Importance of the study of the consumer behaviour: in olden days, the importance of consumers behaviour was not realized because it was sellers in the olden days, the importance of the marketing is customer oriented. Therefore, the study of customer's behaviour is vital in framing production policies, price policies, decisions regarding channels of the distribution and above all decisions regarding sales promotion.
1. Production policies: the study of consumer behaviour affects the production policies of the enterprises. Consumer behaviour discovers the habits, tests and preferences of consumers and such discovery enables an enterprise to plan and develop its products according to these specifications. It is necessary for an enterprise to be in the continuous touch within the changes in the consumer behaviour so that necessary changes in products may be made.
2. Price policies: the buyer behaviour is equally important in having price policies. The buyers of some products purchase only because only because particular articles are cheaper than the competitive articles available in the market. In such a case the price of such products cannot be raised. On the other hand, some other articles are purchased because it enhances the prestige and social status of persons. The price of such things can be prestige and the social status price of such things can easily be raised or fixed higher. Some articles are purchased under particular attitudes and emotions such as khadi garments are purchased who think themselves the followers of the Gandhi. Prices of the articles purchased under emotional motivates, can also be raised.
3. Decision regarding channels of distribution: the goods, which are sold and purchase solely on the basis or low price, must have cheap and economical distribution channels. in case of those articles, which require after sale services such as T.V. sets, refrigerators etc. must have different channels of distribution. Thus decisions regarding channels of distribution are taken on the basis of the consumer behaviour.
4. Decision regarding sales promotion: a study of consumer behaviour is also vital in making decisions regarding sales promotion. It enables the procedure to know what motive promotes consumer to make purchase and the same are utilized in advertising media to awaken desire to purchase. The marketer who takes decision regarding brand, packaging, discount, gifts etc, on the basis of the consumer behaviour for promoting sales of the products. Thus, study of consumer behaviour plays an important role in the decision making.