Consumer Behaviour: Meaning/Definition and Nature of Consumer Behaviour Meaning and Definition
Consumer Behaviour: Meaning/Definition and Nature of Consumer Behaviour Meaning and Definition
Consumer Behaviour: Meaning/Definition and Nature of Consumer Behaviour Meaning and Definition
If through the study of consumer behaviour one is able to know correctly the factors which
influence buying decisions of the consumer one can promote sales of existing or new product.
The scheme of buying back old items has helped a lot LML in pushing sales.
This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto Akai.
T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure cookers etc. also
adopted the strategy and benefited.
Similarly, introduction of small packs of shampoos, washing powder and pan masala etc has
helped the companies to expand their market. “When producers found that even a poor person
does not mind trying a new costly product if it is available in affordable price pack many
companies introduced such packaging and when the product was liked they became regular
customers.
Segmentation of Market is helped:
The study of consumer behaviour suggested that everyone does not buy on price consideration or
utility consideration only. For high income group’s high priced cloth, cars, etc have been
produced. In certain cases the price of such cloth is three to eight times of normal suiting price
but some section still buy it for prestige or show.
The producers of such items make heavy profits which would not have been possible without
study of consumer behaviour because it is against basic economic theory. Even some producers
to cater different segments produce varieties of products such as soaps, creams, toothpastes etc.
Helps in Development of New Products:
Before launching a new product proper study of consumer tastes i.e. behaviour avoids later
failure and loss. This is particularly true for food items and daily consumption products. It is
equally true for fashion goods like garments, cosmetics, cigarettes and new flavours of existing
products. In certain cases if a product is reintroduced after a long gap this type of study helps.
For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget its taste
and liking. Thumps up and other drinks took its place. When Coca-Cola was reintroduced in 90’s
it could as yet not reach the same supremacy. Life Bouy re-oriented its product and produced
different items like Life Bouy Gold, Life Bouy Plus to meet demand of different consumers.
Helps in Product Orientation:
The study of consumer behaviour helps to find-out why consumers are drifting away from a
product or why they are not liking it. For instance, some of Indian toothpastes are being
produced for long like Neem but it could not capture the market. There are many other instances
when a new product has been developed or reoriented to again capture its old glorious position.
Those who do it scientifically succeed and others who do not study consumer behaviour properly
or do not orient loose the market, merely by pretty faces or fancy claims he wants to be assured
that what is claimed is really true.
Therefore, based on consumer research new techniques are used Hindustan Lever and Procter &
Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and Reliance
to testify claims of producers of these washing powders. This is not an isolated case but this type
of study had paid good results to others also.
Helps in Reorientation of Packaging:
A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by consumers or not
is a recent phenomenon. Consumer if likes a packing helps in pushing sales.
Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain cases
this fact is advertised also. But in many cases this has been done without study of consumer
behaviour and his attraction or disliking of a particular packaging. The fact however remains that
proper study can help in pushing sales.
Helps Consumers to Study their Behaviour:
The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behaviour whether it is scientific or not. The science, however, can help
them to study cost benefit of their buying decisions. The study can reveal them whether buying
an expansive item is rational, or not.
Whether they should buy Rs. 2 ball pen or fancy pen costing Rs. 100 or more. Whether they
should decide in favour of expensive cloth, car, consumer durables and other fashion goods or
should they buy on utility consideration. If there are competitive goods it can help them to make
consumer preference chart and then decide what to buy immediately and what to postpone and
what should be rejected.
Disadvantages of Study of Consumer Behaviour:
The marketers study the behaviour of consumer to mold it in favour of their product and
sometimes make fancy claims and use objectionable techniques. They also take the help to
produce and market such products which have no utility. In many cases consumers are exploited
by sexy or otherwise attractive advertisements through the media.
They take full advantage of weaknesses of consumers to mold it in their favour whether it is
scheme of exchange, gifts, lotteries or otherwise. All over the world consumers have been
exploited by sales promotion schemes and campaigns. For instance producers certain producers
claim that use of their tooth paste will guard against germs and cavity.
Producers of medicines claim cure of certain diseases. Producers of hair oils claim that it will
stop falling of hairs and/or new hairs will start growing. Slim centres claim to reduce weight in
magic speedy manner. Someone claims that baldness can be cured by replanting of new hairs in
short period. Someone claims regeneration of vitality even in old person.
Any number of examples can be given but such claims sometimes even by big companies are
only partially true. High priced products are introduced to take advantage of consumers
weakness just by changing shape, packing etc. Customers are attracted by gifts, lotteries,
exchange schemes, etc.
In such cases often claims are exaggerated and benefits in the form of sales promotion scheme is
only to seller and not to buyer. The government in most of the countries has found that though
consumer is the king he is exploited. Hence most of countries have framed and enacted many
acts and regulations to safe guard the interest of consumers.
In India also there are a large number of laws in this direction like Monopoly and Restrictive
Trade Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act,
compulsory printing of maximum retail price on each packing, weights and Measures Act and
Code of Advertising.
Conclusion:
The study of consumer behaviour basically is to mold consumer behaviour and his decisions by
market man and to avoid failure of their product, promote new products and for sales promotion.
The science at times is misused and to protect consumers there are a number of enactments both
in India and other countries. Actually consumer movement in India is much weaker than other
developed countries because till a decade back India was sellers’ market and competition is of
recent origin.
The study of consumer behaviour has proved that following are the main factors which
influence the behaviour:
1. Economic Factors:
Price
Income
Distribution of Income
Competition with substitutes
Utility
Consumer preferences
2. Social Factors:
Culture
Attitude of society
Social values
Life Style
Personality
Size of family
Education
Health standards
Social class like upper class, middle class-urban, rural. It also includes tribes, professions and
alike.
Group:
In certain societies and tribes group decision is taken or influences the decision.
3. Psychology:
It decides the personality, taste, attitudes of individuals or groups, life style, preferences
especially on occasions like marriage. The demonstration influence is also dependent upon
psychology of an individual.
4. Anthropology & Geography:
Climate, region, history all effect, consumer behaviour. In hot countries like India certain
products which keep us cool like squashes, sarbatas, are demanded but they have no demand in
cold regions. The dress is also influenced by climate along with other factors. Culture is also
influenced by climate.
5. Technology:
In case of equipment’s whether for consumer use or industrial use is affected by technological
innovations and features. But it is not confined to durable goods only. Even in case of perishable
goods the shelf life etc are determined by technological developments. Innovations and
introduction of new product also depends upon technological development.
Innovations and introduction of new products also depend upon technological change.
6. Others:
Knowledge-technical or otherwise and information. Government decisions, laws, distribution
policies, production policies have also big affect on consumer behaviour. All these factors are
studied by consumer behaviour scientists and then they decide what production and marketing
strategy should be adopted to develop a particular product, change the existing product and what
pricing and marketing mix should be used to attract more customers towards the product/service
in question to optimize sales and profits.
The consumer behaviour study in India has been ignored except by MNC’s and a few big
companies. It is because till recently say up to the beginning of 90’s there was sellers market and
anything could be sold. Therefore, hardly any attention was paid to consumer. For instance
Hindustan Motors continued to produce same car for decades till Maruti appeared on the arena.
But with the competition emerging many cars, refrigerators, TV’s to mention a few items
appeared on the scene.
This resulted into study of consumer behaviour and in future when competition is expected to be
fierce for many products and when not only American and European producers will be on the
scene but Japan and Korea are emerging big players there will be much greater emphasis on
study of consumer behaviour. The establishment of over 700 management institutes is also
helping greater use of the tool of consumer behaviour for marketing.
The Six Stages of the Consumer Buying Process and How to Market to Them
Far too often, retailers think that consumer buying is randomized. That certain products appeal to
certain customers and that a purchase either happens or it doesn’t. They approach product and
service marketing in the same way, based on trial and error. What if there were a distinctive set
of steps that most consumers went through before deciding whether to make a purchase or not?
What if there was a scientific method for determining what goes into the buying process that
could make marketing to a target audience more than a shot in the dark?
The good news? It does exist. The actual purchase is just one step. In fact, there are six stages to
the consumer buying process, and as a marketer, you can market to them effectively.
1. Problem Recognition
Put simply, before a purchase can ever take place, the customer must have a reason to believe
that what they want, where they want to be or how they perceive themselves or a situation is
different from where they actually are. The desire is different from the reality – this presents a
problem for the customer.
However, for the marketer, this creates an opportunity. By taking the time to “create a problem”
for the customer, whether they recognize that it exists already or not, you’re starting the buying
process. To do this, start with content marketing. Share facts and testimonials of what your
product or service can provide. Ask questions to pull the potential customer into the buying
process. Doing this helps a potential customer realize that they have a need that should be solved.
2. Information Search
Once a problem is recognized, the customer search process begins. They know there is an issue
and they’re looking for a solution. If it’s a new makeup foundation, they look for foundation; if
it’s a new refrigerator with all the newest technology thrown in, they start looking at refrigerators
– it’s fairly straight forward.
As a marketer, the best way to market to this need is to establish your brand or the brand of your
clients as an industry leader or expert in a specific field. Methods to consider include becoming a
Google Trusted Store or by advertising partnerships and sponsors prominently on all web
materials and collaterals.
Becoming a Google Trusted Store, like CJ Pony Parts – a leading dealer of Ford Mustang parts –
allows you to increase search rankings and to provide a sense of customer security by displaying
your status on your website.
Increasing your credibility markets to the information search process by keeps you in front of the
customer and ahead of the competition.
3. Evaluation of Alternatives
Just because you stand out among the competition doesn’t mean a customer will absolutely
purchase your product or service. In fact, now more than ever, customers want to be sure they’ve
done thorough research prior to making a purchase. Because of this, even though they may be
sure of what they want, they’ll still want to compare other options to ensure their decision is the
right one.
Marketing to this couldn’t be easier. Keep them on your site for the evaluation of alternatives
stage. Leading insurance provider Geico allows customers to compare rates with other insurance
providers all under their own website – even if the competition can offer a cheaper price. This
not only simplifies the process, it establishes a trusting customer relationship, especially during
the evaluation of alternatives stage.
4. Purchase Decision
Somewhat surprisingly, the purchase decision falls near the middle of the six stages of the
consumer buying process. At this point, the customer has explored multiple options, they
understand pricing and payment options and they are deciding whether to move forward with the
purchase or not. That’s right, at this point they could still decide to walk away.
This means it’s time to step up the game in the marketing process by providing a sense of
security while reminding customers of why they wanted to make the purchase in the first time.
At this stage, giving as much information relating to the need that was created in step one along
with why your brand, is the best provider to fulfill this need is essential.
If a customer walks away from the purchase, this is the time to bring them back. Retargeting or
simple email reminders that speak to the need for the product in question can enforce the
purchase decision, even if the opportunity seems lost. Step four is by far the most important one
in the consumer buying process. This is where profits are either made or lost.
5. Purchase
A need has been created, research has been completed and the customer has decided to make a
purchase. All the stages that lead to a conversion have been finished. However, this doesn’t mean
it’s a sure thing. A consumer could still be lost. Marketing is just as important during this stage
as during the previous.
Marketing to this stage is straightforward: keep it simple. Test your brand’s purchase process
online. Is it complicated? Are there too many steps? Is the load time too slow? Can a purchase be
completed just as simply on a mobile device as on a desktop computer? Ask these critical
questions and make adjustments. If the purchase process is too difficult, customers, and therefore
revenue, can be easily lost.
6. Post-Purchase Evaluation
Just because a purchase has been made, the process has not ended. In fact, revenues and
customer loyalty can be easily lost. After a purchase is made, it’s inevitable that the customer
must decide whether they are satisfied with the decision that was made or not. They evaluate.
If a customer feels as though an incorrect decision was made, a return could take place. This can
be mitigated by identifying the source of dissonance, and offering an exchange that is simple and
straightforward. However, even if the customer is satisfied with his or her decision to make the
purchase, whether a future purchase is made from your brand is still in question. Because of this,
sending follow-up surveys and emails that thank the customer for making a purchase are critical.
Take the time to understand the six stages of the consumer buying process. Doing this ensures
that your marketing strategy addresses each stage and leads to higher conversions and long-term
customer loyalty.
Modern Consumer Behavior (from the perspective of developing nations)
Nowadays, consumerism is an understanding that serve as a lifestyle that considers luxury goods
as a measure of happiness, pleasure and self-gratification. This culture can be regarded as an
example of frugal lifestyle. If this culture of consumerism has become a lifestyle, it will increase
an indicator that can never be satisfied by what we consume and make comparisons to what other
people do. Today consumers from various aspect of life have not been able to prioritize items
that they need because of following their desire too much.
Without realize, strange habit for a lot of consumers is now become a desire that need to be
fulfilled immediately, always never enough in everything, and never being content with what
they have today. Needs that included daily food, fashion, transportation, technology, housing and
so forth. Consumers always have desire to own everything because for them it is important for
their daily life.
If we are able to recall the Economic lessons when during high school or university, we will
remember a discussion about various human needs. In priority, human needs are divided into
two, namely; 1. The Primary Needs (core needs to be met), for example clothing, food and
accommodation; 2. Secondary Needs (requirement that serves as a supplement and complement
in life), for example mobile phones, laptops, and others. However, as we see that those needs
now being shifted in position between primary and secondary. People are concerned more of
their secondary needs that must be met first.
Since the development of industries in developed countries such as food, clothing,
communications, transportation and services the availability of goods and services increased
rapidly. The part that has the most important role regarding to this is the promotion through the
media, advertising and virtual world (online). In addition to the increasing number of products
and services, there are a lot of easy ways to get the things that they want. We just look at the
reality that exist today, many supermarkets, mini-markets and shopping centers (malls) are
within reach. It also created a consumption-oriented society.
The reality of what we seen today is most consumers consume something not based of its
functional aspect, but on the trend that currently developing. Concrete example is consumers
prefer shopping in a mall rather than market or store. Mostly because of discounts offered,
comfortable place and easily to get around. Another example is the consumption of more
branded communication gadgets like Apple, Blackberry, and other sophisticated android gadgets.
This modern consumer behavior that emphasizes the object as a measure of pleasure and
enjoyment will drag consumers into generation that shadowed by popularity to gain recognition,
and look at life in a narrow perspective based only on what is currently trending.
As a conclusion, the proper solution to control the development of this consumerism culture is to
make a priority on something to be consumed in order to be used effectively. Then also applies
to “independent lifestyle” to self-recognize on the advantages and disadvantages, also have a
strategy to reach the goal. With discipline to form an “independent lifestyle”, this consumerism
culture is no longer able to trap consumers. They will be free and independent to make their
choice responsibly and creating a more positive generation of consumers.
Classification of Buying Motives: Product Buying and Patronage Buying
Classification of Buying Motives: Product Buying and Patronage Buying!
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.” Buying motives are can be divided by the following way:
When a buyer decides to purchase a product without thinking over the matter logically and
carefully (i.e., without much reasoning), she is said to have been influenced by emotional
product buying motives. Emotional product buying motives include the following:
1. Pride or Prestige:
Pride is the most common and strongest emotional buying motive. Many buyers are proud of
possessing some product (i.e., they feel that the possession of the product increases their social
prestige or status). In fact, many products are sold by the sellers by appealing to the pride
prestige of the buyers. For instance, diamond merchants sell their products by suggesting to the
buyers that the possession of diamonds increases their prestige or social status.
2. Emulation or Imitation:
Emulation, i.e., the desire to imitate others, is one of the important emotional buying motives.
For instance, a housewife may like to have a silk saree for the simple reason that all the
neighbouring housewives have silk sarees.
3. Affection:
Affection or love for others is one of the stronger emotional buying motives influencing the
purchasing decisions of the buyers. Many goods are purchased by the buyers because of their
affection or love for others. For instance, a husband may buy a costly silk saree for his wife or a
father buy a costly watch for his son or daughter out of his affection and love.
4. Comfort or desire for comfort:
Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In
fact, many products are bought comfort. For instance, fans, refrigerators, washing machines,
cushion beds, etc. are bought by people because of their desire for comfort.
5. Sex appeal or sexual attractions:
Sex appeal is one of the important emotional buying motives of the buyers. Buyers buy and use
certain things, as they want to be attractive to the members of the opposite sex. Men and women
buy cosmetics, costly dresses, etc., because of this emotional motive, i.e., sex appeal.
6. Ambition:
Ambition is one of the emotional buying motives. Ambition refers to the desire to achieve a
definite goal. It is because of this buying motive that, sometimes, customers buy certain things.
For instance, it is the ambition that makes many people, who do not have the facilities to pursue
their college education through regular colleges, pursue their education through correspondence
courses.
7. Desire for distinctiveness or individuality:
Desire for distinctiveness, i.e., desire to be distinct from others, is one of the important emotional
buying motives. Sometimes, customers buy certain things, because they want to be in possession
of things, which are not possessed by others. Purchasing and wearing a particular type of dress
by some people is because of their desire for distinctiveness or individuality.
8. Desire for recreation or pleasure:
Desire for recreation or pleasure is also one of the emotional buying motives. For instance,
radios, musical instruments, etc. are bought by people because of their desire for recreation or
pleasure.
9. Hunger and thirst:
Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks,
etc. are bought by the people because of this motive.
10. Habit:
Habit is one of the emotional considerations influencing the purchasing decision of the
customers. Many customers buy a particular thing because of habit, (i.e. because they are used to
the consumption of the product). For instance, many people purchase cigarettes, liquors, etc.
because of sheer habit.
B. Rational Product Buying Motives:
When a buyer decides to buy a certain thing after careful consideration (i.e. after thinking over
the matter consciously and logically), s/he is said to have been influenced by rational product
buying motives. Rational product buying motives include the following:
1. Safety or Security:
Desire for safety or security is an important rational buying motive influencing many purchases.
For instance, iron safes or safety lockers are bought by the people because they want to
safeguard their cash, jewelries etc., against theft. Similarly, vitamin tablets, tonics, medicines,
etc., are bought by the people because of this motive, i.e. they want to safeguard their health and
protect themselves against diseases.
2. Economy:
Economy, i.e. saving in operating costs, is one of the important rational buying motives. For
instance, Hero Honda bikes are preferred by the people because of the economy or saving in the
operating cost, i.e. petrol costs.
3. Relatively low price:
Relatively low price is one of the rational buying motives. Most of the buyers compare the prices
of competing products and buy things, which are relatively cheaper.
4. Suitability:
Suitability of the products for the needs is one of the rational buying motives. Intelligent buyers
consider the suitability of the products before buying them. For instance, a buyer, who has a
small dining room, naturally, goes in for a small dining table that is suitable, i.e. that fits in well
in the small dining room.
5. Utility or versatility:
Versatility or the utility of a product refers to that quality of the product, which makes it suitable
for a variety of uses. Utility of the product is one of the important rational buying motives.
People, often, purchase things that have utility, i.e. that can be put to varied uses.
6. Durability of the product:
Durability of the product is one of the most important rational buying motives. Many products
are bought by the people only on the basis of their durability. For instance, buyers of wooden
furniture go in for teak or rosewood table, though they are costlier, as they are more durable than
ordinary wooden furniture.
7. Convenience of the product:
The convenience of the product (i.e. the convenience the product offers to the buyers) is one of
the important rational product buying motives. Many products are bought by the people because
they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought
by the people because of the convenience provided by them.