Course Facilitator

Dr.C.DHARMARAJ
M.Com., MBA., M.Phil., MA., PGDCA., PGDMM., Ph.D.,
Assistant Professor(SG)
School of Management
Karunya University
Coimbatore-611 114


Unit 1 - Overview
Introduction to Consumer Behavior
Importance of CB
Evolution of CB
Methods of studying CB
Underlying principles of CB
Consumer - driven marketing strategy
Conclusion to unit 1
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CONSUMER & CUSTOMER
CONSUMER Is used to represent situation where a
product can be consumed. He is an end user of the
product.

CUSTOMER Is used to deal with situations where the
product cannot be directly consumed.

MARKETING Is the performance of business activities
that direct the flow of goods and services from
producer to ultimate consumers
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CONSUMER BEHAVIOUR-According to
Ostrow and Smith have defined consumer
behaviour as actions of consumers in the
market place & the underlying motive for
those actions

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Consumer Behavior-Activities
Consuming (Using)

Disposing (Dispose of product Packaging /
product remains)
Obtaining (purchasing)
Decide to buy
Products considered
Place to buy
Payment mode
Transport

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Evolution of consumer behavior
Manufacturing Orientation
From Manufacturing to selling
Manufacturer - Wholesaler Agent-Retailer - Consumer
: Facilitating Organizations such as advertising,
research firms, Financial institutions etc.,
Retail supply chain
From selling to Marketing
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Cont
Comprehensive
Marketing
Marketing
Selling
Manufacturing
Consumer Focus
High
Low
Motivation research
Post - modernism
Positivism
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WHY STUDY CONSUMER BEHAVIOUR
Consumer is Supreme / King
Consumer do not always act / react in a same way
Consumer preferences are changing
Consumer likes and dislikes should understand
For market segmentation
Introduction of new product
Implementing the marketing concept
For measure the customer loyalty to the product
Educates and protects consumers
Helps formulate public policy


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Method of studying consumer behaviour

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Consumption
research
Observation-
Observing
behaviour in
different
situation
Interviews and
Surveys
Experimentation
Underlying principles of consumer
behaviour
The consumer is Sovereign / ruler
The consumer is Global
Consumers are Different
Consumer has Rights
Every one needs to understand consumers
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Consumer - driven marketing strategy
Market
analysis-
Consumer,
company,
Social,
political, Legal
environment
Marketing mix
strategies-
product, Price,
Place,
Promotion
Implementation-
In market place
Market
segmentation
Geographic,
demographic,
psychographic
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