Definition , nature , scope , applications of cb
- 1. DEFINITION , NATURE , SCOPE , APPLICATIONS OF CONSUMER BEHAVIOUR PRESENTED BY - Saurabh Mahajan
- 2. INTRODUCTION Consumer behaviour is the study of individuals, groups, or organizations 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.
- 3. DEFINITION According to Engel, Blackwell, and Mansard ‘Consumer behavior is the actions and decision processes of people who purchase goods and services for personal consumption’. According to Louden and Bitta ‘Consumer behaviour is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’.
- 4. NATURE OF CONSUMER BEHAVIOUR PROCESS Consumer behaviour is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps: Need identification to buy the product. Information search relating to the product. Listing of alternative brands. Evaluating the alternative (cost-benefit analysis) Purchase decision. Post-purchase evaluation by the marketer.
- 5. NATURE OF CONSUMER BEHAVIOUR INFLUENCED BY VARIOUS FACTORS Consumer behavior is influenced by a number of factors. The factors that influence consumers are : marketing, personal, psychological, situational, social, cultural etc.
- 6. NATURE OF CONSUMER BEHAVIOUR DIFFERENT FOR ALL CUSTOMER All consumers do not behave in the same manner. Different consumers behave differently. The difference in consumer behaviour is due to individual factors such as nature of the consumer’s life style, culture, etc. DIFFERENT FOR DIFFERENT PRODUCTS Consumer behaviour 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.
- 7. NATURE OF CONSUMER BEHAVIOUR REGION BOUNDED The consumer behaviour varies across states, regions and countries. For instance, the behaviour of urban consumers is different from that of rural consumers. Normally, rural consumers are conservative (traditional) in their buying behaviour. KEEPS ON CHANGING The consumer’s behaviour 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.
- 8. SCOPE The scope of a subject refers to everything that is studied as part of that subject. When we set out to explain the scope of consumer behaviour we need to refer to all that which forms part of consumer behaviour. Consumer behaviour includes not only the actual buyer and his act of buying but also the various roles played by different individuals and the influence they exert on the final purchase decision.
- 9. APPLICATIONS OF CONSUMER BEHAVIOUR ANALYSING MARKET OPPORTUNITY Consumer behaviour study helps in identifying the unfulfilled needs and wants of consumers. This requires examining the trends and conditions operating in the marketplace, consumers' lifestyles, income levels and emerging influences. The trend towards increasing number of dual income households and greater emphasis on convenience and leisure have led to emerging needs for household gadgets such as washing machine, mixer grinder, vacuum cleaner , etc.
- 10. APPLICATIONS OF CONSUMER BEHAVIOUR USE IN SOCIAL AND NON-PROFITS MARKETING Consumer behaviour studies are useful to design marketing strategies by social, governmental an not-for-profit organizations to make their programmers such as family planning, crime against women, safe driving, environmental concerns and other more effective. UNICEF (greeting cards), Red Cross and CRY etc. make use of consumer behaviour understanding to sell their services and products and also try to motivate people to support these institutions.