Understanding customer behavior

The study of how an individual selects and uses commodities and services is termed consumer behavior. Having an understanding of consumer behavior is of the essence to any given business. Businesses devote their time and resources to learn more about their customers with the hope that it will help them improve services.

Through brand identity, companies gain a competitive edge. It helps an organization stand out in an increasingly crowded market. Brand identity entails all the elements that a firm creates to show a particular image to its consumers. By knowing what the customers seek, an entrepreneur can brand their company to best suit the target audience. The nudge theory can be integrated into a business’s policies to influence customers to be loyal to them. Earning clients’ loyalty is of great essence as they will always give feedback in case they are not satisfied. In the business scene, competition is something that cannot be avoided; all that a firm can do is always be innovative and follow up on whether customers are satisfied with its services or products.

How a consumer behaves is influenced by the following key factors:

Personal factors – this is a person’s opinion and interests. They are determined by demographics such as sex, age, ethnicity, culture, and so on.

Psychological factors – An individual’s response to a particular product will depend on their attitude and perceptions.

Social factors – The friends and peer groups of a person have a significant impact on consumer behavior. The social class, level of education, and income will also determine how an individual selects and uses products. 

A firm that understands consumer behavior is better positioned to create an image of itself that consumers will quickly identify with. Branding not only helps identify a product but also allows customers to distinguish it from that of competitors. Putting consumer behavior into consideration helps create a brand identity that will be memorable to consumers. There are individual companies that have created awareness in their customers about what they should expect from the company.

A company that understands its customer’s behavior in-depth can know the expectations and needs of the customers. The advantage of this is that products are designed to be of optimum utility to customers. And this draws them even closer to the firm. For sales to be increased, a business must know what clients are looking for and provide precisely that. When it comes to studying consumer behavior, it does not end after a purchase has been made. A business ought to follow up on what the customers think about its product after consumption. Assuming there is a complaint, appropriate measures should be taken to ensure the same comment is not heard again. Another advantage of understanding customer behavior is that it enables a business to predict whether a client is likely to return in the future. Therefore a firm can foresee where it is headed and the likelihood of making a profit or loss. Consumer culture theory defines why a consumer does something and why they have a particular culture. It is beneficial in pursuing a solid understanding of how market-mediated and global consumer culture molds people’s identities.

Building a brand is the recommendable step that any business should take before starting to increase its profits. It is through branding that a firm is recognized. No customer will want to associate with an unknown company (Smithson, 2019). People tend to trust a brand that is well known and accepted. An essential element of branding is the logo; this is literary the face of a company. Only a company’s logo print on a product can lure a consumer into trying a product. Having a unique logo helps a firm’s product stand out from similar products from competitors. Marketing is much easier for a company that has well-established its brand.

Branding generates future business by increasing business value and giving a firm more leverage in the industry. Having a firm establishment in the marketplace makes a company more appealing to investors. The advantage of having many investors is that the pool of resources at a business’s disposal increases, making it easy to continue studying its customer’s behavior. Investors tend to have more trust in a company that is serious in branding itself. Branding ought to be done after customer behavior has been understood. The advantage of this is that a business will be aware of what might capture the attention of its target audience.

In conclusion, it is correct to say that understanding customer behavior savings a company from wasting resources on marketing strategies that are not feasible. Depending on the type of product and its intended customers, specific advertising strategies will have zero impact on sales. Therefore, understanding customer behavior is essential in improving how a business exchange with its clients and helps prevent incurring losses.


Smithson, E., 2019. “What Is Branding And Why Is It Important For Your Business?” Brandingmag. [Online] (updated 16 Apr. 2019) Available at: <www.brandingmag.com/2015/10/14/what-is-branding-and-why-is-it-important-for-your-business/##targetText=Branding%20is%20important%20because%20not,to%20expect%20from%20your%20company.&targetText=There%20are%20many%20areas%20that,promotional%20merchandise%2C%20reputation%20and%20logo> [Accessed 3 Nov. 2019].

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