CONSUMER BEHAVIOR (MS-209)
December 2010 paper
Define the term Consumer Behavior. Why is consumption viewed as a process? How can the study of consumer behavior help managers in developing a better strategy?
Consumer behaviour can be defined as:
"The decision process and physical activity engaged in when evaluating, acquiring, using or disposing of goods and services." Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use. Through the application of sociology, psychology and demographics, marketers can begin to understand why consumers form attitudes and make decisions to purchase. Consumer-behavior studies inform marketers, advertisers and public agencies how product and service selection is influenced by personality, perception, values and beliefs.
CONSUMPTION IS VIEWED AS A PROCESS:
Consumption is the process by which goods and services are, at last, put to final
use by people. Consumption is at the end of the line of economic activities that starts
with an evaluation of available resources and proceeds through production of goods and
services and distribution of goods and services (or the means to acquire them) among
people and groups. At last, the goods and services themselves come to be used. The
effect of this consumption, including depletion of resources and generation of waste as
well as enhancement of human survival and flourishing, determines the resource base for the next round of economic activity.
MARKETING APPLICATION OFF CONSUMER BEHAVIOUR:
Consumer behavior helps the marketer in developing strategies for:
1 Analyzing Market Opportunity:
Study of consumer behaviour helps in identifying needs and wants which are unfulfilled. This is done by examining trends in income, consumer’s lifestyles and emerging influences. For example, the trend towards increasing number of working wives and greater...