Importance of Studying Consumer BehaviourRole or importance of study of consumer behaviour can be explained with reference to the points stated as under: 1. Modern Philosophy: It concerns with modern marketing philosophy – identify consumers’ needs and satisfy them more effectively than competitors. It makes marketing consumer-oriented. It is the key to succeed. 2. Achievement of Goals: The key to a company’s survival, profitability, and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitors. Thus, consumer behaviour helps in achieving marketing goals. 3. Useful for Dealers and Salesmen: The study of consumer behaviour is not useful for the company alone. Knowledge of consumer behaviour is equally useful for middlemen and salesmen to perform their tasks effectively in meeting consumers needs and wants successfully. Consumer behaviour, thus, improves performance of the entire distribution system. 4. More Relevant Marketing Programme: Marketing programme, consisting of product, price, promotion, and distribution decisions, can be prepared more objectively. The programme can be more relevant if it is based on the study of consumer behaviour. Meaningful marketing programme is instrumental in realizing marketing goals. 5. Adjusting Marketing Programme over Time: Consumer behaviour studies the consumer response pattern on a continuous basis. So, a marketer can easily come to know the changes taking place in the market. Based on the current market trend, the marketer can make necessary changes in marketing programme to adjust with the market. 6. Predicting Market Trend: Consumer behaviour can also aid in projecting the future market trends. Marketer finds enough time to prepare for exploiting the emerging opportunities, and/or facing challenges and threats. 7. alert. too. 10. Most of problems can be reasonably solved by the study of consumer behaviour. . more competitive advantages can be offered. Based on consumers’ expectations. In the same way. Consumer behaviour is indispensable to watch movements of the markets. a separate marketing programme is needed. Effective Use of Productive Resources: The study of consumer behaviour assists the manager to make the organisational efforts consumer-oriented. Knowledge of consumer differentiation is a key to fit marking offers with different groups of buyers. due to continuous study of consumer behaviour and attempts to meet changing expectations of the buyers. Developing New Products: New product is developed in respect of needs and wants of the target market. Each unit of resources can contribute maximum to objectives. In order to develop the best-fit product. 8. It helps the manager to be dynamic. can retain its consumers for a long period. Modern marketing practice is almost impossible without the study of consumer behaviour. Dynamic Nature of Market: Consumer behaviour focuses on dynamic nature of the market. It is to be mentioned that the study of consumer behaviour is not only important for the current sales. the study of consumer behaviour is the base for developing a new product successfully. Thus. in return. Company finds it easy to sell its products. Competition: Consumer behaviour study assists in facing competition. and active in satisfying consumers better and sooner than competitors. but also helps in capturing the future market. a marketer must know adequately about the market. the consumers. Consumer behaviour study supplies the details about consumer differentiations. For every segment. It is useful in improving competitive strengths of the company. Consumer behaviour assumes: Take care of consumer needs. will take care of your needs. 9. Creation and Retention of Consumers: Marketers who base their offerings on a recognition of consumer needs find a ready market for their products. Each segment needs and wants different products. It ensures an exact use of resources for achieving maximum efficiency. the company. Consumer Differentiation: Market exhibits considerable differentiations. 11. 12. friends. secure. Consumer interest is nothing but willingness of consumers to purchase a products and services as per their taste. reference groups. both individually and in groups. or ideas to satisfy needs. and dispose of products. customization and one-to-one marketing. What is consumer interest? Every customer shows some inclination towards particular products and services. need and ofcourse pocket. personalization. Here both Sudhir and Arjun are consumers. In layman’s language. But we should not use word consumer for purchasers made on behalf of business organization. Thus consumer behavior are actions that a person takes in: Purchasing and using a product or service. services. It also study the impacts that these buying processes have on the consumer and society. What is Consumer Behaviour? Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use. consumer deals with the buying behavior of individuals. social anthropology and economics. It attempts to understand the decision-making processes of buyers. In simpler words a consumer is one who consumes goods and services available in the market. groups. experiences. sociology. or organizations and the processes they use to select. Example – Sudhir might purchase a bicycle for his son or Arjun might buy a shirt for himself. The consumer is the end buyer of a products and therefore. It blends elements from psychology. not necessarily the same person who buys the product.Who is a consumer? Any individual who purchases goods and services from the market for his/her end-use is called a consumer. Customer play three distinct roles of: User Payer Buyer A great importance need to be placed on consumer retention. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people’s wants. . For organizational purchases use the word customer. In practice we use the word consumer for individuals who are buying for their own and family benefits. The mental and social process that proceeds and follow these actions Consumer behavior is the study of individuals. customer relationship management. Customer behavior study is based on consumer buying behavior. It also tries to assess influences on the consumer from groups such as family. and society in general. 11. Today’s global companies truly believe on this idea that a consumer must be fully satisfied.. These global companies keep on doing research on the products and their customers. Consumer behavior help in market segmentation process. 3. For this purpose they have the special departments like Research and Development. When a consumer buys a product. Why and why not consumer buys a product. 2. If a consumer is satisfied from the product then his behavior would be positive towards the product and if he is not satisfied from the product then his behavior would be negative towards the product. What are their choice criteria 4. 8.It must be noted that consumer behavior does not end with purchase of goods or service. 2. What factors influence consumer purchase. . Who buys 3. Buyer’s likely reaction to a marketing strategy. According to the consumers’ feedback they further develop and improve their products. The study of consumer behavior explains: 1. From research and surveys companies get the true picture of its standing in the market. 7. All these are important questions. How a consumer buys a product. Why study consumer Behavior: There are several reasons behind study of consumer behavior. where a consumer buys product 6. Consumer preference are changing and becoming highly diversified. 9. Consumer behavior plays a very important role in the success or failure of a product. Meeting of special needs of consumer requires market segmentation. which are to be known to the companies so that they can design. Why consumer behave as they do. and implement marketing strategies to satisfy the customers. what are mental process involved. Positive consumer behavior will lead to repeat purchase and satisfied consumer will also recommend your product to others. 5. Consumer do not always act as the theory would suggest. Why consumer make a purchase that they make. but also post purchase activities are included in consumer behavior. Below are some important reasons: 1. 10. Marketing concept calls for the need of consumer behavior for formulating effective marketing mix. The study of consumer behavior help us: 1. Therefore. The more the consumer behavior learnt. The marketing concept stress that a firm should create a marketing mix that satisfies customers. Help in formulation of production policies. product design. To improve performance of the organization. . 6. To design the optimal product or service for customers. This can be done by the study of consumer behavior. 8. Goods and services must be produced according to likes and dislikes of customers. Customer is the most important person to the marketer because the marketer takes into consideration on the liking and the disliking of the consumer.4. the more needs and wants are fulfilled. when and why customers buy. Likes and dislikes of customers can be known through study of consumer behaviour. 9. To determine which method of Promotion would be most effective for getting the customers to buy a product. Help to retain customers. 4. where. 2. 5. segmentation. To achieve the organizational objectives. 7. 5. positioning and promotion. Understanding consumer behavior is essential to the development of marketing strategies. It helps in changing the behavior of the consumers. especially in pricing. a firm need to analyse what. 8. 7. 6. To determine where the product or Service should be available that would easy for the customers to buy 3. The main role of marketing manager is to satisfy needs and wants of the customers. To determine what price will the customers give up purchasing product or service. 9. targeting.
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