Meaning of Consumer Behaviour:

Consumer refers to a person who buys goods or services for his

personal or household use and not for resale
Consumer behaviour or buyer behaviour is that behaviour exhibited
by consumers in planning, purchasing and using economic goods and
services for the satisfaction of their wants

Definition of Consumer Behaviour:

According to Walters and Paul, “ consumer behavior is the process
whereby individuals decide what, when where, how and from whom
to purchase goods and services.
According to Webster, “Buyer behaviour is all psychological, social
and physical behaviour of potential customers as they become aware
of, evaluate, purchase, consume and tell other people about products
and services.
Importance /significance of consumer behaviour
1. Production policies
The study of consumer behaviour affects the production policies of
the business. Consumer behaviour discovers, needs, tastes, choices of
consumers, and such discovery enables the business to plan and
implement products according to these specifications. Therefore,
every business needs to be in constant touch with the change in
consumer behaviour to make necessary changes in outcomes on time.
2. Pricing policies
Consumer behaviour is equally important in having a price
policy. The buyer only purchases your product, which is cheaper
or has distinctive features than your competitor's.
3. Decision Regarding the Channel of Distribution
The goods and services sold solely based on the low prices must
have an economical distribution channel. In the case of such
products like T.V. sets, Air Conditioner, etc., must have
different distribution channels. Thus, decision-related to the
channel of distribution is taken based on consumer behaviour.
4. Decision Regarding Sales Promotion
 Consumer behaviour plays a vital role in deciding the sales
promotion. It enables the producer to motivate and encourage
the consumer to make a purchase decision. The same is used in
promotional campaigns to awaken the desire to purchase the
product.
5. Exploiting Marketing Opportunities
The study of consumer behaviour helps a marketer identify the
needs, wants, desires and problems, etc., of the consumer. This
information and knowledge help the marketer exploit market
opportunities and meet the challenges in the market.
6. Consumer do not Always Act or React Predictably
The consumers compare the past to react to price levels as if
price and quality had positive relations. Today, the consumer
gives less value for money but gives more attention to superior
features.
7. Highly Diversified Consumer Preferences
Consumers can shift from one product to another due to the
unavailability of choices. Thus, a proper understanding of
consumer behaviour will help you identify changes in
consumers' preferences. It also helps in retaining and sustaining
the customer for a long time.
8. Implementing Marketing Concepts
All customers need to be given equal importance; therefore,
implementing and identifying the target market before
production is important to deliver the desired customer
satisfaction
What are the factors influencing consumer behavior?
The marker understand the action of the consumer in the market place
and understand motives for such actions. These motives are the
factors that influence the consumer behaviour

1. Psychological Factors
Interestingly, human psychology is actually an integral factor that
influences consumer behavior although these factors aren’t exactly
easy to measure. A few integral psychological factors driving the
behavior of consumers are :
 Motivation

Motivation actually becomes a considerable defining factor

influencing a person’s buying behavior. A motive is the inner
urge that moves a person to some action. A motive can be
defined as a drive or an urge for which an individual seeks
satisfaction.
A popular motivation theory is Maslow's theory of hierarchy of
needs in which he developed a model that lays the foundation
for 5 different levels of human needs where he lays the base
with psychological needs and moves on to safety needs, social
needs, esteem needs and finally heading to self-actualization
needs. Amongst these requirements, our basic requirements and
security needs are generally put above all needs.
Motivations is one of the internal or psychological factors
influencing consumer buying behaviour.
 Perception

how the person acts is infulencced by his perception of the

situation. Two persons with the same motivation and in the same
situation may act quite differently , if they perceive the situation
differently.
Whenever we see an advertisement, review, feedback or
promotion regarding a product, we form an image of that item.
As a result, our perception plays an integral role in shaping our
purchasing decisions.
Being in the times where we are gathering constant information
by simultaneously surfing through the Internet, watching TV, and
exploring through our cell phones, the perception we gain
through all these resources plays a definite role in regulating our
consumer behavior.
 Learning

Every time we purchase a product we get a deeper knowledge

about it through experience. This learning mainly depends on our
experience, knowledge, and skills.
 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.
 personality:

It refers to his personal traits and qualities that determine his

behaviour

2. Social Factors
We are all social animals so of course our purchasing
decisions are impacted to some extent by the people around.
We are constantly working on imitating other human beings.
As a result social factors influence our buying behavior
regarding items. Some of these factors include :

 Family
Our families actually have a considerable role to
play in impacting our purchasing behavior. We
form an inclination or aversion towards certain
products from our childhood by observing our
families use that product and persist in using
those products as we grow up.
 Reference Groups
 Reference groups are basically groups of people with whom
we associate ourselves. These include clubs, schools,
professional or playgroups, churches, and even acquaintances
or a group of friends, etc. The people in the reference groups
normally have a common pattern of purchasing and an
opinion leader who influences them in terms of their buying
behavior.
 Social class; to which consumer belong. It is a
combination of various factors such as income,
occupation, education, authority, power, life style etc.
 Culture: it is a unique set of learned beliefs , values,

attitudes , morals, customs, habits traditions , philosophy

and forms of behaviour shared by the people in the
society and transmitted fro generation to generation
within the that society.

3. Economic factors
Product preference, frequency of buying , quality and
quantity of buying largely affected by consumer economic
circumstance
 Personal Income:
Our personal income is the criteria that dictate the level of
money we will spend on buying goods or services. There
are primarily two kinds of personal incomes that a
consumer has namely disposable income and
discretionary income

 Family Income:
Our family income is actually an aggregate of the sum
total of the income of all our family members. This
income also plays a considerable role in driving consumer
behavior. The income that remains after meeting all the
 basic life necessities is what is then used for buying
various goods, branded items, luxuries, durables, etc.

 Income Expectations:
our future income expectations also have a role to play.
For instance, if we expect our income to rise in the future,
we would naturally spend a greater amount of money in
purchasing items. And of course, in case we expect our
income to take a plunge in the near future, it would have a
negative influence on our expenditure.

 Savings:
The savings generated from our personal income are also
regulating our buying behavior. For instance, if we take
the decision of saving more from our income for a certain
period of time, our expenditure on goods and services
would be lesser and for that period and if we wish to save
less, our expenditure on such items would increase.

 Liquid Assets:
Even the liquid assets we’ve maintained influence our
purchasing behavior. If we have more liquid assets, there
is a greater likelihood of us spending more on luxuries
and shopping items. Lesser liquid assets meanwhile result
in lesser expenditure on these items.

 Consumer Credit:
The consumer credit refers to the credit facility available
to the consumers desirous of purchasing durable comforts
and luxuries.. This credit is normally provided by sellers,
either directly or indirectly via banks or financial
institutions. If we have flexible credit terms as well as
accessible EMI schemes, our expenditure on items is
 likely to increase and in less flexible credit terms would
result in the opposite.

4. Personal Factors
Factors which is personal to the individual influence the
buyer behaviour. It includes

 Age
Age is one of the primary factors that impact our
preferences. The vibrant and flashy purchasing choices
of a teenager would obviously differ from what an
elderly person purchases. Meanwhile, we have middle-
aged people who are naturally more focused on
purchasing properties, houses, or vehicles.

 Income
Our income definitely impacts our purchasing behavior.
The higher our income, the more purchasing power we
hold and vice versa. Higher disposable income compels
us to spend more on luxurious items while a lower or
mediocre income makes us spend more on our basic
needs like education, groceries, and clothing.

 Occupation
Our occupation largely steers our purchasing decision
making. We all tend to purchase the items that are
relevant or suitable for our profession. For instance, a
businessman would have a different clothes purchasing
pattern in comparison to an artist.

 Lifestyle
 Our way of life is one of the most powerful influencers
that controls our choices. Our lifestyle dominates our
buying behavior quite significantly. Suppose we are on a
diet then the products we purchase will also complement
our diet, from food, weighing scale to using protein.

Other factors
a. Political factors
Political factors have an important impact on the pattern
of consumption. In controlled economy, the consumption
pattern is determined by the government . but in a free
capitalistic economy , consumers have economic
freedom and wider choice and are free to spend their
income in any they like.

b. Legal factors
In every country, consumer expenditure is governed by
legal factors like taxed, tax law etc. if the taxes are low
and legal restrictions are less, consumer expenditure will
be more. On the other hand , if taxes are high and
restrictions on the purchases are more , consumer
expenditure will be less.
c. Technology
Consumers are usually prefer up-to-date and sophisticated goods. Technological
advances contribute to the production and availability of modern goods. As more and
more modern goods are released to the market, the more will be the consumer
expenditure on those goods.
d. Ethical considerations
Ethical considerations have an important effect on the buying behaviour of the
consumers. for instance if people are religious and spiritual minded , they spend less
on modern comforts and luxuries. On the other hand , if people are educated ,
civilised and advanced they spend more on comforts and luxuries.

Buying decision process

Buying decision process is the decision making process on the
part of the buyer that leads to buying. In other words, it is the
process of deciding a buyer or consumer whether to buy or
not to buy a product.

Stages of the buying decision process

a. Need recognition
b. Information search
c. Evaluation of alternatives
d. Purchase decision
e. Post- purchase reaction

a. Need recognition
The starting point of consumers buyers process is the
perceived want or the recognition of an unsatisfied need or
want. That is the buying process begins when a person begins
to feel that a certain need or want has to be satisfied. In short ,
buying process starts with need recognition.
In other words , the consumers feels that a need or want has
arisen and that has to be satisfied.
Need or want may arise either due to internal stimuli , such as
sex or external stimuli like advertisement, window display,
friends , suggestions , dealers advice etc.

b. Information search
In this case consumer searching the relevant information
about the product. He has many source of information to
tap. He can get the relevant information from friends,
relatives, family member. Markers also can provide
 relevant information through advertisement, salesmen
etc..
c. Evaluation of alternatives
It is the consumer’s deep interest in the product that
paves the way of evaluation of alternatives. Evaluation of
alternatives is the critical stage in the process of buying ,
particularly costly durable goods. The relevant
information collected on alternative products or brands
are used for the evaluation of alternatives. In the
evaluation stage , the consumer assigns relatives value or
weightage to different products based on the
accumulated information. After he evaluates the
alternatives , the consumers develops the intention to
accept or reject a product.
d. Purchase decision
While evaluating the alternative products or brands , the
consumer develops like and dislikes about the
alternatives. The positive intention of the consumers i.e
the likes of the consumers about a particular product or
brand , is the main factor that leads to purchase decision .
other factor , such as the attitude of reference group
members, on whom the consumers relies for final
selection , situational factors like the availability of the
product, the image of the dealer , perceived risk such as
performance risk , falling prices due to recession etc, also
influences the purchase decision of the consumers.
e. Post –purchase reaction
Post purchase behaviour means the reaction or the
behaviour of a consumer after a commitment to a product
has been made.
 The post purchase experience may be a set of positive
feelings or negative feelings. Positive feelings or
satisfaction with the purchased product will create brand
preference , influencing the future purchases of the
buyer. On the other hand , negative feeling or
dissatisfaction with the purchased product will create
anxiety and doubts.

Buying motive;
The buying motives of a buyer refer to the
influences or motivating forces which determine
his buying. On other words , a buying motive is
the inner feeling , urge , drive , desire , stimulus
thought or emotion that makes a buyer buy a
certain product or services to satisfy his needs.

Classification or types of buying motives

1.Product buying motives
2.Patronage buying motives

1.Product buying motives

These are the factors or characteristics of a product
that persuade a person to purchase only that
product instead of other products available in the
market. The factors can be physical appearance
like design, size, color, price, shape etc. or can be
psychological features like status, desire to reduce
danger etc. They is divided into two categories:
Emotional and Rational.

a.Emotional product buying motives

If a person purchases a product without
thinking much rationally (i.e. with less
reasoning) then he or she is said to have
persuaded by emotional product buying
motives.

i. 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.
ii. 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.
iii. 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.
iv. 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.
v. 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.
vi. 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.
vii. 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.
viii. 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
If a person purchases a product after thinking
rationally (i.e. logically deciding) then he or she is
said to have persuaded by rational product buying
motives.
i. 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.
ii. 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.
iii. 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.
iv. 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.
v. 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.
 vi. 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.
vii. 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.
Patronage Buying Motives:
Patronage buying motives refer to those
considerations or reasons, which prompt a buyer to
buy the product wanted by him from a particular
shop in preference to other shops. In other words,
they are those considerations or reasons, which
make a buyer, patronise a particular shop in
preference to other shops while buying a product.
Patronage buying motives also may be sub-divided
into two groups viz. a) Emotional patronage
buying motives and b) Rational patronage buying
motives.
Emotional Patronage Buying Motives:
When a buyer patronises a shop (i.e. purchases the
things required by him from a particular shop)
without applying his mind or without reasoning, he
is said to have been influenced by emotional
patronage buying motives. Emotional patronage
buying motives include the following:
1. Appearance of the shop:
Appearance of the shop is one of the important
emotional patronage buying motives. Some people
make their purchases from a particular shop
because of good or attractive appearance of the
shop,
2. Display of goods in the shop:
Attractive display of goods in the shop also makes
the buyers patronise a particular shop.
3.Recommendation of others:
Recommendation of others also constitutes one of
the important emotional patronage buying motives.
Some people purchase their requirements from a
particular shop because that shop has been
recommended to them by others, i.e., by their
friends and relatives.
4. Imitation:
Imitation also is one of the emotional patronage
buying motives influencing the purchases of
buyers. Some people make their purchases from a
particular shop just because other people make
their purchases from that shop.
5. Prestige:
Prestige is one of the emotional patronage buying
motives of the buyers. For instance, some people
consider it a prestige to take coffee from a five-star
hotel.
6. Habit:
Habit is also one of the important emotional
patronage buying motives. Some people make
their purchases from a particular shop for the
simple reason that they have been habitually
making their purchases from that shop.
B. Rational Patronage Buying Motives:
When a buyer patronises a shop after careful
consideration (i.e. after much logical reasoning
and careful thinking) he is said to have been
influenced by rational patronage buying motives.
Rational patronage buying motives include the
following:
1. Convenience:
Convenient location proximity of a shop is one of
the considerations influencing the purchases of
many buyers from a particular shop. Many buyers,
usually, buy their requirements from a near-by
shop, as it is convenient to them to make their
purchases.
Similarly, convenient working hours of the shop
also influence the purchases of good many buyers.
For instance, if a shop works for a longer period of
time every day and even on Sundays, it will be
very convenient to the buyers. As such, many
buyers may make their purchases from such a
shop.
2. Low price charged by the shop:
Price charged by the shop also influences the
buyers to patronise a particular shop. If the price
charged by a shop for a particular product is
relatively cheaper, naturally, many people will
make their purchases from that shop.
3. Credit facilities offered:
The credit facilities offered by a store also
influence the buying of some people from a
particular shop. People who do not have enough
money to make cash purchases every time prefer
to make their purchases from a shop which offers
credit facilities.
4. Services offered:
The various sales and after-sale services, such as
acceptance of orders through phone, home
delivery of goods, repair service, etc., offered by a
shop also induce the buyers to buy their
requirements from that shop. Rational buyers are,
often, influenced by the various services or
facilities offered by the shop.
5. Efficiency of salesmen:
The efficiency of the salesmen employed by a
shop also influences the people in patronising a
particular shop. If the employees are efficient and
are capable of helping the buyers in making their
purchases, people naturally would flock to such a
shop.
6. Wide choice:
Wide choice of goods offered by a shop is one of
the rational considerations making the buyers
patronise a particular shop. People generally prefer
to make their purchases from a shop, which offers
wide choice (i.e. wide varieties of goods).
7. Treatment:
The treatment meted out by a shop to the
customers is one of the rational considerations
influencing the buyers to patronise a particular
shop. Usually, people would like to purchase their
requirements from a shop where they get
courteous treatment.
8. Reputation of the shop:
Reputation of the shop for honest dealings is also one of the rational patronage buying
motives. Usually, people would like to make their purchases from a store having reputation
for fair dealings.

Marketing Segmentation

Market Segmentation is a marketing strategy of dividing the customers of a product into

several homogeneous groups. It is based on common characteristics such as income, age, sex,
education, profession, etc. The main aim of market segmentation is to prepare separate
marketing programs or strategies for each segment. So that marketers may provide maximum
satisfaction for consumers of different segments.

Objective of Market Segmentation

The major objective of market segmentation is.

1. Grouping of Customers
The main objective of market segmentation is to group customers based on their
homogeneous characteristics such as nature, habit, behaviour, income, age, religion, etc.

2. Optimum Utilisation of Resources

Targeting the market provides détails of the customer and their needs. It aids producers for
marketers. If the market is segmented, marketers can produce the product according to
consumers’ desires. So, the product will meet the consumer’s demand, and there will not be a
waste of resources.

3. Better Service
The objective of market segmentation is to provide better service. If the market is segmented,
the marketer can concentrate all the resources, tools, skills, and techniques, & thus it will
improve the service of the organisation.
4. Market Specialisation
Market Segmentation leads to Market Specialisation. Steady and continuous service in the
distinct markets gives full market knowledge. It makes the marketer expert in the market. The
products, human resources, and organisational policies become customer friendly.

5. Increases Efficiency
Segmentation minimises the size of the market. With the decreasing size, the activities to be
performed by the market organisation also decreases. So, the workload for the marketer will
be decreased. It will enhance the capacities of the marketers. Therefore, the objective of
market segmentation is to increase organisational efficiency.

Importance or significance of Market segmentation

1. Facilitates consumer –oriented marketing

Market segmentation facilitates formation of marketing –mix which is more
specific and useful for achieving marketing objectives. Segment-wise
approach is better and effective as compared to integrated approach for the
whole market.
2. Better position to spot marketing opportunities
Market segmentation helps the producer to make a fair estimate of marketing
opportunities. This would be helpful to the producer to re-adjust the strategy
of approach suitably in regions where the response of the customers is poor.
3. Allocation of marketing budget.
It is on the basis of market segmentation that marketing budget is allocated for
a particular region or locality. In the region where the sales opportunities are
limited a huge budget allocations is of no use, and so budget allocation will be
limited. The market segmentation channelizes money to the most profitable
segments of the market.
4. Meeting the competition effectively
Market segmentation helps the producer to face the competition of his rivals
effectively. Market segmentation provides an opportunity of marketing deep
study of the products , policies and strategies of competitors in all the
segments. This helps the producer to adopt different policies , programmes
and strategies for different market , taking into account the rivals strategies
policies and programmes.
5. Effective marketing programmes
Market segmentation helps the producer to adopt an effective marketing
programme and serve the consumers better at comparatively low cost
6. Choosing of advertising media
Market segmentation helps the firm in choosing advertising media more
wisely . it also helps the firm in the timing of the advertising efforts so that
they are more during those periods when response is likely to be at its pea
7. Increasing sales volume
Market segmentation helps the producer to know the demand pattern of each
market segment, and satisfy the demand of each market segment by improving
his product. As a result the total sales volume of the enterprise increases.
8. Benefits the customers
 Market segmentation benefits the customers, as the producer produces and
supplies goods which serve customers interest and satisfy their needs and
wants
9. Better utilisation of marketing resources
Market segmentation provides opportunities of better utilisation of available
marketing resources. Under market segmentation the market is divided into
several group of consumers and the enterprise can adjust its marketing
activities according to the needs and circumstances of these segments.
10. Discovering marketing opportunities

11. Specialised marketing

12. Provision of information
13. Evaluation of marketing activities
14. Marketing efficiency
15. Formulation of marketing mix
16. Making of suitable adjustments

Bases for market segmentation

1. Geographical segmentation

On the basis of geographical factors a market be may be segmented as rural, town and urban,
regional , state and national and international.A company may decide to operate in one or a
few geographical areas, or to operate in all areas but pay attention to geographical differences
in needs and wants.

2. Socio- economic factors

The most common way of segmenting the market for consumer
products is on the basis of socio-economic factors. The various socio –
economic factors taken into account for segmenting the market for
consumer products are.
a. Sex
Sex is very important criteria of segmenting the market for
consumer products.
b. Age:
On the basis of age a market can be divided into four parts.
Children, young , adults and old.
Consumer of different age groups , different types of products
are produced.
c. Income
Income is a very important factor affecting the nature, attitude,
preferences and behaviour of consumers. Therefore, a market
can be segmented on the basis of the income of consumers.
d. Educational attainment or standard
 Some products, particularly books and magazines are sold on
the basis of educational standard of consumers.
e. Size of family
A market can segmented on the basis of the size of the family.
A unit a family may be large or medium or small in size.
f. Caste and religion
In a country like India , there are many castes and religions.
The feeling , attitudes and life style of the consumers of
different castes and religions are different.
g. Business or profession
Business or profession is also an important socio –economic
variables for the segmentation of a market. On the basis of this
criteria or variables the market of a product can be divided
into ,businessmen, employed persons, professionals.

III. Personality factors

Different consumers of a product have different personality. The thinking , attitudes and
buying motives of different consumers are different. Some consumers buy a product because
it adds to their social prestige and status, while some consumers buy a product because it is
useful to them.

IV. Consumers behaviour

consumer behaviour is one of the bases for segmenting a market. consumer behaviour
includes factors like, usage rate, buying motives, and brand loyalty. On the basis of usage
rate, consumers may be divided into four parts. Non – users, light users, middle users, heavy
users.

Bases for industrial goods

1. Kind of business
2. Size of the buyer
3. Geographical location of the buyer
4. Purchasing procedure of the buyers

Strategy toward market segmentation

1. Undifferentiated marketing strategy

Firm introduce single products in the whole market, and adopt a single marketing
programme , single medium of advertisement , single brand and packing and single
price for all the products.
Advantages:
a. Firm to produce on a large scale.
b. It enables the firm to make use of standardisation
 c. This strategy enables the firm to make the maximum possible
utilisation of its resources.
2. Differentiated marketing strategy
Differented marketing strategy is a type of strategy under which the total
heterogeneous market of firm is divided into several segments, and different products
are offered in different segments and different marketing programme are prepared.
Advantages:
1. It provide maximum satisfaction to consumers.
2. It attracts a large number of consumers from all corners.
3. As different products are offered to different consumers under this strategy
4. Marketing can be more specialised
5. Developing a variety of products and more designs to cater to the taste of
different customers.
3. Concentrated marketing strategy
Under which a firm concentrated on marketing efforts not in the total market , but in
some selected segments of the market.

Benefits:
6. It provides the best possible satisfaction to the consumers.
7. It facilitates the maximum exploitation of the resources of the enterprise.
8. It decrease the costs of production and management and administrative costs
substantially.
9. It helps the firm to earn the maximum profits with limited resources of the
firm.
10. This strategy is quite suitable for introducing a new product.
 Selection of a suitable marketing strategy for market segmentation
1. Financial resource of the firm
2. Homogeneous nature of market
3. Product characteristics or homogeneity of products
4. Nature of customers
5. Position or stage of product in the product life cycle
6. Marketing strategies of the competitors
7. Government policy
