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Saturday 17 August 2013

MS 06 IGNOU MBA Solved Assignment - Who is a consumer? Define consumer behavior and discuss why a knowledge of consumer behavior in essential for Marketers


Question.3)(a)Who is a consumer? Define consumer behavior and discuss why a knowledge of consumer behavior in essential for Marketers

Ans :

A ‘consumer’ is defined as a person who buys goods or avails services against payment.
Goods may include consumable goods (like wheat flour, salt, sugar, fruits, etc.) or durable consumer goods (like television, refrigerator, toaster, mixer, bicycle, etc.). Services that are paid for may include electricity, telephone, transport, theatre / cinema, postal / courier, etc.
It is interesting to know that a beneficiary is also a ‘consumer’. For example, Sandeep sent an important medicine by courier to his sister, Sunitha, who was ill. The courier reached late by 4 days due to which Sunitha’s health condition worsened. She had to be taken to a city hospital for treatment and incurred heavy expenses. Later, being the beneficiary, she took up the issue with the courier company.
A person who purchases goods for resale or for any commercial purpose does not come under the definition of ‘consumer’. However, when a selfemployed person’s livelihood depends on his business, then he is considered a ‘consumer’.

What is Consumer Behaviour ?
Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.
Why do you think an individual buys a product ?
§  Need
§  Social Status
§  Gifting Purpose
Why do you think an individual does not buy a product ?
§  No requirement
§  Income/Budget/Financial constraints
§  Taste
When do you think consumers purchase products ?
§  Festive season
§  Birthday
§  Anniversary
§  Marriage or other special occasions
There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on.
The study of consumer behaviour explains as to:
§  Why and why not a consumer buys a product ?
§  When a consumer buys a product ?
§  How a consumer buys a product ?
During Christmas, the buying tendencies of consumers increase as compared to other months. In the same way during Valentines week, individuals are often seen purchasing gifts for their partners. Fluctuations in the financial markets and recession decrease the buying capacity of individuals.
In a layman’s language consumer behaviour deals with the buying behaviour of individuals.
The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Consumers purchase products and services as and when need arises.
According to Belch and Belch, whenever need arises; a consumer searches for several information which would help him in his purchase.
Following are the sources of information:
§  Personal Sources
§  Commercial Sources
§  Public Sources
§  Personal Experience
Perception also plays an important role in influencing the buying decision of consumers.
Buying decisions of consumers also depend on the following factors:
§  Messages, advertisements, promotional materials, a consumer goes through also called selective exposure.
§  Not all promotional materials and advertisements excite a consumer. A consumer does not pay attention to everything he sees. He is interested in only what he wants to see. Such behaviour is called selective attention.
§  Consumer interpretation refers to how an individual perceives a particular message.
§  A consumer would certainly buy something which appeals him the most. He would remember the most relevant and meaningful message also called as selective retention. He would obviously not remember something which has nothing to do with his need.
§  the study of Marketing Management, the "Consumers" or the "Customers" play a very critical role as these are the people who finally BUY the goods & services of the organisation, and the firm is always on the move to make them buy so as to earn revenue. It's crucial from both the points of view as given below :
§  From the customers' point of view : Customers today are in a tough spot. Today, in the highly developed & technologically advanced society, the customers have a great deal of choices & options (and often very close & competing) to decide on.
§   
§  They have the products of an extreme range of attributes (the 1st P - Product),
§  they have a wide range of cost and payment choices (the 2nd P - Price),
§  they can order them to be supplied to their door step or anywhere else (the 3rd P - Place),
§  and finally they are bombarded with more communications from more channels than ever before (the 4th P - Promotion).
§  How can they possibly decide where to spend their time and money, and where they should give their loyalty ?
§  From the marketers' point of view : "The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit". This is the basic principle of requirement for the marketers in earlier days where aggressive selling was the aim. Now it can't be achieved by force, aggression or plain alluring. For the customers are today more informed, more knowledgeable, more demanding, more discerning. And above all there is no dearth of marketers to buy from. The marketers have to earn them or win them over.
§ 

§  The global marketplace is a study in diversity, diversity among consumers, producers, marketers, retailers, advertising media, cultures, and customs and of course the individual or psychological behaviour. However, despite prevailing diversity, there also are many similarities. The object of the study of consumer behaviour is to provide conceptual and technical tools to enable the marketer to apply them to marketing practice, both profit & non-profit. 
The study of consumer behaviour (CB) is very important to the marketers because it enables them to understand and predict buying behaviour of consumers in the marketplace; it is concerned not only with what consumers buy, but also with why they buy it, when and where and how they buy it, and how often they buy it, and also how they consume it & dispose it. Consumer research is the methodology used to study consumer behaviour; it takes place at every phase of the consumption process: before the purchase, during the purchase, and after the purchase. Research shows that two different buyers buying the same product may have done it for different reasons, paid different prices, used in different ways, have different emotional attachments towards the things and so on

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