TOPIC:

CONSUMER BEHAVIOUR

INTRODUCTION:
The aim of marketing is to meet and satisfy target customers s needs and wants .the field of customer behavior studies how individuals ,group, and organization select ,buy ,use ,and dispose of goods ,services, ideas or experiences to satisfy their needs and desires . Understanding consumer behavior and knowing customers is never simple customers may say one thing but do another they may not be in touch with their deeper motivations . They may respond to influences that change their minds at the last minute. Small companies , such as a corner grocery store and huge corporation , such as whirlpool, stand to profit from understanding how and why their customer buy

Meaning :
Buyer behavior is a process ,which through inputs(buying power ,intra and inter- influences marketing effort, environmental factors) and their use through process( perfection of wants , search purchase decision, product use and evaluation ) and actions leads to satisfaction of needs and wants Buyer behavior may buy viewed as an orderly process whereby individuals decide what ,when ,how ,and whom to purchase goods and services Consumer or buyer behavior simply refers to behavior of a consumer at the tine of buying or using goods or services it is the process by which consumer decide to select buy and use goods or services.

DEFINITION:

According to Walters and Paul, "consumer behavior is the process where by the individual desired what, when, where, how and from whom to purchase goods and services

IMPORTANCE OF CONSUMER BEHAVIOUR

The main role of marketing manager is to satisfy needs and wants of the Customers. This can only be done by the study of Consumer Behavior. Consumer is the most important person to the marketer because the marketer takes in to consideration on the liking and disliking of the consumer and he produces the goods and services accordingly. The more the Consumer Behavior is learnt the more the needs and wants of the Customers are fulfilled.The Study of consumer help us

 To design the optimal product or service for customers. To determine where the product or Service should be available that would easy for the customers to buy. To determine what price will the customers give up purchasing product or service To determine which method of Promotion would be most effective for getting the customers to buy a product. It helps in changing the behavior of the consumers.

To improve performance of the organization. To achieve the organizational objectives

FACTORS INFLUENCIG CONSUMER BEHAVIOUR:

Consumer behavior is generally influenced by factors which are related to behavioral science particularly psychology, economics , sociology and anthropology . The individual consumer can be though of as embedded in the centre of a series of influence from other people and noninteractive influence of social class, reference groups and culture .marketing action must reach the individual through these filters that extent of the marketer

CULTURAL FACTOR (ANTHROPOLOGY) SOCIAL FACTOR (SOCIOLOGY, SOCIAL PSYCHOLOGY) INDIVIDUAL FACTOR BUYERS

PREDISPOSITION
ECONOMIC& PHYSICAL REALITY

FAMILY FACE TO FACE CONTACTS

REFERENCE GROUPS
SOCIAL CLASS SUB-CULTURE CULTURE

EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR:

The consumer behavior is influenced by external forces such us social and cultural factors ,reference group ,social classes, status symbols,etc

a)SOCIAL AND CULTURAL INFLUENCES:

Social influences act in two directions ones, they provide information and second ,standard of behavior against which alternative buying behaviors are measured.

b)The family:
The impact of family on the formulation of values ,attitudes, and purchasing patterns is considerable. The family defines purchase needs and also puts financial strains within which the buying is to be done

C) Culture:
It refers to the social heritage of the society. It encompasses the social values ,attitudes towards work ,social intercourse ,language ,belief, morals law, and any other capabilities and habits acquired by man as a member of the society. Cultural influences are so pervasive that they are hard to identify and analyses.

d) Social class
On the basis of income category ,the population is generally divided into upper class, middle class and lower class

These are collection of individuals providing the individual a sense of identify ,accomplishment ,and stability . These groups influence the individuals opinions ,beliefs, and aspirations. such groups play key roles in marketing.

INTERNAL INFLUENCES ON CONSUMER BEHAVIOUR:

On the basis of income category ,the population is generally divided into upper class, middle class and lower class

A person has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger , thirst, or discomfort .Other needs are psychogenic; they arise from psychological states of tension such as the need for recognition, esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity .A motive is a need that is sufficiently pressing to drive the person to act

HIERARCHY OF NEEDS
The need hierarchy of needs is shown in fig.
SEIF ACTULISATION

ESTEEM

SOCIAL

SAFTEY

PHYSIOLOGICAL

a)The physiological needs:

which include needs for satisfying hunger ,thirst,sleep,shelter, and sex gratification. these are the most basic needs and until they are satisfied ,other needs are of little importance

b)The safety needs:

which are related to economic and social security

such as economic security ,protection and family stability.

c) The belongingness and love:

Need which are to be satisfied to avoid frustration and mal adjustment in life these relates to affection and belongings to a group,love,acceptance by someone .

c) The belongingness and love need:

which are to be satisfied to avoid frustration and mal adjustment in life these relates to affection and belongings to a group , love , acceptance by someone .

E) The need of self actualization:

is the desire to achieve the maximum of ones capabilities. Its fulfillment depends upon the prior fulfillment of the more basic needs.
It

PERCEPTION:
Perception is the sensing of stimuli external to the individual organization the act or process of comprehending the world in which the individual exists . It is the complex process by which people select,organise and interpret sensory stimulation into a meaningful and coherent picture of the world

Learning.
It is the process of acquiring knowledge ;and the basic factors influencing learning are : repetition, motivation ,conditioning and relationship and organization Attitude, or an individuals consciousness , feelings ,beliefs, values form the emotional part of the mind .attitudes develops gradually as the result of experience and they emerge from interactions with family ,friends and reference group .They are 3 main components of attitude: (i)The cognitive component ,is that which individual believes about the object whether it is good or bad ,necessary or unnecessary ,useful or useless. ii) The affective component is what the individual feels about the object- whether pleasant or unpleasant, tasty or tasteless . In is concerned with the individuals emotions.

(iii) Cognitive component is concerned with how the individual response to the object . Having known about the attitude of the consumers ,the marketer may adopt 3 alternatives in marketing.One,he may confirm the existing attitude ,by reminding the consumers of why they like a product and why they should continue to purchase .Two the existing attitude may be changed ,through improved media of advertisement .Three ,new attitude may be created by placing a new product in the market and making a mass appeal for it

PERSONALITY
It reflect individual differences in behavior ,that is an individual response with a certain amount of consistency to stimuli .Personality traits that influence behavior include degrees of dominance, adventurousness, sociability, responsibility etc . However generalization about the effect of personality on consumer behavior may be over simplification.

CUSTOMER RELATIONSHIP MARKETING

Relationship marketing meaning
According to professor Philip Kolter , Relationship marketing is the process of building long term , trusting , win-win relationships with customers, distributors , dealers, and suppliers over time, relationship marketing promises and delivers high quality, efficient services and fair prices to the other party . It is accomplished by strengthing economic, technical and social ties between members of the two organizations or between marketer and the individual customer.

CUSTOMER RELATIONSHIP MARKETING :

The term relationship marketing is not a new concept. In 1983 a service marketing researcher Leonard Berry has stressed on customer relationship. He had defined relationship as efforts by the marketer to attract , maintained and enhance customer relationship . Relationship marketing will become effective and help in empowering the organization to leverage its resources to achieve customer focus and gain an edge over its competitors. For this the firm will have to involve a customerisation process . It will have to involve all the employees and build a chain of internal customers , institutionalisms the process of innovative idea flow and expose all the parts of the organization directing the external customer

ELEMENTS OF CUSTOMER RELATIONSHIP MARKETING:

Interaction between suppliers and customers is moving from a transaction one to a relationship focus to one The relationship marketing emphasis on maximizing the life time valve of customer segments and on enhancing customer satisfaction relationship marketing is concerned with working , developing and enhancing relationships with internal "markets with in the organization and building substantial external relationship with customers, suppliers referral source , influence market recruitment markets in the relationship marketing approach , three closely related terms are-quality, customer service and marketing

Industrial vs. consumer buying

behavior
There is more preference among buyer to deal with supplier who can offer complete system

There is a clear market segmentation with all potential supplier knowing the potential customer and the potential buyer knowing all the potential supplier Large organizations usually have more purchasing power
The practice of reciprocal buying may exist

The external environment factors like the level of primary demand , cost of money etc. Can influence the organization
An unsuccessful decision involve more risk as compared to an average customer purchase At times many organization market face inelastic demand

The value added buying criteria offered to buyers include ,price\ discount ,technical quality ,after sales service ,reliability and continuity of supply ,credit facility and so on

Consumerism
Consumerism is an organized movement of citizen and government to protect the rights and enhance the power of buyer in relation to seller.(Philip kolter) Social critics have accused the marketer of hurting and harming the consumer by engaging themselves in practices such as high price, deceptive practices, a high pressure selling ,shoddy or unsafe product .originally the consumer movement had its conspicuous beginning and had picked up momentum in the united states. slowly this awareness spread to the other countries resulting in the growth of consumerism and the growing awakening and demand for consumer protection.

REASONS BEHIND RISE OF CONSUMERISM

Make

the business community more honest, efficient ,responsive and responsible. The manufactures and sellers will be compelled to adopt fair trade practices, when consumers learn to exercise their rights and not taken for granted. Consumerism can also be viewed as an opportunity for serve the consumers in a better and more efficient manner.

Consumerism will also ensure that the government takes the necessary measures to protect consumer interests by guaranteeing their legitimate rights.