MODULE 1

Consumer behaviour is the study of how individuals, groups or organizations

commonly known as customers or consumers select, buy, use and dispose goods
services ideas and experience that satisfy their needs and wants.

It is a decision process and physical activities that individuals engage in the evaluation,
acquisition use and dispose of above goods and services. Parameters used in in the
decision process are the 3 Ws and 2 Hs, what, where, when, how and how much to
spent.

Nature, Scope, Application

A. Nature
Consumer Behaviour shows all the activities involved from the organization to the
disposal phase.

Buying process is composed of the following cycle

1. Identification of the need and want.
2. Information Search
3. Alternative Evaluation
4. Purchase Decision
5. Post Purchase Evaluation

Factors influencing consumer behavior Lifestyle, habits, ways of living, income locality

There is this spread effect which means that the behavior is influenced by those of
others especially those whom are admire.

Another is the Reflect Status meaning that the decision to bury is based on what status
is desired or can be like keep up with the Joneses.
Consumption behavior may be viewed according to individual and environmental
determinants
 B. Scope and Application

Reasons why we purchase goods and services

● Human Needs
● Human wants

Consumer Behaviour and Factors that Influence Demand

1. Income
2. Climactic/ Seasonal Condition
3. Price of Related Goods
A. Complementary Goods
B. Substitute Goods
4. Price Expectation
5. Taste and Preference

Consumer behaviour deals with the buying behaviour of individuals based on his
purchasing and consumption experience. The principal determining factors in the
need, where there is a need there is a demand.

Applications of Consumer Behaviour

● Analysing market opportunities
● Selecting Target Market
● Marketing Mix Decision
● Use in social and non-profit marketing.

Reasons on studying Consumer Behavior

1. Production Policies
2. Price Policies
3. Decision Concerning Channels of Distribution
4. Sales Promotion Decisions
5.Developing Market Opportunities
6. Swift Launch of new products.
7. Implementing the Marketing Concept

MODULE 2: Evolution of Consumer Behavior

An evolutionary approach considers the adoptive functional of behaviour. It means to

use evolutionary approach to generate predictions and new insights about consumer
behaviour.
Evolution of Consumer Behaviour in the Digital Age

This is the change from the unsophisticated world of shopping to this virtual market or
more importantly where are we going?
● Brick or Mortal Retail Store
● Internet
● Catalogue
● Mobile Commerce

Importance of Retailing

1. Retailers are the final link in the supply chain between manufacture and
consumers.
2. It lets procedure to direct their attention on producing commodities with not much
worry in terms of distractions with respect to exerting effort in dealing with
end-users.
3. Retailers make the purchase of good easy for the consumer. The presence of
sales personnel and customer service attends to consumers queries in relation to
the intended or purchased commodities.
4. Retailing is about exhibiting products, describing the features and benefits of
products, stocking products, processing payments and doing whatever it takes to
get the right procedure at the right price to the right customers at the right time.
5. Some retailers offer additional services to the retail transaction like personal
shopping consultation and gift wrapping services to add something extra to the
retail customer experience and exceed the retail customer expectations.

Types of Retail Stores

● Department Stores
● Groceries and Supermarkets
● Warehouse Retailers
● Specialty Stores
● Convenience Stores
● Discount Stores
● Mobile Retailer/Mobile Consumer
● Internet E-tailer
Inter Disciplinary Nature of consumer Behaviour

Five Inter, Disciplinary Dimensions

1. Economics
2. Psychology
3. Sociology
4. Socio Psychology
5. Cultural Anthropology