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Download this Document for Free 1.1.CONSUMER BEHAVIOR 1.1.1.Meaning and Definition of Consumer Behavior The term individual buyer behavior , end user behavior , consumer behavior , and consumer buyingbehavior all stands for the same. The study of consumer behavior is the study of how indi viduals makedecisions to spend their available resources (time, money, effort) o n consumption-related items. It includes thestudy of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and howoften th ey use it.Take the simple product toothpaste. Consumer researchers want to know what types of toothpaste consumers buy (gel, regular, striped, in a tube, with a pump); what brand (national brand, private brand, generic brand);why they buy i t (to prevent cavities, to remove stains, to brighten or whiten teeth, to use as a mouthwash, toattract romance); where they buy it (supermarket, drugstore, con venience store); how often they use it (whenthey wake up, after each meal, when they go to bed, or any combination thereof); and how often they buy it(weekly, b iweekly, monthly).Consumer behavior may be defined as the decision process and p hysical activity individuals engage in whenevaluating, acquiring, using, or disp osing of goods and services. According to Belch and Belch, Consumer behavior is the process and activities people engage in whensearching fo r, selecting, purchasing, using, evaluating, and disposing of products and servi ces so as to satisfytheir needs and desires. According to Solomon, Consumer behavior is the process involved when individuals or groups select, purc hase, use, or dispose of products, services, ideas or experiences to satisfy nee ds and wants.Consumer behavior may also be defined as the study of individuals, g roups, or organizations and the processesthey use to select, secure, use, and di spose of products, services, experiences, or ideas to satisfy needs and theimpac ts that these processes have on the consumer and society. According to Leon G. Schiffman and Leslie Lazar Kanuk, Consumer behavior can be defined as the behavior that consumers display in search ing for, purchasing, using, evaluating, and disposing of products andservices th at they expect will satisfy their needs.Consumer behavior focuses on how individu als make decisions to spend their available resources (time, money,effort) on co nsumption related items. That includes what they buy, why they buy it, where the y buy it, how oftenthey buy it, how often they use it, how they evaluate it afte r the purchase, the impact of such evaluations on future purchases and how they dispose of it. So in Consumer behavior it is not only learnt, what is the behavi or of theconsumer when he buys it but also before the consumption, during the co nsumption and after the consumption? 1.1.2.Nature/Characteristics of Consumer Behavior Characteristics of consumer buying behavior are discussed below:1)Consumer behav ior or buyer behavior is the process by which individuals decide whether, what, when,from whom, where and how much to buy.2)Consumer behavior comprises both men tal and physical activities of a consumer.3)It covers both visible and invisible

activities of a buyer.4)Buyer behavior is very complex.5)Buyer behavior is very dynamic.6)An individuals behavior is influenced by internal and external factors .7)It is an integral part of human behavior.8)In many cases, it is the sum total of the behavior of a number of persons.9)It is influenced by a number of market ing stimuli offered by the marketer.10)It involves both psychological and social process.11)Consumer behavior is basically social in nature.

12)Consumers act differently at different times and often respond differently to the same stimulus at different times.13)They learn and thereby change their att itudes and behavior.14)Consumers are heterogeneous in nature and they are all di fferent from each other in certain respects.15)They often act emotionally rather than rationally. 1.1.3.Scope of Consumer Behavior There are varieties of practical applications in the field of consumer behavior. Some involve a societal perspective while others illustrate a micro viewpoint. Together they underscore the importance of understandingconsumers for solving a variety of contemporary problems.1) Consumer Behavior and Marketing Management: Effective business managers realize the importance of marketing to the success o f their firm.Marketing may be defined as, The process of planning and executing t he conception, pricing, promotion,and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizationalobjectives.A sound understanding of consumer behavior is essential to the long-run success of any marketing program.In fact, it is seen as a cornerstone of the marketing concept, an important orientation of philosophy of manymarketing managers. The essence o f the marketing concept is captured in three interrelated orientations: i) Consumers Needs and Wants: When the focus is on identifying and satisfying the wants and needsof consumers, the intention of the firm is not seen as merely providing goods and services. I nstead,want and need satisfaction is viewed as the purpose, and providing produc ts and services is the meansto achieve that end.ii) Company Objectives: Consumers wants and needs are numerous. Therefore, a firm that concentrateson sat isfying a small proportion of all desires will most effectively utilize its reso urces. Companyobjectives and any of the firms special advantages are used as crit eria to select the specific wants andneeds to be addressed.iii) Integrated Strategy: An integrated effort is most effective in achieving a firms objective throughcons umer satisfaction. For maximum impact this requires that marketing efforts be cl osely coordinatedand compatible with each other and with other activities of the firm.Several major activities can be undertaken by an organization that is mark eting-oriented. These includemarket-opportunity analysis, target-market selectio n, and marketing-mix determination, which includedecisions on the proper combina tion of marketing variables to offer consumers.i) Market Opportunity Analysis: This activity involves examining trends and conditions in themarketplace to iden tify consumers needs and wants that are not being fully satisfied. The analysis b egins with a study of general market trends, such as consumers lifestyles and inc ome levels, whichmay suggest unsatisfied wants and needs.ii) Target-Market Selection: The process of reviewing market opportunities often results in identifyingdistin ct groupings of consumers who have unique wants and needs. This can result in a decision to approacheach market segment with a unique marketing offering.Conside r the soft-drink market. Here, major segments of ultimate consumers are distingu ished by thetype of purchase situation:a)The food-store segment, b)The cold bottl

e or vending-machine segment, andc)The fountain market, which includes fast-food outlets.iii) Marketing-Mix Determination: This stage involves developing and implementing a strategy for delivering an eff ective combination of want satisfying features to consumers within target market s. Aseries of decisions are made on four major ingredients frequently referred t o as the marketing-mixvariables: product, price, place and promotion. The follow ing characterizes each area and provides a smallsampling of how knowledge of con sumer behavior is relevant for decision-making. a) Product: The nature of the physical product and service features are of concern here, amo ngdecisions that are influenced by consumer behavior are: What size, shape, and features should the product have? How should it be packaged? What aspects of service are most important to consumers? What types of warranties and service programs should be provided? What types of accessories and associated products should be offered? b) Price: Marketers must make decisions regarding the prices to charge for the companys pro ducts or services and any modification to those prices. These decisions will det ermine the amount of revenues the firm will generate. A few of the factors invol ving consumer behavior are: How price-aware are consumers in the relevant product category? How sensitive are consumers to price differences among brands? How large a price reduction is needed to encourage purchases during new-producti ntroductions and sales promotions? What size discount should be given to those who pay with cash?c) Place: The place variable involves consideration of where and how to offer products and servicesfor sale. It also is concerned with the mechanisms for transferring goo ds and their ownership toconsumers. Decisions influenced by consumer behavior in clude: What type of retail outlet should sell the firms offering? Where should they be located, and how many should there be? What arrangements are needed to distribute products to retailers? To what extent is it necessary for the company to own or maintain tight control over activitiesof firms in the channel of distribution? What image and clientele should the retailer seek to cultivate?d) Promotion: Of concern here are the goals and methods of communicating aspects of the firm a ndits offerings to target consumers. Consumer-related decisions include: What methods of promotion are best for each specific situation?

 What are the most effective means for gaining consumers attention? What methods best convey the intended message? How often should a given advertisement be repeated?2) Consumer Behavior and Non-profit and Social Marketing: Can crime prevention, charitablecontributions, or the concept of family planning be sold to people in much the same way that some businessfirms sell soap? A num ber of writers have suggested that various social and nonprofit organizations ca n beviewed as having services or ideas that they are attempting to market to tar get group of consumers or constituents. Such organizations include governmental ag encies, religious orders, universities, andcharitable institutions. Often these groups must also appeal to the public for support in addition toattempting to sa tisfy some want or need in society. Clearly, a sound understanding of consumer d ecision processes can assist their efforts.3) Consumer Behavior and Governmental Decision-Making: In recent years the relevance of consumer- behavior principles to governmental d ecision-making has become quite evident. Two major areas of activity have been a ffected:i) Government Services: It is increasingly evident that government provision of public services can bene fit significantly from an understanding of the consumers, or users, of these ser vices. Numerousanalysts have noted that frequently failing mass-transportation s ystems will not be viable alternatives to private automobile travel until govern ment planners fully understand how to appeal to the wants andneeds of the public . In other cases, state and municipal planners must make a variety of decisions, including where to locate highways, what areas to consider for future commercial growth, and the typeof public services (such as health care and libraries) to o ffer. The effectiveness of these decisions will be influenced by the extent to w hich they are based on an adequate understanding of consumers. Thisrequires know ledge of peoples attitudes, beliefs, perceptions and habits as well as how they t end to behave under a variety of circumstances.

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Sections show all prev next 1.1.1.Meaning and Definition of Consumer Behavior 1.1.2.Nature/Characteristics of Consumer Behavior 1.1.3.Scope of Consumer Behavior 1.1.4.Importance of Consumer Behavior 1.1.5.Model of Consumer Behavior 1.1.6.1.Psychological Factors 1.1.6.2.Personal Factors 1.1.6.3.Cultural Factors 1.1.6.4.Social Factors Share & Embed Related Documents PreviousNext p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. More from this user PreviousNext 22 p. 88 p. 5 p. 2 p. 3 p. Add a Comment

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