why marketers need to understand consumer behavior ? Discuss explain three types of decision making which...

why marketers need to understand consumer behavior ? Discuss

explain three types of decision making which consumers go through . Give example to support your answer.

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Expert Solution

(A) Understanding consumer behavior is important for marketers such that they can give a useful advice to companies before launching a product. If company launches a product which is not able to attract customers in the market then company will face a huge loss. It is really a difficult task for marketers to understand the mind set of customers as every customer has some different mindset, they must know how customer behave to the a nuance change made in the product, changes can be anything like quality, packaging, pricing etc. Understanding the theories and concepts of consumer behavior helps the market of product successfully delivered in the market. In short marketers are the people who helps majorly in launch of a product.

(B) There are three types of consumer decisions to consider:

Nominal Decision making: These are the decision made for low cost products. Those products which you buy most frequently, which cost less and through which you are familiar. If you are using a shampoo from last 2 years, you will not change the product until and unless you find any mistake in the existing one. You will always come back from the grocery store with the same bottle of shampoo.
Limited time in decision making: Limited decisions are made about mid-cost products, semi-frequent purchases, or purchases from a somewhat familiar brand. They require a little involvement, and perhaps some searching. Lets say you bought a chocolate 6 months ago, you enjoyed it. Now you are getting the same ingredients in any other chocolate with half price at it, you would forget the taste you had before and taste this new product.
Extended decision making: Extended decisions are made about higher-cost products, and infrequent purchases. Lets say you went to buy the car, you do not have any idea which one to buy. You will consult many people before buying a car because it take a huge amount of money to buy it.

Rahul Sunny answered 9 months ago

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