Consumer Behavior Is Important For Business Firm Development

2170 Words Mar 2nd, 2016 9 Pages
Consumer behaviour is always a crucial part for business firm development. International firms invest myriad of money to understand their customers, in order to satisfy the need and wants of customers. For example, IKEA, the world’s leading home furnishing company, spent a total of £30 million in 2012. It aims to improve the shopping experience for customers, including the bedroom showroom redesign. It is crystal clear that consumer behaviour plays a vital part in the success or failure of a product. Meanwhile, consumer behaviour is a process which consumers go through when they make purchases and it involves numerous factors that influence their decisions. As a consumer, we make decisions every day. Some are far-reaching while others may be trivial and inconsequential. However, we all know that human beings are irrational, our preferences often deviate from rationality in the standard economics. We often make the wrong decision and it may bring unfavourable consequences along with negative side effects. There are countless reasons for making irrational decisions. One of the most astonishing arguments I recently discovered is that people feel the pain of loss more acutely than they feel the pleasure of gain. Why this happened ? For instance, when we buy a sofa from IKEA, they often provide a 30 days money-back guarantee. However, even if we noticed that the sofa has imperfections, we seldom go back and return. Why ? It is because we consider returning the sofa as a loss. A…
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