•Needs are the essence of Marketing Concept.
•The key to a company’s survival ,profitability & Growth in a highly competitive market place is its ability to identify and satisfy unfulfilled consumer needs better & sooner than their competitors. •Effective Marketing firm requires insights into consumer’s mind in order to succeed sustainably in today’s cut- throat competitive world. •CB is rapidly growing discipline of study and research by the firms, academicians, service providers etc. •Marketers must fully understand both theories and reality of consumer behavior. •Successful Marketers define their market in terms of needs they presume to satisfy ,not in terms of product they sell. •World’s top branded marketers like Wal mart, Singapore airlines, Microsoft, Coca-Cola, Nestle etc focus on identifying and fulfilling the changing need of their customers effectively and efficiently.
CB is more than just how a person buys a product. It is a Complex & multi-dimensional process & reflects the totality of consumer’s decisions and actions with respect to selection, acquisition, consumption and disposal of goods & services, ideas & experiences. Who is a consumer?
Any one who is typically engaged in any one or all of the activities mentioned in the definition. Any one who destroys the utility of the product.
Categories of consumers:
1. personal consumer: Buys goods and sevices for personal or household purposes. Buying milk,grocery etc 2. Organisational consumer: Buys Products to reproduce or resell the products for commercial purpose.e.g lemon grass purchased by HUL for their cosmetic products. Who is a customer:
Any one who regularly makes purchases from a single store or a company. It is defined in terms of single store or a company. e.g. a mother can be a customer for a health drink firm like Nestle but the consumer will be a child. Meaning of Consumer Behaviour:
CB = Consumer + Behaviour
It is the total buying behavior of the consumer in the consumption process. Behaviour: is the process of responding to a stimuli.
CB is the study of how individuals, groups & Organizations makes decisions to spend their resources( time, money .efforts) while during purchases. It is the behavior that a consumer displays in search for, purchasing ,using, evaluating & disposing of products and services that they expect will satisfy their needs. So, consumer behavior studies:
1. Why consumer buy?
2.What they buy?
3. when they buy?
4. How much they buy?
5. How they buy products?
6. where they buy from?
7. how frequently they buy?
Nature of Consumer Behaviour:
•Related to buying activities of consumers
•It is in Evolving stage
• It is a Behavioural science
•Pervasive in nature
•Insights of Consumer’s mindset
•Multi- disciplinary in nature
•Involves purchase decision making process
•Determined by multi- factors.
Consumer Behaviour: A multi- Disciplinary in nature:
It is a Behavioral science in which different social sciences have contributed in their own ways: Psychology: Economics Anthropology
•MotivationCost/Benefit Analysis Culture, beliefs,values •PerceptionEvaluation of alternatives Sub –culture, religion •AttitudeMaximising satisfaction race, ethnicity,lifestyle •Personality
•Group actions and decisions
•Group life style
•Reference group, family
Scope and Importance of Consumer behavior:
CB has a vast scope as it is multi dimentional in nature and includes each and every steps or activities involved the buying process. Broadly speaking it involves: •Pre- Purchase behavior( decisions and actions prior to purchase) •Actual purchase Behavior( actual buying activities)
•Post- Purchase behavior (post buying usage, evaluation & disposal of products) Application of Consumer Behaviour in Marketing:...