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Can a company increase its profitability by studying the behavior of its consumers?

Author: 
Cristina Stoicescu
Subject Area: 
Social Sciences and Humanities
Abstract: 

The purchase decision process began to be studied 300 years ago by John von Neumann and Oskar Morgenstern. Over time, due to the social and demographic changes and the fast evolution of technology, people needs became more diverse and so, a new science was developed in 1960: Economic Behavior. The study of consumer behavior is now an important issue for any company that wants to expand its dimensions, to become more competitive and ultimately to survive to the daily changes of the economic environment. The goal is to create a model that will improve the profitability of companies by increasing the number of products sold by the company and by creating stronger relationships between the company and its customers. In conclusion, by studying the behavior of their clients, companies can deliver products in a more efficient manner, increasing consumer satisfaction and ultimately, increasing their profitability.

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