Introduction to study of consumer behaviour
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Consumer behavior is the study of how individuals and groups make purchasing decisions, influenced by various factors such as marketing and culture. Discrepancies exist between customers (purchasers) and consumers (end users), and understanding consumer behavior is vital for marketers. The document also discusses the consumer movement in India, consumer rights and responsibilities, and the importance of research methodologies in grasping consumer behavior.
Introduction to study of consumer behaviour
- 1. INTRODUCTION TO STUDY OF CONSUMER BEHAVIOUR
- 2. MEANING AND DEFINITION OF CONSUMER BEHAVIOUR • Consumer behaviour is the study of how individuals, groups and organizations select buy, use and dispose of goods and services, ideas or experiences to satisfy their needs and wants. • According to Belch and Belch “ consumer behaviour is a process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires”.
- 3. BASIS FOR COMPARISON CUSTOMER CONSUMER Meaning The purchaser of goods or services is known as the Customer. The end user of goods or services is known as a Consumer. Resell A customer can be a business entity, who can purchase it for the purpose of resale. No Purchase of goods yes Not necessary Purpose Resale of consumption Consumption Price of product or service Paid by the customer May not be paid by the consumer Person Individual or organization Individual, Family or Group of people
- 4. NATURE OF CONSUMER BEHAVIOUR • Systematic process • Influenced by various factors • Different for different customers • Different for different products • Varies across regions • Vital for marketers • Reflects status • Result in spread –effect • Improves standard of living • Undergoes a change • Information search • Brand loyalty
- 5. NATURE OF CONSUMER BEHAVIOUR • Systematic process : it is a systematic process to buying decisions of the customer's. The buying process consists of the steps that include need identification to buy the product, information search relating to the product, listing and evaluating the alternative purchase decision and post purchase evaluation by the marketer. • Influenced by various factors : the factors that influenced consumer includes, marketing, personal, situational, social, cultural etc. • Varies across regions : very across states, regions and countries. The behaviour of urban consumers it is different that of rural consumer , rural consumers are conservative in their buying behaviour.
- 6. • Vital for marketers : marketers need to have good knowledge of consumer behaviour. They need to study the various factors that influence consumer behaviour ,knowledge enables marketers to take appropriate decisions. • Brand loyalty : is a tendency of a consumer to buy products or services from a certain company that one likes or equates with having high quality goods and services. • Information search : consumer cannot purchase goods if they are unaware of it. When a consumer decides to buy a certain item, his decision must be based on the information he has gathered about product available to fulfil his needs.
- 7. Consumer Movement in India Consumer movement arose out of the following 1. Dissatisfaction of consumers as many unfair trade practices were being indulged in by the sellers 2. There was no legal system available for protecting them from exploitation in the market place NATIONAL CONSUMER RIGHT DAY : It is observed across India on 24th December 2013, the day is observed since the consumer protection Act, 1986 was enacted on this day in 1986
- 8. Need for Consumer Movement •Providing consumer education •Providing consumer protection •Building pressure on government •Arranging consumer protection programs •Organizing public opinion •Providing guidance to consumer •Fight against marketing system •Consumer awareness
- 9. Rights and Responsibilities of consumers in India RIGHTS •Right to be heard •Right to information •Right to choose •Right to safety •Right to seek redressal •Right to consumer education RESPONSIBILITIES •Responsibility of self help •Proof of transactions •Proper claim •Proper use of product or service
- 10. Benefits of consumerism It is the social phenomenon that empowers the buyer and consumers. its effects are visible in the laws, regulations and also the marketing practices. It keeps a check on the consumers get quality products which are safe for them at correct price •Economic growth •Boosts innovation and creativity •Self satisfaction •Economic classes •Opportunity to be motivated •To stop unfair trade practices •Brand loyalty •Market share
- 11. ROLE OF RESEARCH IN UNDERSTANDING CONSUMER BEHAVIOR
- 12. Consumer behaviour paradigm Research signifies the practice of gathering new or existing information to enhance knowledge. Consumer research is a form of applied sociology that is concerned with the understanding the behaviours of consumers in a market based economy.
- 13. Consumer research paradigms Two types of research methodology Quantitative research Qualitative research
- 14. Quantitative research Quantitative research is the application of quantitative research techniques while carrying out the research process. this method is used to predict the consumer behaviour and its descriptive in nature. It consists of experiments, survey techniques, and observation.
- 15. Quantitative research includes following techniques; Observation research Experimentation research Survey research
- 16. Qualitative research Qualitative research involves an in-depth understanding of consumer behaviour and the reasons that govern that behaviour. Qualitative research largely relives on the reasons behind various aspects of behaviour.
- 17. Qualitative research methods following techniques; Depth interview Focus group Metaphor analysis Projective techniques
- 18. MODELS OF CONSUMER BEHAVIOR • Input process and output model • Howard sheath model of buying behavior • Nicosia model • Engle, Blackwell and miniard model
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