Why are consumers important to a business?

Consumers are the main source of demand for all the goods. The producers of industrial goods or the producers of agricultural products are all producing the various items according to the demand in the market. Hence, the consumers create demand in the market and producers produce goods or services accordingly.

Why is it important to have an excellent customer service?

Revenue increases with good customer service. The number one reason why customer service is important in a business is because it correlates to revenue: 84\% of organizations working to improve customer service report an increase in revenue. Simply prioritizing good customer service in an organization increases revenue.

How important is consumer to the business and the economy?

Consumer: The consumer is the one who pays to consume the goods and services produced. As such, consumers play a vital role in the economic system of a nation. In the absence of their effective demand, the producers would lack a key motivation to produce, which is to sell to consumers.

Do you agree with the statement the customer is always right?

A key point to keep in mind is that the customer is always right, in their own mind, although not necessarily in reality. It’s critical not to disagree with the customer because that makes them angry and argumentative. It’s not in anyone’s best interest to tell a customer they are wrong. Don’t focus on the negative.

What is the impact of having a good customer service of a company to customer?

It increases customer Retention and Recurring revenue. Results in positive reviews and brand image. It boosts your employee’s morale and reduces turnover Costs. It adds value to your brand.

Why is it important to be an informed consumer customer?

Being an informed consumer is advantageous to the economy, market and consumers. An informed consumer is capable of making sensible decisions by gaining an insight about a product prior to its purchase. This insight equips the consumer with the data to arrive at an evidence based conclusion.

How do consumer affect the economy?

Even a small downturn in consumer spending damages the economy. As it drops off, economic growth slows. Prices drop, creating deflation. If slow consumer spending continues, the economy contracts.

Why do we need to understand consumer behavior?

Studying consumer behavior is important because it helps marketers understand what influences consumers’ buying decisions. By understanding how consumers decide on a product, they can fill in the gap in the market and identify the products that are needed and the products that are obsolete.