Importance of understanding consumer decision-making for marketers:

There are several importance of consumer decision-making. Some of them are:

1. Helps in understanding the purchase behaviour and preference of different

consumers.
Marketing begins with needs of the consumers and ends with the satisfaction of the
consumers. The requirements and tastes of customers also fluctuates throughout certain
time period. By continuously keeping track to the consumer decision making and buying
behaviour, they have a proper knowledge and information about who their customer is
and what are their preferences. These data allow marketers to get insight into customer
preferences and buying patterns, leading their companies to produce the goods and
services that customers actually want .Also, changes can be made to the product's design,
components, packaging, and so on, according to the needs of the customers.

2. Helps in forming Market segments.

Market segmentation and selection of target market largely depends on a thorough
understanding of consumer behavior. On the basis of the consumer analysis undertaken,
the marketers identify groups of individuals, or firms with similar needs. These market
segments are described in terms of demographics, media preferences, geographic
location, etc (Reynolds & Olson, 2013). Management then selects one or more of these
segments as target markets on the basis of the firm’s capabilities relative to those of its
competition. The marketing mix also cannot be developed until the marketers do not have
an understanding of the consumers.

3. Helps in forming Marketing strategies & policies.

Marketers that have a better understanding of customer behavior are better able to design
and implement marketing strategies. In order to thrive in a competitive environment, a
company must provide more value to its target consumers than is provided to them by its
ivals. Marketing strategy is formulated in terms of the marketing mix.that is, it involves
determining the product features, price, communications, distribution, and services that
will provide customers with superior value. The consumer research or consumer
behaviour related research enables marketing executives to predict reaction of consumers
to promotional messages and to understand why they take the purchase decisions the way
they do. It helps in formulating effective marketing programmes and serving target
markets in a profitable way.