Understanding Customers: Importance of Consumer Behaviour and Future Trends

This report discusses the importance of understanding customer needs and behaviour for a business to gain a competitive edge. It also highlights the significance of future trends in consumer behaviour and the role of social perspective in developing effective business practices. The report covers topics such as consumer behaviour, decision-making, involvement of customers, social groups, and future trends in consumer behaviour.

Understanding
customers

Table of Contents
INTRODUCTION ..........................................................................................................................3
ESSAY.............................................................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In the functioning of a business, it is important to take care of customers and develop
understanding in order to increase profitability (Ahn, J., 2020). All major companies in the
international and national marketplace focus on understanding customer needs in order to
perform key operations and functions. A business should include key focus on different
approaches which are important in understanding needs and demand of different customers to
lead the marketplace. This project includes a brief description on understanding needs of the
customers and contemporary perspectives on consumption. The report also includes involvement
and decision-making by an individual customer. This report also includes significance of
perceptual process in understanding needs of customers. This report also includes main focus of
a business on consumer behaviour based future trends.

ESSAY
Consumer behaviour is the major perspective of a customer which states the buying and
after sales behaviour of a customer. In the era of stiff competition between companies, it is
essential to focus on understanding consumer behaviour for development of business. The
consumer behaviour should be briefly analysed by a business entity in order to develop a focused
approach at the marketplace. In order to increase the efficiency and effectiveness of a business, it
is major role of a company to focus on customer care. The consumption is considered as
complex social phenomenon under which different people consume goods and services for
reasons beyond their basis use value (Ahn, J., 2022). In the contemporary business world, it is
key role of a business to develop a major emphasis on analysing current market situation. This
will help a company to deliver effective and key business practices in understanding customer
needs. It is also one of the major role of a business to focus on increasing value of customers.
Consumption is a key approach which provides vital forum for the subject- object interaction.
The consumption based approach gives details and provide people opportunity to refine
themselves through interaction with different world objects (Vaterlaus, Cottle, and Gibbons,
2018). All major companies in the international and national marketplace focus on understanding
consumption based approach in order to develop effectiveness. The strategic and planning
framework which is used by different organisations at the marketplace is helpful in increasing
competitive strength of a company.
Decision-Making is a major type of approach which is used by a customer in order to
lead the marketplace. The decision-making process of customers is important to be understand
by a business to develop key focus on supply and demand of products and services. The global
and domestic companies at the marketplace focus on involvement of customers to increase
profitability and revenue (Bravo, Catalán, and Pina, 2021). The decision-making of individual
customers also impact on functioning of a business in a positive or negative manner, depending
on the situation. There are different companies at the marketplace which provides good after
sales services in order to attract customers. Involvement of customers can be increased by a
business by providing effective after sales services. Customer relationship management is also a
key technique which can be helpful for a business to maintain healthy relationship with
customers. It is the major role of a business entity to encourage customer participation by
delivering effective and major services. In the corporate world, different business organisations

focus on development of a major approach which is helpful in increasing potential related to
customer service. In order to gain competitive advantage. The different business organisations
also develop competitive strategy which includes key focus on customer service in order to
achieve desired results (Chou, Shen, and Chou, 2016). Decision-Making of customers can be
understood by a business with increase in potential related to customers. All major business
organisations at the marketplace focus on achievement of key business targets with the help and
support of decision-making process. Decision-Making approach is also helpful in making
judgement by customers to develop key and focused approach at the marketplace. This is the
ethical and moral responsibility of a company to create a strategy which is helpful in increasing
involvement of customers.
Consumers in society are people belonging to society who consume the services provided
by different organisations (Habel, Alavi, and Pick, 2017). It is important for a business to
understand behaviour of customers and society to develop further operations. In the recent times,
various companies focus on development of a major customer service based approach in order to
serve the society. There are various companies at the marketplace which focus on analysing key
social factors associated with customer needs to move ahead in competition. A business should
focus on development of short, medium and long term goals in order to achieve main business
targets. Social groups and their characteristics are essential to be analysed by a company in order
to deliver key marketplace based practices (Herzallah, and Ayyash, 2021). All major companies
in the international marketplace perform operations according to needs and demand of society to
increase profitability. The social needs should be analysed briefly by a business and fulfil them
with the help of planning and strategic framework. This is also one of the major role of
customers also to convey their basic needs to a business so that a business can satisfy them. The
society is most important for a business as it states the rules and procedures which are needed to
be followed by a business entity in order to gain competency edge. In most of the cases,
companies take the help and support of market survey in the society to understand current need
of different customers (Kim, and Krishna, 2022). Social focus is always necessary to be
developed by a business entity in order to gain competitive edge. Consumers in society are
considered as major people who take interest in the business as its operations. This is one of the
major roles of a company to conduct a deep market research in order to understand queries of

consumers of society. The implementation of market survey should be developed with key
supervision and control for development of best business practices.
It is essential for a business to analyse future trends in consumer behaviour for
development of best marketplace approach. In order to seek attention of different customers at
the marketplace, it is key role of a business entity to focus on coming trends. The consumers are
getting more aware due to the development of information and technology (Wrigley, and Straker,
2019). Information and technology tools like internet and social media are creating major impact
on customers. Mindset and perception of customers is changing due to recent trends in consumer
behaviour. In order to lead the marketplace, it is important for a business to focus on key areas of
developing a strategy. Customers are getting aware about their health and mental health which is
putting a question mark on different business organisations (Min, Joireman, and Kim, 2019).
According to future trends, customers are getting community driven or influenced by a
community. Customers are also going ECO friendly in recent times and demanding for
sustainable products. It is necessary for a business entity to develop sustainable strategy which is
helpful in increasing precise approach towards environment (Mokha, and Kumar, 2021). All
major companies in the marketplace are focusing on development of key standards and norms
which are beneficial for increasing business strength. Also the customers are getting aware
towards the mental health. It is one of the major responsibility of a company to focus on
increasing mental health of the customers in order to develop a focused approach. The product or
new product development should be there with key focus on health of customers (Singh, and
Srivastava, 2020). It is also one of the major role of a company to focus on analysing importance
of environment in order to develop best practices. Future trends of consumer behaviour are
important to be taken into consideration by different companies to develop a key and effective
approach.

CONCLUSION
From the above stated report it can be concluded that focusing on understanding
consumer behaviour helps a business to gain competitive advantage. This project concludes that
it is key function of management of a business to focus on analysing customer needs in order to
lead the marketplace. This report concludes key role and responsibility of a business entity to
take into consideration mindset and perception of customers to fulfil their needs. This report also
concludes the importance of consumer based theories and models which are important in
development of customer centric approach. The project also concludes importance of
understanding social perspective of customers and develop and achieve goals and objectives
according to social needs. Business should also evaluate key future trends related to consumer
behaviour in order to develop effective edge at the marketplace.

REFERENCES
Books and Journals
Ahn, J., 2020. Effectiveness of demographic characteristics in understanding Malaysian
customers’ perceived value of the integrated resort sector. Journal of Vacation Marketing, 26(2),
pp.195-210.
Ahn, J., 2022. Impact of cognitive aspects of food mobile application on customers’
behaviour. Current Issues in Tourism, 25(4), pp.516-523.
Bravo, R., Catalán, S. and Pina, J.M., 2021. Understanding how customers engage with social
tourism websites. Journal of Hospitality and Tourism Technology.
Chou, S.Y., Shen, G.C.,. and Chou, Y.T., 2016. Multichannel service providers' strategy:
Understanding customers' switching and free-riding behavior. Journal of Business
Research, 69(6), pp.2226-2232.
Habel, J., Alavi, S. and Pick, D., 2017. When serving customers includes correcting them:
Understanding the ambivalent effects of enforcing service rules. International Journal of
Research in Marketing, 34(4), pp.919-941.
Herzallah, F. and Ayyash, M.M., 2021. Understanding customers' continuous intention to use of
social commerce via Facebook: a theoretical model and empirical examination. International
Journal of Networking and Virtual Organisations, 24(4), pp.387-407.
Kim, S. and Krishna, A., 2022. ‘I’ll stand by you:’understanding customers’ moral decoupling
processes and supportive behavioral intentions in cases of corporate misconduct. Journal of
Marketing Communications, pp.1-23.
Min, H.K., Joireman, J. and Kim, H.J., 2019. Understanding why anger predicts intention to
complain among high but not low power customers: A test of competing models. Journal of
Business Research, 95, pp.93-102.
Mokha, A.K. and Kumar, P., 2021. Using the Technology Acceptance Model (TAM) in
Understanding Customers’ Behavioural Intention to Use E-CRM: Evidence from the Banking
Industry. Vision, p.09722629211060565.
Singh, S. and Srivastava, R.K., 2020. Understanding the intention to use mobile banking by
existing online banking customers: an empirical study. Journal of Financial Services
Marketing, 25(3), pp.86-96.
Vaterlaus, J.M., Cottle, N.M., and Gibbons, R., 2018. Understanding customers: the jobs to be
done theory applied in the context of a rural food pantry. Journal of the Academy of Nutrition
and Dietetics, 118(10), pp.1895-1902.
Wrigley, C. and Straker, K., 2019. Affected: Emotionally engaging customers in the digital age.
John Wiley & Sons.