Consumer Behaviour and the Role It Plays in Marketing Term Paper

Consumer Behaviour and the Role It Plays in Marketing - Term Paper Example Channel communications work in a two-way system wherein information transfers to the user and bounce all the way back to the producer (Goldberg and McCalley, 1992). In other words, marketing communications work like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors. Marketing theorist, Theodore Levitt (1986) once said, "The purpose of business is to get and keep customers." Indeed, businesses spend a lot of time and money in evaluating customer preferences to be able to retain customer loyalty. For if patronage is granted, profit increase follows. Customer loyalty is about establishing and maintaining a relationship with your customers. (Chow & Holden, 1997) A key to this mutually beneficial relationship is the awareness of customer preference or the present and potential needs and wants of a customer about any aspect of the business, whether it is about products or services because of possible customer turnover which will lead to decreased profits. This is emphasized by Ric Ducques and Paul Gaske (1997) who expressed the need to focus on the reasons behind customers defection as on attracting a new customer. Loyal customers can be easier to convince to try new products or services, charge higher prices and use as a willing referral. According to Michael Lowenstein (1997), any business's most advantageous strategic purpose is to gain customer loyalty. It has a constructive effect on company culture, development, and bottom line. Customers will be able to see that the company is geared towards retaining customers through all business processes from management to staff. Â