Consumer Behaviour - Introduction
Consumer Behaviour - Introduction
1
Consumer Behaviour
◆
This chapter provides an introduction to consumer behaviour. Consumer is the most important
person. The business revolves around the consumer.
After finishing this chapter one should be able to understand:
● What is meant by consumer behaviour
◆ INTRODUCTION
All of us are consumers. We consume things of daily use, we also consume and buy
these products according to our needs, preferences and buying power. These can be
consumable goods, durable goods, speciality goods or, industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity we
buy depends on our perception, self concept, social and cultural background and our
age and family cycle, our attitudes, beliefs values, motivation, personality, social
class and many other factors that are both internal and external to us. While buying,
we also consider whether to buy or not to buy and, from which source or seller to
buy. In some societies there is a lot of affluence and, these societies can afford to buy
in greater quantities and at shorter intervals. In poor societies, the consumer can
barely meet his barest needs.
The marketers therefore tries to understand the needs of different consumers and
having understood his different behaviours which require an in-depth study of their
internal and external environment, they formulate their plans for marketing.
● 2 Consumer Behaviour ●
Where does the market buy? Supermarket, Retail store etc. Outlet
Why does the market buy? For Cleansing, Bathing, Fresh feeling etc. Objectives
(taken from Multi-marketer)
Attitudes/Needs
Marketing Situations
activities
Learning Problem
Culture
(memory) recognition
Subculture Information
Perception
search
n f o r m a t io
n
I
C o n s um er Evaluation and
Motives life s ty le Values
selection
P ro
c e s s in g Demographics Outlet selection
Personality and purchase
Social
status
Emotions Post purchase process
Reference
groups
Situations
Households
Experiences
Fig. 1.1 A simplified framework for studying consumer behaviour.
● 4 Consumer Behaviour ●
◆ MARKET ANALYSIS
Role Description
Initiator The person who determines that some need or want is to be met (e.g.
a daughter indicating the need for a colour TV).
Influencer The person or persons who intentionally or unintentionally influence
the decision to buy or endorse the view of the initiator.
Buyer The person who actually makes a purchase.
User The person or persons who actually use or consume the product.
All the consumer behaviour roles are to be kept in mind but, the emphasis is on
the buyer whose role is overt and visible.
(a) The Consumer
To understand the consumer; researches are made. Sometimes motivational research
becomes handy to bring out hidden attitudes, uncover emotions and feelings. Many
firms send questionnaires to customers to ask about their satisfaction, future needs
and ideas for a new product. On the basis of the answers received, changes in the
marketing mix is made and advertising is also streamlined.
● 6 Consumer Behaviour ●
1. Geography
}
2. Population
3. Urban-Rural
4. Sex
Indian
5. Age factor
6. Literacy level
Consumer
7. Incentive level
8. Linguistic diversity
9. Religion
10. Dress, food
11. Habits and fashion
Table 1.1
1 2 3 4 5 6 7 8 9 10
Segment size
Segment growth rate
Competitor strength
Customer satisfaction with existing product
Fit with company image
Fit with company objectives
Fit with company resources
Fit with other segments
Investment required
Stability/Periodicability
Zest to serve
Sustainable advantage available
Leverage to other segments/markets
Risk
Other factors
● 8 Consumer Behaviour ●
Marketing Strategy
(i) Product
Product is anything that is offered to the consumer which is tangible and can satisfy
a need and has some value.
(j) Price
Price is the amount of money one must pay to obtain the right to use the product.
(k) Distribution (Place)
The goods can be distributed by many channels. These could be retailers,
wholesalers, agents or by direct selling. Distribution outlets play an important role
in reaching the goods to the consumer. They provide, time, place and possession
utilities. Some goods need to be marketed through the channels or the middleman.
Others can be marketed directly by the company to the actual consumer.
(l) Promotion
Promotion is the means of changing the attitudes of the consumer, so that it becomes
favourable towards the companys products. Various means of promotion are
advertising, personal selling, sales promotion and publicity.
(m) Service
Service refers to auxiliary service that enhances the value of the product or the
service. For instance, while buying a car. Free services are provided over a certain
period of time. Check-ups are free and maintenance is also covered on the charge of
an adequate amount along with the product purchased. These auxiliary services are
provided at a cost with money. These provide value to the product or the customer.
These services give an advantage to the customer and he is free from the botheration
of occasional checkups or risk. The risk is considerably reduced and, the customer
derives satisfaction with his decision to purchase.
● Consumer Behaviour 9 ●
Problem Recognition
↓
Information search
external and internal
↓
Evaluation and selection
↓
Store choice and purchases
↓
Post-purchase Behaviour
Company’s
total product
Customer Perceived
satisfaction value delivered
Questions
Case Study
The marketer has to learn about the needs and changing of the consumer behaviour
and practice the Marketing Concept. Levi strauss & Co. were selling jeans to a mass
market and did not bother about segmenting the market till their sales went down.
The study into consumer behaviour showed their greatest market of the baby
boomers had outgrown and their NEEDs had changed. They therefore came out with
Khaki or dockers to different segments and comfortable action stocks for the
consumers in the 50 age group. Thus by separating the market and targetting
various groups and fulfilling their needs, they not only made up for the lost sales but
far exceeded the previous sales. They also targeted the women consumers for jeans
and both men and women started wearing jeans in greater numbers. The offering
given by the company must be enlarged to suit various segments.
For example Maruti Udyog Ltd has come out with many models. Maruti 800,
Maruti Van, Zen, Alto, Veagon R, Versa Gypsy, Esteem, Boleno and other models.
For successful marketing one should:
1. Find consumer needs of various segments.
2. Position Products (new & existing) to these segments.
3. Develop strategies for these segments. Practice greater selectivity in
advertising and personal selling and creating more selective media and
distribution outlets.