CONSUMER BEHAVIOR 2015 - Prof. Rajesh K Satpathy

Introduction

As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process of purchase. The study of consumer behaviour provides us with reasons why consumers differ from one another in buying using products and services.

We receive stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms of either buying or not buying the product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision.

Consumer Behaviour

Video: PepsiCo

Objective of this Session…

• Understand the development of the marketing concept.• Define customer value, satisfaction, and retention.• Exploring the link between marketing and Customer

orientation• The definition, role and importance of consumer behavior for

a marketer

Consumer Behaviour

Objective of this Session…

• Identify the major factors that influence a consumer’s purchase decision and behavior

• A simplified model of the consumer decision-making framework

• To get an idea about societal marketing concept.

Consumer Behaviour

Consumer Behaviour

What is Consumer Behaviour? (Definition)

Consumer Behaviour is the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of products or services or experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Video: Airtel

Why is CB important ?

Consumer Behavior dictates Marketing Strategy…

Knowledge of Consumer Behaviour = Successful Marketing Tactics

(As CB is the key to planning and managing ever changing Marketing Environment)

Consumer Behaviour

Why is CB important ?

As You / Firm…

Lack of knowledge of Consumer Behaviour = Big mistakes by you and your firm!

Consumer Behaviour

Video: Tata nano

Marketing and Customer Orientation…

To introduce you to the concept of consumer behaviour, let us first understand about the discipline of consumer behaviour in relation to marketing.

What is Marketing?

Marketing on the one hand is a business philosophy and on the other an action oriented process.

The philosophy - also termed as marketing concept - has its roots in market economy.

Consumer Behaviour

Video: CEAT SUV Tyres

Consumer Behaviour

EXAMPLE IN INDIAN CONTEXT (All ATL & BTL Activities)

• TV Advertising (Electronics Media),

• News Paper, Magazine (Print Media),

• Out Door Advertising (Bill Boards, Hoardings),

• Mobile Van/Bus/Trains, Glow Sign boards , WALL Paintings etc.

This is supported by many promotional measures that persuade people to try a Product in the form of advertisements, samples and trial packs, demonstrations, point of purchase and may be finally on suggestions.

Consumer BehaviourThere are four critical ideas that form the foundation of such an economy: Marketing in turn is based on these four principles.

1. Individuals pursue their self-interest to seek rewarding experiences

2. Their choices determine as to what would constitute such experience, the choices themselves being shaped by personal (taste) and external (cultural) influences.

3. Consumers enjoy the freedom to choose; they are self-governing.

4. This freedom ensures free and competitive exchange between “buyers and sellers”.

Video: Nescafe

Consumer Behaviour

Although the marketing environment helps in making Consumer/ Buyer aware of the product, it’s the marketing stimuli and other stimuli, which will make the buyer, respond either positively or negatively towards a particular product/service.

Video: PCJ_Photograph

Video: JLR

Consumer BehaviourThus Marketing can be defined as a ‘Process that aims at satisfying individual and organizational needs by creating, offering and exchanging competitively made products that provide value to the buyers’

Today our focus is on customer. Objectives like revenue, profit, market share, etc. are important, but they will flow only by acquiring customer competence.

Consumer BehaviourIn our country particularly the customer, even as late as in 1980s, were deprived of alternatives; he would uncomplainingly buy whatever the seller dished out. Not anymore.

Today’s in 2015 choice empowered customer, supported by a competitive environment, global quality, and new economic realities decides the fate of the marketer.

Consumer Behaviour

Consumer BehaviourThe rules of marketing are so frequently changing as has never been expected by the companies. Now the companies are developing new set of marketing capabilities to survive in the emerging competitive environment.

This shift in marketing can be attributed to factors like emergence of competitive marketing environment in the wake of the process of deregulation, privatization and globalization; recessionary pressure forcing companies to frequently introduce new products, which results in reduction in product life cycle and proliferation of in brands.

Consumer BehaviourFast changing customers’ profile(including the fickle brand loyalty) in terms of increase in their buying power and change in buying pattern, which results in more & more urge for better products, thus forcing companies to face rapid customers’ turnover ; and advancement in IT , which has shifted the power from marketer to customer by providing a greater amount of information practically about anything which makes customer more active, cautious and informed.

Consumer Behaviour

Consumer Behaviour

The concept of human behavior is all pervasive and has been analyzed by experts in discipline of sociology, social psychology, philosophy, psychology, anthropology, economics and management from its different dimensions.

Thus Consumer Behaviour (CB) is an applied subset of human behavior, which derives many theories from these disciplines.

Thank You!