Consumer behavior is a study of how individuals or groups select, buy, and use products and services.
In other words, it explains how and why consumers buy certain products and services, describing specific actions associated with the purchase and their underlying motives.
Understanding buyer behavior can help companies better tailor their sales strategies and as a result, increase revenue.
The three factors influencing consumer behavior are:
- psychological - individual attitude and perception of a need or situation,
- personal - unique interests and habits, and
- social - any social group or class a person is affiliated with.