Presentation on the topic
consumer behavior & its
roots
Presented by :-
Parveen (40)
Chirag (76)
Contents
Consumer behavior
Concept of consumer behavior
Definitions
Consumer behavior interdisciplinary roots
Scope of consumer behavior
Why We study consumer behavior
Application of consumer behavior
Consumer Decision making process
Consumer behavior
Consumer :- Consumers are those individuals who purchase
commodities for driving utilities and using them to satisfy their needs.
Behavior :- Behavior is defined as “the series of innumerable
response portrayed by individuals.
Concept of consumer behavior
Consumer behavior is defined as that process by which individuals
or groups select , purchase , obtain , use, adopt or dispose off the
products to satisfy their needs and desires.
It is a sumtotal of all the actions directly involved in obtaining ,
consuming and disposing off products both goods & service
Including the decision making process which proceeds and follow
these actions.
Contd… ..
The consumer or buyers are the highly complex entity in the field of
marketing management.
Consumer behavior is a rapidly growing discipline of study. It means
more than just how a person buys products. It is a complex and
multidimensional process and reflects the totality of consumers
decisions with respect to acquisition consumption and disposal
activities.
Definitions :-
According to KOTLER & ARMSTRONG
“The buying behavior of final consumers , individuals and household
who buys goods and services for personal consumption.”
According to ENGEL, BLACKWELL & MANSARD
“Consumer behavior is the actions and decision making processes
of people who purchase goods and services for personal
consumption.”
Contd…
Every buyer everyday is exposed to a world full of information :-
1. New products
2. New services
3. New Uses for an existing product
4. New ideas
5. New style
Human behavior is changing constantly affecting an individuals
purchase decision.
The buyer / consumers may not follow any rigid rules while taking
the purchase decision.
Consumer are the most dynamic element and most difficult to
manage .
Consumer Behavior’s Interdisciplinary
Roots
There are some interdisciplinary roots of consumer behavior :-
1. Psychology
2. Sociology
3. Social Psychology
4. Anthropology
5. Economics
Psychology
This includes the study of the individual as well as the individual
determinants in buying behavior ,viz.,consumer perception,
learning and Memory, attitude, self-concept and
personality ,motivation and involvement , attitudes and attitudinal
change and decision making.
Sociology
This includes the study of groups as well as the group dynamics in
buying behavior, viz., family influences, lifestyles and values , and
social group influences.
Social psychology
This includes the study of how an individual operates in group/
group and its effects on buying behavior viz., reference groups and
social class influences
Social psychology is the scientific study of how people’s thoughts,
feelings and behaviors are influenced by the actual , imagined or
implied presence of others. Social psychologist typically explain
human behavior as a result of the interaction of mental states and
immediate , social situation.
Anthropology
This is the influence of society on the individual viz., cultural and cross-
cultural issues in buying behavior , national and regional cultures etc.
There are four major fields of anthropology :-
1. Biological anthropology
2. Cultural antanthropology
3. Linguistic anthropology
4. ArArchaeology
Each focus on a different set of research interests and generally uses
different research technique.
Economics
This is the study of income and purchasing power ,and its impact on
conaumer behavior. The underlying premise is that consumers
make rational choices while making purchase decisions.While
resources are limited and needs and wants many , consumers
collect information , and evaluate the various alternatives to finally
make a rational decision.
Scope of consumer behavior
The study of consumer behavior deals with understanding
consumption patterns and behavior. It includes within its ambit the
answers to the following :-
‘what’ the consumers buy:- goods and services
‘why’ they buy it:- need and want
‘when’do they buy it :- time – day, week, month , year, occasions
etc.
‘where’They buy it :- place
The scope of consumer behavior includes not only the actual buyer
but also the various roles played by him / different individuals.
Consumer behavior as an academic
discipline and an applied science
Factora that contributed to the growing interest in consumer
behavior :
~ accelerated rate of new product development
~ consumer movement
~ public policy concerns
~ environmental concerns
~ the opening of national markets throughout the world
Why study consumer behavior
The knowledge of consumer behavior helps the marketers
understand and predict the consumption patterns and
consumption behaviors of people. It helps them gain insights as to
why a consumer behaves differently to another consumer; as well
as , why a consumer behaves differently in different times and
buying situations. The study helps them understand the internal
( individuals determinants) and external ( environmental factors)
forces that impel people to act out different consumption patterns
and behaviors.
The study helps the marketer in :-
1. Analysing the environment : identifying opportunities and fighting
threats
2. Segmenting, targeting and positioning
3. Designing the marketing mix
4. Designing the marketing strategy
5. Governmental and non-profit organization and social marketing
Application of consumer behavior in
marketing :-
According to the marketing concept, the marketer should be able
to determine needs and wants of the target segment and provide
product and service offering more effectively and efficiently than
competitors.It is essentially a consumer-centered philosophy, which
aims at understanding customers needs and wants, providing the
right product and service, and deriving customer satisfaction ;
“make what you can sell” rather than “sell what you make.”
An understanding of the study of consumer behavior help
formulate appropriate marketing strategies for a firm keeping in view
the consumer and his environment.
Applications:-
It has a number of applications, the main application bases are as
follows :
Analyze the environment
Segmentation, targeting and positioning
1. Segment the market
2. Select target market
3. Position the products offering in the mind of the customers
Contd…
Designing the marketing strategy
1. Consumer
2. Environment
3. Marketing strstrategies
Designing the marketing mix (4ps)
1. Product
2. Price
3. Place and distribution
4. Promotion
Application in governmental and non-
profit organization and social marketing :-
The knowledge of consumer behavior finds relevance even in
governmental and non-profit organization and social marketing.
Governmental and non-profit organization have the society as its
customers and need to understand them so as to be able to serve
them better. Social marketing involves propagation of ideas ;
attempts at such circulation and spread of ideas for moral and social
upliftment can be more successful if there is a proper understanding
of the these consumers (i.e.,the public and society)
Consumer buying process or consumer
Decision making process
Decision:-A decision is defined as the choosing an option of the
few/many available. Decision making is the process of choosing
between two or more alternatives; It is the selection of an
alternative out of few/many choices that are available.
Decision making is :
1. A goal oriented process
2. It is a problem solving process : helps take advantage of
opportunities and fight threats.
Types of decision making :-
Decision making can be of two types :
1. Programmed decision making :- This is applied for problems that
are routine and regular. Such problems are simple to deal with and
guidelines to sort out such problems exist.
2. non-programmed decision making :- This is applied for problems
that arise suddenly and unique or novel. As the problem is sudden
and novel, it is complex and requires a lot of information gathering,
deliberation and thought.
Consumer decision making :-
A consumer purchase is actually a response to a problem. Consumer decision
making pertains to making decisions regarding product and service offering. It may
be stated as a process of gathering and processing information, evaluating it and
selecting the best possible option so as to solve a problem or make a buying choice.
Consumer decision making pertains to the following decisions :-
1. What to buy : products and services (or brands )
2. How much to buy : quantity
3. Where to buy : place
4. How to buy : payment terms
All purchase decision are not similar. The effort put into each decision making is different.
