Define Consumer Behaviour. What are the importance of study of Consumer behaviour?

Consumer behaviour is the actions of consumers in the market place and the underlying motives for those actions. Marketers expect that by understanding what causes consumers to buy particular goods and services, they will be able to determine which products are needed in the marketplace, which is obsolete and how best to present those goods to the consumer. The study of consumer behaviour is the study of how individuals make decisions to spend their available resources ( time, money, effort ) on consumption-related items.

In the words of Walters and Paul “ consumer behaviour is the process whereby individuals decide what, when, where, how and from whom to purchase goods and services.”

The modern marketing management tries to solve the basic problems of consumers in the area of consumption. To survive in the market, a firm has to be constantly innovating and understand the latest consumer needs and tastes. It will be extremely useful in exploiting marketing opportunities and in meeting the challenges that the Indian market offers. Marketers need to understand buyer behaviour due to the following reasons.

The study of consumer behaviour for any product is of vital importance to marketers in shaping the fortunes of their organizations.

1. It is significant for regulating the consumption of goods and thereby maintaining economic stability.
2. It is useful in developing ways for the more efficient utilization of resources of marketing. 
3. It also helps in solving marketing management problems in a more effective manner. Today consumers give more importance on environment-friendly products. They are concerned about health, hygiene, and fitness. They prefer natural products. Hence detailed study on upcoming groups of consumers is essential for any firm.
4. The growth of the consumer protection movement has created an urgent need to understand how consumers make their consumption and buying decision.
5. Consumers tastes and preferences are ever-changing. Study of consumer behaviour gives information regarding colour, design, size, etc. which consumers want. In short, consumer behaviour helps in formulating of production policy.
6. For effective market segmentation and target marketing, it is essential to have an understanding of consumers and their behaviour.