Chapter 3 – Consumer Behaviour: How People Make Buying Decisions
- To understand the importance of understanding buyer behaviour.
Consumer behaviour looks at the many reasons why people acquire products or services. The more you understand how and why people buy products or services, the better your company can create, produce, and deliver what they will buy. However, people are complicated and many factors motivate their purchase decisions.
When a company doesn’t understand consumer behaviour it can have major consequences. The forecasts for the size and growth of the legal Cannabis Market in Canada were widely exaggerated by companies in order to attract investors. The result for many companies has been an oversupply of product, layoffs, financial losses and even bankruptcy (Lamers, 2020). Companies entered the market assuming a demand that was not there and did not address key concerns that consumers had about buying cannabis, whether legal or not (Grow Opportunity, 2020). ‡