Consumer Behaviour is the study of consumer action while making a purchase this study consists of

all the behaviour exhibited by the consumer. From the point where consumer feels the desire to buy
a product and selects a product to satisfy his need and how he/she use that product. Consumer
behaviour study helps marketers to understand the need of consumer and how to position that
good in front of consumer so that he or she decides to purchase that product.

Significance of consumer behaviour.

1. Can be influenced by different factors.

i) Marketing Strategy
ii) Psychological status
iii) Culture
iv) Status
v) Society
2. The data is analysed by marketers to find right product for right market
3. Vary from person to person
4. Consumer behaviour is most sensitive in nature
5. Vary with time
6. Vary with country
7. Leads to purchase decision

Consumer behaviour is the most important to be studied as it influences your product to your
marketing strategy and helps to determine the right target for your product.

Types of market

1. Monopoly
Here a single firm has power to control the market due to unabablity of substitute in the
market. Prices of the product are deremined by the firm it self to increase the prices they
use to lower the production and to lower the prices they use to strt producucing in surplus,
They are also known as the price maker firms and there is barrer to entry and exit the
market.
Ex: Indian Railway in india

2. Perfect Competition
It is a market where there are large no of small firms selling similar nature os product ie.
Homogeneous product and no one has such power to drive the market price that is the
reason why it is also known as price taker market.
i) Large no of small firms
ii) Selling similar nature of product
iii) Prices are determined by the supply and demand
iv) All firms max profit
v) No consumer prefrences

3. Monopolistic Competition
 This is the market place very similar to the perfect market but here there sre small firms
competing each other but the product are not likely same as in the perfect competation
here the product are having little difference ( Like Chings, Maggie, yepee etc) all are same
but what defer is the taste of each.
i) Large no of small firms
ii) Little change in the product
iii) Consumer preference matters
iv) Prices are determined according to competition
v) Free entry and exit

4. Oligopoly
In this few firms have power to dominate the entire market. Prices are determined by the
cartel formation all firms make profit. Here the few firms means 3-5 firms which are
operating in that industry and has a power to dominate the entire market