The importance of understanding consumer buying behaviour

Further reflections on Tip 3 - Keeping Customers Happy.

For innovation to be successful its important that organisations understand the psycology of how consumers make buying decisions.  Fishbein and Aizen’s research, was based on the assumption that buyers will use a cognitive response. This means that they weigh up the options and consider the pros and cons before making deciding to buy.  

According to the Theory of Reasoned Action (TRA) belief and evaluation of the outcome are the two components that result in the buyer’s attitude. 

 
"The theory of reasoned action ............ attempts to provide an explanation for the way people behave, by specifying the determinants.” (Gun R, Semin Klaus Fiedler, 1986)

This supports that if customers are given rewards such as points and loyalty bonuses that they're more likely to feel good about their buying experience. This is then likely to influence them to make further purchases from this organisation in future, including of any new and potentially innovative products.

I believe that understanding the psychology how why and how customers make buying decisions is one of the most important things in innovation. New products will not be any use to a company if customers will not buy them. 

References 

Gun R Semin, Klause Fiedler (1986), Applied Social psychology, Sage Publications Ltd