What Is Consumer Behavior?

We all make buying decisions every day, both big and small. Some choices are based on the products themselves (what’s new or what we need), while others are made on how we feel about a company (is it trustworthy, has good ethics?). And of course, there is the practical reality of trying to make ends meet – do we have enough money to purchase and maintain these things and will they put us over our budget?

However, in order for companies to thrive in this market age they need consumers to not only purchase their products but also engage with them. It’s essential for brands to understand consumer behavior – why consumers buy what they buy when they buy it. In this article you’ll learn how to understand consumer behavior and what steps you can take to achieve market share.

What Is Consumer Behavior?

Consumer behavior is a study of why consumers do what they do, from what influences them as they make decisions to the influences as they try out products. The goal of studying consumer behavior is to predict how customers will respond in certain situations, online or offline. And knowing that, companies can then modify their strategies for consumer engagement or even product development.

How Can Consumer Behavior Be Used in Business?

Understanding consumer behavior can be used for both online and offline businesses. Traditional businesses think of their customers in terms of demographics, such as age and income. But in order to service their customers properly, companies need to consider the entire picture: the psychological and emotional reasons behind why people make buying decisions, how they react when they’re faced with certain situations at certain times of the month, when they’re holding their wallets close to the chest when shopping… It is this understanding that will help you understand your target market and how you can then manage them better.