Consumer knowledge is defined as the research an organisation has about the needs and wants of their consumers. Consumer knowledge helps an organisation to align its business in line with customer expectations and helps the organisation to build strong customer relationship.
Most of the organisations have knowledge about their customers but they do not try to gain more insight into it and are unaware of the customer expectations. So to produce products and services according to customer expectation and satisfy customers companies should have consumer knowledge.
Consumer knowledge can be both quantitative as well as qualitative. Reports and data from CRM system and also past sales data can provide quantitative data which can form as customer knowledge. This type of data can be used for segmentation of customers according to their past buying behaviours. Qualitative data can be information about customer’s organisation. For example if customer has signed a new deal which expands its portfolio. This type of information can tell about financial status of customer and also give way for new opportunity which will lead to strengthening of ties with customers.
Also consumer knowledge is how much customer is aware about the product. This can be divided into two types: product familiarity and product knowledge. Product familiarity tells consumers about depth and breadth of product. It makes customer aware about existence of the product. Thus it will make consumer familiar about the product which is available in market. Product knowledge is knowledge given to consumers about the characteristics of product and making customer aware about usage of product. Also, companies provide expertise on product they are selling thus increasing product knowledge of the consumers. These are dimensions of consumer knowledge which can be explored by various sources of media.
Hence, this concludes the definition of Consumer Knowledge along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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