MEANING OF CONSUMER BEHAVIOUR
Consumer behaviour is the study of individual, groups, or organisation and the processes they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.
The study of consumers helps firms and organisations improve their marketing strategies by understanding issues such as how:
1. The psychology of how consumers think, feel, reason and select between different alternatives (e.g. brands, products and retailers);
2. The psychology of how the consumer is influenced by his or her environment (e.g. culture, family, signs, media);
3. The behaviour of consumers while shopping or making other marketing decisions;
4. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;
5. How consumer motivation and decisio strategies differ between products tha differ in their level of importance a interest that they entail for the consume and
6. How marketers can adapt and improv their marketing campaigns and marketing strategies to more effectively reach th consumer.
Consumer behaviour holds a great importance in marketing field because it is said that in the modern philosophy of marketing that CUSTOMER is treated as the KING. His needs and wants are being studied for making any product, and above that, it is always being seen while looking for opportunities for a product development that whose product is bought most and what are the factors that result in purchase of a product. We can easy understand its importance if we look around our environment. consumer behaviour is made up of two words consumer and behaviour. Consumer is the person who consumes the product. He or she may or may not be a buyer and behaviour means the aggregate of all the responses made by an organisation in any situation. So, consumer bus d behaviour means the aggregate of responses made by the consumers. It make us know the reasons behind the purchase of a product, and about the various feelings of the customers that do are being attached with the purchase of the product.
Hence, we can say that it is very important to study the behaviour of your consumers whom you are going to serve through your product. troit 1 na onorato in soria
FACTORS INFLUENCING CONSUMER BEHAVIOUR
1. Cultural factors: Culture is defined as wol bythe patterns of behaviour and social relations that characterise a society and gabby separate it from others. Culture conveys www.or values, ideals and attitudes that help hindividuals communicate with each other min and evaluate situations. Cultural factors on comprise a set of values and ideologies wtor of a particular community or group of individuals.
It is the culture of an individual which Alp decides the way he/she behaves. In It simpler words, culture is nothing but to values of an individual. What an aline individual learns from his/her parents and relatives as a child becomes his/her culture. Cultural factors have a significant effect on an individual’s buying decision. Every individual has different sets of habits, beliefs and principles which he/ she develops from his/her family status tom and background. What they see from their childhood becomes their culture.
2. Social factors: A consumer’s behaviour al also is influenced by social factors such to as the (a) Groups (b) Family (c) Roles and status.
(a) Groups: Two or more people who interact to accomplish individual or or mutual goals. A person’s behaviour is influenced by many small groups. Groups that have a direct influence and to which a person belongs are called membership groups. Some of the primary groups are family, friends, neighbours and co workers. Some of the secondary groups, which are more formal and have less ale regular interaction, include organisations like religious groups, professional associations and trade unions.
(b) Family: Family members can strongly influence buyer behaviour. The family is the most important consumer buying organisation society and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and In services.
(c) Roles and Status: A person belongs to many groups, family, clubs and organisations. The person’s position in reach group can be defined in terms of both role and status. For example, “M” br & “X” plays the role of father; in his To family, he plays the role of husband; in due his company, he plays the role of est manager, etc. A role consists of the activities people are expected to perform only according to the persons around them.
3. Personal factors: Consumer behaviour deals with why and why not an individual purchases particular products and quins services.
Personal factors play an important role br quog in affecting consumers’ buying behaviour.
(a) Occupation: The occupation of an anot individual plays a significant role in fanor influencing his/her buying decision. An individual’s nature of job has a direct influence on the products and brands he vignon picks for himself/herself.
For example, Mr Olumide was working dwith an organisation as a Chief Executive Officer while his friend, now a retired To sorprofessor, went to a nearby school as a do part-time lecturer. Mr Olumide always looked for premium brands which would go with his designated, whereas, his friend preferred brands which were not A very expensive. Mr Olumide was really conscious of the clothes he wore, the perfume he used and the watch he wore, whereas his friend never really bothered bu about all these.
That is the importance of one’s designation. As the CEO of an organisation, it was really essential for Mr Olumide to wear something really Fund elegant and unique for others to look up to him. A CEO for that matter and a senior professional can never afford to wear cheap labels and local brands to work. An individual’s designation and phis nature of work influence his buying decisions. You would never find a low level worker purchasing business suits and ties for himself. An individual working on the shop floor cannot afford to wear premium brands every day to work.
(b) Age and life cycle stage: People quo change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture and recreation are often age-related. Buying is also shaped by the stage of the family life cycle. A bachelor would prefer spending lavishly non items like beer, bikes, music, clothes, parties, clubs and so on. A young single
house, property, insurance policies, gold, etc. An individual who has a family, on the other hand, would be more interested in buying something which would benefit his family and make their future secure.
(c) Economic situation: The buying tendency of an individual is directly proportional to his income/earnings per month. How much an individual brings home decides how much he spends and on which products individuals with high (c income would buy expensive and premium products as compared to to individuals from middle and lower- (c to income group who would spend mostly sd be on necessary items. You would hardly o issb find an individual from a low-income bam group spending money on designer TV clothes and watches. He would be more interested in buying grocery items or products necessary for his survival.
(d) Personality: An individual’s personality alalso affects his/her buying behaviour. Every individual has his/her own characteristic personality traits which bo reflect in his/her buying behaviour. A to fitness freak would always look for fitness equipment, whereas a music lover would happily spend on musical instruments, CDs, concerts, musical shows, etc.
4. Psychological factors: Includes:
(a) Motivation (b) Perception
(c) Learning (d) Beliefs and Attitudes.
(a) Motivation: Motive (drive), a need that is sufficiently pressing to direct the person mazon to seek satisfaction of the need.
(b) Perception: The process by which To people select, organise and interpret od information to form a meaningful picture of the world.
(c) Learning: Changes in an individual’s behaviour arising from experience.
(d) Beliefs and attitudes: Belief is a descriptive thought that a person holds fah about something. Attitude is a person’s consistently favourable or unfavourable evaluations, feelings and tendencies towards an object or idea.
STAGES OF THE CONSUMER BUYING PROCESS
There are six stages to the Consumer Buying Decision Process. Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all the stages, determined by the degree of complexity. These stages are:
1. Problem recognition: This is the stage at which a consumer identifies that he/ she has a need or want for a product. A purchase cannot take place without the recognition of a felt need. The need may have been necessitated by internal stimuli such as hunger, thirst or external stimuli such as advertising or word of mouth. This can also be called awareness of need. Need is the most important factor which leads to buying of products and services. Need, in fact, is the catalyst which triggers the buying decision of individuals. An individual who buys a cold drink or a bottle of mineral identifies 4. his/her need as thirst. The marketer must recognise the needs of the consumer as well as how these needs can be satisfied.
2. Information search: This is the buyer’s effort to search through business environment in order to identify and evaluate sources related to the central buying decision. In consumer buying decision process, information search comes second. In this stage, the consumer searches the information about the product either from family, friends, org neighbourhood, advertisements, wholesaler, retailers, dealers, or by examining or using the product. A successful information search leaves a buyer with possible alternatives.
3. Evaluation of Alternatives: At this stage, the consumer undertakes a comprehensive assessment of available brands that satisfy his/her needs or wants.
This is where consumers start cutting blog down the possible options by comparing now it with their criteria and what they want botans from the product/service. They evaluate mory the various alternatives available in the Smarket. An individual, after gathering relevant information, tries to choose the gard best option available as per his needs, took taste and pocket.
(4) Purchase decision: At this stage, the buyer makes the actual purchase of the right product that he/she feels would satisfy his/her needs. The purchase of a product or service is the fourth step in the consumer buying process. At this point, Svizom the consumer has considered all of the ylbud factors relating to the product, and has 1 smoon shopped around for the best deal or option. Customers have typically made up their minds about what they want to e spend and where to spend it.
(5) Post purchase behaviour: After purchasing the product, the consumer by ors will experience some level of satisfaction or dissatisfaction. This is a stage at which the consumer determines whether or not a repeat purchase would take place at a future date or not. The last phase of the buying process is an evaluation process during which consumer determine if their purchasing was the right one. This may or may not be a conscious thought process. For many advertiser’s, the goal is to elicit positive results with a product or service, in the hope that customers will review or talk positively to others about the product or service they have used.
MEANING OF CONSUMER BEHAVIOUR