Ques::why it is imp. To study C.B . consumer buying process.with example.?

Ans::Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as social function but if Arrows possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer Black box model ENVIRONMENTAL FACTORS Marketing Environmental Stimuli Stimuli Economic Technological Political Cultural Demographic Natural BUYER'S BLACK BOX BUYER'S Buyer Decision Process RESPONSE Characteristics Problem recognition Product choice Attitudes Information Brand choice Motivation search Dealer choice Perceptions Alternative Purchase Personality evaluation timing Lifestyle Purchase decision Purchase Knowledge Post-purchase amount behaviour

Product Price Place Promotion

The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses.[1] It can be distinguished between

interpersonal stimuli (between people) or intrapersonal stimuli (within people).[2] The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response. Information search Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include:

Personal sources Commercial sources Public sources Personal experience

The relevant internal psychological process that is associated with information search is perception. Perception is defined as "the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world". Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organization can use a variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.

Postpurchase evaluation The EKB model was further developed by Rice (1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the importance of the post purchase evaluation and that the post purchase evaluation is key due to its influences on future purchase patterns.

Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour concern with consumer need and consumer actions in the direction of satisfying needs leads to his behaviour of every individuals depend on thinking External influences Consumer b The consumer buying process is the series of steps consumers typically go through in making a purchase decision. Often the whole process will only take seconds or a few minutes, while other times it may take years. Regardless of how long it takes, consumers generally go through six steps when making a purchase decision: Consumer buying process:

problem or need recognition search alternative evaluation purchase decision and action post-purchase evaluation

Problem or need recognition initiates the buying process. Dissatisfaction with current products, running out of supply of an item, or a changed financial status can stimulate consumer needs. Most consumers are creatures of habit and will repurchase the product they always use. This helps firms who are the established leaders in their markets but creates a barrier for new competitors. New competitors look for dissatisfied customers; those who are new to an area; and those who, through inheritance, divorce, or other situations have significantly changed their purchasing power. In the search stage, consumers identify different products that will solve their problem. For everyday purchases like milk or bread, consumers usually quickly determine alternative sources of products to meet their needs. For high-involvement purchases like homes or automobiles, the search process will take longer and probably include searching for objective sources of information. Many consumers will only consider a few possible choices when searching for products to solve their problem. Marketers refer to the choices considered as the evoked set. Firms that have severely disappointed consumers in the past or who are new to the market often have difficulty even being considered by consumers. For many years a significant portion of American consumers would not even consider American-made automobiles, having been disappointed with the performance of their last Americanmade cars. In the alternative-evaluation stage, consumers consider and weigh the choices available. Again, with everyday-type purchases this stage can take seconds, while for a specialty item it may take months. Marketers respond to the alternative- evaluation stage by providing and promoting features they hope will influence consumers evaluation of their products.

ehaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix factors.

Ques::What are the various approaches to study Consumer behavior? Ans:: APPROACHES TO THE STUDY OF CONSUMER BEHAVIOR IN LATE LIFE The increasing focus on the aging population has generated interest in understanding the consumer behavior of older adults. As a result, the need for using effective approaches to study this segment becomes apparent. This paper presents several approaches developed in social sciences; it attempts to make those interested in the area aware of these approaches and their potential for contribution to the field of consumer behavior. Approaches to the study of human behavior in late life can be classified into two categories. Those which can be considered as traditional theories and those which fall into humanistic science. "Traditional" Theories of Aging 'Traditional" theories correspond to the unreflective elaboration of the empirical-analytic sciences, all sharing com: non logical rules and ideal principles of explanation aimed at prediction and control of phenomena (cf. Moody 1988). Traditional theories can be classified in three categories, reflecting three different approaches to studying aging and age-related behaviors in late life. First, aging can be viewed as a biological phenomenon involving maturation and decline in various functions of the body. This model is primarily useful for guiding the work of physiologists and biologists who are interested in examining changes in va ious bodily functions over the life span. Humanistic Theories of Aging The contribution of humanities to theories of aging is reflected in three different approaches: dialectical gerontology, hermeneutic gerontology, and critical gerontology (Moody 1988). Dialectical gerontology is an approach which acknowledges the contradictory features of old age, trying to locate the contradictions within a historical and developmental framework. This approach would highlight contradictions rather than seeking theories of aging that would eliminate them. Germeneutic gerontology focuses on interpretations of facts or events, both in relationships between theory and fact and the relationship between theory and fact and the social behavior. Critical gerontology focuses on progressive and unfolding capacities of the human state, and refers to human development that recognizes aging as a movement toward freedom beyond domination (wisdom, autonomy, transcendence).

Traditional theories of aging include three types of theories: biological, psychological and social theories. These can be classified on the basis of the assumption about the location of causal factors: individual, environment, or both (Table 1). Biological Theories. These theories assume that aging is affected by either genetic factors or environmental causes. Examples of the first category include theories such as wear-andtear, cross-linkage, metabolic, programmed senescence, neuroendocrine, and immunological theory. Examples of environmental theories include free radical, somatic mutation, and error theory. All these theories attempt to explain aging of the body and its parts. The tendency to assume homogeneous responses from the aged market is a concern that ha captured the attention of theorists and practitioners. For example, Hendricks and Hendricks (1977) note that: "In constructing their explanations social scientists are forced to treat all members of a category as though they were identical." Second, the use of variables that measure a person's functional or physiological capacity may more appropriately capture aging than chronological age per se. Psychological Theories. Psychological theories address the development and change of cognition (human development), and personality and self in late life. These theories explore adult cognitive development as it may be affected by biophysical factors (organismic), environmental influences (mechanistic), or both (contextual); they also focus on personality and self, attempting to explain changes over the life span either as an abrupt process (stage theories) or as a smooth transition (continuity theory and cognitive personality theory). Since the focus of these theories has been on explaining changes in personality and self-concept over the life-span, their usefulness in explaining consumer behavior in late life is not apparent. Theories of self appear to hold promise but researchers must resolve the issue of appropriate research design to be used (e.g., Sirgy 1982). The social breakdown theory is perhaps the model that most accurately depicts relationships between the individual and his/her environment. It offers sociological and psychological explanations Of the development of a psychological construct (self-concept). Yet, the model appears to be untestable. Even testing parts of the model based on labeling theory would be of questionable desirability, since previous testing failed to provide adequate support amidst controversies about its value and appropriateness (Moschis 1990). Modernization theory and political economy theory are macro-theories aimed at explaining consumer behavior of the elderly using countries or subcultures as unit of analysis. Multi-theoretical Perspectives. It is widely accepted that there is no single approach to the study of human behavior and age-related changes in late life. This is because aging is multidimensional -- that is, people age as biological beings, social beings, psychological beings and even as spiritual beings (Moody 1988). Thus, the study of human behavior in late life must take into account the variety of aging perspectives.

The multidimensional nature of aging has given impetus to the development of conceptual frameworks developed to incorporate several, and often diverse, theoretical perspectives. The processing-resource framework and the three-tier model of cognition are recent developments in the field of cognitive psychology of aging (cf. Moschis 1990). The psychometric approach is an atheoretical quantitative method designed to uncover traits and various aspects of cognition over the life span. The socialization perspective has been the topic of considerable attention in the areas of sociology, psychology, anthropology, mass communications, and more recently in consumer behavior (Moschis 1987). However, it is closest related to the field of sociology and is considered to be a more elaborate model than age stratification theory. The latter theory has also been a major influence on the development of another multi-theoretical framework, the life-course perspective (Passuth and Bengtson 1988). Humanistic Science. Finally, the use of the interpretive perspective is suggested to study concepts that can not be easily explicated, described, measured, and defy explanation via traditional scientific approach. This perspective has been receiving increasing attention by social scientists and should not be ignored by consumer researchers who often claim to rely heavily on other disciplines. Ques::What are current trend being followed by consumer in india? Ans::Trends:-1. Sellsuming - the increased need for cash prompted most consumers become sellsumers as the folks behind Aprils 2009 trendswatching report named them. Consumers become very creative in selling extra space, services or products. Great examples include: renting space (residential and even parking), reselling unwanted clothes, furniture, jewelry, providing expert advice or extra help in gardening and on. What have you done recently? 2. Fishing for low-cost entertainment - spending more time than money on entertainment, or getting entertained at home becomes another common pastime for recession-councious consumers. Some turn to online gaming, which is free and easily accessible, some arrange for more movie/favorite show nights using hulu.com or renting a bunch of DVDs on Netflix or elsewhere. According to emarketers analyst Paul Verna, comScores measurements (up 27% more unique visits and 42% more total playing time in December 2008 than in December 2007) highlight the ongoing shift from high-cost, console-based gaming toward free, browser-based alternatives. 3. If affluent, buying more online with discretion - people with extra money now flock on web to keep their shopping lifestyle in a more discrete way. According to emarketers article, affluent shoppers comprise of one fourth of all US internet audience, mostly focusing on buying PCs and mobile devices. Online merchants - this is your audience to court these days!

4. Increased online services and social media usage - increased unemployment and job insecurity causes many people spend more time online while looking through the classified ads for jobs, services and then some. According to the Pew Research Center, the use of online classified advertising Websites doubled from 2005 to 2009. Emarketer also points out that Twenty-two percent of US Internet users went on the sites in 2005, and in 2009, the proportion climbed to 49%. Daily use went from 4% to 9% in the same timeframe. The some represents becoming more engaged in social networking sites to collectively share ideas, connections and any other information that simultaneously adds flavor to the trends # 6, 9 and 10. 5. Smart shopping - looking for bargains offline and online becomes more usual pastime in efforts to economize on price and value, while trading in more time. Internet shopping again becomes a more preferable channel to accommodate this buying behavior. Do you use any of the shared secrets to get your best deals? 6. Increased propensity to social harmony - our natural inclination to re-prioritize our values in cold and severe economic climate drives us to spend more time with our families, friends and loved ones. We tend to turn to our families to get through the tough slides on the way. Companies that cater to these emerging quality time experiences can bolster loyalty and engagement of their existing customers and gain a number of new ones! 7. Increased value of health - focusing on health as the real wealth motivates increased popularity of engaging into various sports activities to maintain this somewhat controllable asset we all have. Finding happiness in health of bodies versus stock market is much more feasible and tangible. While gyms owners might ponder on this trend, consumers can still choose from a variety of free alternatives, including jogging, walking and biking. 8. Skills enhancement and training - laid off or not, people tend to become more genuinely interested in continuing their education to add value to their employability, or to cope with the reduced resources to maintain their career or a small business or to get distracted from the depressed job market. 9. More love and dating - who knew that recession induces romance? According to NYTimes, Online and offline matchmakers are reporting that dating interest is up, way up. Match.com, for instance, had its strongest fourth quarter in the last seven years, and brickand-mortar outfits like Amy Laurent International, a matchmaking service with outposts in New York, Los Angeles and Miami, say business is up 40 percent among women over the last four months. The reasons vary from more time on hands due to being unemployed or underemployed, more affordable way to meet singles online to seeking comfort in relationships during the difficult times (closer to trend # 6)! 10. Cooking from scratch to save and have fun - less money as discretional income translates into less often dining out and more cooking at home choices. Simultaniously, the propensity to cherish relationships and social affiliations drives consumers to arrange for

more cookout get-togethers. Sharing a meal made from scratch both provides quality dining experience and befriends all engaged participants! I am sure there are more peculiar trends out there that define the recession market these days. If you know of any that I missed and you see their popularity rising - share with us and add your comments!

Ques::Differentiate between industrial buying and consumer buying . which is more difficult and why.?\ Ans:: Differences between consumer and organisation buying Additional needs Industrial organisations buying differs from that of consumers because they have additional needs, for example, the making of profits and legal obligations to their customers. Different decision-making proceduresThere are also more people involved in purchasing decisions, and within the organisation there may be formal policies and procedures that must be followed.4 There is also administrative paperwork associated with the purchasing activity, such as order forms and purchase contracts. It should be remembered, however, that the procedures in any two organisations are unlikely to be the same. Marketing Derived demand In industrial markets, demand for goods is ultimately derived, in that it depends on the demand for what the buyers are producing. This means that marketers need to pay attention to the markets served by their customers. vAre these markets growing? If they are falling, could this mean a reduction in demand for their own goods and services? Marketers of industrial products can play a proactive role in stimulating Derived demand by advertising their product directly to final consumers. For example, the British glass manufacturer, Pilkington, sells the benefits of its high-technology glass to householders. The intention is that when people buy glass products they will ask for those which use Pilkingtons. Another example is Intel which markets its computer chips direct to consumers in the hope that, due to consumer demand, computer manufacturers will buy Intel chips rather than Motorola or non-branded chips. since demand depends on the health of the customers business, it is liable to fluctuate more than is the case in consumer markets. However, demand is also more inelastic (because their cost is often a small proportion of the purchasers total cost) and for these reasons demand may be insensitive to the products price. Professional buyers Purchasing activity is undertaken by professionals who have access to more information than do consumers. This means that marketing to businesses may be more reliant on technical specifications and the salespeople themselves may need to be more technically aware. In contrast, such elements of the marketing mix as packaging may play less of a role.