CONSUMER BEHAVIOUR UNIT I - INTRODUCTION Concepts Significance Dimensions of Consumer Behavior Application of Knowledge of Consumer Behavior in Marketing Decisions.

ons. Consumer Behavior Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires. Concept and Need for studying CB Who buys products or services? How do they buy products or services? Where do they buy them? How often do they buy them? When do they buy them? Why do they buy them? How often do they use them Development of CB as a field of study Psychology-study of individuals Sociology study of groups Socio-psychology study of hoe people are influenced by groups Cultural anthropology- the influence of culture and society on the individual Economics-study of demand and supply Significance/Importance of Consumer Behaviour The main role of marketing manager is to satisfy needs and wants of the Customers. This can only be done by the study of Consumer Behavior. Consumer is the most important person to the marketer because the marketer takes in to consideration on the liking and disliking of the consumer and he produces the goods and services accordingly To design the optimal product or service for customers. To determine where the product or Service should be available that would easy for the customers to buy. 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.

Types of Consumers The term consumer behavior describes two different kinds of consuming entities: 1. Personal consumer and 2. Organizational consumer. The personal consumer buys goods and services for his or her own use,for the use of the household, or as a gift for a friend. In each of thesecontexts, the products are bought for final use by individuals, who are referred to as end users or ultimate consumers. The organizational consumer includes profit and not-for-profit businesses, government agencies (local, state), and institutions (such as schools, hospital, and prisons), all of which must buy products, equipment, and service in order to run their organizations.

Applications of Consumer Behaviour Knowledge

From the marketing point of view, understanding consumer behaviour is crucial to successful delivery of firms offerings in the market place. Some of the marketing application areas of consumer behavior knowledge include; Market-Opportunity Analysis, This involvesexamining trends and conditions in the marketplace to identify consumers needs and wants that are not being fully satisfied. Target-Market Selection, This has to do with identifying distinct groupings of consumers who have unique wants and needs and the selection of segment that matches the firms strength and offer better opportunities. Marketing- Mix Determination, This involves developing and implementing a strategy for delivering an effective combination of want-satisfying features to consumers within target market. The marketing mix is made up of four components; product, price, promotion and place. Marketing strategy, Understanding of consumer behaviour is needed in strategic marketing activities. This is because marketing strategies and tactics are based on explicit or implicit beliefs about consumer behaviour. Effective Regulatory policy Marketing practices requires an extensive knowledge of consumer behaviour. It helps to design an effective regulatory policy.

Social marketing Also require an in depth understanding of consumers and their behaviours or attitudes. Social marketing is the application of marketing strategies and tactics to alter or create behaviours that have positive effect on the target individuals and or society as a whole. Social marketing has been used in attempts to reduce smoking, to increase the percentage of children receiving their vaccinations in a timely manner, to encourage environmentally sound behaviours,