Consumer behaviour gives a framework on customer needs and buying trends.

It is the study
of a consumers reaction during each of the stages of buying process which include need
recognition, searching for, evaluation, purchase and disposing of product and services which
they buy to satisfy their needs.

Consumers can be divided as stated by four characteristics: cultural, social, personal and
psychological, post which the right target segment cane be identified and position the item or
service accordingly. Social class is not a reflection of income alone and other indicators to be
considered are occupation, education, area of residence, etc. Even retirement saving can
influence the buying of a customer.

Four types of buying behaviour emerge: complex, variety-seeking, dissonance reducing &
habitual buying behaviour. And the sub-decision taken are what to buy, where, how much to
buy, when to buy, etc. along the stages of buying process. According to classical micro-
economic utility, consumer buys rationally when marginal utility of a product or service is
higher the price.

The case related to Gillette Guard offered a knowledge that an item primarily should provide
the fundamental benefits looked by the purchaser and then, it can deliver added values. To
understand the customer value and the benefits sought by them, marketers need to observe
the product in use, irrespective of whether the consumers have characteristic differences or
not.

The key to success of a product among the competitors is to satisfy the needs of customer
better than anyone for which the quality function deployment methodology, a system to
translate consumer requirements to appropriate company requirements at each stage, can be
employed. Companies utilize predictive analytics to identify the needs of customers and
apply the science of habit formation, a three-step loop of cue-routine-reward, to influence the
consumer. To increase the share of a product, company can employ decoy effect as a part of
influencing. The choice set configuration affects consumer preferences even after they assess
the features and quality of alternatives. Consumers preference can be affected through
framing effect, purchase timing & quantity effects.

In Brand communities, all members play vital role apart from being opinion leaders as it is a
business strategy more than marketing strategy, and brand communities serve members
needs and not business needs. Brands of strong efficacy arise from the right community
structure. Also, the medium these brand communities thrive are via conflict and contrast, and
hence important.