Why businesses study consumer behaviour, and how information search and evaluation shape the purchase decision

Importance of studying consumer behaviour

Consumer behaviour is the study of how people select, buy, use and dispose of products, and why. Businesses study it because:

1. It reveals needs. Products succeed only if they meet real needs; studying buyers shows what those needs are.
2. It guides segmentation and targeting. Differences in buying behaviour are the basis for choosing target markets.
3. It shapes the marketing mix. It tells the firm which features to offer, what price buyers will accept, where they prefer to buy and which messages and media influence them.
4. It predicts reactions to new products, price changes and campaigns, reducing the risk of failure.
5. It helps retain customers. Understanding post-purchase feelings helps build satisfaction and loyalty.
6. It keeps the firm up to date with changing lifestyles and technology, such as the shift to online buying.

Influence of the information search stage

Once a need is recognised, the buyer looks for information about possible solutions. The amount of search depends on the importance and risk of the purchase. The buyer first searches memory: what he already knows from past use, earlier advertising and earlier purchases (internal search). If that is not enough, he turns to outside sources:

• personal: family, friends, colleagues (the most trusted);
• commercial: advertisements, websites, sales staff, packaging (the most plentiful);
• public: reviews, ratings, comparison sites, media reports;
• experiential: handling or trying the product.

Information search shapes the final decision by building the buyer's awareness set (the brands known) and narrowing it to a consideration set (the brands seriously considered). A brand that does not appear in search results, reviews or friends' advice is not considered at all. Negative reviews can remove a brand from the set. Example: a buyer looking for a washing machine reads reviews, asks neighbours and visits a store; three brands enter the consideration set. Marketers' response: visibility in search and on shopping sites, informative content, good ratings and trained sales staff.

Influence of the evaluation of alternatives stage

The buyer then compares the brands in the consideration set. He or she decides which attributes matter (capacity, energy rating, price, warranty, service), gives each a weight of importance, forms beliefs about how each brand performs, and arrives at an overall attitude. The buyer may use a careful weighting of all attributes, or simple rules (the cheapest that meets a minimum quality; the brand best on the most important attribute). The outcome is a ranking of brands and a purchase intention for the preferred one, which is then turned into the purchase decision unless others' opinions or unexpected factors intervene. Example: the buyer ranks energy efficiency and after-sales service highest and chooses the brand rated best on these, even though it costs a little more. Marketers' response: improve the product on key attributes, change buyers' beliefs through communication, shift the importance buyers give to attributes on which the brand is strong, and compare favourably with rivals.

Conclusion

The search stage decides which brands are considered, and the evaluation stage decides which one is preferred. Together they largely determine the final purchase, which is why businesses study consumer behaviour closely.