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Consumer Behavior For Dummies (Business & Personal Finance)

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Consumer behavior is way more than just a guessing game; it’s crucial to a successful marketing plan. A clear understanding of the consumer usually makes the difference between companies that succeed and those that fail. By understanding the behaviors of consumers, you can make more informed business decisions; these decisions alone can raise bottom-line revenues, lower customer acquisition costs, and increase customer retention and profitability.

The study of consumer behavior tells you why consumers act the way they do, why they buy what they buy, and why they buy from who they buy from. It’s the study of the external and internal influences that affect consumers in purchasing decisions. Consumer behavior also shows the marketing influence that businesses have on consumers.

Consumer behavior is a subjective topic, so there are no absolutes. The only absolute is the fact that consumers are influenced by psychological and sociocultural factors. However, not all consumers are affected in the same capacity. Luckily, by understanding a few processes, you can gain the type of insight about consumers that helps your business market succeed and stand out from the competition.
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