+Who is a Consumer ?

Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market. Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above examples, both Tom and Mike are consumers.

What is Consumer Behaviour ?

Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.

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 [1] that these processes have on the consumer and society. It blends elements frompsychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, 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 behavior is difficult to predict, [2] 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 reaffirmation 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.

To define consumer behavior: it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics. "All marketing decisions are based on assumptions and knowledge of consumer behavior," (Hawkins and Mothersbaugh, 2007). Researching consumer behavior is a complex process, but understanding consumer behavior is critical to marketers-they can use it to:

Provide value and customer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services.

Create a competitive advantage Understand how customers view their products versus their competitors' products. Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive affect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.)

Perception is how information is collected and categorized. Perception is affected by the amount of exposure to a stimulus and by individual interpretation. For example, a consumer who hears--once--that dairy herds contribute to greenhouse gas would not take the statement seriously. If the same consumer encountered that information often and from many sources, then the consumer's attitude toward dairy products might change enough to influence how often the consumer chose yogurt as a breakfast food.

Personality

Personality is a weak component of consumer behavior. Personality means a pattern of behavior founded on an individual's outlook and internal traits. In this use, outlook means point-of-view and traits mean the consumer's usual manner of responding to the environment. An example of outlook is the effect of a recessionary economy on consumer confidence. Examples of traits are introversion or extroversion, ambition or complacency, aggressiveness or timidity and compulsiveness or pragmatism. A consumer whose decision to purchase is influenced by extroversion or compulsiveness, might choose to be less innovative during an economic downturn because confidence is lower.

Values

Values are the consumer's set of standards about conduct that arise from learned culture. A "terminal value" is a long-term goal or role model, as when a consumer strives for a particular lifestyle, such as healthful diet and exercise. An "instrumental" value is a flexible and negotiable action that is exercised daily, such as when a consumer makes a decision to purchase either organic or nonorganic products.

Beliefs

In consumer behavior study, "beliefs" are specific beliefs about products in the marketplace. Consumer belief is a combination of knowledge, emotions and actual actions to purchase or not purchase. For example, if a consumer has a negative or prejudiced set of beliefs about Yugoslavia, then marketing an automobile manufactured in Yugoslavia would have to focus on changing those beliefs.

Attitude

Consumer attitude is a combination of perceptions, values and beliefs. The consumer must first perceive the product and then focus values and beliefs onto the product and make a decision to purchase or not to purchase. Beliefs are more vulnerable to marketing than

values are, because beliefs are subject to knowledge and emotion. For example, positive facts can inform a consumer's knowledge about automobile manufacturing in Yugoslavia. A marketer might decide what demographic group can best afford a Yugoslavian automobile and then generate positive emotion by associating the automobile with music toward which that demographic group feels positive.