- MemberNovember 5, 2021 at 10:08 pm
Company will lose if they fail to analyze consumer behavior. Understanding consumer behavior will help the organization to convert more customers. An organization should design best product and service based on the current needs and demands of the consumers at affordable price. Thus help in shaping the company’s business strategy. For Example, marketing using consumer behavior insight is how Apple succeeds. Once a consumer purchases a product or downloads iTunes Apple has access to data the company leverages. Apple uses this information to gain significant insight into the consumer and what drives purchase behavior.
Sometimes there are situations where market does not work well. When one person’s behavior imposes cost on somebody else so it’s a type of market failure. In this case government can intervene to improve the market and the outcome. For example, to tax cigarettes and use this money to finance rural development.