01 April, 2017

consumer behaviour definition, nature, scope,importance and applications

Consumer Behaviour

Consumer Behaviour

Definitions

The term consumer behaviour, individual buyer behaviour, end-user behaviour, and consumer buying behaviour all stand for the same. Consumer behaviour is the study of how individuals, groups, and organisations 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 the 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."

Nature of Consumer Behaviour

  • Systematic 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 and evaluating the alternatives Purchase decision
  • Post-purchase evaluation by the marketer
  • Influenced by various factors: Consumer behaviour is influenced by marketing, personal, psychological, situational, social, and cultural factors.
  • Different for different customers: Consumers behave differently based on individual factors like lifestyle, culture, etc.
  • Different for different products: Consumer behaviour varies across product categories, with different purchasing patterns for different items.
  • Vary across regions: Consumer behaviour varies across states, regions, and countries. For example, urban consumers often differ from rural consumers.
  • Vital for marketers: Understanding consumer behaviour helps marketers take appropriate marketing decisions.
  • Reflects status: Consumer buying behaviour reflects their social status, with luxury items often symbolizing higher status.
  • Results in a spread effect: One person's buying behaviour can influence others, often through social connections or celebrity endorsements.
  • Undergoes change: Consumer behaviour changes with age, education, income, and lifestyle.
  • Information search: Consumers actively seek information about products and services to fulfill their needs.
  • Brand loyalty: Consumers often show loyalty to brands due to positive past experiences, simplifying their decision-making process.

Applications of Consumer Behaviour

  • Identifying unfulfilled needs and wants of consumers to create targeted solutions.
  • Defining distinct consumer segments to design specific products or services.
  • Determining the right mix of product, price, distribution, and promotion based on consumer behaviour.
  • Enhancing the effectiveness of campaigns, like family planning or health awareness, by leveraging consumer behaviour insights.
  • Identifying unfulfilled needs and wants of consumers to create targeted solutions.

Scope of Consumer Behaviour

  • Consumer behaviour and marketing management: Understanding consumer behaviour is essential for effective marketing strategies.
  • Consumer behaviour and non-profit marketing: Non-profit organisations benefit from studying consumer behaviour to target specific groups effectively.
  • Consumer behaviour and government decision-making: Knowledge of consumer behaviour aids in public service and consumer protection initiatives.
  • Consumer behaviour and demarketing: Efforts to reduce consumption of harmful goods, like anti-drug campaigns, are informed by consumer behaviour studies.
  • Consumer behaviour and consumer education: Educating consumers about their behaviour helps them make informed decisions, like reducing impulse purchases.

Examples of Consumer Behaviour in Daily Life

  • Grocery Shopping: Choosing organic vegetables over regular ones due to health concerns.
  • Opting for a well-known brand of cereal instead of a generic store brand.
  • Buying in bulk to save money.
  • Online Shopping: Reading product reviews before purchasing a smartphone.
  • Abandoning a shopping cart after seeing high shipping costs.
  • Using discount codes and waiting for sales to get a better deal.
  • Dining Out: Choosing a restaurant based on online ratings and reviews.
  • Ordering a vegetarian dish due to personal dietary preferences.
  • Deciding to eat at a high-end restaurant for a special occasion.
  • Technology & Gadgets: Upgrading to the latest iPhone even though the previous one is still functional.
  • Choosing a budget-friendly laptop over a premium brand due to financial constraints.
  • Preferring a specific smartphone brand due to loyalty and positive past experiences.
  • Fashion & Clothing: Purchasing a trending sneaker brand due to social influence.
  • Choosing eco-friendly clothing to support sustainability.
  • Preferring luxury brands for status and prestige.
  • Transportation & Travel: Taking an Uber or Lyft instead of public transport for convenience.
  • Booking a budget airline instead of a premium one to save money.
  • Selecting a hotel with free breakfast to reduce overall expenses.
  • Entertainment & Media: Subscribing to Netflix or Spotify based on content preference.
  • Watching YouTube reviews before buying a gadget.
  • Following influencer recommendations for skincare products.
  • Health & Fitness: Joining a gym after seeing fitness transformations online.
  • Buying protein supplements after recommendations from a trainer.
  • Choosing a smartwatch to track fitness goals.
  • Banking & Finance: Using a credit card that offers cashback on grocery shopping.
  • Investing in mutual funds based on financial advisor suggestions.
  • Switching to a digital wallet for faster transactions.

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