2.1.5

Consumer Behaviour

Test yourself

Consumer Behaviour

Businesses try to gain customer loyalty because customers will buy products again and again. This secures a steady stream of revenue, leading to profits.

Illustrative background for Customer serviceIllustrative background for Customer service ?? "content

Customer service

  • Customer loyalty is built upon a business providing exceptional service.
    • Customers are willing to return to a business if they know they receive personalised and effective service.
    • Strong customer service also relies on a business responding to feedback.
Illustrative background for A strong brandIllustrative background for A strong brand ?? "content

A strong brand

  • Customer loyalty is built when a brand has a strong identity and is easily recognisable.
  • When someone says Visa or Mastercard, Mercedes or Skoda, and FIFA vs Pro Evolution Soccer, your reaction to these is an indicator of which brand is more powerful for you.
Illustrative background for Loyalty schemesIllustrative background for Loyalty schemes ?? "content

Loyalty schemes

  • Customers are more likely to return to a business if they are incentivised to with loyalty schemes.
    • For example, a coffee shop offering every 10th coffee for free.
Illustrative background for Behaviour insightIllustrative background for Behaviour insight ?? "content

Behaviour insight

  • A business can build up loyalty if they thoroughly understand the behaviour of their customers.
  • This means that they can tailor themselves to exactly what customers want.
  • This insight can be gained from analysing data.

Jump to other topics

1Exploring Business

2Marketing Campaigns

3Business Finance

4International Business

5Principles of Management

6Business Decision Making

Unlock your full potential with Seneca Premium

  • Unlimited access to 10,000+ open-ended exam questions

  • Mini-mock exams based on your study history

  • Unlock 800+ premium courses & e-books

Get started with Seneca Premium