How Does Consumer Behaviour Theories Improve Marketing Decision Making?

The consumer behavior theories provide an insight into the processes that a buyer undergoes to make the final purchase decision. It provides the marketing firms information about the people other than the buyer himself who affect the decision along with how various other factors that affect this decision. As the decisions made by marketing department are very important from the firm because it will both financially and image wise affect the firm. These model there fore help the marketing people to first identify who are the potential customers and what are the motivations behind the purchase. Once they know this they will be able to design products around customer needs. They will know exactly where they should make the product available, what price the consumer will be willing to pay, who else has to be convinced to make the actual purchase and what needs to be done to reduce post purchase dissonance thorough after sales service.

It helps the marketing department understand the needs of the customer, why he buys the product, how is the purchase made etc and all this information is critical in making decisions about the product mix.if you are unable to understand the customer then you are bound to make mistakes.