Emerging Issues in Consumer Behavior

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ASSIGNMENT
ON
CONSUMER BEHAVIOUR

TOPIC: Emerging Issues In Consumer Behavior

Submitted by
ASHWIN.S
PRANAV M.V

INTRODUCTION
Tracking consumer behavior is critical for a marketing department of any company that creates products for the public. Depending on the type of item being sold, different behaviors will be exhibited by most consumers. A more expensive item that has many differences between the brands will cause a different behavior than an inexpensive item that is purchased all the time. Understanding these differences can spell the difference between a successful product campaign and an unsuccessful one. if the company fails to track their customers successfully then there arises some issues on the behavior of the consumer

Characteristics of Consumer Behavior

1. Information Search
The search for information is a common characteristic of consumer behaviour. Consumers cannot purchase goods and services if they are unaware that a good or service exists. When a consumer decides to buy a certain item, his decision must be based on the information he has gathered about what products or services are available to fulfill his needs. There might be a product available that would be better suited to the consumer's needs, but if he is unaware of the product, he will not buy it. Consumers gather information in many ways. Advertisements and word-of-mouth are common ways consumers find information. A consumer with Internet access can search for reviews of products and product alternatives, which may make him more informed and better able to make decisions 2. Brand Loyalty:

Brand loyalty is another characteristic of consumer behavior. Brand loyalty is the tendency of a consumer to buy products or services from a certain company that she likes or equates with having high quality goods and services. For instance, if her first car was a Honda as a teenager and the car lasted 200,000 miles, she might have a tendency to buy Hondas in the future due to her previously positive experience. This brand loyalty may be so strong that she forgoes the information search all together when considering her next vehicle. An information search takes time and effort; brand loyalty is a way consumers avoid the time and effort involved in an information search.

3. Beliefs and Attitudes:
In complex consumer behavior, the consumer has a high involvement in the purchase while perceiving a significant difference among brands. This behavior often occurs when the product is infrequently purchased, self-expressive, risky or expensive. The consumer might not know a lot of the terminology associated with the product such as "megs of RAM" and "Pentium Core Duo." The consumer makes his purchase after developing beliefs and attitudes about the potential products. The brands that are most effective in these purchases are those that convey their extensive information clearly and effectively. 4. Habitual:

Habitual buying behavior exhibits little perceived difference between the possible brands and low consumer involvement. This is a product that consumers purchase often and they will typically buy a particular brand out of habit. One example is salt. While most salt products are essentially the same, a consumer might buy Morton because they have always bought Morton. Consumers do not extensively search for information because they buy based on brand recognition. Marketers of habitual products typically use lower prices and sales to stimulate the habit of buying their particular product. Also, ads are used that connect the brand with an attribute such as Crest and fighting cavities or Taster's Choice and romantic mornings together 5. Variety Seeking:

In variety-seeking behavior, consumers have low involvement, but the brands have significant perceived differences. Consumers might switch brands often as they will try a brand and then make their own evaluation. Consumers might choose a new brand based on their evaluation or...
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