CONSUMER BEHAVIOR

Consumer behavior

The term consumer behavior is defined as the study of behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

We try to understand what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it , the impact on future purchases & how they dispose it. marketers need to know every thing they can about consumers

A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so. by Mahatma Gandhi

Difference between customers and consumers

A consumer is anyone who typically engages in any one or all of the activities mentioned in the definition. One who acquires consumes & dispose goods/service. A consumer is an end or ultimate users.

Customer is one who acquires process & resell it to consumer Who is brand loyal, customer is a sub set of consumer. Every customer is a consumer but not every consumer a customer.

Two different kinds of consuming entities

Personal consumer

Organizational consumer

Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or as a gift for a friend.

Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

Why We Study CB?

Diverse Reasons As Consumers As Marketers & future Marketers As Students of Human Behavior

Development of the Marketing Concept

Production Concept Product Concept

Selling Concept
Marketing Concept

The Production Concept

Span b/w 1850s to 1920s Assumes that consumers are interested primarily in product availability at low prices Demand is more than the supply Marketing objectives:

Focus on Cheap, efficient production Intensive distribution Market expansion

The Product Concept

Spans b/w late 1920s to early 30s Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives: Quality improvement Addition of features Prof levitt called this excessive focus on product quality as Marketing Myopia

The Selling Concept

Spans b/w lat3 1930s to mid 1950s Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Supply exceeded demand Marketing objectives: Sell, sell, sell Lack of concern for customer needs and satisfaction

The Marketing Concept

Spans b/w mid 1950s to till date Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Focus shifted from sales orientation to marketing orientation Marketing objectives: Profits through customer satisfaction

The Marketing Concept

A consumer-oriented philosophy that suggests that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the firm to meet its own organizational goals.

 Marketing

Concept is based on the premise that a marketer should make what it can sell, instead of trying to sell what it has made

Implementing the Marketing Concept

Consumer Research Segmentation Targeting Positioning

Implementing the Marketing Concept

Consumer Research:

Initially marketing research studies is done to identify both consumers unsatisfied as well as their unrecognized needs CR represents the process and tools used to study consumer behavior. CR seek to identify the main similarities & differences that exist among the peoples of the world.
process of dividing the heterogeneous market into subsets of consumers with common needs or characteristics(homogeneous market)

Segmentation:

Implementing the Marketing Concept

Targeting:

Identifying one or more of the segments for the company to pursue Developing a distinct image for the product in the mind of the consumer through appropriate promotional programs Successful positioning

Positioning:

Communicates the benefits of the product, rather than its features Communicates a Unique Selling Proposition for the product

The Marketing Mix

It consist of a companys service and/or product offering to consumers & the methods & tools it selects to accomplish the exchange. Marketing Mix consist of

Product( i.e. features, designs, brands, packaging, post purchase benefits) Price( list price, discounts, allowance & payment methods) Place Promotion(advertising, sales promotion, public relations & personal selling )

Nature and characteristics of Indian consumer

From need based to want based

Nature and characteristics of Indian consumer

Nature and characteristics of Indian consumer

Consumer Movement
Consumer movements arose out of the following. Dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers. There was no legal system available for consumers to protect themselves from exploitation in the market place. In India, consumer movement originated with the necessity of protecting and promoting the interest of consumers against unethical and unfair trade practices. such as, a) food shortage b) hoarding c) black marketing d) adulteration of food and edible oil.

Consumer Movement

Consumer Movement

A major step was taken in 1986 by the Indian Govt with the enactment of the Consumer Protection Act 1986, popularly known as COPRA. In 1985, United Nations adopted the UN guidelines for consumer protection, and this has become a tool to press the Govts. world wide for consumer protection. today Consumers International has become an umbrella body of 240 organization from 100 countries.

Rights of consumers

Right to safety : Right to be protected against marketing of goods and services which are hazardous to life and property. Right to be informed: the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices Right to choose: the right to be assured, wherever possible, to have access to a variety of goods and services at competitive prices.

Rights of consumers

Right to be heard: to be assured that consumer's interests will receive due consideration at appropriate forums Right to seek redressal: The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers Right to consumer education: Each Indian

citizen to be educated on matters related to consumer protection and about his/her rights

All over the world March 15 celebrated as the Consumers Day. However, in India December 24 is celebrated as the National Consumer Day

Responsibilities of Consumers there cannot be rights without responsibilities

Responsibility of self-help better to be forewarned and forearmed Proof of Transactions Proper claim Proper use of Product/services Some other responsibilities. They should stick to the agreement made with manufacturers, traders and service providers. They should make timely payment in case of credit purchases. They should not tamper with the media of services, like electric and water meters, bus and train seats, etc.

Ethics & social responsibility

a commitment to improve community well-being through discretionary business practices and contributions of corporate resources. A socially responsible firm will care about customers, employees, suppliers, the local community, society, and the environment. Ethical conflicts in marketing arise in two contexts :

First, when there is a difference between the needs of the the company, the industry, and society a conflict may arise. Second, ethical conflict may arise when ones personal values conflict with the organization

Social marketing concepts

Social marketing is the systematic application of marketing concepts and techniques, to achieve specific behavioral goals for a social good. Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole. For example, this may include asking people not to smoke in public areas, asking them to use seat belts, or prompting to make them follow speed limits.

Societal Marketing Concept

A revision of the traditional marketing concept that suggests that marketers adhere to principles of social responsibility in the marketing of their goods and services; that is, they must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole.

The Societal Marketing Concept

The societal marketing concept, advocates a long term perspective. It recognize that all companies would be better off in a stronger, healthier society, and that companies that incorporate ethical behavior and social responsibility in all of their business dealings and maintain loyal consumer support over the long run.

Consumerism

Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts Consumerism make aware to the society regarding rights and responsibilities of consumers, consumers protection acts and can regulate consumption in a proper way, can control economy for the consumers' welfare Movement or policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer.