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A.
Definition of consumer behavior
1. Definition:
Consumer behavior is the actions exhibited by consumers in the marketplace. This includes the
decision-making process and how preferences and aversions impact choices. Consumer behavior
also involves the evaluation, acquisition, and utilization of goods and services.
B. The importance of understanding consumer behavior in business
Differentiation of the Consumer
Consumer differentiation is crucial for comprehending specific audiences. Despite having a

target demographic, clients can differ. Every consumer group possesses unique needs and
desires. Strategies are adjusted to meet diverse customer needs.
Retaining Customers
Acquiring and keeping customers is crucial for marketers as it establishes and sustains a
customer base in business studies. To encourage repeat purchases, the product promotion must
consider consumer purchasing behavior.
- Customer Loyalty
Analyzing consumer behavior helps businesses understand their customers and create products
that will be in high demand. This analysis also helps businesses position their products in the
market and provide excellent customer service, fostering customer loyalty.
- Inventory Planning
Businesses face intense competition in delivering excellent services and products. The
production process is crucial for achieving desired outcomes. Different procedures are used
based on the nature of the goods. Proper use of raw materials is fundamental in production.
- Understand Peer Competitor Strategy
Understanding the actions of your adversaries is valuable. It can enhance user experience, retain
customers, and increase your blog or website's prominence.
- Reduce Wastage
The use of technology has enhanced efficiency and reduced waste. Mass production enables
more precise manufacturing, reducing material consumption. This innovation aids in preserving
natural resources and is a superior option for environmentally aware individuals.
https://www.linkedin.com/pulse/importance-consumer-behavior-4-ways-understand-
philomathresearch/
C. The development and influence of the internet on consumer behavior
Results from various studies and surveys on consumer behavior during and post the Covid-19
pandemic indicate that consumers have shifted their habits, increasing online shopping due to
the pandemic's impact. These habits have deeply ingrained and are likely to continue to
develop significantly in the foreseeable future. According to findings, up to 73% of
Vietnamese consumers utilize messaging apps to engage with businesses. Post-pandemic,
nearly two-thirds of Vietnamese consumers communicate with businesses more frequently.
Furthermore, 39% of respondents surveyed reported an increase in the frequency of using
messaging apps post the Covid-19 pandemic.
https://vneconomy.vn/nguoi-dung-thay-doi-hanh-vi-tiep-can-nhan-hang-mua-sam-online.htm
Here is a general overview of how the evolution of the internet has influenced consumer
behavior:
1. Information Utility and Accessibility: The internet allows consumers to access

information on global products and services. It helps in comparing prices, quality, and
user reviews for better purchasing decisions.
2. E-commerce: The internet facilitates global trade. Consumers can shop online without
physical store limitations.
3. Online Marketing: The internet provides tools for businesses to engage customers
through online advertising, social media, and email marketing. This has altered the way
businesses communicate with customers.
4. Rise of Social Media Platforms: Social media platforms facilitate sharing of consumer
experiences and opinions on products. The feedback can impact consumer purchasing
decisions.
5. Empowered Consumer: Today's consumers are more discerning in choosing products
due to easy information access. They search, compare, and decide based on their needs.
The internet changed consumer behavior in market interactions and decision-making. It offers
convenience, extensive information access, and easy community interaction.
https://www.linkedin.com/pulse/e-commerces-evolution-influence-consumer-behavior-
fatema-khatun-1zpdc/

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A.

Definition of consumer behavior

B. The importance of understanding consumer behavior in business

Differentiation of the Consumer

Consumer differentiation is crucial for comprehending specific audiences. Despite having a

- Understand Peer Competitor Strategy

1. Information Utility and Accessibility: The internet allows consumers to access

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