CONSUMER BEHAVIOR STUDIES.
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. BUYER’S BLACK BOX:
BUYER’S BLACK BOX
BUYER’S RESPONSE Marketing Stimuli
The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response. The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer.
NEED TO UNDERSTAND:
why consumers make the purchases that they make?
what factors influence consumer purchases?
the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: •
Buyers reactions to a firms marketing strategy has a great impact on the firms success. •
The marketing concept stresses that a firm should create a Marketing Mix that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. •
Marketers can better predict how consumers will respond to marketing strategy •
The study of consumer behaviour helps management understand consumers' needs so as to recognise the potential for the trend of development of change in consumer requirements and new technology. •
To articulate the new thing in terms of the consumers' needs so that it will be accepted in the market well.
STAGES OF CONSUMER BUYING BEHAVIOR:
1. Need Awareness: The beginning point of most purchasing is your potential buyer recognition of a need in their life. This need can be established by encountering a problem or prompted by a company's marketing....
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