AN INTRODUCTION

CONSUMER BEHAIVOUR

It is all about theChanges and Challenges Taste and Preferences Motivation Choices, Needs and Demand Personality Trait of Consumer Attitude, Behaviour, Perception etc Learning 4ps Segmentation , targeting and positioning Influence of Consumer Culture Brand Image etc. Purchasing, Satisfaction and loyal to the brand or product

A. B. C. D. E. F. G. H. I. J. K.

WHO IS CONSUMER?

The "consumer" is the one who consumes the goods and services produced, OR A consumer is a person who pays money to buys any good(s), or hires or avails of any services, or uses such goods or services even if he/she has not actually paid for them, when they have the approval of the person who actually paid for the goods or services (for example, even if someone gifted you a shirt, you would be a consumer).

Who is Customer?
A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor.

The word derives from "custom," meaning "habit"; a customer was someone who frequently visited to a particular shop, who made it a habit to purchase goods rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future.

CONSUMER BEHAVIOR
Consumer Behavior ---- as the behavior that consumer display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

Consumer Behavior focuses on:How individuals consumers and families or households make decisions to spend their available resources (time, money, effort) on consumptionrelated items. Like what they buy, why they buy it, when they buy it, (Advertisement of Cadburys- 2 diff. perspectives) where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase, the impact of such evaluations on future purchases and how they dispose of it.

FROM THE ORGANISATIONS POINT OF VIEW

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

TYPES OF CONSUMERS

Personal Consumer - buy good and services for their own use, for the use of household, or gift to someone. In each of these context, the product is bought for the final use by the individuals, who are referred as end users or ultimate consumers.

Organizational Consumers - includes profit and non profit making organisation or businesses, government agencies, or institute (schools, colleges, hospitals and prisons). All of which must buy products, equipments, and services to run their organizations.

WE ALL AGREE WITH THE POINT THAT CONSUMERS ARE THE KEY FOCUS OF THE ORGANIZATIONS, HOW
THE ORGANIZATIONS WILL CREATE AND MAINTAIN THEIR CONSUMERS?

HOW TO GENERATE THE MARKETING STRATEGY

Clear definition of Marketing Concept Satisfactory Profit by fully satisfying the consumer needs. Three important aspects are:- Determining the needs and wants of target population, deliver the desired satisfaction better then the competition, and then earn satisfactory profits for themselves. Key ingredients of Marketing Strategies are:Segmentation ,Targeting, & Positioning, Knowing the marketing mix (The 4 Ps) Consumer Behavior & Brand Success

1. 2. 3.

All these three things are for the ultimate Customer Value, Satisfaction, Trust & Retention.

MARKET SEGMENTATION
Market segmentation is the process of partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behavior. Market segmentation requires a major commitment by management to customeroriented planning, research, implementation and control.

TYPES OF SEGMENTATION
Geographic segmentation based on location such as region, country, town, city etc; Demographic segmentation based on measurable statistics, such as age, gender, education (illiterate or literate groups) or income; etc. Psychographic segmentation based on lifestyle preferences, such as being urban dwellers, pet lovers, fashion focused, standard of living etc.

TARGETING OR TARGET MARKET

It involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments, e.g. coca cola positions its new low-calorie energy drink to a sophisticated female audience. Target marketing can be the key to a small businesss success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing activities.

POSITIONING AND RE-POSITIONING

It refers to a development of an image of new product in the minds of a consumer, an image that will differentiate your product with the competition. Successful positioning centers around two key principles(a) communicating the benefits that a product will provide rather then a products features (b) Communicate a unique selling proposition- a distinctive benefit pr point of differencefor the product or service.

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

KNOWING THE MARKETING MIX (4 PS)

Product - features, design, brands, and packaging of goods and services offering, along with post purchase benefits such as warranties, and return policies etc. Price - list price, including discounts, allowances and payment methods. Promotion - Advertisement, public relation, sales promotion, personal selling efforts designed to build awareness of and demand for the good or services. Place - the distribution of product to the store and non-store outlets.

Consumer Behavior and Brand Success- Knowledge of CB is important to make the brand successful in the market.

CUSTOMER VALUE

The difference between what a customer gets from a product, and what he or she has to give in order to get it. The ratio between the customers perceived benefits and the resources used to obtain those benefits. Key Words:- Expectation, Resources used (time, money, efforts, psychology), Ultimate Satisfaction or fulfillment of expectation. E.g. any 5-star hotel or restaurant. McDonald's e.g. 4 core standards of restaurant are- quality, service, cleanliness and value. Customers repeatedly go their because the restaurants are well maintained, customers know what to expect, and they feel that they are getting the resources they expends. Customer value leads to customer satisfaction and creation of trust with the brand and its product, products or product lines.

SATISFACTION ,TRUST & RETENTION

Definition of customer satisfaction

Customer satisfaction is the measure of how well our PRODUCTS, SERVICE, SUPPORT and ENGAGEMENT are able to meet the customer EXPECTATIONS.

Break-down of the Definition of Customer Satisfaction Customer satisfaction is a measure of how well our PRODUCTS- Products including physical products and services. SERVICE- Customer service post sale. This includes responding to customer queries and issues. SUPPORT- Repair, maintenance and upkeep of your products post sales. ENGAGEMENET- Engaging with customer, apart from the above mentioned contexts (product, service and support). This includes offering new products, schemes, up-sell and cross-sell. are able to meet the customer EXPECTATIONS- Customer satisfaction is your delivery vis-a-vis the expectations. The way a customer interprets your delivery also defines customer satisfaction. Customer satisfaction is driven by how well you manage your delivery and how well you manage customer expectations.

Definition of Customer Retention Customer retention is the measure of how well the customer STAYS and STAYS ENGAGED with the organization OR with specific products and services Break-down of the definition of Customer Retention STAYS- Customer being active and user of your product and service- This is mainly relevant to the products and services, having an existing contract. This includes banking, telecommunication and maintenance contracts.

STAYS ENGAGED- Customer who maintain OR increase the level of relationship. A customer could still be retained, while he reduces his average bank-balance, OR cancels two out of the three telecom connections he has got.

Key Business Questions related to Customer Retention and Satisfaction: What is the level of Customer satisfaction on an overall basis and for specific parameters? What have been the changes in customer satisfaction trends over time? What is driving the levels of customer satisfaction, dissatisfaction and attrition? What are the root-causes behind customer dissatisfaction, attrition? What has been done to improve customer satisfaction, retention and how successful it has been? Are my high priority customers satisfied and will be retained? What have been the trends of customer attrition over different customer segments? What are the key differentials in the profiles of customers leaving us vis-avis customers retained with us? Is the cost of customer satisfaction and retention a justified business case? What has been the customer behavior leading to attrition? How can I project that this customer could attrite?

CONSUMER BUYING DECISION

Consumer Decision-Making Process

Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps

Evaluation of Alternatives

Purchase

Postpurchase Behavior

STAGES OF CONSUMER BUYING PROCESS

The 6 stages are:

Problem Recognition(awareness of need)--difference between the desired state and the actual condition. i.e. When a current product isnt performing properly? When the consumer is running out of an product?

When another product seems superior to the one currently used?

The information search stage

An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products. An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.

Personal sources (friends and family)

Public sources (rating services like Consumer Reports) Marketer-dominated sources (advertising or sales people)

The evoked

set: a group of

brands from which the buyer can choose

Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want.
Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. Purchase--May differ from decision, time lapse between 4 & 5, product availability.

Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.

 think of an important purchasing decision you have made. what are some of the thoughts you have had following your purchase? Any regrets? what has influenced those thoughts? how have you deal with the discomfort? how has the company anticipated or deal with your discomfort?

Postpurchase Behavior
Cognitive Dissonance

Did I make a good decision? Did I buy the right product? Did I get a good value?

Cognitive Dissonance

psychological discomfort caused by inconsistencies among a persons beliefs, attitudes, and actions The customer, who bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.

Influence on Buyers Behavior

Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).

Initiator: the person who first suggests or thinks of the idea of buying a particular product or service. Influencer: a person whose views or advice carry weight in making the final buying decision Decider: the person who ultimately makes the final buying decision or any part of it Buyer: the person who makes the actual purchase User: the person who consumes the product or service Think about your past purchase who was in which role?

Consumer decision making varies with the level of involvement in the purchasing decision
Extensive: when buyers purchase more expensive, less

frequently purchased products in an unfamiliar product category requiring information search & evaluation; may experience cognitive dissonance.
Limited: buying product occasionally. When you need to obtain information about

unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.
Routine: buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Impulse buying, no conscious planning. Compulsive Buying; Addictive buying.

The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

THE ABOVE THING HAPPEN ONLY WITH THE HELP OF MARKET ANALYSIS.