1.1.4 Customer Behavior

Customer or consumer behavior is the study of people or organizations.

It is also the study of process they use to select or purchase products or services. It includes elements of
psychology, sociology, and economics.

It is an attempt to understand customer’s decision-making process. It also focuses on customer’s individual characteristics and behavioral approaches. It attempts to understand what people want so that they can deliver accordingly.

Research has shown that consumer behavior is difficult to predict. Relationship marketing is a
form of marketing that emphasizes customer satisfaction and retention is an important part of customer behavior analysis.

Consumer behavior can be defined as the behavior that consumer displays in searching for, purchasing, using, evaluating
and disposing of the products, services, and ideas that they expect to satisfy their needs.