In earlier days the importance of studying customer behavior was not realized because it was seller driven market. But modern marketing is customer-driven. This essentially makes the customer the king of marketing. That’s why consumer behavior as a subject has been explored and it helps an organization or a company to frame production policies, channel decisions, price policies, promotion, and advertising policies, and above all sales promotion policies.
Customer decision-making varies with the type of buying decisions. The decision to buy toothpaste, a tennis racket, a personal
computer, and a new car is very different. The complex and expensive purchase involves more buyer deliberation and more
-Production policies: Consumer behavior gives an insight into the various factors which prompt them to purchase a
particular product. Identifying the taste or choice of the consumer can help the organization change the product
-Price policies: Some customers purchase products only because a particular thing is cheaper than the competitive
articles available in the market. In such a competitive scenario, it is wiser not to raise the price of the commodities.
-Channel decision: Convenience goods should be available in the nearest shop, while special and shopping goods should be
available in the very special store through a selective distribution system.
-Promotional and advertising policies: All the promotional policies including advertising policies should be derived from
the consumer behavior.
-Sales promotion policies: A study of consumer behavior is also, an important factor to decide on a sales promotion scheme
and duration of such schemes.