CONSUMER BEHAVIOUR

Failure rates of new products introduced

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Out of 11000 new products introduced by 77 companies, only 56% are present 5 years later. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives.

Nature of Consumer Behaviour Who is a Consumer ?

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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.

Consumer Behavior The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

Definitions

CB refers to the actions and decision processes of people who purchase goods and services for personal consumption-Peter B. Bennett

CB refers to the mental and emotional processes and the observable behaviour of consumers during searching for, purchasing and post consumption of a product or service- Kazmi and Batra

The dynamic interaction of affect and cognition, behaviour and the environment b which human beings conduct the exchange aspects of lives.

It means that the buying habits of the consumer are greatly affected by their thought process and their feelings experienced. Human beings are greatly influenced in their buying actions by various factors like opinion of others, marketing stimuli like product, advertising, packaging and product appearance.

Scope and Relevance

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What consumers want?

Why the consumer buys the product?

When the products bought?

From Where the consumer buys?

Frequency of Buying

cont.

Consumers are complex and each segment has unique needs.

To design the optimal product or service for customers. To determine what price will the customers give up purchasing product or service? To determine which method of Promotion would be most effective for getting the customers to buy a product. It helps in changing the behavior of the consumers. To improve performance of the organization. To achieve the organizational objectives

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Importance of Consumer behaviour

Ever increasing intensifying competition.

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More aggressive competitors emerging with greater frequency. Changes basis of competition. Geographic sources of competition are becoming wider. Niche attacks are becoming frequent. Pace of innovation is rapid. Price competition becoming more aggressive Product differentiation is declining.

Consumer behaviour is Dynamic The feelings, thinking, perceptions and actions of the customer and the society at large keep changing frequently. For example number of working women is on rise and this has changed the concept of shopping.

The dynamic nature of the consumer behaviour offers challenges to marketers and the task of creating marketing strategies becomes complex, and exciting.

Strategies that work today may not work tomorrow. Strategies adopted in one market ma not work in another.

The product life cycle are becoming shorter and create additional pressures on marketers to bring innovative products and concepts. The concept value changes from time to time. Mahindra and mahindra had to come out with Scorpio within launch of Bolero.

Issues During Stages in the Consumption Process

NEED OR IMPORTANCE OF CONSUMER BEHAVIOUR

The modern marketing management tries to solve the basic problems of consumers in the area of consumption. To survive in the market, a firm has to be constantly innovating and understand the latest consumer needs and tastes. It will be extremely useful in exploiting marketing opportunities and in meeting the challenges that the Indian market offers. It is important for the marketers to understand the buyer behaviour due to the following reasons.

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The study of consumer behaviour for any product is of vital importance to marketers in shaping the fortunes of their organisations. It is significant for regulating consumption of goods and thereby maintaining economic stability. It is useful in developing ways for the more efficient utilization of resources of marketing. It also helps in solving marketing management problems in more effective manner.

Today consumers give more importance on environment friendly products. They are concerned about health, hygiene and fitness. They prefer natural products. Hence detailed study on upcoming groups of consumers is essential for any firm.

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The growth of consumer protection movement has created an urgent need to understand how consumers make their consumption and buying decision. Consumers tastes and preferences are ever changing. Study of consumer behaviour gives information regarding colour, design, size etc. which consumers want. In short, consumer behaviour helps in formulating of production policy. For effective market segmentation and target marketing, it is essential to have an understanding of consumers and their behaviour.