Consumer Behavior

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CONSUMER BEHAVIOR – UNIT ONE

INTRODUCTION OF CONSUMER
Earlier consumer were related to the monetary exchanges disregarding the service sectors but these days the consumers are not only limited to the values of money but alsoto intangible objects like services from hospitals, telecommunications, academic institutions etc. Any organizations’ potential audience or general public can be considered as consumers. Examples of such may fit to the citizen of the nation to the Election commission or the blood donors of Nepal Red Cross. To understand consumer in a very lay man term, we can imagine a bridge which connects two different bays of the river. Consumer is the other edge where the product or service finally meets to the targeted group. Consumer is bit different that customer. A customer can be potential buyer or user out of the whole population of segments which a market target for, but a consumer is a final user or buyer of the product or service who can offer the post purchase reactions as well. So consumer behavior is a mental decision process as well as physical activity of any potential buyer for any specific product or service. Official definition of Consumer Behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Following are some of the important points to be considered to understand this topic more broadly. Behavior occurs either for the individual, or in the context of a group (e.g., friends’ influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). * Consumer Behavior involves the use and disposal of products as well as the study of how they are purchased. Usage of prodcuts are often of great interest to the marketer because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. * Consumer behavior involves services and ideas as well as tangible products. * The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. *

IMPORTANCE OF UNDERSTANDING CONSUMER BEHAVIOR
The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how * The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers) * The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); * The behavior of consumers while shopping or making other marketing decisions; * Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;  * How consumer motivation and decision strategies differ between products. the product or service may differ in their level of importance or interest * How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. To Marketers

* The most obvious is for marketing strategy—i.e., for making better marketing campaigns. ( For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon). By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that...
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