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Consumer BehaviorClass room Notes Internal 1

G S Sreekiran

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Consumer Behavior

Is the decision process and physical activity

individuals engage in when evaluating,acquiring, using or disposing of goods and

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Basic Consumer Behavior Role

Initiator

Influencer

Buyer

User

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Initiator - individual who determines that some need or want is not

being met and authorizes a purchase to rectify the situationInfluencer influences the purchase decision, the actual purchase

and or use of the product or service

Buyer Who actually makes buying transactions

User Who directly involved in consumption or use of the product

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Significance

Understanding consumers needs wants and

demands.

Analyzing the demand pattern the basic

. Market opportunity analysis

Target market selection

Marketing mix determination

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Needs, Wants & Demands A marketer must understand the target segments Needs, Wants &

Demands

Companies must measure not only how many people want their product,but also how many would actually be willing and able to buy it.

Need s Basic Needs

eg: Food

Demands Wants for specific

products backed by an ability to

pay

Wants When directed to specificobject which satisfy the need

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Types of Demand Negative demand Dislike and Avoiding

Non Existent demand Unaware/Uninterested

Declining Demand Buying less frequently

Irregular demand Seasonal

Full Demand Adequately buying

Overfull demand More consumers buying the product Unwholesome demand buying products that have

undesirable social consequences.

Marketing managers seek to influence the level, timing and composition of

demand to meet organizational goal. They must identify the underlying cause fdemand state and develop the strategy to shift it to desired state.

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Market Opportunity Analysis

Examining trends and conditions in the market

place

Studying general market trends

onsumer s e sty e an ncome eve

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Target Market selection

Consists of a set of buyers who share

common needs or characteristics that thecompany decides to serve.

often results in identifying distinct grouping of

consumers.

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Marketing Mix determination Product size , shape, features, package etc

Price Sensitivity to price, How much?,

Discount etc Place Where and How, Distribution, retailer

Promotion How to communicate. Methods ofpromotion, convey the best message, frequencyof communication

The decision on Marketing Mix is influenced by the consumer

behavior.

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Maruti Suzuki Market opportunity

analysis Case discussionMaruti Eeco

Geographical Segmentation India

Demographical Middle Income Family, Big

- Family

- . .

Target Group- Middle Income Group

Product Variants 5 Seater, 7 Seater (w/wo AC),LPG

Core Benefits Big Storage space, Fuel Efficiency, 1200 cc

engine, Design on Indian Road condition

Positioning Big Family Car & Multi Purpose Vehicle

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Consumer Rights & Protection

Many agencies at all levels of government are

involved with regulating business practices forthe purpose of protecting consumers welfare.

with information believed useful for making

purchase decisions.

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Cont. IRDA (Insurance Regulatory Development

Authority) Insurance companies to

communicate all charges, policy details,exclusions, conditions & Possible returns to theconsumer.

SEBI Regulates selling or Mutual Fund and otherequity products

Ombudsman Consumer grievance redressal

Consumer Courts - Consumer grievance redressal

These efforts are to protect consumer rights and avoid mis-selling o

the product G S Sreekiran, Asst.Prof. AIMS

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Cont.

FDA (Food and Drugs Administration)

Marketers should not claim the results whichare not substantiated by research.

Alcoholic bevera es advertisements are

banned. Tobacco products advertisements are banned.

Mis leading advertisement/communication.

Defaming of persons/company/country areregulated

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Social Responsibility

Demarketing all efforts to encourage

consumers to reduce their consumption of aparticular product or service.

,

determination & Abortion campaigns.

Avoid using Fur products (PETA)

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Cont.

Enforced Marketing Govt./Agency reinforce

the use of specific product/service for thebenefit of the individual/society.

, ,

Reduce - Reuse Recycle campaigns.

Teach India campaigns, Reforestation (Plat a

tree)campaigns.

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Cont

Cause Related Marketing Marketing efforts

of specific product simultaneously promotinga cause. ITC (Classmate note book fixed

underprivileged child education)

Other products or services associated with

social responsibility initiatives/NGOs (CRY)

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Ref:

Consumer behavior: Loudon and Della Bitta

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