1. Studying consumer behavior is important for three main reasons: it determines the economic health of nations, the success of marketing programs, and individuals' economic health.
2. Understanding consumer behavior allows organizations to better satisfy customer needs and wants through customer-centric approaches and influence brand choices. It also helps formulate public policy and personal financial decisions.
3. Consumer behavior research influences various aspects of society from marketing strategies to economic and public policy as well as individuals' consumption decisions and lifestyles.
1. Studying consumer behavior is important for three main reasons: it determines the economic health of nations, the success of marketing programs, and individuals' economic health.
2. Understanding consumer behavior allows organizations to better satisfy customer needs and wants through customer-centric approaches and influence brand choices. It also helps formulate public policy and personal financial decisions.
3. Consumer behavior research influences various aspects of society from marketing strategies to economic and public policy as well as individuals' consumption decisions and lifestyles.
1. Studying consumer behavior is important for three main reasons: it determines the economic health of nations, the success of marketing programs, and individuals' economic health.
2. Understanding consumer behavior allows organizations to better satisfy customer needs and wants through customer-centric approaches and influence brand choices. It also helps formulate public policy and personal financial decisions.
3. Consumer behavior research influences various aspects of society from marketing strategies to economic and public policy as well as individuals' consumption decisions and lifestyles.
1. Consumer Behavior Determines the Economic Health of a Nation
2. Consumer Behavior Determines the Success of Marketing Programs a. Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption b. The Customer is KingOrganization influenced by consumer needs and wants c. Organizations that are Customer-centric use a total marketing approach to focus their resources on satisfying customers d. Marketing Process of transforming or changing an organization to have what people will buy 3. Consumer Behavior Determines the Economic Health of Everyone a. The individuals decisions as a consumer determine their economic health by making more effective consumption decisions while avoiding deceptive practices harmful to them b. Public policy leaders and social commentators study consumer behavior to alleviate overconsumption and underconsumption by educating consumers about problems and providing assistance 4. Consumer Behavior Helps Formulate Public Policy a. Understanding consumers needs to formulate public policy and predicting behavioral changes that follow 5. Consumer Behavior Affects Personal Policy a. Personal policy includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life b. A persons economic quality of life is determined by personal policy
Behaviourial learning theory: Page 89 Cognitive learning theory: Page 93 Types of memory: Page 100 Motivational Research: Page 128 Types/functions of attitude: 166 Changing attitude through Communication: 193 Self concept:235 Opinion leadership: page 400 Family life cycle: 435 Family decision making: 437 Social Mobility: 438 Categories/ component of social class: 465 Measurement of social class: 466 Psygraphographics: 589
Nature and scope of consumer behavior
The field of consumer behaviour is the study of individuals, groups, or organisations & the processes they use to select , secure, use, & dispose of products , services, experience or ideas to satisfy the needs & the impacts that these processes have on the consumer & society. (ref -consumer Behaviour - -Del l. Hawkins, Roger J. Best, Kenneth a.Coney, Amit mookerjee . Scope --1.This subject helps in developing tailor made marketing strategies to address the consumer needs. 2. Helps in following regulatory policy of a nation which is developed to protect consumer interest 3. Helps in social marketing 4.Helps consumers & producers to understand ones environment & oneself.
1.4 DEFINING CONSUMER BEHAVIOR Consumer behavior may be defined as, the decision process and physical activityindividuals engage in when evaluating, acquiring, using, or disposing of goods and services.Technically, consumer behavior is defined as, the dynamic interaction of affect andcognition, behavior and environmental events by which human beings conduct the exchangeaspects of their lives.One official definition of consumer behavior is The study of individuals, groups, ororganizations and the processes they use to select, secure, use, and dispose of products,services, experiences, or ideas to satisfy needs and the impacts that these processes haveon the consumer and society.Although it is not necessary to memorize this definition, it brings up some useful points:
Behavior occurs either for the individual, or in the context of a group (e.g., friendsinfluence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of products as well as the studyof how they are purchased. Product use is often of great interest to the marketer,because this may influence how a product is best positioned or how we canencourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recyclingfee, or garbage piling up at landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as tangible products.
The impact of consumer behavior on society is also of relevance. For example,aggressive marketing of high fat foods, or aggressive marketing of easy credit,may have serious repercussions for the national health and economy.Viewing consumer behavior in a broad context, it is actually a subset of human behavior.That is, factors affecting individuals in their daily lives also influence their purchase activities. 1.5 THE NATURE OF CONSUMER BEHAVIOR Figure 1.1 is the model that we use to capture the general structure and process of consumer behavior and to organize this text. It is a conceptual model. It does not containsufficient detail to predict particular behaviors; however, it does reflect our beliefs aboutthe general nature of consumer behavior. Individuals develop self-concepts and subsequentlifestyles based on a variety of internal (mainly psychological and physical) and external(mainly sociological and demographic) influences. These self-concepts and lifestyles produceneeds and desires, many of which require consumption decisions to satisfy. As individualsencounter relevant situations, the consumer decision process is activated. This processand the experiences and acquisitions it produces in turn influence the consumers self-concept and lifestyle by affecting their internal and external characteristics.This model, while simple, is both conceptually should and intuitively appealing. Eachof us has a view of ourselves (self-concept), and we try to live in a particular manner givenour resources (lifestyle). Our view of ourselves and the way we try to live are determinedby internal factors (such as our personality, values, emotions, and memory) and externalfactors (such as our culture, age, friends, family, and subculture).Our view of ourselves and the way we try to live results in desires and needs that webring to the multitude of situations we encounter daily. Many of these situations will causeus to consider a purchase. Our decision and even the process of making it, will causelearning and may affect many other internal and external factors that will change or reinforceour current self concept and lifestyle.A quick analysis of your own behavior and that of your friends will reveal the fallacyof this perception. Consumer behavior is frequently complex, disorganized, no conscious,organic, and circular. Unfortunately, we must present it in a relatively simple, linear mannerdue to the limitations of written communications
APPLICATIONS OF CONSUMER BEHAVIOR: Marketing Strategy All marketing strategies and tactics are based on explicit or implicit beliefs aboutconsumer behavior. Decisions based on explicit assumptions and sound theory and researchare more likely to be successful than are decisions based solely on implicit intuition. Thusknowledge of consumer behavior can be an important competitive advantage. It cangreatly reduce the odds of bad decisions. Social Marketing Is the application of marketing strategies and tactics to alter or create behaviors thathave a positive effect on the targeted individuals or society as a whole. Social marketing