Consumer Behaviour is a very important factor in predicting the upcoming market trends as it deals with the psychology of a Consumer, but it isn’t at all that easy to understand as it deals with how consumers think and is affected by many factors.
The main definition of Consumer is the study of individuals, groups or organization and the process they use to select, secure, and use products, services to satisfy their needs. It also deals with the impacts the selection process on the consumer and the market trends.
As mentioned above consumer behaviour is the psychology of how consumers think, but a consumers cognitive behaviour is only one portion of what it really deals with. It also deals with how a consumer feels reason and selects between different alternatives, like brands, products and even the retailers itself
Consumer behaviour involves how the consumer uses the products as well as the study of how they are purchased.
Sales Forecast and Consumer Behaviour
Organizations study consumer behaviours in order to determine future sales. These forecasts estimate the expected sales for a particular market during a specified time period. Small businesses need to know the members of their target audience.
The Behaviour of consumers can be affected by many factors, this may be the reason why people are buy more during the Christmas season which often result to a the economy generating more liquidity in that season.
It is also important for analysts study the past behaviour of the consumers so that they may have a perspective of how the market might move in the future and if faced in similar circumstances. For example, how the people reacted when the 2008 financial crises occurred should be closely watched in order to prepare if an unfortunate even like that was to happen again.