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Consumer Behaviour
Customer is profit, all else is overload....

This chapter provides an introduction to consumer behaviour. Consumer is the most important person. The business revolves around the consumer. After finishing this chapter one should be able to understand:

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What is meant b consumer behaviour Consumer decision!ma"ing process #ar"eting strateg and consumer behaviour $ndian consumer and his characteristics

INTRODUCTION
All of us are consumers. We consume things of dail use, %e also consume and bu these products according to our needs, preferences and bu ing po%er. These can be consumable goods, durable goods, specialit goods or, industrial goods. What %e bu , ho% %e bu , %here and %hen %e bu , in ho% much &uantit %e bu depends on our perception, self concept, social and cultural bac"ground and our age and famil c cle, our attitudes, beliefs values, motivation, personalit , social class and man other factors that are both internal and e'ternal to us. While bu ing, %e also consider %hether to bu or not to bu and, from %hich source or seller to bu . $n some societies there is a lot of affluence and, these societies can afford to bu in greater &uantities and at shorter intervals. $n poor societies, the consumer can barel meet his barest needs. The mar"eters therefore tries to understand the needs of different consumers and having understood his different behaviours %hich re&uire an in!depth stud of their internal and e'ternal environment, the formulate their plans for mar"eting.

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Consumer Behaviour (

#anagement is the oungest of sciences and oldest of arts and consumer behaviour in management is a ver oung discipline. *arious scholars and academicians concentrated on it at a much later stage. $t %as during the 1+,-s, that mar"eting concept developed, and thus the need to stud the behaviour of consumers %as recognised. #ar"eting starts %ith the needs of the customer and ends %ith his satisfaction. When ever thing revolves round the customer, then the stud of consumer behaviour becomes a necessit . $t starts %ith the bu ing of goods. .oods can be bought individuall , or in groups. .oods can be bought under stress /to satisf an immediate need0, for comfort and lu'ur in small &uantities or in bul". 1or all this, e'change is re&uired. This e'change is usuall bet%een the seller and the bu er. $t can also be bet%een consumers. Consumer behaviour can be defined as the decision!ma"ing process and ph sical activit involved in ac&uiring, evaluating, using and disposing of goods and services. This definition clearl brings out that it is not 2ust the bu ing of goods3services that receives attention in consumer behaviour but, the process starts much before the goods have been ac&uired or bought. A process of bu ing starts in the minds of the consumer, %hich leads to the finding of alternatives bet%een products that can be ac&uired %ith their relative advantages and disadvantages. This leads to internal and e'ternal research. Then follo%s a process of decision!ma"ing for purchase and using the goods, and then the post purchase behaviour %hich is also ver important, because it gives a clue to the mar"eters %hether his product has been a success or not. To understand the li"es and disli"es of the consumer, e'tensive consumer research studies are being conducted. These researches tr to find out: 1 What the consumer thin"s of the compan 4s products and those of its competitors5 2 6o% can the product be improved in their opinion5

What is the role of the customer in his famil 5 The follo%ing "e &uestions should be ans%ered for consumer research. A mar"et comes into e'istence because it fulfils the needs of the consumer. $n this connection, a mar"eter has to "no% the 7-4s frame%or" for consumer research. Ta"ing from an e'ample of soap.
Who constitutes the mar"et5 What does the mar"et bu 5 8arent, Child, #ale, 1emale :oap, ;egular, #edicated, %ith .l cerine, 6erbal %hat Brand, %hat si<e 8arent, Child, #ale, 1emale Cash, Credit, #ail!order etc. #onthl , Wee"l etc. 8rescribed b =octor /#edicinal0 9ccupants 9b2ects 9rganisatio ns 9perations 9ccasions

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6o% the customers use the product5 What is the customer4s attitude to%ards the product and its advertising5

Who participates in bu ing5 6o% does the mar"et bu 5 When does the mar"et bu 5

( Consumer

Behaviour > (
:upermar"et, ;etail store etc. 9utlet 1or Cleansing, Bathing, 1resh feeling etc. 9b2ectives /ta"en from #ulti!mar"eter0

bu 5 Where does the mar"et bu 5 Wh does the mar"et

a s C ons s um u er m beh pt avi io our n is a s co a mpl b e', o d n ut ami c c, o mul n tidi s me u nsi m ona e r l pro b ces e s, h and a all vi ma o r"et ur ing . dec # isio a ns r" are et bas in ed g on st

rateg effectivel , is the cost!benefit game anal sis plan must be %hich underta"en. the firms There must can be adher man e to, benefits of a in product, for order e'ample, for o%ning a to outdo motor bi"e one can be the comp loo"ing for of etitor ease transportatio or the status, plans n, pleasure, to achie comfort and of ve the feeling desire o%nership. The cost is d ob2ect the amount mone ive. $n of paid for the formul bi"e, the ating cost of the mar"e maintenanc ting e, gasoline, strate par"ing, ris" g , to of in2ur in sell case of an accident, the pollution produ and ct frustration

suc c h u as st traff o ic m 2am er s. v The al diff u ere e. nce T bet h %e e en id this e tota a l is ben to efit pr and o tota vi l d cos e t s con u stit p ute er s io the r

custo t selection, mer and then to value the and formulation this of strateg re&uir b 2uggling es thethe product, formul price, ation promotion of aand mar"e distribution, ting so that a strate total product g . /a set of The entire entire characteristi proce cs0 is ss offered. The consis total product ts ofcreates an mar"e image in the t mind of the anal s consumer, is, %ho %hich undergoes a leads decision to process target mar"e
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s e l e c Fig . 1.1 A si m plif ie d fra m ew or k for st ud yin g co ns u m er be ha vio ur.

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