This document discusses consumer behavior and its importance. Consumer behavior is defined as the study of when, why, how, and where people buy products. It depends on consumer psychology and attempts to understand individual and group decision making processes. The main focus is customer satisfaction, as businesses exist only because of customers. Studying consumer behavior is important to develop better strategies, consider customer health, understand buying decisions, adapt to changing tastes, set prices, avoid failures, understand influencing factors, design satisfying products, decide product access, and determine effective promotion methods.

1. Consumer Behaviour
P.Pandidurai M.A., M.phil.,
Assistant Professor
Prof.Dhanapalan College of Arts and Science

2. Consumer Behavior
Consumer Behavior is the study of when, why, how and where people do or
do not buy a product. It basically depends on the psychology of the consumer.
It attempts to understand the buyer decision making process both individually
& in groups.
In the study of Consumer Behaviour main focus is the customer satisfaction
because customer is the only person with whose presence businesses actually
exists

3. Importance/Need of study of consumer
behaviour
• To make better strategies for increasing profits.
• To take into consideration customer’s health, hygiene & fitness.
• To know the buying decisions and how consumer make consumption.
• Consistent change in Consumer’s tastes or preferences.
• Consumer behavior study is necessary to make pricing policies.
• To avoid future market failures.

4. Cont…
• To understand why, when, how, what and other factors that influence buying decision of the
consumers.
• To design the best possible product or service that fully satisfies consumer’s needs and
demands.
• To decide where the service or product would be made available for easy access of
consumers.
• To decide the price at which the consumers would be ready to buy that product or service.
• To find out the best method of promotion that will prove to be effective to attract
customers to buy a product.

5. Question Time