Meaning of Consumer Behaviour Consumer Behaviour a reflection and what drives it The need to study Consumer Behaviour

The purpose of any business is to create a customer It is the customer who determines what a business is It is he and he alone, who by willing to pay for goods & services, converts economic resources into wealththings into goods

What a business thinks it produces is not of first importance What a customer thinks he is buying & what he considers value is decisive It is this process that will determine what a business is, what it produces and whether it will prosper

Years ago SELLERs MARKET Manufacturers produced Consumers did not have much choice they were forced to buy It was a Monopolistic environment

As the years went by Consumers wanted change

Trade barriers gave way to better and improved choice Access to information Changing lifestyles Higher disposable incomes Interaction with other cultures

Consumers preferred products that suited their individual tastes and preferences Aspirations became the norm No 2 consumers were alike

From manufacturer orientation marketing led Consumer Led From Monopoly Competition

Segmentation

Hence consumer segmentation became the norm TARGET SEGMENTS or TARGET AUDIENCES Marketers sensitized themselves to the various factors that influenced purchase decisions

Companies realized the need

To treat consumers differently To understand what made them tick To find out what they preferred & why Their living, consumption, lifestyle habits

Buying Behavior is the decision processes and acts of people involved in buying and using products

 The

process of studying and understanding what goes on with the consumers as to why he/she makes or does not make the purchase

the psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); the psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media) the behavior of consumers while shopping or making other marketing decisions

the limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome how consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer, and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer

Culture

Collective behaviour, Beliefs, Values, Habits, Tradition, Heritage of a Society Influences what one eats, wears, tastes, language, festivals, work patterns

SubCulture

Socio cultural (nationality, social class, religion) Demographic (region, language, occupation, age, sex) A social group within a national culture that hasd distinctive patterns of behaviour and beliefs

Social Class

Class differential Rich, Upper Class, Upper Middle Class, Middle class, Lower Middle class, Lower Class Based on family income, wealth, occupation. Social class can either be ascribed or achieved Social status lifestyle and prestige

Family

Father, Mother, Wife, Child, Brother, Sister, Grand parents, Uncles, Aunts, Cousins Joint family, nuclear family, family with one kid, family with no kids, live-ins

Personal Influence

My mannerisms My Attitude My behaviour My friends My role model

Cultur e
Opinion Leaders

Subculture

Role Models

Friend s
Reference Groups (Individual Consumer)

Peer s

Social Media

Famil y
Other Cultures

Social Class

Diffusion of Innovations
Diffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures Five stages of the adoption process Knowledge, Persuasion, Decision, Implementation, Confirmation Adopter categories Innovators, Early adopters, Early Majority, Late Majority, Laggards

Each of the determinants or influencers are interconnected The one that is the most influential CULTURE

 Need-

something you have to have Want -something you would like to have

In actuality, you only need four things to survive:

A roof over your head Enough food and water to maintain your health Basic health care and hygiene products Clothing (just what you need to remain

comfortable and appropriately dressed)

Physiological - These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Security - Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.

Social - Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as does involvement in social, community or religious groups. Esteem - After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment.

Self-Actualization - This is the highest level of Maslows hierarchy of needs. Selfactualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.

Women are the largest consumers of branded and unbranded