Consumer behavior question

timer Asked: Aug 19th, 2014
account_balance_wallet $5

Question Description

Why is it important that marketers understand consumer’s behavior rather than consumer behavior? What are 2 ways companies make purchase decisions versus the way individuals make purchase decisions?

Tutor Answer

Barbara D
School: University of Virginia

It is important for marketers to understand consumer's behavior as this will determine the collective purchasing preference of the different individuals being targeted by the marketer. On the other hand individual consumer behavior is always shifting depending on individual preference and hence not reliable to gauge the actual economic situation of the whole environment and hence very difficult to know what exactly will be appealing to the individual at the time the product hits the market.

Difference in which companies make purchase decisions as compared to individuals include. Individuals at most times are impulse buyers they purchase goods and services without thinking in advance about it. while companies have to plan before buying any goods and services impulse buying has no room here. Another difference is that companies make purchases according to the need they have for the product at that momemnt and the decision is not a one man decision but rather a collective decision, while individual purchases are based on an individual decision and may buy a product which they have no use for but decide to buy it because of other self driven motives.

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