3. Why to Study Consumer Behavior..?
– To stay in business by attracting and retaining customers
– To benefit from understanding consumer problems
– To establish competitive advantage
– Because it is interesting!
4. Failure rates of new products
introduced
– Out of 11000 new products introduced by 77 companies, only 56% are present
5 years later.
– Only 8% of new product concepts offered by 112 leading companies reached
the market. Out of that 83% failed to meet marketing objectives.
5. CONSUMER BEHAVIOUR
– THE BEHAVIOUR THAT CONSUMERS DISPLAY IN SEARCHING
FOR, PURCHASING, USING, EVALUATING, AND DISPOSING OF
PRODUCTS AND SERVICES THAT THEY EXPECT WILL SATISFY
THEIR NEEDS.
– STUDY OF HOW INDIVIDUALS MAKE DECISIONS TO SPEND
THEIR AVAILABLE RESOURCES <TIME… MONEY…EFFORT> ON
CONSUMPTION RELATED ITEMS.
6. CONSUMER BEHAVIOUR
– 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
– STUDY OF THE PROCESSES BY WHICH CONSUMERS MAKE
DECISIONS. MORE SPECIFICALLY, IT IS CONCERNED WITH
HOW CONSUMERS ACQUIRE ORGANIZE AND USE
INFORMATION TO MAKE CONSUMPTION CHOICE.
INTRODUCTION
7. Definition of Consumer Behavior
– Individuals or groups acquiring, using and disposing of products, services,
ideas, or experiences
– Includes search for information and actual purchase
– Includes an understanding of consumer thoughts, feelings, and actions
10. Basis for Comparison Customer Consumer
Meaning
The purchaser of goods or
services is known as the
Customer.
The end user of goods or
services is known as a
Consumer.
Resell
A customer can be a business
entity, who can purchase it for
the purpose of resale.
No
Purchase of goods Yes Not necessary
Purpose Resale or Consumption Consumption
Price of product or service Paid by the customer
May not be paid by the
consumer
Person Individual or Organization
Individual, Family or Group
of people
Difference between customer and consumer
12. Consumer behavior and
Demarketing
– Demarketing may be considered “unselling” or “marketing in
reverse”, which includes general and selective demarketing.
– Although the concept of demarketing lacks a precise
theoretical definition, it refers to an attempt by the firm to
discourage all or some of its customers from making
purchases either temporarily or permanently. Since the initial
interests in the subject area of how to market strategically in
times of shortages began, different viewpoints have been
offered as to how the firm should pursue demarketing
13. Definition and Types of
demarketing
– In 1971 Kotler and Levy published a paper in the Harvard Business Review that
introduced the then novel concept of “Demarketing,“that aspect of marketing that
deals with discouraging customers in general or a certain class of customers in
particular on either a temporary or permanent basis”
Types of demarketing
• General Demarketing
• Selective Demarketing
• Ostensible Demarketing
• Unintentional Demarketing
14. Consumerism- Definition
– Consumerism, the "social movement seeking to
augment the rights and power of buyers in relation to
sellers," (Kotler, 1972)
– It is manifest in new laws, regulations, and marketing
practices, as well as in new public attitudes toward
government and business.
15. Consumerism- Definition
– Marketing concept
– Consumerism is a social and economic order that is
based on the systematic creation and fostering of a desire
to purchase goods or services in ever greater amounts.
– In economics, consumerism refers to economic policies
placing emphasis on consumption.
– In an abstract sense, it is the belief that the free choice of
consumers should dictate the economic structure of a
society
16. Consumerism
– The movement seeking to protect and inform
consumers by requiring such practices as honest
packaging and advertising, product guarantees, and
improved safety standards"
– or alternatively: "The theory that a progressively
greater consumption of goods is economically
beneficial".
