Why Study Consumer Behavior?

1. Consumer Behavior Determines the Economic Health of a Nation

2. Consumer Behavior Determines the Success of Marketing Programs
a. Marketing can be used to influence brand choice and purchase, while Demarketing can
influence people to stop harmful consumption
b. The Customer is KingOrganization influenced by consumer needs and wants
c. Organizations that are Customer-centric use a total marketing approach to focus their
resources on satisfying customers
d. Marketing
Process of transforming or changing an organization to have what people will buy
3. Consumer Behavior Determines the Economic Health of Everyone
a. The individuals decisions as a consumer determine their economic health by making more
effective consumption decisions while avoiding deceptive practices harmful to them
b. Public policy leaders and social commentators study consumer behavior to alleviate
overconsumption and underconsumption by educating consumers about problems and
providing assistance
4. Consumer Behavior Helps Formulate Public Policy
a. Understanding consumers needs to formulate public policy and predicting behavioral
changes that follow
5. Consumer Behavior Affects Personal Policy
a. Personal policy includes how you behave towards others and in buying situations, your
values and beliefs,
and how you live your life
b. A persons economic quality of life is determined by personal policy


Behaviourial learning theory: Page 89
Cognitive learning theory: Page 93
Types of memory: Page 100
Motivational Research: Page 128
Types/functions of attitude: 166
Changing attitude through Communication: 193
Self concept:235
Opinion leadership: page 400
Family life cycle: 435
Family decision making: 437
Social Mobility: 438
Categories/ component of social class: 465
Measurement of social class: 466
Psygraphographics: 589



Nature and scope of consumer behavior

The field of consumer behaviour is the study of individuals, groups, or organisations & the processes they use to select ,
secure, use, & dispose of products , services, experience or ideas to satisfy the needs & the impacts that these processes
have on the consumer & society. (ref -consumer Behaviour - -Del l. Hawkins, Roger J. Best, Kenneth a.Coney, Amit
mookerjee . Scope --1.This subject helps in developing tailor made marketing strategies to address the consumer needs.
2. Helps in following regulatory policy of a nation which is developed to protect consumer interest 3. Helps in social
marketing 4.Helps consumers & producers to understand ones environment & oneself.





1.4 DEFINING CONSUMER BEHAVIOR
Consumer behavior may be defined as, the
decision process and physical activityindividuals
engage in when evaluating, acquiring, using, or disposing
of goods and services.Technically, consumer behavior
is defined as, the dynamic interaction of affect
andcognition, behavior and environmental events by
which human beings conduct the exchangeaspects of
their lives.One official definition of consumer
behavior is The study of individuals, groups,
ororganizations and the processes they use to
select, secure, use, and dispose of
products,services, experiences, or ideas to satisfy
needs and the impacts that these processes haveon
the consumer and society.Although it is not
necessary to memorize this definition, it brings up
some useful points:

Behavior occurs either for the individual, or in the
context of a group (e.g., friendsinfluence what kinds
of clothes a person wears) or an organization (people
on
the job make decisions as to which products the
firm should use).

Consumer behavior involves the use and disposal of
products as well as the studyof how they are
purchased. Product use is often of great interest to
the marketer,because this may influence how a
product is best positioned or how we
canencourage increased consumption. Since many
environmental problems result from product disposal
(e.g., motor oil being sent into sewage systems to save the
recyclingfee, or garbage piling up at landfills) this is
also an area of interest.

Consumer behavior involves services and ideas
as well as tangible products.

The impact of consumer behavior on society is also
of relevance. For example,aggressive marketing
of high fat foods, or aggressive marketing of
easy credit,may have serious repercussions for the
national health and economy.Viewing consumer
behavior in a broad context, it is actually a subset
of human behavior.That is, factors affecting individuals
in their daily lives also influence their purchase activities.
1.5 THE NATURE OF CONSUMER
BEHAVIOR
Figure 1.1 is the model that we use to
capture the general structure and process
of consumer behavior and to organize this text. It is
a conceptual model. It does not containsufficient
detail to predict particular behaviors; however, it
does reflect our beliefs aboutthe general nature of
consumer behavior. Individuals develop self-concepts and
subsequentlifestyles based on a variety of internal
(mainly psychological and physical) and
external(mainly sociological and demographic) influences.
These self-concepts and lifestyles produceneeds and
desires, many of which require consumption decisions
to satisfy. As individualsencounter relevant
situations, the consumer decision process is
activated. This processand the experiences and
acquisitions it produces in turn influence
the consumers self-concept and lifestyle by
affecting their internal and external characteristics.This
model, while simple, is both conceptually should
and intuitively appealing. Eachof us has a view of
ourselves (self-concept), and we try to live in a
particular manner givenour resources (lifestyle). Our
view of ourselves and the way we try to live
are determinedby internal factors (such as
our personality, values, emotions, and memory)
and externalfactors (such as our culture, age, friends,
family, and subculture).Our view of ourselves and
the way we try to live results in desires and needs
that webring to the multitude of situations we
encounter daily. Many of these situations will causeus
to consider a purchase. Our decision and even
the process of making it, will causelearning and
may affect many other internal and external factors that
will change or reinforceour current self concept and
lifestyle.A quick analysis of your own behavior and
that of your friends will reveal the fallacyof this
perception. Consumer behavior is frequently complex,
disorganized, no conscious,organic, and circular.
Unfortunately, we must present it in a relatively simple,
linear mannerdue to the limitations of written
communications





APPLICATIONS OF CONSUMER
BEHAVIOR:
Marketing Strategy
All marketing strategies and tactics are based on
explicit or implicit beliefs aboutconsumer
behavior. Decisions based on explicit assumptions and
sound theory and researchare more likely to be
successful than are decisions based solely on implicit
intuition. Thusknowledge of consumer behavior
can be an important competitive advantage. It
cangreatly reduce the odds of bad decisions.
Social Marketing
Is the application of marketing strategies and
tactics to alter or create behaviors thathave a
positive effect on the targeted individuals or
society as a whole. Social marketing