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Consumer Behaviorby

Anoop Kumar GuptaMAIMS

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What Is Consumer Behavior?Activities people undertake whenobtaining, consuming, anddisposing of products and

services

A field of study that focuses onconsumer activities

Scope goes beyond just why andhow people buy to include

consumption analysis

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Consumption AnalysisWhy and how people use productsin addition to why and how theybuy.

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Customer and Consumer

Customer is a word typically used torefer to someone who purchases from aparticular store or company

Consumer is the term which moregenerally refers to anyone engaging inany of the activities of evaluatingacquiring using or disposing goods and

serviceUltimate consumer are thoseindividuals who purchases for the purposeof individual consumption.

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Marketing Application of Consumer Behavior

Consumer

research

Regulatory policy

To protect consumer

Understanding

Consumer

behavior

Marketing strategy

To satisfy target

Consumer need

Behavior

theories Informed individual

To better understand

How societies function

Personal

characteristics

Product

characteristicsConsumer

behavior

Consumption

situation Marketing

strategy

market consumers react

Understanding consumer behavior is strategy to market strategy

basic formulation determines success

or failure

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Obtaining Consuming Disposing

ConsumerInfluences

OrganizationalInfluences

Consumer Behavior

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ConsumerInfluences

OrganizationalInfluences

Culture

EthnicityPersonality

FamilyLife-stage

ValuesIncomeAvailable ResourcesAttitudesOpinions

FeelingsMotivationsPast ExperiencesPeer Groups

Knowledge

Brand

Product FeaturesAdvertising

Word of MouthPromotions

Retail DisplaysPriceQualityServiceStore Ambiance

ConvenienceLoyalty ProgramsPackagingProduct Availability

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Obtaining Consuming Disposing

How you decide

you want to buy

Other productsyou considerbuying

Where you buy

How you pay forproduct

How youtransportproduct home

How you use the

product

How you store theproduct in yourhome

Who uses theproduct

How much you

consume

How productcompares withexpectations

How you get rid of

remaining product

How much youthrow away afteruse

If you resell itemsyourself orthrough aconsignment

store

How you recyclesome products

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OBTAININGHow you decide youwant to buyOther products you

consider buyingWhere you buyHow you pay forproductHow you transport

product home

CONSUMINGHow you use the productHow you store theproduct in your home

Who uses the productHow much you consumeHow product compareswith expectations

DISPOSINGHow you get rid of

remaining productHow much you throw

away after use If you resell itemsyourself or through aconsignment storeHow you recycle some

products

CONSUMER INFLUENCESCulture EthnicityPersonality FamilyLife-stage ValuesIncome Available ResourcesAttitudes Opinions

Motivations Past ExperiencesFeelings Peer GroupsKnowledge

ORGANIZATIONAL INFLUENCESBrand Product FeaturesAdvertising Word of MouthPromotions Retail DisplaysPrice QualityService Store Ambiance

Convenience Loyalty ProgramsPackaging Product Availability

Consumer Behavior

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The Marketing ConceptThe process of planning andexecuting the conception, pricing,promotion, and distribution ofideas, goods, and services to create

exchanges that satisfy individualand organizational objectives

Satisfaction with an exchangedepends on satisfaction withconsumption of product and theexchange of money

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Some issues that arise during stages in the

consumption process

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Why Study Consumer Behavior?Consumer Behavior Determines theEconomic Health of a Nation

Consumer Behavior Determines the

Success of Marketing Programs

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Why Study Consumer Behavior?Consumer Behavior Determines theSuccess of Marketing Programs

Marketing can be used toinfluence brand choice and

purchase, while Demarketingcan influence people to stopharmful consumption

The Customer is KingOrganization influenced byconsumer needs and wants

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Why Study Consumer Behavior?Consumer Behavior Determines theSuccess of Marketing Programs

Organizations that are Customer-centric use a total marketing approach

to focus their resources on satisfyingcustomers

Marketing

Process of transforming or changingan organization to have what peoplewill buy

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Why Study Consumer Behavior?Consumer Behavior Determines theEconomic Health of a Nation

Consumer Behavior Determines the

Success of Marketing ProgramsConsumer Behavior Determines theEconomic Health of Everyone

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Why Study Consumer Behavior?Consumer Behavior Determines theEconomic Health of Everyone

The individuals decisions as a

consumer determine their economic

health by making more effectiveconsumption decisions while avoidingdeceptive practices harmful to them

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Why Study Consumer Behavior?Consumer Behavior Determines theEconomic Health of Everyone

Public policy leaders and socialcommentators study consumer

behavior to alleviate overconsumptionand underconsumption by educatingconsumersabout problems andproviding assistance

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Understanding consumers issues or

problems and developing methods toreach and educate consumers. e.g. Dum

hai to bahar nikal ad of Nestle Milky Bar

Chocolate. The ad urges children to play

outdoor and grow healthy(indirectly toshun T.V. watching).

Educating Consumers About Health

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Why Study Consumer Behavior?Consumer Behavior Determines theEconomic Health of a Nation

Consumer Behavior Determines the

Success of Marketing ProgramsConsumer Behavior Determines theEconomic Health of Everyone

Consumer Behavior HelpsFormulate Public Policy

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Why Study Consumer Behavior?Consumer Behavior AffectsPersonal Policy

Personal policy includes how youbehave towards others and in buying

situations, your values and beliefs,and how you live your life

A persons economic quality of life is

determined by personal policy

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Evolution of ConsumerBehavior

Supply Chain:all the organizations involved in taking aproduct from inception to finalconsumption

- Manufacturers- Wholesalers- Retailers- Facilitating Organizations

ConsumersIncreased Influence onBusiness

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Evolution of ConsumerBehavior

Wholesaler Manufacturer Retailer Consumer

ManufacturingOrientation

ConsumerOrientation

SellingOrientation

MarketingOrientation

Consumers Increasing Influence

U.S. 1750-1850 1850-WWII 1970-2000 2000+

Europe 1750-1850 1760-WWII 1970-2000 2000+

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ConsumerOrientation

Beyond a marketing focus

How all organizations in a demand chainadapt to changing consumer lifestyles

and behaviors bringing product design,logistics, manufacturing, and retailingtogether

Role of consumers in shaping manyaspects of lifesociety, government,social programs, health cares, and otherareas