Meaning: -Peter Drucker, a leading
management expert, once stated that the aim of
marketing is to know and understand the customer so well that the product or
service fits him and sells itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be needed then is to make the
product or service available.
Definition:
-“Consumer behavior is the action and decisions process or people who purchase
goods and services for personal consumption.” Defined by………… (Engel, Blackwell and Mansard)
THE NATURE OF CONSUMER BEHAVIOR IS BRIEFLY STATED AS
FOLLOWS:-
1.
Process: -Consumer behavior
is a systematic process relating to buying decisions of the customers. The
buying process consists of the following steps;
1.
Need identification to buy the product 2. Information
search relating to the product. 3. Listing of alternative brands.
4. Evaluating
the alternative (cost-benefit analysis) 5.
Purchase decision. 6. Post-purchase
evaluation by the marketer.
2. Influenced by various
factors:
-Consumer behavior is influenced by a number of factors. The
factors that influenced consumer are as follow; marketing, personal,
psychological, situational, social, cultural etc.
3. Different for different
customers:
-All consumers do not behave in the same manner.
Different consumers behave differently. The difference in consumer behavior is
due to individual factors such as nature of the consumer’s life style, culture,
etc.
4. Different for different
products:
-Consumer behavior is different for different products. There
are some consumers who may buy more quantity of certain items and very low/no
quantity of some other items.
5. Various across regions: -The consumer
behavior very across states, regions and countries. For instance, the behavior
of urban consumers is different from that of rural consumers. Normally, rural
consumers are conservative (traditional) in their buying behavior.
6. Vital for marketers: -Marketers
need to have a good knowledge of consumer behavior. They need to study the
various factors that influence consumer behavior of their target customers. The
knowledge of consumer behavior enables marketers to take appropriate marketing
decisions.
7. Reflects Status: -Consumers buying
behavior is not only influenced by status of a consumer, but it also reflects
it. Those consumers who own luxury cars, watches and other items are considered
by others as persons of higher status.
8. Result in spread-effect: -Consumer behavior
has a spread effect. The buying behavior of one person may influence the buying
behavior of another person. For instance, a customer may always prefer to buy
premium brands of clothing, watches and other items etc. this may influence
some of his friends, neighbors, colleagues. This is one of the reasons why
marketers use celebrities like sharuk khan, sachin to endorse their brands.
9. Improves Standard of
Living:
-Consumer buying behavior may lead to higher standard of living. The more a person buys the
goods and services, the higher is the standard of living. But if the persons
spends less on goods and services, despite having good income may deprive (take
away) him/her of higher standard of living.
10.
Undergoes
a change:
- The
consumer’s behavior undergoes a change over a period of time depending upon
changes in age, education and income level. Etc, for instance, kids may prefer
colorful dresses, but as they grow up as teenagers and young adults, they may
prefer trendy clothes.
