Question

1. Why do marketers study consumer behavior? List and describe 4 reasons. Explain.

Answer 1

The study of consumer behavior is very important for a company to survive and grow in the market. Following are a few reasons to study consumer behaviour-

1. Retaining customers- It is important for a company to understand the current and every changing behavior of it's consumers to be able to meet their requirements and retain them. Not being able to do so will lead to the consumer shifting to another brand.
2. New product launch- Whenever a company wants to launch a new product, it should always study the behaviour of the consumers. It is because of them that the product succeeds or fails miserably.
3. Launching new marketing campaigns- A marketing campaign is meant to target a particular group of individuals and should be effectively made considering the consumer behavior.
4. Analyse the competition- Questions such as why is the competitor ahead of us?, what campaigns of him are effective?, which products are most selling?, etc can be answered by understanding consumer behavior.

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