What does consumer behavior study?

Consumer behavior specifically studies the decision-making process of individuals when they allocate their resources, such as time, money, and effort, to purchase goods and services. It delves into the psychological, social, and emotional factors that influence consumers' choices and how they perceive and interact with the market. By examining aspects such as motivations, preferences, and buying habits, the field of consumer behavior seeks to understand what drives consumers to make specific purchasing decisions. This knowledge is crucial for businesses as it aids in crafting marketing strategies that resonate with target audiences, ultimately leading to improved sales and customer satisfaction.

While interactions between companies and consumers, the effectiveness of advertising, and demographic data provide valuable insights, they are more ancillary to the core study of how consumers think and make decisions about spending. The focus on the decision-making process captures the essence of consumer behavior comprehensively.