General Introduction Consumer Behaviour

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 needs and the impacts that these processes have on the consumer and society. It blends 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 behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from 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. 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 through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

Importance of consumer behavior
(i) The study of consumer behaviour enables us to become a better consumer. It will help consumer to take more precise consumption related decisions. (ii) It helps marketers to understand consumer buying behaviour and make better marketing decisions. (iii) The size of the consumer market is constantly expanding and their preferences were also changing and becoming highly diversified. So without studying it, marketers cannot predict the future of their business.

Consumer preferred differential products that they felt reflected their own special needs. people prefers unique products. 2) The Product Concept. 5) The Societal Marketing Concept. This approach has come to be known as positivism and the consumer researcher who are primarily concerned with predicting consumer behaviour are known as positivists. interiors. A BUSINESS ORIENTATION: The field of consumer behaviour is rooted in the marketing concept. marketers adopt market segmentation policy.Marketing managers regarded consumer behaviour discipline as an applied marketing science. 3) The Selling Concept. Other reasons for the development of consumer behaviour includes the rate of new product development. growth of consumer movement. they could influence it. . To meet the need of consumers. if they could predict consumer behaviour. for example in case of purchase of house. car. public policy concerns. 4) The Marketing Concept. personalities and lifestyles. environmental concerns and the growth of both nonprofit marketing and international marketing. They use promotional techniques to vary the image of their products so that they would be perceived as better fulfilling the specific needs of certain target segments. they soon realized that many consumers rebelled at using the identical products everyone else used. a business orientation that evolved in the 1950s through several alternative approaches toward doing business referred to respectively: 1) The Production Concept. and dress material etc. DEVELOPMENT OF THE MARKETING CONCEPT AND THE DISCIPLINE OF CONSUMER BEHAVIOUR: MARKETING CONCEPT. As the marketing research began to study the buying behaviour of consumers.

 It makes sense when consumer are more interested in buying what’s available rather than wait for what they really want. the best performance.1) THE PRODUCTION CONCEPT:  The production concept assumes that consumers are mostly interested in product availability at low prices. The product concept often leads to “marketing myopia” that is focusing on the product rather than the customer needs. Today the selling concept is utilize be marketers of unsought products – that is which people are not willing to buy it (such as life insurance). instead of what it has made.    The problem in this concept is that it fails to satisfy a customer. It ensures the company to improve the quality of its product and add new features. 3) THE SELLING CONCEPT: The assumption of the selling concept is that consumers are unlikely to buy the product unless they are aggressively persuaded to do so – mostly through “hard sell” approach. Consumer need and wants became the firm’s primary focus. The main objective is to expand the market. Promotion can be done through advertisement. sales promotion and public relation. its implicit marketing objectives are cheap. The marketers should made product what t can sell. and the most features. 2) THE PRODUCT CONCEPT:    The product concept assumes that consumers will buy the product that offers them the highest quality. . efficient product and intensive distribution. 4) THE MARKETING CONCEPT:    It started in 1950’s when some marketers realized we can sell more products by determining what consumer would buy.

Two theoretical perspectives that guides the development of consumer research: Positive Approach à It tend to be objective and empirical. Doing marketing in such a way that it helps you in increasing your production & also giving benefits to society. companies had to engage in extensive marketing research. characteristics or behavior who might require separate products or marketing mixes. and to conduct research studies that can be generalized to larger population. positioning and the marketing mix. ð Market consists of buyers and. buyers differ in one or more ways. and buying practices. They may differ in their wants. THE ROLE OF CONSUMER RESEARCH:     Consumer research describes the process and tools used to study consumer behaviour. TARGETING. The marketing concept underscored the importance of consumer research. wants and interest of target markets and deliver the desired satisfaction more effectively and efficiently then do competitors in a way that maintains or improves the customers and society’s well being. on the other hand tends to be qualitative and based on small samples. buying attitudes. resources. The organization should determine the needs. to seek caused for behaviour. targeting. Interpretivists à the research done by Interpretivists.5) THE SOCIETAL MARKETING CONCEPT:   Developing that product which benefits the society. SEGMENTATION. . IMPLEMENTING THE MARKETING CONCEPT:   To identify unsatisfied consumer need. locations. AND POSITIONING: MARKET SEGMENTATION: ð Dividing a market into distinct groups of buyers with different needs. The strategic tools that are used to implement the marketing concept include segmentation.

Developing a distinct image for the product or service in the mind of the consumer. and packaging offered. 4) Promotion – The advertising. This could be a simple as “I’m naked. ad sales efforts designed to build awareness of and demand for the product or service. 3) The place – the distribution of the product or service through specific store and non store outlets. public relations. designs. The marketing mix consists of four elements: 1) The product or service that is the features. along with post purchase benefits such as warranties and return policies.” . including discounts. MARKET TARGETING: ð The process of evaluating each market segments attractiveness and selecting one or more segments to enter. sales promotion. I need clothing”. Problem Recognition in this stage.MARKET POSITIONING: ð Formulating competitive positioning for a product and a detailed marketing mix. brands. I need food. 2) The price – the list price. or “I’m hungry. allowances. a consumer realizes or recognizes that their desired state is different from their actual condition. Consumer Buying Behaviour Process The various stages of consumer buying behavior as follows: 1. and payment methods. that will differentiate with the competitors. MARKETING MIX: ð The marketing mix consists of a company’s service and/or product offerings to consumers and the methods and tools it selects to accomplish the exchange.

personal and psychological. subculture. Post-Purchase Evaluation in this stage. they look for food. There are different processes involved in the consumer behavior. 1. a consumer is processing the information from the information search and deciding on the products. Information Search in this stage. the consumer determines if they are satisfied or dissatisfied with the purchasing outcome. The actual problem that was recognized is solved! 6. then he selects only those commodities that promise greater utility.2. store. Evaluation of Alternatives in this stage. Lastly. They are evaluating the features of products and brands. 4. Initially the consumer tries to find what commodities he would like to consume. they are making the decision to move forward with the purchase or not. Purchase Decision in this stage. The explanation of these factors is given below. cultural. Purchase this is the stage that the transaction is completed. More importantly. payment options. Here is where cognitive dissonance occurs. purchase and consumption of goods and services for the satisfaction of their wants. there are various other factors influencing the purchases of consumer such as social. if it is food. the consumer makes an estimate of the available money which he can spend. Factor affecting Consumer Behaviour Consumer behavior refers to the selection. a consumer recognizes their need (or want) and sets forth to find a solution. Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: buyer culture. the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. the look for clothing. Meanwhile. 5. 3. If it is clothing they need to solve their problem. and social class. After selecting the commodities. now they are looking at the options that exists. . a consumer has a good idea of what they want.

Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth. For example if the product is visible such as dress. For example marketers can design products according to the needs of a particular geographic group. racial groups etc. • Social Class Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. nationalities.• Culture Basically. shoes. knowledge or other characteristics). family. • Subculture Each culture contains different subcultures such as religions. car etc then the influence of reference groups will be high. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups. Reference groups also include opinion leader (a person who influences other because of his special skill. The important social factors are: reference groups. occupation etc. geographic regions. The impact of reference groups varies across products and brands. regions or even countries. Marketers can use these groups by segmenting the market into various small portions. • Reference Groups Reference groups have potential in forming a person attitude or behavior. Social Factors Social factors also impact the buying behavior of consumers. 2. role and status. In this way marketing activities could be tailored according to different social classes. culture is the part of every society and is the important cause of person wants and behavior. education. • Family .

For example a woman is working in an organization as finance manager. It is obvious that the consumers change the purchase of goods and services with the passage of time. • Age Age and life-cycle have potential impact on the consumer buying behavior. Therefore marketers are trying to find the roles and influence of the husband. to which he belongs. organization etc. age. a person with low income and savings will purchase inexpensive products. . family. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles. unmarried couples etc which help marketers to develop appropriate products for each stage. one of finance manager and other of mother. clubs. If the income and savings of a customer is high then he will purchase more expensive products. occupation. Therefore her buying decisions will be influenced by her role and status. For example a marketing manager of an organization will try to purchase business suits. married couples. Personal Factors Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle. Now she is playing two roles. • Occupation The occupation of a person has significant impact on his buying behavior. 3. On the other hand.Buyer behavior is strongly influenced by the member of a family. • Economic Situation Consumer economic situation has great influence on his buying behavior. economic situation. Family life-cycle consists of different stages such young singles. wife and children. whereas a low level worker in the same organization will purchase rugged work clothes. • Roles and Status Each person possesses different roles and status in the society depending upon the groups. personality and self concept.

Similarly. Psychological Factors There are four important psychological factors affecting the consumer buying behavior. opinions. rather it is the totality of behavior of a man in different circumstances. The nature of the needs is that. It is determined by customer interests. beliefs and attitudes. Whereas. . in case of selective retention. aggressiveness. activities etc and shapes his whole pattern of acting and interacting in the world. Actually. customers try to interpret the information in a way that will support what the customers already believe. self-confidence etc which can be useful to determine the consumer behavior for particular product or service. There are three different perceptual processes which are selective attention. • Motivation The level of motivation also affects the buying behavior of customers. marketers try to retain information that supports their beliefs.• Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behavior. • Personality Personality changes from person to person. Therefore it can greatly influence the buying behavior of customers. motivation. biological needs. Every person has different needs such as physiological needs. These are: perception. some of them are most pressing while others are least pressing. learning. in case of selective distortion. It has different characteristics such as: dominance. Personality is not what one wears. • Perception Selecting. In case of selective attention. selective distortion and selective retention. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. time to time and place to place. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. marketers try to attract the customer attention. organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. social needs etc. 4.

Information technology has enabled greater production of quantitative data for comparison. Most authors are more conservative in their estimate of how long comparative research has been with us. and international communications technology has facilitated this information to be easily spread. Comparative study Comparative research is a research methodology in the social sciences that aims to make comparisons across different countries or cultures. increasing the desire and possibility for educational exchanges and intellectual curiosity about other cultures.000 years. . A major problem in comparative research is that the data sets in different countries may not use the same categories. Development of the tradition When the practice of comparative research began is a matter of debate. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Globalization has been a major factor. There are numerous reasons that comparative research has come to take a place of honour in the toolbox of the social scientist. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard. Karl Deutsch has suggested we have been using this form of investigation for over 2. or define categories differently (for example by using different definitions of poverty). Textbooks on this form of study were beginning to appear by the 1880s. It is largely an empty debate over the definition of the tradition with those questioning whether comparing things counts as comparative research. which has been done for a long time. but its rise to extreme popularity began after World War II.• Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Comparing things is essential to basic scientific and philosophic inquiry.

is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. Comparing large quantities of data (especially government sourced) is prevalent. The classic case of this is Esping-Andersen's research on social welfare systems.Comparative research defined Comparative research. He noticed there was a difference in types of social welfare systems. then looks at these differences in relation to some other variable coexisting in those societies to see if it is related. This technique often utilizes multiple disciplines in one study. In line with how a lot of theorizing has gone in the last century. but a subset of it. such as Marxism. and compared them based on their level of deco modification of social welfare goods. the majority agreement is that there is no methodology peculiar to comparative research. however. He found that he was able to class welfare states into three types. If one is able to sufficiently distinguish two cases. and different cases are treated differently. yet comparative programs do have a case to answer against the call that their research lacks a "seamless whole". The general method of comparing things is the same for comparative research as it is in our everyday practice of comparison. There are certainly methods far more common than others in comparative studies. A good example of this is the common research program that looks for differences between two or more social systems. Secondary analysis of quantitative data is relatively widespread in comparative research. undoubtedly in part because of the cost of obtaining primary data for such large things as a country's policy environment. When it comes to method. It instead occupies itself with middle-range theories that do not purport to describe our social system in its entirety. He further theorized from this that deco modification was based on a combination of class coalitions . A typical method of comparing welfare states is to take balance of their levels of spending on social welfare. This study is generally aggregate data analysis. The multidisciplinary approach is good for the flexibility it offers. Quantitative analysis is much more frequently pursued than qualitative. Like cases are treated alike. simply put. comparative research conclusions will not be very helpful. comparative research does not tend to investigate 'grand theories'. and this is seen in the majority of comparative studies which use quantitative data. the extent of difference determines how differently cases are to be treated. based on their level of deco modification.

Determining whether socioeconomic or political factors are more important in explaining government action is a familiar theme. although comparisons within countries. contrasting different areas. Spatially. The historical comparative research involves comparing different time-frames. or just comparing the same thing over time. to see if a policy's effects differ over a stretch of time. especially in a country like New Zealand. crossnational comparisons are by far the most common. The two main choices within this model are comparing two stages in time (either snapshots or time-series). Comparative research can take many forms. but a brief perusal of comparative endeavours reveals there are some topics more recurrent than others. however. and regime legacy. cultures or governments also subsist and are very constructive. the only thing that is certain in comparative research issues is the existence of differences to be analysed. Esping-Andersen is using comparative research: he takes many western countries and compares their level of deco modification. then develops a theory of the divergence based on his findings. Here. In general. Two key factors are space and time. comparing one's own country to others or to the whole world. .and mobilization. When it comes to subject matter of comparative inquiries. Recurrent interregional studies include comparing similar or different countries or sets of countries. many contend there is none unique to it. This may indeed be true. where policy often changes depending on which race it pertains to.

 It helps in identifying up to what extent do the public respond to their products.  To increase customer satisfaction and recapture the market share by fulfilling the customer needs.  To view the segments being targeted by these brands in the market.  It helps in study about the factors affecting the consumption pattern.  It helps in getting familiar with their marketing strategies separately.  To prepare a marketing plan for any brand that is planning to enter the India Chocolate Market. .Importance of the study Importances of the study are:  It helps in knowing about the customer satisfaction level associated with the product and the customer preference level.  It helps for relevant guide for any brand launch in India.

The scope of my study restricts itself to the analysis of consumer preferences and consumption of Cadbury and Nestle Chocolates. psychologists do not agree on how learning takes place. They want consumers to learn about their products. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. potential consumers benefit. Despite of the fact that learning is all pervasive in our lives.Scope of the study As learning is a human activity and is as natural. maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs. How individuals learn is a matter of interest to marketers. product attributes. as breathing. how to use. but the marketer’s objectives. They want to teach consumers in their roles as consumers. .

Statement of the problem .

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer: Get 4 months of Scribd and The New York Times for just $1.87 per week!

Master Your Semester with a Special Offer from Scribd & The New York Times