Consumer is considered as very important person to a marketer. A consumer decides what to buy, when to buy, for whom to buy, why to buy, from where to buy and how much to buy. To become an efficient marketer, one must know the likes and dislikes of consumers for his product. In the last fifteen years, various models have been developed for explaining the manners of consumers’ in common decision-making circumstances. A lot of these models are impressive in scope, but their strength to explain the behaviour of consumers has been considerably concealed. In fact, the majority research attempts so far have only been directed towards particular segments of the models rather than at the entire models. During a main study which endeavoured the testing of the entire Howard-Sheth model, the authors realized that many variables involved measurement and substantial definitional problems (Farley and Ring 1970). Consumer behaviour
According to David Loudon and Albert J. Della Bitta consumer behaviour implies “the physical activity and decision process individuals engage in when acquiring, evaluating, disposing, and using of goods and services”. Consumer behaviour deals with how a customer acts or reacts or behaves in making a purchase of services and goods of his choice in various circumstances.( Rohracher, H(2003)), In the current world of promptly changing technology, consumer likings are also categorized by rapid changes. For existing in the market, an organization should consistently know the latest consumer tastes and trends. Consumer behaviour provides guidelines and invaluable clues to marketers on recent technological frontiers which they have to examine. For example, Lap Tops Mobile Phones, LCD Monitors, etc. Importance of Consumer behaviour:
• New aggressive competitors are rising with greater frequency. • Ever intensifying and increasing competition.
• Change basis of rivalry.
• Niche attacks are happening to be common.
• Geographic sources of rivalry are becoming extensive. • Pace of improvement is rapid.
• Product differentiation is deteriorating.
• Price competition is becoming further aggressive
The modern marketing is customer oriented. All marketing activities revolve around the customer. As marketers began to study the behaviour of consumers, they soon realized that despite overriding similarities, all consumers were not alike. Consumers differ in their taste, interest, nature, habits, needs, wants, income, age, mode of purchasing, lifestyle and so forth. All consumers do not like to use the same product. In this sense, all commodity markets are not homogeneous; rather they are heterogeneous (Rohracher, H (2003)). The same product cannot satisfy the needs of selected groups of consumers, marketers adopt the strategy of market segmentation. The marketers subdivide a market into homogenous sub-sets of customers having common customers in one set, in order to facilitate the marketing of their products. Such selection of sub-sets as homogenous groups is called market segmentation. The market segmentation may be based on demographic, psychological or other strategic variables. Basic criteria for Market segmentation
A market may be segmented on the basis of different variables. These variables can be grouped as: 1. Demographic factors
2. Geographical factors
3. Psychological or personality factors
4. Consumer- Behavioural factors
5. Socio- cultural factors.
Demographic factors: - This includes population characteristics. This segmentation can be affected on the basis of their; • Age, For instance, Child, young ones, adults, old etc. • Sex can be categorised as Children, male, female, etc. • Income: - high income groups, low income groups, middle class families etc comes under this category. • Educational level: - For instance, a book market can be segmented as primary, secondary, high school, degree, post-graduate etc. •...