Consumer Behaviour in Marketing: Definition, Concept & Factors Explained

Consumer behaviour refers to the process through which individuals make decisions about what to give up to purchase, why they buy, and how they use products. It is not only at the point when someone clicks buy now but all the way, including the initial conception of need, an evaluation, and post-purchase feelings. Consumer behaviour is a GPS to your customer’s mind in business. Once you understand why people do what they do, you are in a better position to develop products and services that better suit their needs as well as position marketing strengths that offer them what they want more often than not, resulting in increased sales, consumer commitment to the brand as well and an enhanced market share. According to a recent PwC Global Consumer Insights Survey 2024, three out of four consumers attest that their purchase behaviour is based on a brand’s grasp of their needs. It implies that a company that performs adequate research on consumer behaviour stands a better chance of maintaining its customers and boosting its income.

Consumer behaviour definition encompasses a lot of points in the process of buying, such as: Needs and wants – The reason why people think they need to purchase something. Search and evaluation – The way people contrast the various options. Purchase decision – What makes them buy? Post-purchase behaviour – What they feel after purchase (displeased, loyal, happy). It depends not only on psychology but also on economic trends, culture, social influence, and taste. To illustrate, one of the Statista 2025 reports demonstrated that currently, 58 percent of online shoppers do research about products on social networks prior to their purchase. It implies that the businesses must be where the customers are searching.

Purchasing choices do not always make sense; rationality is not always the way, but emotion, peer influence, and trust of brands tend to have a greater degree of influence compared to price. For example: Brand loyalty: Nielsen discovered that 59 percent of consumers like purchasing new products from brands they trust. Social proof: 70 percent of people believe online reviews as they trust the advice of their friends (BrightLocal, 2024). Convenience factor: 65 percent of shoppers cite the ease of getting fast delivery as a primary motive to pick one brand over another (Deloitte 2025).

While the terms “consumer behaviour” and “customer behaviour” are often used interchangeably, they have distinct meanings. Consumer behaviour focuses on the choices, decisions, and actions of the ultimate consumer—the individual who uses or consumes the product or service. Customer behaviour is concerned with the individual or organization that purchases the item, regardless of whether they are the final user. For instance, when a parent buys a toy for their child, the parent is the customer (the buyer), while the child is the consumer (the user of the toy). Statista (2025) also discovered that 56 per cent of all products are purchased by an individual who is not the final consumer. According to a study conducted by Harvard Business Review, the consequence of a business failing to consider the consumer behaviour and focus on customer behaviour is that they lose half or more of the future business opportunities as a result of failing to address the needs of the end user. Nielsen indicates that in the FMCG sector, 40 percent of the purchasers make their decisions based on what the person who will be using the product prefers.

Consumer behaviour is simply about learning how individuals decide which product to prefer over another or, in other words, why people love some campaigns, goods, and customer experiences and hate the others. Simply put, marketers observe the thoughts, emotions, and behavior of a person before, during, and after an actual purchase. They consider needs, buying habits, preferences, and emotional hot buttons so that the messages resonate with the audience.

Consumer behaviour can be thought of as a roadmap. With the knowledge of how the customer travels or the steps that they take in getting to use their product, marketers can ease people through the purchasing process stages. For example: if research provides us with information that customers tend to see the reviews before purchasing the goods, marketers will be able to concentrate on collecting positive reviews and then display them in advertisements.

Netflix is a classic case study in consumer behaviour. By monitoring what people watch, when, and what they skip, Netflix suggests shows that would keep the viewers intact. Using data-driven metrics, they can retain more than 70% of subscribers monthly—a level of retention most banks and credit card issuers can only hope for.

Consumer behaviour isn’t just something you study in marketing to sell more – it’s about trust and long-term engagement. Once a brand knows why customers buy, it can advertise better, spend less of its advertising dollars on waste, and keep the customers coming back.

Comprehending consumer behaviour is like a cheat sheet for acquiring and retaining customers. It informs you about what people desire, how they make decisions, and what makes them return. The business impact of consumer behaviour insights is massive: Increased sales – PwC reports companies using consumer insights are twice as likely to grow annually. Greater loyalty – HBR found that companies who understand consumer preferences improve retention by up to 30%.

Consumer behaviour isn’t random. It’s influenced by a mix of personal, social, cultural, and psychological factors. Think of it like a recipe. Each factor is an ingredient, and the buying decision is the final dish. Change one ingredient, and the whole outcome shifts.

The digital era has revolutionized how people shop, decide, and engage with brands. Consumer journeys are faster, more personalized, and more interconnected. Technology hasn’t just changed where people shop—it’s changed why they choose what they choose.

COVID-19 didn’t invent new consumer behaviours—it amplified trends already happening. Statista (2025): E-commerce revenue grew 50% between 2020 and 2024, hitting $6.3 trillion. Consumers now demand contactless delivery, local brands, and convenience-focused experiences.

Understanding consumer behaviour helps businesses create focused products and effective marketing strategies that connect with real people. Mastering consumer behaviour is not optional—it’s essential for long-term success.