Consumer behavior refers to how people purchase, use, and dispose of products and services. Understanding consumer behavior is important for retailers. There are several factors that influence retail shoppers, including the range of merchandise, convenience, travel time, socioeconomic factors, and life stage. The consumer decision making process involves need recognition, information search, alternative evaluation, purchase, and post-purchase behavior. Market research helps retailers understand demographic data, consumer spending patterns, and evaluate customer satisfaction. Common market research methods used by retailers are focus groups, observation, and customer profiling.
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
The Howard Sheth Model is an approach for analyzing the combined impact of the social, psychological and marketing factors on the buying behaviour or preference of the consumers and the industrial buyers into a logical order of information processing.
Consumer Behavior
1. Howard Sheth Model
2. Extensive problem solving
3. Limited problem solving
4. Routinized response behavior
5. Inputs
6. Perceptual construct
7. Learning construct
8. Consumer Usual Buying Behavior
9. Dispose
introduction to Consumer Behavior for PGDAM and MBA students. The presentation highlights various aspects of Consumer Behavior, its impact, importance to understand the behavior of target market. Process of Marketing Segmentation for targeting different type of audiences.
The presentation also highlights darker side of consumer behaviour aspects and how companies use black hat techniques to attract more consumers.
The Howard Sheth Model is an approach for analyzing the combined impact of the social, psychological and marketing factors on the buying behaviour or preference of the consumers and the industrial buyers into a logical order of information processing.
Consumer Behavior
1. Howard Sheth Model
2. Extensive problem solving
3. Limited problem solving
4. Routinized response behavior
5. Inputs
6. Perceptual construct
7. Learning construct
8. Consumer Usual Buying Behavior
9. Dispose
introduction to Consumer Behavior for PGDAM and MBA students. The presentation highlights various aspects of Consumer Behavior, its impact, importance to understand the behavior of target market. Process of Marketing Segmentation for targeting different type of audiences.
The presentation also highlights darker side of consumer behaviour aspects and how companies use black hat techniques to attract more consumers.
Consumer Behavior- meaning, nature and importance, Factors influencing consumer behavior, Buying Behavior process. Market Segmentation- meaning and need Bases for market segmentation, Requisites for effective segmentation, Steps in segmentation process, Targeting- meaning, strategies, Positioning- meaning and types
The chapter comprises of Meaning and Characteristics, Importance, Factors Influencing Consumer Behaviour, Consumer Purchase Decision Process, Buying Roles, Buying Motives, Buyer Behaviour Models.
Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.
It refers to the. actions of the consumers in the marketplace and the underlying motives for those actions.
Consumer behaviour is the study of how people make decisions about what they buy, want, need, or act in regards to a product, service or company.
It is a study of the actions of the consumers that drive them to buy and use certain products. Understanding consumer buying behavior is most important for marketers as it helps them to relate better to the expectation of the consumers.
a) Consumer behavior is the part of human behavior: This cannot be separated. Human behavior decides what to buy, when to buy etc. This is unpredictable in nature. Based on the past behavioral pattern one can at least estimate like the past he might behave.
b) Learning the consumer is difficult and complex as it involves the study of hum beings: Each Individual behaves differently when he is placed at different situations. Every day is a lesson from each and every individual while we learn the consumer behavior. Today one may purchase a product because of its smell, tomorrow it may vary and he will purchase another due to some another reason.
c) Consumer behavior is dynamic: A consumer's behavior is always changing in nature: The taste and preference of the people vary. According to that consumers behave differently. As the modern world changes the consumer's behaving pattern also changes.
d) Consumer behavior is influenced by psychological, social and physical factors: A consumer may be loyal with a product due to its status values. Another may stick with a product due to its economy in price. Understanding these factors by a marketer is crucial before placing the product to the consumers.
1. To design production policies: This is the first importance of consumer behaviour and it means that all the production policies have designed taking into consideration the consumer preference so that product can be successful in the market.
2. Know the effect of price on buying: This is the second consumer behaviour importance and it means that consumer behavior can help in understanding the effect of price on buying. Whenever the price is moderate on cheap more and more customer will buy the product.
After the time of production, there comes a time in which the company has to decide what the price of our product will be because it helps to divide the categories of the customer and also helps to attain more sales.
3. Exploit the market opportunities: This is the third importance or significance of consumer behaviour and it means that the change in consumer preference can be a good opportunity for the marketing
Without an understanding of consumers, how they think, and the reasons for how they behave, it is very difficult for a business to give them exactly what they want.
The study of consumer behaviour improves decision-making as some of the guesswork is removed.
Through a better understanding of consumer behaviour, businesses can make better choices with their marketing to attract more of their target customers.
What is Consumer Behaviour?
Consumer behaviour is the study of consumption. It aims to have a better understanding of consumer actions and processes used in their purchase decisions, as well as the usage of products and services and how they are disposed of.
Exploring how the consumer’s emotions, attitudes and preferences affect buying behaviour, consumer behaviour draws upon ideas from several fields including psychology, sociology, anthropology, biology, marketing and economics.
An underlying motivation drives a consumer to act and purchase. These motivations fit under the problem recognition phase discussed above.
This motivation can be either positive or negative. A positive motivation could be a pleasure – having dinner a nice restaurant or a night on the town. A negative motivation could be the avoidance of unpleasantness such as purchasing toothpaste to minimise tooth decay, getting toothaches and having to visit a dentist.
CONSUMER BUYING BEHAVIOUR - INTRODUCTION TO MARKETINGAgaineSandra1
Consumer markets are constantly changing, and marketers must understand new and emerging contexts to succeed
Widespread adoption of digital technologies has created a global consumer culture that affects local lifestyles and behaviors
Global consumer culture shapes cultural values and can significantly influence how individuals respond to marketing activities
Marketers need to understand both local and global nuances of a market and identify aspects that may impact consumer behavior
2. What is Consumer Behavior?
The activities that people undertake when obtaining,
consuming and disposing of products and services.
The behavior that the customers display in searching
for, purchasing, using, evaluating, disposing of
products and services that they expect will satisfy
their needs.
3. The rise of the consumer age
The age of
the
wholesaler
The age of
the
manufactur
er
The age of
the retailer
The age of
the consumer
4. Need for Understanding the consumer behavior
Understanding how the need the need for a product and
service was determined
Understanding how information was sought by the customer
The process of evaluation of various process
The payment process
The post purchase behavior
6. 1. Range of Merchandise
• It is the most important reason for customers to
patronise a particular outlet.
• Drawing a customer to the retail outlet may be easy,
but converting the customer into a buyer and
retaining the customer over a period of time largely
depends on the quality and the range of merchandise
offered by the store.
• This plays an important role with regard to
merchandise like durables, books and music, apparel,
lifestyle products, etc.
7. 2.Convenience of shopping at a particular
outlet:
• Convenience is fast gaining prominence in the world
of organised retail.
• Particularly for items like groceries, medicines, etc.
8. 3. Time to travel
• The time required to reach a particular retail outlet is
again far becoming a critical factor (especially for
metro cities).
• This is one of the main reasons which has led to rise
in online retailing & the formation of various retail
formats like departmental stores, malls, drug stores,
supermarkets, etc. approaching as close as possible
to the customers.
9. 4.socio-economic factors
• Today India is a nation with a large middle class and
a youth population which is happy spending and a
steady growth rate of GDP.
• The socio-economic background of the consumer
largely determines his/her lifestyle.
• And this in turn influences the kind of stores the
consumer will be comfortable shopping in.
• The consumers buying behaviour is largely
influenced by culture. Eg. Asian culture is very
different from Western culture.
10. • Therefore the retailer has to clearly understand the
needs of the consumer to determine the right kind
of merchandise in order to fulfil his needs.
11. 5. Stage of the family life cycle:
● This factor also largely influence the customer
needs
• Eg. The needs of a young bachelor will be different
from the needs of a family with children in their
teens, which will again be different from the
requirements of an elderly retired couple.
• The retailer needs to be clear about the target
market that he is catering to, as he cannot be
everything to everyone.
12. The customer decision making process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
13. Stage I. Identification of a Need for the
product or services
This arises when the consumer becomes aware of his
need of a particular product or service.
Triggered by Internal or External stimuli.
14. Stage II. Search for Information
The second step involves gathering information on how to
solve the problem.
INFORMATION SOURCE:
-Personal
-Commercial
-Public
-Experiential
SEARCH DYNAMICS: By gathering information the consumer
learns about competing brands and their features
15. Stage III. Evaluating Alternatives
The consumer sees each product as a bundle of
attributes with varying abilities to deliver the benefits.
The attributes of interest to buyers vary by products
16. Stage IV. The Purchase Decision
At this stage, the decision is made first whether to
buy or not.
Key factors influencing consumer behavior:
-Personality
-Lifestyle
-Culture
-Social Class
-Family and Household Influences
17. Stage V. Post-purchase Behavior
After the purchase, the consumer might experience certain
things from noticing features or hearing favorable things
about the brands and will be alert to information that
supports his/her decision.
Post-purchase satisfaction
Post-purchase actions
Post-purchase uses and disposal
18. Market Research:
Any market research activity deals with the following logical
steps:
• Collection of data
• Analysis of the data collected
• Deriving conclusions on the basis of the data collected.
19. Information collected by way of market research can
either be:
• Primary data – The data that the retailer can use for a
specific purpose i.e. Demographic data and
Consumer data.
• Secondary data – The data that is available in the
market or within the organisation and which can be
used by the retailer.
20. Internal sources : Sales figures, company reports,
customer complaints, etc.
External sources : Government statistics, trade
information, research done by commercial research
agencies & financial institutions.
21. I. Research prior to setting of an retail
store:
Demographic Data :
• Population
• GDP & PPP
• Disposable income
• Age of the Population
Consumer data:
• Spending patterns
• Trends in urbanisation
• Consumer behaviour
22. II. Research after setting up to a retail
store:
The research can help the retailer in the following areas:
• Evaluating the customer satisfaction with the existing range
of products and services.
• Generating Ideas for and developing new products.
• Evaluating the acceptability of the products and pricing of
new products.
• Understanding the customer profiles.
23. Methods commonly used by retailers:
1. Focus group
2. Accompanied observation
3. Profiling customers