Understanding Customer Behaviour

Various theories have been developed explaining customers behavior and its sociological aspects. According to consumer psychology, consumer’s choice and preferences are usually considered as problem-solving and decision making sequence of activities, the outcome of which is principally determined by the buyers intellectual functioning, rational behavior and the goals directed towards processing of information. These consumer behavior theories invest consumer with extensive capacities to handle considerable quantities of information and thereafter engage in processing that information to compare, contrast and evaluate alternative information for meeting the consumer’s objectives.

There has been a growing competition in the markets, henceforth generating immense information in these markets due to which no one individual nor organization, can encompass the information flow by rational means. There has been a major evolution over the past few decades, computers and information systems have replaced activities of individuals in the decision making roles. Organizations have developed computer and information systems to facilitate rational decision making, which was previously required human effort.

The companies have to not only understand the consumer but also the system that needs to be built upon the understanding of the consumer. There is a huge amount of investment involved in terms of time and money in the formation of such an information system within the system, but as per the current business environment, the information flow of a computer can better deal with the sophisticated information flows and intricate details by compiling all the information much faster than these systems. The information within the system can be processed at a higher rate of speed and return results in a more accurate and efficient manner.

A customer’s behavior encompasses many attributes and differentials. These differences are not only due demographical barriers, groups or preferences. The consumer’s market experiences a complex development of consumer’s behavior. The unpredictable and spontaneous human nature causes variations in the demand for a product in the market.

As a vendor you can always influence the customer but there are ways to modulate the product to create relationships with the customer and force an oblique confidence of the customer in the product. Once the needs of the consumer are identified an outline of the product can be designed.

The market is characterized by continuous changes in market composition, business practices and the structure. Moreover, as a vendor the more information you are able to extract about your customer the better you are in serving the customer.