Role of Marketing
Most companies use consumer behaviour to achieve its end goal because it lets them know why consumers make the purchases that they make and how they react to strategies. It helps a company understand what the consumers want. It is very important to a company because they need to create a strategy that satisfies the customers and in order to do that, they need to analyse why customers buy a certain product.They will try to come up with new ideas that will impress the customers depending on their consumers' behaviour. For example, if a product is too expensive, customers would not buy that product and therefore, the company might try to lower its price. Another example would be if a grocery store was located in an area where the majority of the people are malays, they would probably not sell as many beef as other grocery stores. This is because malays cannot eat beef due to religious reasons.
Consumer behaviour is also helpful in economics because it helps companies learn about how consumers spend their money. Since economics is about the production, consumption and transfer of wealth, consumer behaviour can help a company predict the national productivity of a product. National productivity is an average of the efficiency of production. Knowing how many people will actually buy the product will help to determine the number of products needed to be produced.