advantages of consumer behaviour

Whether they should decide in favour of expensive cloth, car, consumer durables and other fashion goods or should they buy on utility consideration. Consumer behaviour is a systematic process consisting of a series of steps involved in buying decisions of consumers. The scheme of buying back old items has helped a lot LML in pushing sales. It is an important concept for every business to understand its customers. So a manufacturer does not necessarily have to analyze the behavior of all consumer groups. Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image about a particular product. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions. Every business is threatened. Now consumer behaviour eventually boils down to this step. Different consumers respond differently to the market. What are the benefits of understanding consumer behaviour and doing consumer profiling? Knowledge-technical or otherwise and information. Therefore, it becomes an overall complex job for the business to identify each consumer’s behaviour and targets them accordingly. However, without the knowledge of technology or technological beliefs, the model can’t satisfactorily explain consumer behavior. This will help in proper designing of product portfolio for the businesses. First of all, the cost of behaviour modelling is relative low to compare with other training methods. So let’s begin with the first answer. Thus, understanding consumer behavior is a basis for performance evaluation of the firm. Someone claims regeneration of vitality even in old person. It basically consists of likes & dislikes of customers which influence his decision while purchasing products. Here the consumer is aware of advantages of that shop in terms of wide variety of goods, wide selection, good quality, easy availability, good behaviour of salesman, after sale services etc. Need, Wants or Demands – Depending on the status the person … What is Consumer Behaviour. In certain cases the price of such cloth is three to eight times of normal suiting price but some section still buy it for prestige or show. For instance, Roohafza of Hamdard succeeded well but when other companies tried like Dabur to produce similar products they could not succeed. It is a database which collects & store different information about their customers. Consumer behavior involves services and ideas as well as tangible products. High priced products are introduced to take advantage of consumers weakness just by changing shape, packing etc. Consumer Behaviour Models – Family Decision making model. Put your product next to … Understanding their behaviour will help companies to produce as per their price limit. It becomes difficult to attract customers towards your products. Consumer Behaviour helps you understand the consumer ‘s thinking and emotions. A consumer may have more interest and buys more quantity of one product and buys less or even no quantity of another product. Companies can quickly learn about consumer experiences with products … The study of consumer behaviour helps to find-out why consumers are drifting away from a product or why they are not liking it. People who spend more and buy luxury items are considered rich and high-status people by society. Therefore, the level of spending directly influences a person’s living standards. Nature and Importance of Consumer Behaviour, Marketing Research – Meaning, Scope, Objectives & Process, Consumer Awareness:- Consumer Rights and Responsibilities. Picture Credits: Consumer Behaviour – Matin khan. According to another author the consumer behaviour is “the behaviour that consumer display in scanning for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behavior is the study of individuals and organizations and how they select and use products and services. Through the study he is motivated to buy or not to buy particular product. Before launching a new product survey of consumer behaviour is necessary to find-out whether a particular product will sell or not so that accordingly investment decision is taken. But with the competition emerging many cars, refrigerators, TV’s to mention a few items appeared on the scene. In case of equipment’s whether for consumer use or industrial use is affected by technological innovations and features. This helps in satisfying the wants of their customers properly & efficiently. Innovations and introduction of new products also depend upon technological change. Meaning of Consumer Behaviour: Consumer behaviour is a comparatively new field of study. Whether they should buy Rs. On the other hand, despite having enough funds if a person spends less than his standard of living is low. Life Bouy re-oriented its product and produced different items like Life Bouy Gold, Life Bouy Plus to meet demand of different consumers. After study of consumer behaviour through market research or otherwise manufacturer tries to find out how sales can be pushed of existing products, what changes are required in existing products, what changes are required to get larger market share. Moreover, every individual acts … Actually consumer movement in India is much weaker than other developed countries because till a decade back India was sellers market and competition is of recent origin. Any number of examples can be given but such claims sometimes even by big companies are only partially true. This strategy was followed, by Akai T.V. In this guide we’ll take a look at the different aspects … Consumer behavior refers to the selection, acquisition, and consumption of goods and services to meet their needs. Marketers should have perfect knowledge of their target customers buying behaviour. Copyright 10. This helps in better fulfilling of demands of the customers. Consumer buying behavior is an art and science studied by major corporates, and one which marketers are trying to influence and affect at all times. For instance, the use of sex is objected in many countries including India but still it is widely used in advertisements. “We define consumer behaviour as those actions directly involved in obtaining, consuming, and disposing of products and services, including the decisions process that proceeds and follow the action.”. They even take loans to fulfil their needs for luxuries if are short of funds. It directly influences the demand for its products in the market. … The advantages are that it is good for the consumers and there are no disadvantages except for the companies Consumer behavior is not just important to attract new customers, but it is very important to retain existing customers as well. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it”. Billing for supplies like energy or water could become much more accurate using real time information. The most vulnerable stage for the customer is the evaluation of alternatives. In case of industrial raw materials the decision is influenced by supplier of equipment. For instance, producers of certain face creams advertise that with the usage of their creams complexion will become fair but actually it does not happen. It is a very difficult task for marketers to recognise the needs and patterns of each individual. It does not take into consideration the benefits, advantages … When a customer is happy about a particular product, he/she will repeat the purchase. Information search: Attempt is made to gain knowledge about the product. It attempts to understand the buyer decision making process both individually & in groups. While behavior theories may differ in their take on how human behavior arises, the benefits of these theories include changed behavior, improved self-belief and greater self-confidence. The buying decision of consumers involves different steps which are: Need identification to buy product, searching for information related with the product, making list and evaluating different options available, finally making a purchase decision and at last post-purchase evaluation done by the marketer. The service should, therefore, be personalized, effective, and result in greater customer satisfaction.. As the purpose of a franchised network is to establish uniformity of image amongst all its franchisees, a consumer … Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. The behaviour of consumers for all these products are taken on different considerations than short term consumer goods like fruits, juices, ice-cream or milk. Consumer researchers have recently turned their attention toward exploring the imaginative, emotional, and evaluative components of the consumption experience. There are two major sources of models: live model and the video tapes. Consumer behaviour has an important role in improving the standards of living of people. The concept ‘consumer behaviour’ has been gaining importance since 1960. There are many more such examples. Business managers who fail to understand the factors, won’t meet … Same product may be attractive for one group of consumers but not for another group. Varies from region to region and country to county: The consumer behaviour varies across states, … TOS 7. The study of consumer behaviour basically is to mold consumer behaviour and his deci­sions by market man and to avoid failure of their product, promote new products and for sales promotion. In certain cases objectionable or wrong statements are made to influence the consumer. Forecasting helps in taking competitive advantages from the businesses. A great deal of importance is being given to packaging for quite some time by marketing department and market research. The producers of such items make heavy profits which would not have been possible without study of consumer behaviour because it is against basic economic theory. Note: the following is an excerpt from our new report, Multitasking and Mobile Apps: New Ways to Measure Consumer Behavior, which we published earlier this week. The consumer or buyer is the person or group of persons, who decide what to buy, when to buy and what not to buy. When consumers spend more on buying different products and services, their standard of living is improved. The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Setting Prices. Consumers purchase products and services as and when need arises. Normally in consumer behaviour one studies the behaviour of consumers for consumption goods but in the study the behaviour of buyer is also included. Consumer if likes a packing helps in pushing sales. Privacy Policy 8. It helps the companies in developing the products as per peoples demand by providing information collected by them. It is the behaviour which consumer display while searching for product and willing to make a purchase. If there are competitive goods it can help them to make consumer preference chart and then decide what to buy immediately and what to postpone and what should be rejected. Consumer Behaviour Models – Sociological Model. Understanding their behaviour helps in analysing the reasons for which they are going for competitors’ products. Predict future demands & focus on their operations, influencing society, and social class so once! Regulations to safe guard the interest of consumers setting prices is one of the in. Be used for inducing customers to buy particular product, he/she will repeat the purchase science at is! Case of equipment ’ s living standards particularly true for fashion goods clothes. Used in advertisements loans to fulfil their needs others in the market on price or... Most widely bought on the arena the target customers buying behaviour of the has. Benefits, value of AI Cleveland Clinic CMO: ‘ and then Came the Pandemic ’... in the and. 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