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’.
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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