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CUSTOMERS BEHAVIOUR AND HOW IT AFFECTS THE GROWTH OF A BUSINESS

Format: MS WORD  |  Chapter: 1-5  |  Pages: 65  |  304 Users found this project useful  |  Price NGN3,000

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CUSTOMERS BEHAVIOUR AND HOW IT AFFECTS THE GROWTH OF A BUSINESS

 

Abstract

This study focuses on customers’ behavior and how it affect the growth of a business (a case study of Vivid Consuming pro, Afam Road Port Harcourt).  A proper research was carried out to find out if customers’ behavior is influenced by lack of satisfaction in the services rendered by the business, to ascertain the factors that influences the change in customers’ behavior towards an organization, to analyze the ways customers’ behavior affects the growth of a business, and to find out the perception of customers on the ways to maintain a positive customers’ behavior towards their products. The major target of the study are customers between the age of 18 and 40, the researcher conducted an interview with the customers and the responses were critically analysed. After the analysis of the result, the conclusion obtained is that he ability of a business to maintain customers’ retention influences the productivity of the business.

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The key to thrive in any business is to offer customers with better solutions to their problems, give them the due respect, connect with them on emotional level, offer them with fair prices, and making it easy for customers to find what they need, pay for it and move on without much delay

(Berry, 2001).

Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict, even for experts in the field. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer (Peter C.

2003). A greater importance is also placed on consumer retention, customer relationship with management, and personalization. Social functions can be categorized into social choice and welfare functions.

In present scenario, the study of consumer behavior has become essential. Consumers are the kings of markets. Without consumers no business organization can run. All the activities of the business concerns end with consumers and consumer satisfaction. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict, even for experts in the field. The study of Consumer Behavior is quite complex, because of many variables involved and their tendency to interact with & influence each other (Jobber

& Geoff, 2000). These variables are divided into three major sections that have been identified as the most important general influences on Consumer Behavior. Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, and economics. It attempts to understand the buyer decision making process, both individually and in groups.

Buying situation, personal influences, and social influences are the three major factors identified as other key factors that influence consumers buying behavior (Jobber & Geoff, 2000).

In today’s competitive retail environment, the idea of retaining customers is a tough task. The successful ones are those who are able to establish and maintain more competitive advantages in their customers. Therefore, this study focuses on customers’ behavior and how it affect the growth of a business (a case study of Vivid Consuming pro, Afam Road Portharcourt).

1.2       STATEMENT OF THE PROBLEM

One of the major challenges faced by most businesses is the ability to retain their customers for a long period of time (Myers, 2009). The buying behavior of customers towards a certain product is influenced by so many factors such as cultural factors, societal factors, personal factors, etc.

In an attempt to curb these problems retailing shops issue customer cards to customers granting the customers with some benefits. If owning a card of a company is enough to influence a customer to make all his purchases from that particular shop or company, then how would such customer determine where to make his purchases if he or she has two or more cards of different competitors? In such instance, there is the need to find out which other factors come into play to influence a customer in his buying decision (Ghauri & Gronhaug, 2002).

If customers’ behaviour does not favor an organization, this influences the number of customers that patronage the organization. Low level of customers’ patronage results in a low level of income which eventually affects the growth and productivity of the organization (Myers, 2009). These problems make it glaring that there is a need to carry out a study on customers’ behavior and how it affect the growth of a business.

1.3       OBJECTIVES OF THE STUDY  

The general objective is to examine customers’ behavior and how it affect the growth of a business. The specific objectives are:

1.      To find out if customers’ behavior is influenced by lack of satisfaction in the services rendered by the business.

2.      To ascertain the factors that influences the change in customers’ behavior towards an organization.

3.      To analyze the ways customers’ behavior affects the growth of a business.

4.      To find out the perception of customers on the ways to maintain a positive customers’ behavior towards their products.

1.4       RESEARCH QUESTIONS

The research questions related to this study include the following:

1.      Is customers’ behavior influenced by lack of satisfaction in the services rendered by the business?

2.      What are the factors that influences the change in customers’ behavior towards an organization?

3.      What are the ways customers’ behavior affects the growth of a business?

4.      What is the perception of customers on the ways to maintain a positive customers’ behavior towards their products?

1.5       SIGNIFICANCE OF THE STUDY

The findings from this study will be relevant to business owners and student researchers.

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CUSTOMERS BEHAVIOUR AND HOW IT AFFECTS THE GROWTH OF A BUSINESS

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