Consumer Behavior Meaning :Consumer behavior is defined as “The dynamic interaction of affect and cognition behavior by which human beings conduct the exchange aspects of their lives .This means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced . Importance of consumer behavior :
• Ever increasing intensity of competition
• More aggressive competitors emerging with greater frequency • Changing bases of competition
• Geographic sources of competition are becoming wider • Niche attacks are becoming frequent
• Pace of innovation is rapid
• Price competition becoming more aggressive
• Product differentiation is declining
Characteristics of consumer behavior :
1. Consumer behavior is dynamic:
2. Consumer behavior involves interactions
3. Consumer behavior involves exchange
Definition & meaning : consumer research is the systematic collection and analysis of consumer information for the purpose of important decision making in marketing Consumer research plays an important role in marketing process helops in ▪ Consumer measurement
▪ Market potential
▪ Sales forecast
▪ Each slement like product mix distribution mix price effectieness of an advetisenmentcampaign consumer acceptance of a product in the fiercely competitive situation ▪ It is extremely critical for an organization ot monitor the customer satisfaction on a regular basis
Why consumer research is needed
Consumer research is primarily used for two applications
▪ Routine problem analysis ie product potential sales forecasting etc ▪ Non routine problem analysis ie new product launch analysis new product launch success of promotional schemes
Relevance of consumer research
▪ Today’s business decisions are extremely complex and a large number of variables are involved ▪ Globalization and liberalization has intensified completion and survival of an organization is at stake ▪ Optimization at all levels to reduce costs . AN organization needs to know the areas which offer cost reduction without affecting the consumer expectations ▪ Employees and share holders are becoming increasingly aware of their rights to participate in decision making process ▪ The tools used for research have increased and organizations are increasingly practicing data mining .
Need of consumer research :Marketers are often interested in knowing the feedback of consumers and the study of consumer research is extremely important for the formulation of marketing strategies . a marketer would be interested in knowing the answer to the answers to the following questions
▪ How do consumers interpret information about marketing stimuli such as products stores and advertising ▪ How do consumers choose form among alternative product classes products and brands? ▪ How do consumers form evaluation of products and brands ▪ How do consumers interpret the benefits of marketing offerings ▪ How do behavior and environment affect consumer beliefs and attitudes ▪ Why are consumers more interested or involved in some products or brands than others? ▪ ‘how do marketing strategies influence consumer’s beliefs and attitude ?
Answer to such questions can be obtained only through consumer feedbacks.
Approaches to consumer research :The three important approaches to consumer research they are as under 1. Observation survey: IT is a method of collecting past and current data by recording observation . The advantage is it can be used to collect the data even when the respondents are hostile or unable ot give information . The disadvantage is that it is slow and expensive process and needs the researchers to interpretation skills . 2....