). Understanding these
characteristics is critical as product marketing is heavily reliant on them. As a result, customer
behavior is an effective tool for marketers in achieving their sales goals.
Since customers are the most important people in a marketer's or salesperson's life, it's critical for
them to think about their likes and dislikes so that they can supply goods and services that meet
their needs. More thorough analysis aids in more accurate forecasting of consumer behavior for
any product or service. This report is all about the goal of studying consumer behavior in order to
predict the future trend of a business.
It's not always possible for entrepreneurs to just shake hands with their target audience members
and get to know them. It is frequently essential to do research. Consumer behavior should be
studied so that they know how to create, market, and sell their Knowledge Commerce products
effectively. The more data they collect, the more informed their judgments will be.

Main part
Understanding customer behavior is necessary for a company's present goods as well as future
product launches to succeed. Every customer has a unique thought process and attitude when it
comes to purchasing a product. There are substantial possibilities of product failure if a firm fails
to comprehend a consumer's reaction to a product.
Consumer behavior refers to how buyers act across the customer journey, from browsing for or
researching a product to making a purchase. It tells us how a customer finds your product and
service and why they buy it.
Tracking and understanding consumer behavior helps you ponder questions like:
1. Why are your customers loyal to your brand over similar options on the market?
2. How do customers use your product or service?
3. What factors influence purchasing behavior or cause customers to stop buying from you?
To answer these questions, brands often consider how behavior changes for different consumer
segments, whether that’s customers in the same age range or in the same location.
Finding answers to some of the following questions is one of the most significant reasons to
study consumer behavior:
 Is the consumer making a purchase from a competitor?
  Why is a customer choosing your competitor?
 What aspects of your competitor's products entice customers to buy them?
 What flaws do your customers see in your products as compared to those of your
competitors?
Understanding and confronting competition is made easier by studying customer behavior. Your
brand can provide competitive advantages based on customer expectations.

Importance of Consumer Behavior

Consumer behavior evolves as fashion, technology, trends, living styles, disposable money, and
other comparable things change. A marketer must be aware of the elements that are changing in
order to coordinate marketing activities properly.
1. Consumer Differentiation-
Consumer differentiation is a marketing term that refers to the process of distinguishing
one customer from a group of similar customers. This aids in the formation of a target
group of consumers who have similar or identical behavior.
Even if your firm caters to a specific client demographic, there may be differences
amongst individual customers. Each consumer group is distinct, and their demands and
desires differ from those of other groups. When a marketer understands the differences
between each set of customers, he may create unique marketing campaigns.
Differentiating your customers will allow you to customize your methods to their specific
demands. You may broaden the scope and depth of your offerings once you've achieved
consumer distinction. You'll be able to service a larger number of individuals more
effectively.
2. Retention of Consumers:
Consumer behavior is critical not just for attracting new consumers, but also for retaining
existing customers. When a consumer is pleased with a product, he or she will purchase it
again. As a result, promoting the product should be done in such a way that buyers would
want to buy it again and again.
 As a result, it is clear that attracting and maintaining customers is critical. Only by
knowing and paying attention to the consumer's purchasing habits can this be
accomplished.
3. Design Relevant Marketing Program:
You can build powerful marketing strategies by understanding customer behavior. Each
campaign can target a certain set of customers depending on their buying habits.
For example, if you're targeting the children's market, you might want to keep an eye out
for TV advertisements, school activities, and blogs aimed at young moms. For various
customer groups, you'll need to use different message strategies.
Marketers may learn what motivates customers to make purchases by studying consumer
behavior. The same reason may also be used in advertising to pique a consumer's interest
in making a purchase.
4. Predicting Market Trend:
A firm may save a lot of resources by performing a customer behavior research instead of
producing a product that will not sell in the market. In the summer, for example, a
company will not waste resources on a product that will not sell in the summer. The firm
decides on a manufacturing plan based on customer behavior in order to save on
warehousing and marketing expenditures.
5. Competition:
6. New Product Development:
Companies are always working to increase the success rate of their new goods or
concepts. Conducting a thorough and comprehensive customer behavior study is one of
the most essential methods.
Nike discovered through consumer behavior analysis that while the majority of its target
audience is not elite athletes, many of them want to be like them. So, during the 2012
London Olympics, Nike launched a campaign called "Find Your Greatness" to inspire
people to participate in sports. It intended to encourage individuals to pursue their dreams
of becoming athletes, not only high-performing athletes, but everyone regardless of
physical ability. The campaign was well-thought-out, data-driven, and, of course,
thoroughly analyzed before taking action. This message inspired a lot of people and had a
lot of appeal for the target audience.
7. Maintain Your Market Relevance:
When the world changes as quickly as it does today, remaining relevant to our target
market is the most difficult issue we all face. Do you know what the major cause of the
fast changes is? It's our consumers' ever-changing behavior.
Consumers today have more options and options, which means they may simply move to
a firm that provides superior products and services.
The company's market share would be lost if it loses relevance. Haven't we witnessed
Sony Walkman's failure to stay relevant in the digital music age, as well as the taxi
industry's demise due to its lack of readiness to combat the emergence of UBER??
8. Improve the customer service experience:
Different levels of customer care are required by different customers, and recognizing the
variances within your client base can assist you deliver the most suitable service for each
customer's demands.
If you own an electronics store, for example, high school or college students buying a
new laptop are more likely to know what features they want than someone buying their
first computer. Your service goal with the first demographic will be to provide
information about the latest technological trends, whereas with the second demographic,
you'll need to spend more time educating the customer, determining his specific needs,
and even teaching him how to use the features of his new electronic device.