Bus. Eco Research Paper
Bus. Eco Research Paper
Bus. Eco Research Paper
Of
At
Sanskriti
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ABSTRACT:
This paper will focus on all of the factors which have an influence on the
consumers regarding their buying decision making and on what basis the
consumers get ready to spend their limited income on. This study emphasizes
on evaluating the possible factors that are responsible for how much or how
little a consumer buys.
1. INTRODUCTION:
Consumer behavior is a central part of our life and it refers to the study of how
individual customers, groups or organizations select, buy, use and dispose
ideas, goods and services to satisfy their needs and wants. What influence the
ultimate consumer to buy a certain good or service and to invest their income
on those goods and services.
According to Louden and Bitta, ‘ consumer behavior is the decision process and
physical activity, which individuals engage in when evaluating, acquiring, using
or disposing of goods and services,
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Consumer behavior is a combination of factors that affect the consumer buying
behavior. A purchase decision is the result of each and every one of these
factors. An individual is led by his cultural, his social class, his family, his
In a study where 102 CX experts were asked about the CX challenges, Sean
Folan, vice president, Health industry Leader, Cronin Rightly says:
“As marketers, we need to put our own biases aside and see things through the
lens of our customers. We need to steep ourselves in their needs and desires,
focusing on key pain points and the opportunities to delight.”
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Annual growth in household spending:
Consumption categories FY94-FY05 FY05-FY15 FY15-FY25
Consumer differentiation
Design relevant marketing Program
Predicting market trend
Competition
Is the customer buying from your competitor?
Why is a consumer buying from your competition?
What features attract a consumer to your competitor`s
product?
What gaps are your consumers identifying in your
products when compared to your competitors?
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Understanding consumer behavior, and turning that data into actionable
insights, helps you to create a relationship of understanding and trust with
your consumers, which can ultimately increase in brand loyalty. It shows
the consumers that you have done your homework that you understand
their wants and needs, and that you have the solutions they are looking for.
Building that type of rapport with your audience is hugely valuable in
securing and retailing a customer base. According to recent reports, 76% of
consumers expect companies to understand their needs and expectations
and organizations that lead in customer experience outperform their
competitors on the S&P 500 index by 80%. So, not only do consumers
expect you to solve their problems companies also have to clearly
communicate that you do, or else they are likely to turn themselves.
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3. Objectives of the study:
These will be the main topics in which this study will do a finding.
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4. Factors affecting consumer behavior:
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The important social factors are:
5.3PERSONAL FACTORS:
Some of the important personal factors that influence the buying behavior are
lifestyle, economic situation, occupation, age, personality, and self concept,
Age: Age and life cycle have potential impact on the consumer buying
behavior. It is obvious that the consumer change the purchase of goods
and services with the passage of time.
Occupation: The occupation of a person has significant impact on the
buying behavior. For example, a marketing manager of an organization
will try to purchase business suits, and a low level worker in the same
organization will purchase rugged work clothes.
Economic situation: Consumer economic situation has great influence
on his buying behavior. If the income and savings of customer is high,
then he will purchase more expensive products. On the other hand a
person with low income and savings will purchase inexpensive products.
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Lifestyle: Lifestyle refers to the way a person lives in a society and is
expressed by the things in his/her surroundings. It is determined by
customer interests, opinions, activities etc. and shapes his whole pattern
of acting and interacting in the world.
Personality: Personality changes from person to person, time to time
and place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, personality is not what one wears
rather it is the behavior of a man in different circumstances. It has
different characteristics such as dominance, aggressiveness, self
confidence etc which can be useful to determine the consumer behavior
for particular product and service.
There are four important psychological factors affecting the consumer buying
behavior. These are perception, motivation, learning, beliefs and attitude.
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Attitudes and beliefs: Consumers attitude and beliefs also influences the
buying decision. 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.
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5. METHODOLOGY:
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There are two types of methods used in a research, quantitative and
qualitative. Under quantitative method, numerical data is collected and
analyzed. It can be used to find patterns and averages, make predictions,
test casual relationships, and generalize results to wider populations.
Whereas, qualitative method involves collecting and analyzing non-
numerical data (e.g. text, video, audio) to understand concepts, questions
or experiences.
This study includes both qualitative as well as quantitative data under it.
The use of both numerical data as well as non-numerical data is there in
this research.
6. LITERATURE REVIEW:
Kumar (2006), identified that a majority of the rural consumers give more
preference to the quality of the product in his research at rural India, which
showed that the income level of the rural consumer is increasing, which also
generates more consumption and purchasing power for the consumers.
Laldinliana(2012), The prominence of promotion effort made by the
marketers/ Producers of these durable products is captured by the ranking of
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choicest buying factors, especially so with two wheelers as seen from the
responses of more than a third of the household sample, pointing out
promotion to be the main factor influencing their purchase.
The marketing people should initiate the participants in the purchase decision
to make the purchases of the product at different marketing strategies. Engel,
et al. (1986, 5), define consumer behavior as
Psychology, social psychology, and sociology are the disciplines most widely
employed in this endeavor which has become a substantial academic industry
in its own right. In order to develop a framework for the study of consumer
behavior it is helpful to begin by considering the evolution of the field of
consumer research and the different paradigms of thought that have
influenced the discipline (Marsden and Littler, 1998).
The expand view of consumer embrace much more than the study of why and
what consumer buy, but also focuses on how marketer influence consumers
and how consumers use the products and services
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Howard and Sheth (1969), proposed one of the earliest models of consumer
behavior. The model integrates various social, psychological and marketing
influences on consumer choice and used to analyze purchasing behavior.
Howard and Sheth (1969) suggested that consumer decision making differs
according to the strength of the attitude toward the available brands; this
being largely governed by the consumer's knowledge and familiarity with the
product class. The definition of consumer behavior given by Belch (1998) is the
process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as to
satisfy their needs and desires. Behavior occurs either for the individual, or in
the context of a group, or an organization. Consumer behavior involves the use
and disposal of products as well as the study of how they are purchased.
7. DATA ANALYSIS:
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The above data shows the behavior of consumers based on different factors
like mix marketing, personal, social;, cultural and mental.
In the Fig. 1.1, we can clearly depict that most of the consumers make their
decision of buying products and services based on the marketing mix. In the
process of determining the decisions, consumers are influenced by marketing
mix. Marketing mix consists of product strategy, price strategy, distribution
strategy, and promotion strategy.
The next highest contributing factor is the mental factor or the psychological
factor. Psychological factor includes motivation, perception, learning, attitude,
belief system.
Third comes the personal factors. Personal factors such as occupation, age and
life cycle stage, economic situation, lifestyle, personality and self concept.
Next are the social factors which include reference groups, family, role and
status. A consumer`s family has a major impact on attitude and behavior, and
families themselves are critically important in society as consumer units.
Lastly comes the cultural factors. Cultural factors have a strong influence on
consumer buying behavior. Cultural factors includes the basic values needs,
wants, preferences, perceptions and behaviors that are learned by a consumer
from their near family members and other important people around them.
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Fig. 1.2
Figure 1.2 shows the reasons for consumers shifting to online shopping.
Also through online shopping we can compare the prices of multiple products
in no time. There are many sales which comes from time to time offering
better and lower prices. It saves much more time than offline shopping. It is
more convenient as we don`t have to go to the shops physically. It offers a
greater variety, free shipping offer, provides the convenience of everything at
one place, avoid crowds and it also avoids the checkout line. All these features
of online shopping are resulting in shifting the consumer behavior.
Fig. 1.3
The above table shows the choices of consumers in toothpastes. A survey was
conducted from several people, asking about their preferences over
toothpaste in terms of all factors. From that data it was depicted that Colgate
has the maximum number of consumers. Over half of the respondents
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preferred Colgate over toothpastes. Second preference of consumers was
close up which contributed 15% in total. Third was Peposedent contributing
about 14%. Fourth was Dabur with 10% preferences. Himalaya and Vicco
contributed about 4% and 3% respectively.
Fig. 1.5
The above figure shows some responses of respondents, in what way they
decide to buy a product. Like the quality of product, price of product,
information about the product and its substitutes, brand etc.
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8. CONCLUSION:
Consumer behavior refers to a process in which consumers select, buy and
utilize of products and services to meet consumer’s needs and desires.
Different processes are conducted in the consumers purchasing behavior.
Firstly, the consumers attempt of discovering which products they want to
consume, then they select merely those products that warrant greater efficacy.
After products are being selected, the buyers create a measurement of the
accessible finance that they are capable to allocate. Finally, the consumers
analyze the dominant prices of products and form the decision about the
products they should consume. During the interval, there are different factors
that influence on the purchases of Consumer likes civil components, cultural
components, personal components and psychological components also.
The motivation and perception also affect the consumer buying behavior and
surrounding of the consumer play a major role for influencing the buying
decision. This research helps in understanding of factor affecting consumer
buying behavior for decision making towards the products.
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9. REFERENCES:
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