Consumer behaviour is the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of the products and services that they expect will satisfy their needs. * Personal consumer; buys goods and services for his or her own use, for use by the whole household, for another member of the household or as a gift for a friend * Organizational consumer; includes commercial for-profit organisations and non-profit organisations, public sector agents and institution, all of which buy products, equipment and services in order to run their organisations. * Consumer; the person who consumes or uses the product or service * Buyer; person who undertakes the activities to procure or obtain the product or service * Payer; person who provides the money or other object of value to obtain the product or service
Why Marketers Study Consumer Behaviour
* Changing product life cycles
* Many product life cycles are increasingly compressed as products are modified, improved or replace by new and substitute products * To support the introduction of new products
* Changing environmental views and concerns
* Increased public concern about environmental deterioration and resource shortages have made both marketers and public policy makers aware of the potentially negative impact of products * Changing consumer protection and public policy
* Aid in the development of public policy that protects consumers * Attention to identifying sources of consumer confusing and deception, to discover how consumers perceive and interpret various marketing stimuli * Growing role of services marketing
* Service sector continues to grow, and service providers know that marketing their offerings can be quite difficult. * Services can not be tested in advance of purchase, nor is quality consistent over time, * Not only do service providers need to market, but they realize that knowledge of consumer needs and interests is essential to develop effective marketing strategies * Growing role of non-for-profit and social marketing
* Recognize the need to use marketing strategies to target specific groups or markets * Gain a better understanding of their target market and thus develop more effective marketing strategies * Growing role of global marketing
* Move beyond domestic markets and to market their products and services globally in order to increase sales and achieve economies of scale, to not only grow but also to survive in the longer term * Changing technology
* Understand, to predict and to satisfy the needs and wants of their target market * Impact of constant change
* Recognizing diversity within society, consumer researchers seek to identify the key similarities and important differences that exist among consumers, wherever they may be.
The Application of Consumer Behaviour Principles to Marketing Management * Development of the marketing concept
* Evolved in the late 1950’s, together with other philosophical approaches- the production concept, product concept, selling concept, the marketing concept and societal marketing concept. * Production concept; cheap, efficient production and intensive distribution (FERDINAND PORSCHE). When demand exceeds supply and when consumers are more interested in obtaining the product then they are in its specific features * Product concept; consumer will buy the product that offers them the highest quality, the best performance and the most features. Lead a company to strive constantly to improve the quality of its product offerings, which can result in what is often referred to as ‘marketing myopia’ (a focus on the product rather than on the consumer need it presumes to satisfy) * Selling concept; change their primary focus from improving the product to selling the product. Many companies exert a tremendous ‘hard...
Please join StudyMode to read the full document