what do you mean by the concept consumer behavior ?

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.

Marketers expect that by understanding what causes the consumers to buy particular goods and
services, they will be able to determine—which products are needed in the marketplace, which are
obsolete, and how best to present the goods to the consumers.

1. Nature of Consumer Behaviour:

Influenced by various factors:

The various factors that influence the consumer behaviour are as follows:

a. Marketing factors such as product design, price, promotion, packaging, positioning and distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and attitudes towards the
product.

d. Situational factors such as physical surroundings at the time of purchase, social surroundings and
time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending on the
nature of products. For example, kids prefer colourful and fancy footwear, but as they grow up as
teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior citizens they
prefer more sober footwear. The change in buying behaviour may take place due to several other
factors such as increase in income level, education level and marketing factors.

3. Varies from consumer to consumer

All consumers do not behave in the same manner. Different consumers behave differently. The
differences in consumer behaviour are due to individual factors such as the nature of the consumers,
lifestyle and culture. For example, some consumers are technoholics. They go on a shopping and
spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical means to spend
on shopping of advance technologies. But there are other consumers who, despite having surplus
money, do not go even for the regular purchases and avoid use and purchase of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the behaviour of
the urban consumers is different from that of the rural consumers. A good number of rural consumers
are conservative in their buying behaviours.

The rich rural consumers may think twice to spend on luxuries despite having sufficient funds,
whereas the urban consumers may even take bank loans to buy luxury items such as cars and
household appliances. The consumer behaviour may also varies across the states, regions and
countries. It may differ depending on the upbringing, lifestyles and level of development.

5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to study the
various factors that influence the consumer behaviour of their target customers.

The knowledge of consumer behaviour enables them to take appropriate marketing decisions in
respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the decision of
buying a product on the basis of different buying motives. The purchase decision leads to higher
demand, and the sales of the marketers increase. Therefore, marketers need to influence consumer
behaviour to increase their purchases.
7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may buy more
quantity of certain items and very low or no quantity of other items. For example, teenagers may
spend heavily on products such as cell phones and branded wears for snob appeal, but may not spend
on general and academic reading. A middle- aged person may spend less on clothing, but may invest
money in savings, insurance schemes, pension schemes, and so on.

8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The more a person buys
the goods and services, the higher is the standard of living. But if a person spends less on goods and
services, despite having a good income, they deprives themselves of higher standard of living.

9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also reflects it. The
consumers who own luxury cars, watches and other items are considered belonging to a higher status.
The luxury items also give a sense of pride to the owners.

SCOPE
Demand Forecasting

Consumer behaviour helps in the forecasting of the demands for the business. Every business identifies
the needs and wants of the customers by understanding their behaviour. Forecasting helps them to find
out the unfulfilled demands in the market easily. If the company knows what their consumer wants,
they can design and produce the product accordingly.

The behaviour of the consumer plays an important role in forecasting the demand for the products. It
helps the company to identify the market opportunity available to them.

Marketing Management

Effective business managers know the importance of marketing towards the success of the business.
Understanding consumer behaviour is essential for the long-run success of any marketing program. A
better understanding of consumer needs and wants help the business to plan and execute the marketing
strategies accordingly.
Proper understanding of the behaviour of the consumer makes the company know its customers in a
better way. That ultimately helps businesses to strategize and implement marketing in a better way.

Non-profit and Social Marketing

In today's world, every non-profit business-like government sector, religious sector, universities,
charitable institution, runs the business's overall activity by implementing proper marketing plans for
the business. Also, they contribute to solving the problems of society. Thus, a clear consumer behaviour
process and decision-making contributed efforts towards the success of the business.

Selecting Target Market

Consumer behaviour helps the organization to select its target group from the market. Studying and
identifying consumer behaviour helps them to know the consumer segments with distinct features and
wants. It helps in segmenting the overall market into different groups.

Market Mix

Proper development and designing of all-important elements like product, price, place, and promotion
are essential for every business. It helps them to identify the likes and dislikes of the customers. This
helps marketers to design optimum marketing mix plans and improve the effectiveness of marketing
strategies. The proper implementation of a marketing mix helps organizations to attract more
customers, thereby increase profit.

Educating Customers

Consumer behaviour helps the marketer to know how consumers spend on buying decisions. By
understanding the customer's behaviour, a marketer can easily get an idea of how they can improve
their buying decision. The market can guide and suggest a way to save their money and give them better
options. Customers get aware of the opportunities available to them as per their behaviour.

Assists in Designing Product Portfolio

Designing the right product portfolio is a challenging task for every business. Every business should
design a portfolio that consists of all classes of the product. Consumer behaviour helps in identifying the
class and needs of the customers. It helps businesses to design the product which fulfils the
requirements of their customers. In this way, a business can design the optimum portfolio and serve its
customers better.

WHO ARE ORGANISATIONAL BUYER ? WHO WILL TAKE PART IN BUYING

PROCESS ?
Organizational buyers are individuals who represent a business. When they make purchases, these
buyers typically consider both their personal tastes and the suspected tastes of the customers to whom
the organizational buyer's business will sell.

The five main roles in a buying center are the users, influencers, buyers, deciders, and gatekeepers. In a
generic situation, one could also consider the roles of the initiator of the buying process (who is not
always the user) and the end users of the item being purchased.

DEFINE THE PROCESS CONSUMER BUYING BEHAVIOUR ?

Identify the Problem. This is the first stage of the buying process. ...

Information search. At this stage, the consumer is aware of his need or want. ...

Evaluation of Alternatives. ...

Purchase Decision/Purchase. ...

Post-Purchase Evaluation.

What is the Importance of consumer buying behavior?

1) Increase revenue – The importance of consumer buying behavior lies in the fact, that we can improve
our sales figures when we study the customers. We can alter the way we sell our products depending on
the ways that customers buy them.

2) Brand equity – Why are brand restructuring or image restructuring exercises done in top companies?
It is with consumer insight that the brand decides it needs to restructure itself, to change its perception
in the mind of people, thereby getting higher turnovers. This too, can happen when you analyse
consumer behavior.

3) Product portfolio – Continuous observation of consumer behavior can enable you in finding gaps in
your product portfolio, which can in turn help you launch new products to the ultimate satisfaction of
your customers. Samsung is an excellent of a company which keeps expanding its product portfolio.
4) Market trends – As the market trend shifts, a consumer analysis will be the first indicator of the same.
The recent shift towards environment friendliness, and health food is a trend observed even by the likes
of McDonalds who are bring healthier food to their calorie loaded menu.

5) Segmentation and targeting – Your current customers are a clear indication of who your future
customers are going to be. If my current customers are 50% impulsive, then the future customers too
will be impulsive. If BMW’s current customers are with an income of above 40 lakhs a year, then its
future customers will also be with the same income. Segmentation and targeting becomes easier when
you are observing consumer behavior.

6) Forecasting – Whether it be demand forecasting or sales forecasting, both of them are possible and
therein lies the importance of consumer buying behavior. The company will not waste it resources for a
product which is going to sell in summers, because the company knows that the customers are not going
to buy it in winters. Hence by analysing consumer buying behavior, the company has saved warehousing
costs, manufacturing costs and marketing costs as well. In essence, forecasting as well as proper
utilisation of resources is achieved.

7) Competitive analysis – One of the most important reasons to study consumer behavior is to find out
which competitor’s products the customer is buying and WHY? What are the attributes and the features
that the customer is valuing above your company? And can you cover those gaps to take away these
customers from competition? All this can be answered only by studying consumer buying behavior.

WRITE A DETAILED NOTE ON BUYING MOTIVE? WITH SUITABLE EXAMPLE?

Buying motive is the urge or motive to satisfy a desire or need that makes people buy goods or services.
Behind every purchase there is a buying motive.

It refers to the thoughts, feelings, emotions and instincts, which arouse in the buyers a desire to buy an
article. A buyer does not buy because s/he has been persuaded by the salesman, but s/he buys for the
aroused desire in him or her. Motives should be distinguished from instincts.

A motive is simply a reason for carrying out a particular behaviour and not an automatic response to a
stimulus, whereas instincts are pre-programmed responses, which are inborn in the individual and
involuntary. Thus hunger is an instinct whereas desire to purchase pizza is a buying motive. According to
Prof. D. J. Duncan, “Buying Motives are those influences or considerations which provide the impulse to
buy, induce action and determine choice in the purchase of goods and services.”
“FACTORS ARE THE REASON WHICH EFECT ONE OBJECTIVE TO GREAT EXTENT”
EXPLAIN THE FACTOR CONSUMER IN DETAILS ?
1. Psychological Factors

Human psychology is a major determinant of consumer behavior. These factors are difficult to measure
but are powerful enough to influence a buying decision.

2. Social Factors

Humans are social beings and they live around many people who influence their buying behavior.
Human try to imitate other humans and also wish to be socially accepted in the society. Hence their
buying behavior is influenced by other people around them.

3. Cultural factors

A group of people are associated with a set of values and ideologies that belong to a particular
community. When a person comes from a particular community, his/her behavior is highly influenced by
the culture relating to that particular community.

4. Personal Factors

Factors that are personal to the consumers influence their buying behavior. These personal factors differ
from person to person, thereby producing different perceptions and consumer behavior.

5. Economic Factors

The consumer buying habits and decisions greatly depend on the economic situation of a country or a
market. When a nation is prosperous, the economy is strong, which leads to the greater money supply in
the market and higher purchasing power for consumers. When consumers experience a positive
economic environment, they are more confident to spend on buying products.Whereas, a weak
economy reflects a struggling market that is impacted by unemployment and lower purchasing power.

What is consumer problem solving?

There are three kinds of consumer problem solving: routinized response behavior, limited problem
solving, and extended problem solving. ... Consumers engage in extended problem solving when
purchasing an unfamiliar, expensive, or infrequently bought product. Recognize the stages of the
consumer buying decision process.
We may define three kinds problem solving spread over a continuum; these are referred to as
the levels of consumer decision making; (i) Extensive problem solving (EPS) (ii) Limited problem
solving (LPS) (iii) Routinized problem solving (RPS) or routinized response behavior.

Unit 2
EXPLAIN THE CONCEPT OF PERCEPTION ? HOW DOES IT IS GOING TO INFLUENCE
CONSUMER BEHAVIOUR IN RIGHT WAY ?

customer perception' refers to customers' awareness, their impressions, and their opinions
about your business, products, and brand. Customer perception is shaped by multiple variables,
including direct and indirect interactions with your offerings.

Perception is the process of selecting, organizing, and interpreting information. This process
includes the perception of select stimuli that pass through our perceptual filters , are organized
into our existing structures and patterns, and are then interpreted based on previous
experiences.

INFLUENCE

Consumer perception can make or break your brand. When customers had a pleasant
experience of getting their products delivered on time they form a perception. ... the customers
build a different perception about the brand. Customer perception or consumer perception
plays a major role in buying behavior.

factors that influence customer perception

1.Customer reviews. Ninety-three percent of customers read online reviews before

purchasing. ...

2.Marketing. It's likely not a big surprise that the way you showcase your brand through
marketing has a big impact on how customers perceive you. ...

3.Company values. ...

4.Customer support quality.

EXPLAIN THE CONCEPT OF PERSONALITY ? WHAT ARE THE DETERMINANTS OF

PERSONALITY WHICH INFLUENCE THE CONSUMER BUYING DECISSION ?
Personality has many meanings. In consumer studies, personality is defined as consistent
responses to environmental stimuli or we can also say patterns of behaviour that are consistent
and enduring. An individual’s personality helps marketers to describe consumer segments as it
provides for orderly and coherently related experiences and behaviour.

Personality characteristics may be a basis for product positioning. For example, one segment of
the market may die because they want to stick to the group norms and therefore uses diet
product. In contest another segment is on diet because of internal need.

The personal factors include age, occupation, lifestyle, social and economic status and the
gender of the consumer. These factors can individually or collectively affect the buying
decisions of the consumers

NATURE OF PERSONALITY
A. PERSONALITY REFLECTS INDIVIDUAL DIFFERENCE –
1.Each individual has a special set of unique characteristic and is unique by himself
2.Some individual are highly sociable where some are low on sociability
3.Consumer can be grouped together based on this identified personality trait

B. PERSONALITY IS CONSISTENT AND ENDURING -

1. An individuals personality tends to be both consistent and enduring

2. helps in predicting consumer behavior over a period of time in terms of their personality

WHAT IS THE CONCEPT OF SELF IMAGE ? HOW CAN A MARKETER USE IT ?

Traits, characteristics, qualities and mannerisms of behavior, all put together create the self-
image of a person. This self-image arises out of the person’s background, values, lifestyles,
experiences, etc. as well as interactions with parents, family, friends, peers etc. In terms of
marketing also, we as consumers possess a self-image. Similar to relationship between self-
concept and brand personality, there also exists a relationship between self-image and the
brand personality. Consumers match the product and/or brand personalities, with their self-
image, and buy those where they find a close or perfect match. In this manner they attempt to
reaffirm and preserve their self-image. Based on findings from research undertaken in
consumer behavior, various kinds of self-images have been identified, viz., actual self-image
(how a consumer perceive himself), ideal self-image (how he would like to perceive himself),
social self-image (how a consumer feels others perceive him, or how they think of him), ideal
social self-image (how the consumer would like others to perceive him), and expected self-
image (how the consumer expects to see himself in future). The expected self-image refers to
something that lies between the actual and the ideal self-image, in other words, it is something
what the consumer would like to be. It needs to be mentioned here that very often consumers’
seek to “alter their self”, and try and go for a personality change, for example they could go in
for fashion apparel, grooming and cosmetic surgery, etc., and try and reach an ideal self. As a
consumer, which of the self-images comes into play would depend upon the i) product/service
offering and, ii) the situational factors, which would include social visibility of purchase and
usage, and the importance/relevance of the purchase for the person’s self-image. For example
for convenience goods or day-to-day household goods, the consumer would base his purchase
on his actual self-image. On the other hand, for shopping goods or specialty goods, he would be
guided by the social selfimage or the ideal self-image. This could have implications for a
marketer in terms of market segmentation and positioning. Self-image can be used as a basis to
segment the market, and the marketer can then position his product/service offering as a
symbol of such self-images

Consumers use products to support their self-concepts. Products and brands are an important
way consumers reflect and shape their identities. ... Marketing to the actual self involves
showing that you understand the consumer and “where she / he's at.” You target your
marketing messages based on facts about your prospects.

WHAT DO YOU UNDERSTAND BY THE TERM ATTITUDE ? FACTORS &

IMPORTANCE ?
From the marketing perspective, attitude can be defined as the set of beliefs and emotions a
consumer holds for a particular brand/product/service which determine the perception of that
consumer towards the former.

Why is attitude important in marketing?

Attitude study is important for the marketers because it affects consumers' selective processes,
learning, and ultimately the buying decision making. As consumers' attitudes influence their
intention to buy, knowledge of different aspects of consumer attitudes may help marketers
make a sales forecast of their products.

We can now appreciate the many individual characteristics and forces influencing consumer
behavior. Consumer choice is the result of a complex interplay of cultural, social, personal, and
psychological factors. We as marketers cannot influence many of these; however, they help the
marketer to better understand customer’s reactions and behavior.

Attitudes are defined as a mental predisposition to act that is expressed by evaluating a

particular entity with some degree of favor or disfavor. The value of attitude in marketing can
be explained in terms of its importance in prediction, diagnostic value and also as relatively
inexpensive information that is easily obtained.

WHAT DO YOU UNDERSTAND BY VALUE AND LIFESTYLE IN

CONSUMER BEHAVIOUR?
The interaction of group and individual expectations and values creates a systematic pattern of
behaviour. This is the lifestyle pattern that determines purchase decisions. When goods and
services available in the market are in tune with lifestyle patterns and values, consumer market
reactions are favourable.

TYPES & CONNECTION

LIFESTYLE IS A GROUP PHENOMENON

A person's lifestyle bears the influence of his/her participation in social groups

and of his/her relationships with others. Two clerks in the same office may exhibit

different lifestyles.

LIFESTYLE PERVADES VARIOUS ASPECTS OF LIFE

An individual's lifestyle may result in certain consistency of behaviour. Knowing

a person's conduct in one aspect of life may enable us to predict how he/she may behave

in other areas.

LIFESTYLE IMPLIES A CENTRAL LIFE INTEREST

For every individual there are many central life interests like family, work,

leisure, sexual exploits, religion, politics etc. that may fashion his interaction with the
environment.

LIFESTYLES VARY ACCORDING TO SOCIOLOGICALLY RELEVANT

VARIABLES

The rate of social change in a society has a great deal to do with variations in

lifestyles. So do age, sex, religion, ethnicity and social class. The increase in the number

HOW NEEDS AND MOTIVATIONAL FACTORS INFLUENCE CONSUMER

BEHAVIOUR ?
When a person is motivated enough, it influences the buying behaviour of the person. A person
has many needs such as the social needs, basic needs, security needs, esteem needs and self-
actualization needs. ... Hence basic needs and security needs have the power to motivate a
consumer to buy products and services.

They are inseparable attributes that influence the consumers to make their decision to buy or
not buy a product. ... A motivated consumer gets involved in research and analyses activities
pertaining to his purchase activity before taking the final decision.

i. Motivation

When a person is motivated enough, it influences the buying behaviour of the person. A person has
many needs such as the social needs, basic needs, security needs, esteem needs and self-actualization
needs. Out of all these needs, the basic needs and security needs take a position above all other needs.
Hence basic needs and security needs have the power to motivate a consumer to buy products and
services.

ii. Perception

Consumer perception is a major factor that influences consumer behavior. Customer perception is a
process where a customer collects information about a product and interprets the information to make
a meaningful image about a particular product.

When a customer sees advertisements, promotions, customer reviews, social media feedback, etc.
relating to a product, they develop an impression about the product. Hence consumer perception
becomes a great influence on the buying decision of consumers.

iii. Learning

When a person buys a product, he/she gets to learn something more about the product. Learning comes
over a period of time through experience. A consumer’s learning depends on skills and knowledge.
While a skill can be gained through practice, knowledge can be acquired only through experience.
Learning can be either conditional or cognitive. In conditional learning the consumer is exposed to a
situation repeatedly, thereby making a consumer to develop a response towards it.

Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a
solution from the product that he buys.

iv. Attitudes and Beliefs

Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Based
on this attitude, the consumer behaves in a particular way towards a product. This attitude plays a
significant role in defining the brand image of a product. Hence, the marketers try hard to understand
the attitude of a consumer to design their marketing campaigns.