Why Study Consumer Behaviour

29,542 views
29,105 views

Published on

In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management :
(1) “EARNS” the revenue, &
(2) “WORKS” in the close proximity with the public or persons outside the organisation.
Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers.
This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above.
Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue.

Published in: Business, News & Politics
0 Comments
24 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
29,542
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
24
Embeds 0
No embeds

No notes for slide

Why Study Consumer Behaviour

  1. 1. Consumer Behaviour Introduction : Why Study Consumer Behaviour
  2. 2. Why Study Consumer Behaviour • In the highly specialised study of “BUSINESS MANAGEMENT”, today, the function of “MARKETING MANAGEMENT” plays a very critical role. This is because this functional area of management : • (1) “EARNS” the revenue, & • (2) “WORKS” in the close proximity with the public or persons outside the organisation. 2Himansu S M
  3. 3. Why Study Consumer Behaviour • Controlling these two attributes to have the desired benefits are the most difficult part of the management, because none of these two are within the direct control of the marketers. • This doesn’t mean that the other functional areas are not important, but they are not “DIRECTLY” involved in the activities mentioned above. 3Himansu S M
  4. 4. Why Study Consumer Behaviour • Similarly, within the study of Marketing Management, the “Consumers” or the “Customers” play a very critical role as these are the people who finally BUY the goods & services of the Organisation, and the firm is always on the move to make them buy so as to earn revenue. It’s crucial from both the points of view as given below : 4Himansu S M
  5. 5. Customers’ Point of View • From the customers’ point of view : Customers today are in a tough spot. Today, in the highly developed & technologically advanced society, the customers have a great deal of choices & options (and often very close & competing) to decide on. – 1) They have the products of an extreme range of attributes (the 1st P - Product), – 2) they have a wide range of cost and payment choices (the 2nd P - Price), Himansu S M 5
  6. 6. Customers’ Point of View –3) they can order them to be supplied to their door step or anywhere else (the 3rd P - Place), –4) and finally they are bombarded with more communications from more channels than ever before (the 4th P - Promotion). • How can they possibly decide where to spend their time and money, and to whom they should give their loyalty ? Himansu S M 6
  7. 7. Marketers’ Point of View • The basic requirement for the marketers in earlier days where aggressive selling was the aim : • “The purpose of marketing is to sell – more stuff to more people – more often for more money – in order to make more profit”. Himansu S M 7
  8. 8. Marketers’ Point of View • Today, it can’t be achieved by force, aggression or plain alluring. • For the customers are today more informed, more knowledgeable, more demanding, more discerning. • And above all there is no dearth of marketers to buy from. • The marketers have to earn them or win them over. Himansu S M 8
  9. 9. Similarity in Diversity • The global marketplace is a study in diversity - diversity among • consumers, producers, marketers, • retailers, advertising media, • cultures, and customs and of course • the individual or psychological behaviour. Himansu S M 9
  10. 10. Similarity in Diversity • However, despite prevailing diversity, there also are many similarities. • The object of the study of consumer behaviour is to : • Provide conceptual and technical tools to enable the marketer to apply them to marketing practice, both profit & non-profit. Himansu S M 10
  11. 11. Study of Consumer Behaviour • The Consumer Behaviour (CB) is very important to the marketers because it enables them to : • Understand and predict buying behaviour of consumers in the marketplace; Himansu S M 11
  12. 12. Study of Consumer Behaviour It is concerned with • what consumers buy, • why they buy it, • when, where and how they buy it, • how often they buy it, • how they consume it & dispose it • how satisfied / dissatisfied they become after using it. Himansu S M 12
  13. 13. Study of Consumer Behaviour Research shows that two different buyers buying the same product may have done it for • different reasons, • paid different prices, • used in different ways, • have different emotional attachments towards the things and so on. Himansu S M 13
  14. 14. Study of Consumer Behaviour • The study of Consumer Behaviour is one of the most important in business education, because • The purpose of a business is to create and keep customers. Customers are created and maintained through marketing strategies. • And the quality of marketing strategies depends on knowing, serving, and influencing consumers. Himansu S M 14
  15. 15. Study of Consumer Behaviour • In other words, the success of a business is to achieve organisational objectives, which can be done by the above two methods. • The knowledge & information about consumers is critical for developing successful marketing strategies because it challenges the marketers to think about and analyse the relationship between the consumers & marketers, and the consumer behaviour & the marketing strategy. Himansu S M 15
  16. 16. Benefits of Studying CB • A Marketing Manager would like to know how Consumer Behaviour will help him to design better marketing plans to get those plans accepted within the company. Himansu S M 16
  17. 17. Benefits of Studying CB • In a non-profit service organisation, such as a hospital, an individual in the marketing department would like to know the patients’ needs and how best to serve those needs. Himansu S M 17
  18. 18. Benefits of Studying CB • Universities & Colleges now recognise that they need to know about Consumer Behaviour to aid in recruiting students. • “Marketing Admissions” has become an accepted term to mean marketing to potential students. Himansu S M 18
  19. 19. Introduction to CB • The study of Consumer Behaviour is quite complex, because of many variables involved and their tendency to interact with & influence each other. • These variables are broadly divided into three major sections that have been identified as the most important general influences on Consumer Behaviour. Himansu S M 19
  20. 20. Introduction to CB • Imagine three concentric circles, • one at the outer most, • one in the middle & • one at the inner most, • and they represent the following : Himansu S M 20
  21. 21. The Rings (Circles) of Influence Buying Decision Individual Determinants External Influence Himansu S M 21
  22. 22. 1. External Environmental Variables • These factors controlled by the external environments like the following form the basis of external influences over the mind of a customer (outer circle) : – Culture, and Sub-culture, – Social Class, and Social Group, – Family, and Inter-Personal Influences, • Other Influences are there (which are not categorised by any of the above six, like geographical, political, economical, religious environment, etc.) Himansu S M 22
  23. 23. 2. Individual Determinants of Behaviour • Major individual determinants of Consumer Behaviour are portrayed in the middle ring. These are the human mind and its attributes. • These variables are personal in nature and they are influenced by the above set of external factors and in turn influence the way consumers proceed thro’ a decision making process regarding products & services. Himansu S M 23
  24. 24. 2. Individual Determinants of Behaviour • These are : –Personality & Self-concept, –Motivation & Involvement, –Perception & Information Processing, –Learning & Memory, –Attitudes. Himansu S M 24
  25. 25. 3. The Consumer Decision Making Process • The buying decision comes as a product of the complex interaction of the external factors and the personal attributes. • The inner most circle represents the consumer decision making process regarding products & services, Himansu S M 25
  26. 26. 3. The Consumer Decision Making Process • Those major steps are : –Problem Recognition, –Information Search, –Evaluation of Application, –Purchase Decision, –Post-Purchase Behaviour. Himansu S M 26
  27. 27. The Role of CB • Frequently, it is observed that : • Different people buying similar things have different reasons to buy, & • Different people having similar reasons buy different things. • Thus Marketers are frequently uncertain about the variables that are at play influencing & affecting consumers. Sometimes this occurs because they don’t clearly understand the extent of variables that might be having an influence. Himansu S M 27
  28. 28. The Role of CB • The details of all external, internal, environmental, economical etc. are discussed above. • Sometimes some variables are not directly observable. • Other times variables are known to the marketers but their exact nature & relative strength of influence is not apparent. Himansu S M 28
  29. 29. The Role of CB • In these circumstances, it is useful to understand the above mentioned concepts and how the consumers behave, so that their decision making process can be predicted to a reasonable extent. • The human mind being as complex as it is, the understanding of the buying behaviour of the consumers becomes a continuous activity of application of various theories & concepts by the marketers. Himansu S M 29
  30. 30. END OF CHAPTER : INTRODUCTION & WHY STUDY CONSUMER BEHAVIOR Himansu S M / 20-Apr-2011 Himansu S M 30

×