- MemberNovember 4, 2021 at 10:11 pm
A consumer is the individual or business who purchases the products or services for his/her/their own consumption and not for manufacturing or resale. They are the end-users of the produced goods/services.
Consumer behavior is the study of knowing how the individual or business choose, purchase, utilize and dispose goods/services to satisfy their needs and desire. It refers to the actions of the consumers in the marketplace and the causal motives for the behavior.
After reading the article, I can summarize that understanding consumer behavior is all about satisfying needs and desire of the consumer. The consumer always attempt to maximize their utility. It is a fundamental marketing concept that need to be understood by business owner to succeed. By understanding how consumers think, feels, and decide, we will be able to plan our business strategies and stay ahead of our competitors by consistently providing better value to consumers.
In terms of government intervention, we could strategies our business plans to take advantage of the situation by anticipating consumers demands on goods/services.
For instance, recently Malaysian government launched an incentive program to encourage consumers to purchase energy savings electrical appliances. Ref 1: “The Sustainability Achieved Via Energy Efficiency (SAVE) 2.0 is a program which grants a RM200 e-Rebate to domestic households that purchase energy efficient air-conditioning units or refrigerators with 4 star or 5 star energy efficiency labels from the Energy Commission (ST) in 2021.”
With the government providing financial incentives, consumers are encouraged to decide and purchase these electrical appliances and as a business owner, we can take advantage by investing in this field or produce more energy saving air conditioning units or refrigerator as the demand for these appliances will increase. Ref 2: “About 150,000 households are expected to benefit from the government’s latest scheme to spur efficient use of electricity.”
In other instance, Malaysian governments also intervene in markets to promote general economic fairness among people by providing tax relief on electronic gadgets such as personal computers, smartphone, and tablet. Besides that, government also encouraging people to opt for healthy lifestyle by providing tax relief on purchases of sports equipment, magazines, journals and printed newspapers. [Ref 3] “Tax Relief for Resident Individual.”
As a business owner, to gain competitive advantage, we need to be agile and focus to supply goods/services to cater the consumers demands that rises from these government incentives.