FLASHBACK NOTES// CLASS XI // MARKETING
TOPIC: CONSUMER BEHAVIOUR
MEANING OF CONSUMER BEHAVIOUR
Consumer behaviour is defined as the study of how individuals make
decisions to spend their available resources (time, money, effort) on
consumption-related items. It includes the study of ‘what they buy’, ‘why
they buy’, ‘when they buy’, ‘where they buy’, ‘how often they buy it’ and
‘how often they use it."
CONSTITUENTS OF CONSUMER BEHAVIOUR:
Consumer behaviour encompasses two constituents, namely consumer and buyer.
Consumer-"Consumer" and "Customer" the
interchangeably used terms are different in meaning.
The term "consumer" is used to represent a situation
where a product can be consumed, and "customer" is
used to deal with situation where the product is
purchased and may not be directly consumed. There
may be Individual consumer and Business Consumer.
Buyer/User
The term "buyer" refers to one who buys product. But buyer might not
be the user of product. For example, Manish buys a blazer for her
father. Manish is the buyer but the ultimate user is his father.
IMPORTANCE OF STUDYING CONSUMER BEHAVIOR:
The study of consumer behaviour is very relevant for effective marketing management. It helps
significantly in the formulation of production and marketing strategies in the following manner-
Knowledge of consumer behaviour helps to determine the marketing mix- The management
keeps on exploring -what type of product consumer purchases in general; what factors persuade him
to buy a good; why does he buy a specific brand from a particular shop etc. These facts give signals
to producers about marketing mix to be arranged for their product and to serve consumers in better
manner.
, To assess consumer’s actions or reactions- The consumer seeks value for money. He wants to pay
fewer prices, but expects superior features in the product. This has led many marketers to introduce
quality products at prices which are affordable to the customers.
To meet diversified consumer preferences –With
globalization customers got more availability of more choices
compared to pre-1991 era. For example, the customer now has
many brands of cars to choose from like Hyundai, Honda,
Mercedes, BMW etc
A guide to planning and implementing marketing strategies - Knowledge of consumer
behaviour can serve as a great help to formulate and implement marketing strategies to achieve
goals of the firm.
To address special needs, personalities, and lifestyles of consumers- Consumer prefer
differentiated products to reflect their special needs, personalities, and lifestyles. The study of
consumer behaviour helps to satisfy such special needs. For example, Maggi introduced their
ketchups with emphasis on "It's different"
To identify market segmentation. This also helps to classify market segments to market the
products effectively. For example, LIC provides its insurance cover to suit the needs of different
types of customers- Jeevan Suraksha (Financial security and post-retirement benefits), Asha Deep II
(Medical covers) etc.
TOPIC: CONSUMER BEHAVIOUR
MEANING OF CONSUMER BEHAVIOUR
Consumer behaviour is defined as the study of how individuals make
decisions to spend their available resources (time, money, effort) on
consumption-related items. It includes the study of ‘what they buy’, ‘why
they buy’, ‘when they buy’, ‘where they buy’, ‘how often they buy it’ and
‘how often they use it."
CONSTITUENTS OF CONSUMER BEHAVIOUR:
Consumer behaviour encompasses two constituents, namely consumer and buyer.
Consumer-"Consumer" and "Customer" the
interchangeably used terms are different in meaning.
The term "consumer" is used to represent a situation
where a product can be consumed, and "customer" is
used to deal with situation where the product is
purchased and may not be directly consumed. There
may be Individual consumer and Business Consumer.
Buyer/User
The term "buyer" refers to one who buys product. But buyer might not
be the user of product. For example, Manish buys a blazer for her
father. Manish is the buyer but the ultimate user is his father.
IMPORTANCE OF STUDYING CONSUMER BEHAVIOR:
The study of consumer behaviour is very relevant for effective marketing management. It helps
significantly in the formulation of production and marketing strategies in the following manner-
Knowledge of consumer behaviour helps to determine the marketing mix- The management
keeps on exploring -what type of product consumer purchases in general; what factors persuade him
to buy a good; why does he buy a specific brand from a particular shop etc. These facts give signals
to producers about marketing mix to be arranged for their product and to serve consumers in better
manner.
, To assess consumer’s actions or reactions- The consumer seeks value for money. He wants to pay
fewer prices, but expects superior features in the product. This has led many marketers to introduce
quality products at prices which are affordable to the customers.
To meet diversified consumer preferences –With
globalization customers got more availability of more choices
compared to pre-1991 era. For example, the customer now has
many brands of cars to choose from like Hyundai, Honda,
Mercedes, BMW etc
A guide to planning and implementing marketing strategies - Knowledge of consumer
behaviour can serve as a great help to formulate and implement marketing strategies to achieve
goals of the firm.
To address special needs, personalities, and lifestyles of consumers- Consumer prefer
differentiated products to reflect their special needs, personalities, and lifestyles. The study of
consumer behaviour helps to satisfy such special needs. For example, Maggi introduced their
ketchups with emphasis on "It's different"
To identify market segmentation. This also helps to classify market segments to market the
products effectively. For example, LIC provides its insurance cover to suit the needs of different
types of customers- Jeevan Suraksha (Financial security and post-retirement benefits), Asha Deep II
(Medical covers) etc.
