How is consumer behavior best defined?

The concept of consumer behavior is best defined as the study of individuals and groups regarding their purchasing and usage decisions. This definition encompasses the various factors that influence consumers' choices, including psychological, social, and cultural influences, as well as personal preferences and tastes.

Understanding consumer behavior is critical for marketers because it provides insights into how consumers think, feel, and act when it comes to buying products or services. This knowledge enables companies to tailor their marketing strategies effectively to meet the needs and wants of their target audience, ultimately influencing their purchasing decisions.

The other options, while related to aspects of the broader marketing environment, do not capture the essence of consumer behavior. For instance, the analysis of businesses' sales tactics and profitability focuses more on the supply side of the market rather than the consumer side. Evaluating competitors pertains to competitive analysis, which is about understanding rival businesses rather than consumer decision-making. Research on economic trends impacting consumer spending deals with external factors affecting the market but does not specifically address the individual or group decision-making processes that define consumer behavior.