Question

Explain the importance of Consumers behavior

1. role in business

and

2. society

Answer 1

1. The role of consumer behavior is vital for any businesses. All businesses thrives on a simple fact that how much they can they understand their consumers.

By studying consumer behaviousr, businesses get to know what exactly is the consumer want to buy, what are their dislikes and accordingly they will decide what to offer them and what not. Consumer behaviour also tells them what they are likely to buy in the future, through this the businesses can get a sense of anticipated demand and get ready themselves today for the future.

So, the more the firms get to know about their consumer the more they earn revenue and satisfy their consumers base.

2. Each consumer behavior is important for the society as a whole. In fact, the society is made up of such consumers only. So, it is important to understant each consumer behaviour, their different tastes and preferences for every good. The subject: Social Choice Theory is infact based upon the idea of understanding social preference taking indivual consumer's preferences into account. Amartya Sen rightly acknowledges the importance of consumer behaviour for the overall society.