Initially, the understanding of buyer behavior is one of the more perplexing tasks confronting every manager (2000). The difficulty arises from the heterogeneity of buyers, from being groups of individuals who differ from one another. But notwithstanding differences, consumers do share attitudes, opinions, reactions, and desires at various times (2000). Business experience, marketing research, theoretical constructs and models, and trial-and-error methods help to find some of the common denominators.
Practically, essential decisions that are taken in developing an effective marketing mix for specific product/service are based in the systematic knowledge of the consumers that make up its permanent target market (1990). Johnson and Mullen believes that understanding the behavior of the consumer is the most basic step in helping marketing authorities to visualize and predict future trends, reactions, and changes in the marketing mix. It may also serve as a reference in determining the potentials of new products and its adoption.
Customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. (2000) argued that a customer evaluates a product or a service. Such action is based on the customer’s reaction from the using the product or service, which means that the product or service should leave a good perception to the customer’s contentment. (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image. Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them (1993). Customers should also understand the product and be allowed to set their own standards in order to be satisfied (1995).
Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment ( 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. This concept is illustrated by (1997) in a study about the textile and apparel industry. Competition forces certain brand names to become stronger than others because of product loyalty and name recognition. Consumers tend to buy what is already familiar to them. Thus, it becomes imperative for retailing outfits, especially small or exclusive ones to build a steady base of customers to exist in the competitive marketplace. This relationship becomes mutually beneficial with the company, gaining steady profit and the consumer having the product/s of the said company. Consumers tend to buy what is already familiar to them (2000). It becomes imperative for retailing outfits, especially small or exclusive ones to build a steady base of customers to exist in the competitive marketplace.(1994) stressed that the relationship of consumers to certain brands are established through the individual’s concept of oneself. However, the company can go a step further and make additional profits by cross-selling as well as save money from having to acquire new or replacement customers. The consumer, on the other hand, can also do the same, by demanding benefits from being a loyal customer that companies would certainly give to maintain them. Previous researches have concluded that satisfied consumers are more loyal to the product as compared to unsatisfied customers 2000). Meanwhile, customers may remain loyal for a number of reasons and may not even be happy with the product or service (1999). Customer loyalty becomes evident when choices are made and actions taken by customers (2003).
Customer satisfaction refers to the consumer’s positive subjective evaluation of the outcomes and experiences associated with using or consuming the product or service. It refers to either a discrete, time-limited event or the entire time the service or product is experienced ( 1998). Satisfaction occurs when the product has been able to meet or exceed the conceived expectations that the customer has ( 1996). Furthermore, customer satisfaction may also be considered as the measure of the high degree of quality of the product ( 1998). (2003) deemed that once a product or service has been delivered or sold, its quality is believed to have been established.
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