This case was Presented by Master Vince Alexander of Vit-bs (Student, VIT

Business School, VIT University) and Ms.R Subashini (Asst.Prof(Sr.),VIT

BusinessSchool,VITUniversity) In an State level Symposium Which was held at
Chennai
Changing Consumer Behaviour - A new shape

‘Consumer Behaviour: Theoretical and Experiential Understanding’

Ms.R.Subashini *, Mr.Vince Alexander**

ABSTRACT

Consumer behavior is defined as the study of the buying units and the exchange processes
involved in acquiring, consuming, disposing of goods, services, experiences and ideas. In order to
safeguard consumer interest, six consumer rights were initially envisioned say, Right to Safety,
Right to Information, Right to Choice, Right to be Heard, Right to Redress, Right to Consumer
Education. A person‟s economic situation greatly affects product choice and the decision to
purchase a particular product. The Indian market, one of the most promising in the world, is fast
evolving. So is the Indian consumer, across all socioeconomic strata, regions and town classes. In a
competitive economic environment the consumer has to exercise his choice either in favour of or
against the goods and services. It‟s stated that Customer is sovereign and consumer is the King.

Key Words: Consumer Behaviour, Consumer Rights

*Asst.Prof(Sr.),VIT BusinessSchool,VITUniversity,Vellore,TamilNaduvarshenisuba@yahoo.com

**Student, VIT Business School, VIT University,Vellore,TamilNaduvince1989@gmail.com

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Introduction

The year 2008 has been a tumultuous one economically with the financial sector
of the United States (us) and other western economies plunging the world into grave economic
crisis and a definitive recessionary phase. In today‟s increasingly pluralistic global society it has
become common conviction that we learn most when we are with people who have different
backgrounds, experiences, faith and perspectives. The importance of studying Consumer
Behaviour comes here.

Definition

“There never has been…there is not now… and there never will be any
boss but the consumer. He is the one boss you must please. Everything you own… He has paid for.
He buys your home, your cars, and your clothes. He pays for your vacations and puts your children
through school. He will give you every promotion you will ever obtain during your lifetime… and
he will discharge you if you displease him”. Consumer is the one who buys the product but may
switch on to some other product of the same type when got a chance. But Customer is the one who
buys the same product again and again though having a multiple options. He is loyal to the
product.

What we consume has direct effects on nature. Much of what we purchase is not essential for our
survival or even basic human comfort but is based on impulse, novelty, a momentary desire. And
there is a hidden price that we, nature, and future generations will pay for it too.

When consumption becomes the very reason economies exist, we never ask "how much is
enough?", "why do we need all this stuff?", and "are we any happier?" Our personal consumer
choices have ecological, social, and spiritual consequences.

The consumer personality is in diversified ways. It is given by their traits, influences, perception,
learning, attitudes, opinion dynamics and their culture.

Thus Consumer behavior is defined as the study of the buying units and the exchange
processes involved in acquiring, consuming, disposing of goods, services, experiences and ideas.

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Negligent behavior is composed of actions and inactions that may negatively affect the long-term
quality of life of individuals and society. This type of behavior can occur in two different contexts:

1) Product Misuse

2) Consumption of Hazardous Products

Consumer Rights
In order to safeguard consumer interest, 6 consumer rights were initially envisioned by consumer
rights activists of the West, namely:

1. Right to Safety 4. Right to be Heard

2. Right to Information 5. The Right to Redress

3. Right to Choice 6. The right to consumer education

Is consumer always right?

“If I'm a customer, I think that customer is always right
if I'm a seller, I think that seller is always right”

No the customer isn't always right, the customer can be downright obnoxious at times and I feel
that customers ARE NOT always right but they must always leave happy, sometimes, even if they
are wrong, you find a way to make them happy. They try to take advantage of the "customer is
always right" philosophy.

A new era in consumerism

In the good olden days the principle of Caveat emptor', which meant buyer beware governed
the relationship between seller and the buyer. In the era of open markets buyer and seller came
face to face, seller exhibited his goods, buyer thoroughly examined them and then purchased them.
It was assumed that he would use all care and skill while entering into transaction. , the personal

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relation between the buyer and the seller was one of the major factors in their relations. But with
the growth of trade and its globalization the rule no more holds true.

The International Consumer

 No matter how hard man tries, it is impossible for him to divest himself of his own culture,
for it has penetrated to the roots of his nervous system and determines how he perceives the
world…People cannot act or interact at all in any meaningful way except through the
medium of culture. Meaning of symbols differs across cultures.

 Symbolic meaning of nonverbal communication can also create problems.

 It is important to know the implicit meaning of a symbol when a company begins to market
its products or services internationally.

Sources of and responses to consumer dis/satisfaction

People coming from the same subculture, social class, and occupation may have quite different
lifestyles. A lifestyle is a person‟s pattern of living as expressed in his/her activities, interests and
opinions. Lifestyle portrays the “whole person” interacting with his environment.

A person belongs to many groups: family, clubs, and organizations. An individual‟s position in
each group can be defined in terms of role and status. A Role consists of the activities that a person
is expected to perform according to the persons around him or her.

A person‟s economic situation greatly affects product choice and the decision to purchase a
particular product. Consumers cut back on restaurant meals, entertainment, and vacations during
recessions. They trade down in their choice of restaurants. Marketers need to watch trends in
personal incomes, savings, and interest rates.

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Complaining behavior

Five common complaint behaviors:

 Do nothing or deal with the retailer in some manner
 Avoid using the retailer again and persuade friends and family to do the
same
 Take overt action with third parties (e.g., legal action)
 Boycott the firm or organization.
 Create an alternative organization to provide the good or service

Complaint Behavior Is Likely to Increase When:

 The level of consumer dissatisfaction increases

 The attitude of the consumer toward complaining becomes more positive
 The amount of benefit to be gained from complaining increases
 The firm is blamed for the problem
 The product is important to the consumer
 The resources available to the consumer for complaining increases

What ails the Indian consumer?

The Indian market, one of the most promising in the world, is fast evolving. So is the
Indian consumer, across all socioeconomic strata, regions and town classes. Rising incomes,
multiple income households, exposure to international lifestyles and media, easier financial credit
and an upbeat economy are enhancing aspirations and consumption.

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No matter how hard man tries, it is impossible for him to divest himself of his own culture, for it
has penetrated to the roots of his nervous system and determines how he perceives the
world…People cannot act or interact at all in any meaningful way except through the medium of
culture. With changing economic situation of India, its not that only the rich are spending more
and more but in fact its the great Indian middle class that's thrown caution to the winds and
enjoying themselves like never before and are on a spending juggernaut.

Brand India is riding high. For Indians with disposable income in their pockets, happy times are
here. With the sun shining on them, thoughts of a rainy day have been banished. It‟s a new mindset
at play. Living for the day is the new motto..

Diagrammatic representation of the Indian consumer in the changing

Environment

Cultural Economic

Environment Environment

Subcultural Regulatory

Environment Environment

Group/ family

Processes

Situational Influencers

Individual Buying Exchange Marketer

Processes Unit Process

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Role of Consumer & Government

In the next millennium, every consumer in his own interest has to realize his role and importance
in the right perspective. Each citizen in a democracy derives his power at the time of elections and
exercises it through the ballot. In a competitive economic environment the consumer has to
exercise his choice either in favour of or against the goods and services. His choice is going to be
vital and final. He should realize his importance and prepare himself to exercise his rights with
responsibility. It is very often stated "Customer is sovereign and consumer is the King." If that is
really so, why do we have the Consumer Protection Act? Why is there a need for protecting the
King? Should it not be rightly called "Consumer Sovereignty Act"? It is for the consumers to
decide. After all the dictum in democracy is, the citizens get a government they deserve. Similarly
the consumers in society get a position in the market depending upon what they do or do not do. It
is agreed on all hands that "consumer empowerment" in India has a long way to go. This is the
right time to act. Let us prepare for the next millennium and usher in a new era of "Consumerism".

References
 www.worldbusiness.com
 www.rediff/business.com
 www.indiabusiness.com
 www.search.epnet.com
 'The Theory of Buyer Behavior ' (Wiley, 1969)
 Engel, J., Kollatt, D. and Blackwell, R. 'Consumer Behavior ' (Dryden Press, 1978)
 D. Mercer, „Marketing‟ (Blackwell, 1996)
 'Behaviour of Buyer'(T.Ocean 1998)