Marketing Management

Professor Ashis Mishra

Consumer Behaviour and its Importance

Let’s discuss what is this consumer behavior? And why is it important for the marketers? Consumer
behavior is the study of how individuals that is consumers make decisions to spend their available
resources, when I say resources time, effort, money, etc. on consumption related items. In other
words, consumer behavior is the study of how individuals and groups select, buy, use, and dispose off
the goods, services, ideas, and experiences to satisfy their needs and wants. For example, if someone
wants to buy a pair of running shoes, the study of consumer behavior would include the following
things.

1. Why does he want to buy a pair of running shoes?

A. May be, he is health conscious.

2. What are his selection criteria?

A. It could be brand. It could be quality. It could be comfort.

3. How is he going to buy it?

A. Let’s say credit card.

4. Where he is going to buy it?

A. He go the store, he will try out and buy the items.

5. How often he is going to use?

A. Twice a day, seven days a week because he is health conscious.

6. Would he need services in case of any issue?

A. Of course, yes.

7. How long is he going to use it?

A. He will be using it twice every day, so maybe a year.

8. How he is going to dispose of the shoe after usage?

A. Throw it off.

Now, this is for one type of consumer. For a different type of consumer, who also wants to buy a pair
running shoes, the study of same consumer behavior, that is the answer to the questions above may
yield completely different results. So here;

1. Why does he want to buy?

A. It may be that it looks better than the regular sneakers.

2. Selection criteria?
A. Only brand.

3. How is he going to buy it?

A. Cash.

4. From where?
A. Store.

© All Rights Reserved. This document has been authored by Professor Ashis Mishra and is permitted for use only within the course "Marketing
Management" delivered in the online course firmsat by IIM Bangalore. No part of this document, including any logo, data, illustrations, pictures,
scripts, may be reproduced, or stored in a retrieval system or transmitted in any firms or by any means – electronic, mechanical, photocopying,
recording or otherwise – without the prior permission of the author.
 Marketing Management
Professor Ashis Mishra
Consumer Behaviour and its Importance

5. How often is he going to use it?

A. He is only going for looks so probably twice a month.

6. Would he need services?

A. Probably.

7. How long is he going to use it?

A. He is not going to use it much so, probably two years.

And

8. How is he going to dispose it?

A. May be sell it, maybe give it to his relatives because they are still be new.

Now compare,
These two consumer groups are completely different from each other. May be the first one is in the
early 20s, whereas second one is the mid-40s. The first one is an introvert and high income category
where the second one is an extrovert and a mid-income category. Obviously, their choices are
different and different factors would influence them. For the first one, it could be health benefits and
quality based positioning and for the second one, it could be good looks and longevity. Hence,
identification of the consumer segments along with their possible behavioral patterns and the
reasons therefore would help the marketer in development of marketing strategies.

So, marketers attempt to understand the buying behavior for various reasons. Both the Consumer
behavior and the reaction to a firm’s marketing strategy have a great impact on firm’s success. The
marketing concept stresses that a firm should create a marketing mix that satisfies customers.

Now to find out what would satisfy them, the marketers must examine the influencers. What, where,
when, how, so on and so forth. And by gaining a better understanding of the factors that affect the
buying behavior, marketers in a better position to predict how consumers will respond to different
marketing strategies.

© All Rights Reserved. This document has been authored by Professor Ashis Mishra and is permitted for use only within the course "Marketing
Management" delivered in the online course firmsat by IIM Bangalore. No part of this document, including any logo, data, illustrations, pictures,
scripts, may be reproduced, or stored in a retrieval system or transmitted in any firms or by any means – electronic, mechanical, photocopying,
recording or otherwise – without the prior permission of the author.