Knowing consumer theory allows you to know which element weighs most in the purchasing decision and, consequently, make more assertive changes to guarantee competitive advantage .
If you want to know more about the strengths and weaknesses of a company, we recommend reading: How to do a SWOT analysis and plan successful strategies for your business .
As the name suggests, sales forecasting is the ability to predict your future profits. Knowing these figures allows you to strategically allocate your resources, achieve goals more easily, and plan for the growth of your business .
This task becomes a little easier when you are familiar with consumer theory. Patterns of behavior can provide stability for the analysis of relationships between variables, such as cause and effect.
For example, if you increase the price, will people continue to buy? Or, if you reduce the price, will people find your products to be of inferior quality and stop buying?
For more tips on pricing your products
We recommend reading: The cost and selling price formula .
5. Ensure customer satisfaction
According to a Gartner study , nearly 90% of companies are expected to compete based on customer experience . This suggests that satisfaction is a gambling database crucial element for the success (or failure) of an organization.
In the consumer theory examples we have seen, satisfaction is conditioned by several factors: price, availability, shopping experience, meeting expectations and much more.
Therefore, knowing these studies is a way to identify which variable predominates in your business model and do everything possible to improve it.
6. Create retention strategies
A classic Harvard Business Review apply to the tiktok creator fund: study found that attracting new customers can be up to 25 times more expensive than retaining your current customers.
This is too high a figure to be ignored and can really weigh on any company’s budget, especially for SMEs .
Consumer theory allows you to identify be numbers factors that stimulate or reduce an individual’s loyalty to a brand. That way, you can design more effective retention strategies .