5. Consumer behavior
The term consumer behavior is defined as
the behavior that consumers display in
searching for, purchasing, using, evaluating
and disposing of products and services that
they expect will satisfy their needs.
6. Difference between customers
and consumers
Every customer is a consumer but not every
consumer a customer. Customer is one who is
brand loyal, who has made a custom to purchase a
particular company's product/services. thus
customer is a sub set of consumer.
One that consumes, especially one that acquires
goods or services for direct use or ownership rather
than for resale or use in production and
manufacturing. A consumer is an end user.
A customer: One that buys goods or services. A
customer can in turn resell to a consumer.
7. The central premise to understand consumer
behavior – “People do not buy products or services,
they buy benefits.”
Purchases are made not for the products
themselves but for the problems they solve or the
opportunities they create
Consumer benefits are those positive factors that
the consumer obtains as a result of the possession
and/or use of a product or service
8. Why We Study CB?
Diverse Reasons -
As Consumers
As Marketers & future Marketers
As Students of Human Behavior
9. Consumer Benefits
Tangible Benefits – measurable
Intangible benefits – associated with the
feelings that you experience
10. Two different kinds of consuming entities
Personal consumer
Organizational consumer
11. Personal Consumer
The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.
12. Organizational Consumer
A business, government agency, or
other institution (profit or nonprofit)
that buys the goods, services, and/or
equipment necessary for the
organization to function.
13. Development of the Marketing Concept
Production
Concept
Selling Concept
Product Concept
Marketing
Concept
14. The Production Concept
Assumes that consumers are interested
primarily in product availability at low
prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
15. The Product Concept
Assumes that consumers will buy the
product that offers them the highest
quality, the best performance, and the
most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia
16. The Selling Concept
Assumes that consumers are unlikely to
buy a product unless they are aggressively
persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and
satisfaction
17. The Marketing Concept
Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
Marketing objectives:
Profits through customer satisfaction
18. The Marketing Concept
A consumer-oriented philosophy that
suggests that satisfaction of consumer
needs provides the focus for product
development and marketing strategy to
enable the firm to meet its own
organizational goals.
19. Marketing Concept is based on the
premise that a marketer should
make what it can sell, instead of
trying to sell what it has made…
21. Consumer Research
The process and tools used to study
consumer behavior.
Two perspectives:
Positivist approach
Interpretivist approach
22. Segmentation, Targeting, and
Positioning
Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
Targeting: selecting one ore more of the
segments to pursue
Positioning: developing a distinct image for
the product in the mind of the consumer
23. Successful Positioning
Communicating the
benefits of the
product, rather than
its features
Communicating a
Unique Selling
Proposition for the
product
27. Customer retention
Makes it in the best interest of customers to stay
with the company rather than switch to another firm
Customers are grouped into four tiers:
The platinum tier: heavy users, not price sensitive
The gold tier: Heavy users, not profitable, price
sensitive
The iron tier: spending volume and profitability do
not merit special treatment form the company
The lead tier: customers who actually cost the
company by spreading negative word of mouth
28. Ethics & social responsibility
All companies prosper when society
prospers, many people believe that all of us,
companies as well as individuals, would be
better off if social responsibility were an
integral part of every marketing decision.
29. Societal Marketing Concept
A revision of the traditional marketing concept
that suggests that marketers adhere to
principles of social responsibility in the
marketing of their goods and services; that is,
they must endeavor to satisfy the needs and
wants of their target markets in ways that
preserve and enhance the well-being of
consumers and society as a whole.
30. The Societal Marketing Concept
The societal marketing concept, advocates
a long term perspective.
It recognize that all companies would be
better off in a stronger, healthier society,
and that companies that incorporate
ethical behavior and social responsibility in
all of their business dealings and maintain
loyal consumer support over the long run.
31. Nature and characteristics of
Indian consumer
The Indian consumption patterns are slowly
converging with global norms.
The Indian consumer is now spending more
on consumer durables, apparel,
entertainment, vacations and lifestyle related
activities.
Entertainment, clothing and restaurant dining
are categories that have been witnessing a
maximum rise in consumer spending since
2002.
32. The rate of growth of spending on
discretionary items (unlike basic necessities
like food) has been growing at an average of
9 per cent per year over the past five years. A
nation of savers, India, has now altered into a
nation of spenders.
33. Consumerism
The movement seeking to protect and inform
consumers by requiring such practices as
honest packaging and advertising, product
guarantees, and improved safety standards.
Movement or policies aimed at regulating the
products, services, methods, and standards
of manufacturers, sellers, and advertisers in
the interests of the buyer.
34. Rights of consumers
Right to safety
Right to be informed
Right to choose
Right to be heard
Right to seek redressal
Right to consumer education
35. Responsibilities of Consumers
Responsibility of self-help
Proof of Transactions
Proper claim
Proper use of Product/services
