Consumer Behavior

- Is the basis of all the demand in the marketplace.

- it is the decision of processes and acts of people involved in buying and using
products.
Consumer
- from which demand generates.
Producers
- which produce goods and services in the marketplace.
Why do we buy what we buy?
- every single one of us makes these consumptions decisions every single day.
“It’s vital for organization and businesses to understand what drives their customers to
choose some options over others”
- this is why consumer behavior is essential to any enterprise that interacts with
buyers.
Consumer Behavior
- it is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy
needs and desires.
“It is important for a business to consider not only what we actually purchase but also
how we decide we need it where we look for options such as a Google search: how
environment influences what we choose what we do with it when we get at home and
even when we get rid of it when we’re ready for the next one.”
“The study of consumer behavior seem a lot of complicated than you thought how we
make sense out of all the decisions that individuals and groups make.”
Consumer Behavior
- ends with the phrase to satisfy needs and desires.
Why it’s so important to understand consumer behavior?
- this part is key because it goes full circle to the fundamental marketing concept
that says marketing is about satisfying the needs of customers in order to do that
and succeed as an organization, we need to understand just what those needs
are.
How do we understand the reason people buy or don’t buy?
- just ask them to the very complex where they don’t necessarily know the reason
that they chose one product over another.
- range of research techniques available to better understand your customers.
- depending on what you’re trying to explore, some tools work better than others.
- it’s so important to not just use the same tool for every problem.
- in other words, don’t be a hammer in search of a nail.
Consumers
- ethical business is good business.
- consumers think better of the products a firm sells when the organizations
behaves ethically.
- unfortunately, many companies don’t reward their employees when they boost
customer satisfaction by treating people right, even if this pays off in the long run.
If you’re not happy with a product or service, what can you do about it?
- consumers can do a lot to complain, especially on social media where they can
potentially damage a company’s reputation pretty quickly.
- ironically, consumers who are satisfied with a store or brand in general are more
likely to complain if they experience something bad.
- we know that marketing is all about satisfying needs.
- but in order to do that, we have to understand why people buy what they do.
- to understand how motivation works, we need to distinguish between a need and
a want.
Needs
- is a basic goal such as keeping yourself nourished or protected from the
elements.
Wants
- is the desire for a product or services that are not necessary, but consumer wish
for.
- in contrast, want is a specific pathway to achieving this objective that depends a
lot on our unique personalities, cultural upbringings.
- our observations about how others we know satisfy the same need.
Fluctuations in the financial markets and recessions decrease the buying capacity of
individuals.
Factors that affect consumer’s behavior:
- refers to how and why people make the purchase decisions they do.
1. Benefits
- the positive results of consumption.
2. Cost
- the negative result of the consumption.
Exchange
- exchange process is simply when an individual or an organization decides to
satisfy a need or want by offering some money or goods or services in exchange.
- extends into relationship marketing.
- the core factor of an exchange is to ensure fair and orderly trading.
Consumption
- is the utilization of economic goods to satisfy needs.
Consumer Behavior
- is an applied social science.
- consumer behavior analysis is the use of behavior principles, usually gained
experimentally, to interpret human economic consumption.
- as a discipline, consumer behavior stands at the intersection of economic
psychology and marketing science.
Economics
- is a social science concerned chiefly with description and analysis of the
production, distribution, and consumption of goods and services.
- If there’s inflation in the economy, then consumers would control their buying
consumption.
Psychology
- social psychology
- it is the study of how consumers think, feel, behave for a reason, and select
between different alternatives as how they interact with other people.
Marketing
- the science and art of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit.
Sociology
- the scientific study of society, including patterns of social relationships, social
interactions, and culture.
Social Influence
- is a person’s behavior can be affected by the presence of others.
Social Interaction
- is the positive and negative aspects of people relating to others.
Anthropology
- is a study in which researchers interpret relationships between consumers and
the things they purchase, the products they own, and the activities in which they
participate.
Consumer Orientation
- establishes and monitors standards of customers satisfaction and strives to meet
the clientele’s needs and expectations related to the product or service sold by
the business.
Market Orientation
- is when a company then develops a product strategy that caters to the wants and
needs of its clientele.