Consumer Behavior is Influenced by Many Factors (1)

7/29/2019 Consumer Behavior is Influenced by Many Factors (1)

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Raheja Nikita Anilkumar

MonicaAcademic Year2012-2013

Subject -

Marketing Human Resource

Management(MHRM)

ClassTYBCOM

DIVISIONC

Roll No280

College

ChandibaiHimathmal Mansukhani


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Mobile No- 9320254259


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Introduction

Consumer behaviour is the study of individuals, groups, or

organizations and the processes they use to select, secure, and

dispose of products, services, experiences, or ideas to satisfy needsand the impacts that these processes have on the consumer and

society.

It blend elements from psychology, sociology, social anthropology and

economics. It attempts to understand the decision-making processes

of buyers, both individually and in groups. It studies characteristics of

individual consumers such as demographics and behavioral variables

in an attempt to understand people's wants. It also tries to assess

influences on the consumerfrom groups such as family, friends,

reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour,

with the customer playing the three distinct roles of user, payer and

buyer. Research has shown that consumer behaviour is difficult to

predict, even for experts in the field.[2] Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen

interest in the re-discovery of the true meaning of marketing throughthe re-affirmation of the importance of the customer or buyer. A

greater importance is also placed on consumer retention, customer

relationship management, personalization, customization and one-to-

one marketing. Social functions can be categorized into social

choice and welfare functions.

What is Consumer Behavior?

How many times throughout the day do people make product

decisions? If you stop to think about it, many product decisions are

made every day, some without much thought. What should I wear?

What should I eat? What am I going to do today? Many product

decisions are answered routinely every day and they help move the

economy of cities, countries and ultimately the world.
http://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumer_behaviour#cite_note-2http://en.wikipedia.org/wiki/Consumer_behaviour#cite_note-2http://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Social_choicehttp://en.wikipedia.org/wiki/Social_choicehttp://en.wikipedia.org/wiki/Social_choicehttp://en.wikipedia.org/wiki/Social_choicehttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Consumer_behaviour#cite_note-2http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Psychology


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Product decisions also shape life for the consumer. How can simple

decisions be so important? Why do marketers spend millions of dollars

to uncover the reasons behind these decisions?

To define consumer behavior: it is the study of consumers and theprocesses they use to choose, use (consume), and dispose of products

and services. A more in depth definition will also include how that

process impacts the world. Consumer behavior incorporates ideas

from several sciences including psychology, biology, chemistry and

economics.

Provide value and customer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services. Create a competitive advantage Understand how customers view their products versus their

competitors' products.

Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive affect on society

(encourage people to support charities, promote healthy habits,

reduce drug use etc.)

Consumer behaviour, also called as Consumer Psychology, is a branch

of applied Psychology, marketing and Organizational Behaviour. It

examines consumers' decision making processes and ways in which

they gather and analyze information from the environment. Seethe consumer behaviourarticle for an overview. Consumer behaviour

is a multidisciplinary field which is integral to Industrial Psychology

and aspects of household economy studied in microeconomics.

Consumer behaviour also means the actions shown by consumers

while making decision to select household and consumer items.
http://en.wikipedia.org/wiki/Buyer_decision_processeshttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Buyer_decision_processes


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Consumer behaviour is a very interesting theory to learn for MBA

Students.

Trends associated with consumer behaviour in the emerging Indian

context have certain unique aspects. The huge market at the lower

economic strata running to several millions of households for fast-

moving consumer goods, the vast youth population that makes the

market especially attractive to several multinational brands, the

growth of luxury markets, the appearance of modern retail outlets in

an environment that is still characterized by kirana shops and the

enhanced rural patronage of goods and services spanning several

categories are just some of the important factors that make the Indian

context significantly different from the western markets.

Definitions of consumer behaviour

Consumer behaviour is the study of when, why, how and where

people do or do not buy products

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

Consumer behaviouris much more than buying things: it also

embraces the study about how having (or not having) things

affect our lives, and how our possessions influence the way we

feel about ourselves and about each otherour state of being

Consumer behavior is influenced by many factors: consumerbehavior is influenced by many factors.


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a) Cultural factors such as social class, sub caste. Religion etc.b) Social factors such as social class, reference groups, family.c) Personal factor such as age, gender, education, income.d) Psychology actors such as buying motives, perception of the

product, attitude.

e) Situational factors such as physical surrounding at the ofpurchase, social surrounding

It has four types :a) Routine response: the consumer spends very little time for

buying. For eg, milkb) Limited decision making: the consumer a lot of time for buying

for eg, clothes

c) Extensive decision making: the consumer spends a lot of timefor buying for eg, house, car

d) Impulsive buying: unplanned and spontaneous for buying by theconsumer is called is called impulses buying.

Consumer behavior is dynamic:Consumer behavior is dynamic. It goes on changing. This is because

consumer and their environment goes on changing. Internet has

brought many changes in consumer behavior. More and more people

especial the young generation are using the internet to collect

information about goods and services. They even buy goods and

services through the internet.

It involves interaction:Consumer behavior involves interaction between people, thinking,

feeling. This wil satisfy the needs and wants of the consumer and to


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give value to consumer. All these interaction influence the individual

consumer the market and full society.

It changes as per regions and countries:Consumer behavior is differently in different places. The behavoiur of

a rural consumer is different from an urban consumer. A rural will not

buy a luxury item very easily, even I he has a lot of money . but an

urban consumer will buy luxury products very easily without thinking.

Consumer behavior changes according to the upbringing of the

consumer, their life-style, the level of development.

It has many uses uses :companies study consumer behavior because it has many uses. It

helps the company

a)to improve its products and services

b)to effectively target its customer

c) to create a competitive

d) to make effective marketing starategies.etc

It has a spread effect:Consumer behavior has spread effect. The buying behavior of one

person will influence the behavior o other people. A crowded shop will

attract more customer. For eg, if a person buys a car then his friends,and neighbor may also by car. After seeing these ads many people will

buy the product


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It shows status :Consumer behavior is influenced by status of a person. It also shown

the status of a person. So if a person buys luxury cars, cars, costly

mobiles phones, ets then people will say that he has a status.Similarly, if a persons buys cheap and unbranded items then people

will say he has a low status . so a persons buying behavior will show

his status

It is a broad term:Consumer behavior is a broad term. It include individual buyer who buy

goods and services for themselves and for families. It also include

industrial buyer who buy product for their companies. It also includes

individual consumer and group of consumer. Consumer behavioral

includes everything that a consumer does while selecting, buying,

using and disposing of goods and services. it includes the consumer

behavior as a payer, as a buyer and as a user.

It goes on changing:Consumer behavior is not static. It goes on changing over a period of

time. This is because consumer behavior depends on many factors.

The consumer will show different behavior as a kid as a teenager, as a

young man, as a middle man. The same consumer show different

behavior while purchasing the same product at different time

situation.

Different consumer behave differently:All consumer do not behave in same way. Different consumer behave

differently while purchasing the same product. This is coz of individual


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factor such as nature of consumer, lifestyle, culture, etc. He may also

borrow money from relatives, friends, banks, etc. for shopping. On the

other hands, there may be many rich consumers who have a lot of

surplus money but they may not go for regular shopping.

It is different for different products:Consumer behavior is different for different product. when a consumer

buy car or house he will spent a lot of time collecting information

about a product and its different brands. He will take many people

opinion for buying this brand. He will take lot of time for deciding

which brand should take. He will automatically purchase his favorite

brander any one of top brand.

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Consumer Behavior is Influenced by Many Factors (1)