Forexing Business Success

Consumer Behavior means the psychology of Marketing.
Understanding about Consumer Behavior can help firms and organizations improve their marketing strategies by understanding issues such as how:

* The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

* The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

* The behavior of consumers while shopping or making other marketing decisions;

* Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

* How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

* How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:
* Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).

* Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

* Consumer behavior involves services and ideas as well as tangible products.

* The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.