Consumer preference refers to the tendency to like or favor something over other alternatives. If you buy an iPhone instead of Galaxy Smartphones, you have a preference for the iPhone. In this case, preferences are a reflection of customer loyalty, brand strength, and successful marketing tactics.
In economics, consumer preferences are linked to how consumers buy goods and services. Individual preferences can be built into utility functions of various bundles of products. Consumers rank the bundle of goods according to the level of utility.
Changes in preferences affect the level of demand for various goods. Knowing and understanding customer preferences is vital for marketing success. Companies should anticipate customer needs or adapt existing products to build stronger experiences. That way, they can sell more profitably.
Consumer preferences can change due to changes in fashion, habits, and other factors. For this reason, companies can build consumer preferences by combining various elements of the marketing mix.
