Consumer Behavior: An Overview

Sales determine profits, and consumers actions determine sales. Scratch the surface of any consumer and you will find an intricate web of complex, often conflicting needs. What influences create these needs and most important, how can marketers recognize and serve them are the subject matter of consumer behavior.

 This is the era of marketing orientation where customers are treated as kings and queens. In modern times, under marketing concept, the focusing of all marketing activities is to satisfy consumer needs and meeting these needs requires some accurate knowledge of who the consumer really is and what he or she really wants. By studying consumer behavior we can get the answers to the above.

Consumer Decision Making

Think back for a moment and recall the last time you bought a tube of toothpaste. What undoubtedly seemed at the counter to be an instant, unthinking decision was in reality a highly process fraught with variables.

 The first is the cultural values transmitted from generation to generation. (Example: to buy pajama and Panjabi during eid time) ---- Buying sarees for marriage purpose. ----- Buying colorful items for marriage with the hope that the couples life will be colorful.

Perhaps you always buy the same brand of a product. Sociologically buying decisions may have been influenced by your: Family: you may have purchased the brand because your parents are inclined to use a particular brand. Seeing your FRIENDS to use you may buy a particular brand. Even SOCIAL CLASS may influence your buying decision. The size, the amount of attention devoted to price may also similar to your social class. Buying Benson and Hedges even you prefer Gold Leaf.

Your decision also took place in a psychological context. For purely individual reason you may emphasize on whitening than decay prevention. If you are a nationalist you may buy local brand even if you can afford expensive foreign goods.

 Product attributes and buying environment may have affected your decision as well. ----- Location of the shop, display, behavior of sales person etc.

Scope of Consumer Behavior Field

The field of consumer behavior explores: Why people make certain purchasing decisions? What products and services people buy? Where they buy them? How they use them? The frequency with which they buy them? The consumer decision process in action.

Definition

Consumer behavior may be defined as the activities of people engaged in actual or potential use of market items goods, services, retail environment, or ideas.

Consumer Behavior as an Interdisciplinary Subject.

Consumer Behavior draws its findings from: Anthropology: Study of man as an animal. It contributes an understanding of the cultural setting in which decisions are made. Sociology and Social Psychology: Support/bolster our knowledge of how consumers behave by pointing out the effects of group behavior on individual decision making. FAMILY, SOCIAL CLASS, PEER GROUPS etc.

 Psychology: is the study of individual behavior offers insights about consumers personal characteristics such as LEARNING, PERCEPTION, ATTITUDE, MOTIVATION, PERSONALITY etc. Marketing Research: provides information about consumer responses to product attributes such as PRICING, PACKAGING etc. and to environment surrounding purchasing decision. Economics: the study of how society distributes its scare resources, sets the larger context in which all consumer behavior occurs.

An Overview of Consumer Behavior Shown Through Diagram

Macro Perspective (Cultural Influences) Group Perspective (Social Influences) Individual Perspective (Psychological Influences)

Emergence of Consumer Behavior Field

The field is relatively new. From 1940s. But for a young discipline, consumer behavior studies have proliferated (quick expansion) at an almost dazzling rate due to three factors: The centrality of consumers in contemporary marketing practices (Kings and Queens). The interdisciplinary nature of the field which permits borrowing from many older disciplines. The growth of computer technology which has enabled researchers to simulate behavior electronically.

An overview of Consumer Behavior Theory and Models

Theory is the philosophical explanation of phenomenon. The role of scientific theory in consumer behavior and development of research models to test various theories have come to overshadow more traditional approaches to explaining what makes consumers as they do. The traditional theories were marketers own opinions or expressed the views of economic philosophers that a consumer was purely rational creature who responded mechanistically to economic laws.

 The newer approaches are theory based on psychology, sociology and related fields and are often accompanied by models. A model is essentially a representation of some behavioral system which is used to explain behavior in that system. A model is also an imitation of something on a smaller scale.

Allport Consumer Behavior Model

Stimulu s objects

Socio-cultural
Factors Culture Social Class

Social
Factors

Individual
Factors Purchase

Product or Decision

Group Influences Such as Family, Friends Etc.

Motivation, Personality, Attitude, Perception etc.

Cognition

Service

1. Cultural Social Influences:

a. The cultural setting in which consumer behavior occurs will affect the product or services we want, the ways in which we want them and the methods we use to get them. Examples: Self service, bargaining, ear ring used by men. b. As marketing is becoming multinational, marketers are to consider culture of his own and others. Otherwise his actions will fail. **** Some cultural traits are universal and some are different. American culture is characterized by technological change and value shifts (Example: relaxed sexual mores). Bangladeshi culture is characterized by tradition and insularity.

 Culture is changing --- The products and services desired have been modified somewhat (example: introduction of flowers.) Value system is changing --- using credit cards instead of cash purchase. Band music now is more liked than classical music. The existence of subculture --- Example: Dry fish is liked by people of some part of the country. Urban people like eating out, instant food.

2. Sociocultural influences
Sociocultural influences upon consumer behavior are just as pervasive as cultural influences. Consumer buying patterns are affected by how people learn acceptable life style in society, how reference groups such as family, peer groups, and other relationships determine individual behavior. Social change such as emancipation of women influence product and service needs.

 Example: Use of disposable diapers, feeding powder milk to babies etc. c. The family as a social unit wields influence over individual behavior. Examples: Some decisions are made jointly and some individually. It depends on the nature of the product and the stage of the family life cycle. Just married take joint decisions. Product needs also relates to life cycle stage. Different products are needed at different stage.

3. Individual Influences:
a. Consumer behavior patterns are learned. Buying habits and loyalties are learned through experiences. For quick consumer learning to occur intensity of ads should be increased. b. The role of perception. Different people perceive differently. They also perceive selectively. So, ads should be prepared in an outstanding manner for the target consumers to perceive positively.

 C. Motivation and Personality also influence consumer purchase decisions. Some people are motivated by price where some are motivated by quality or style. People of different personalities see the same thing differently. D. Attitude is also very important determinant of consumer purchase decision. Attitude is difficult to change. It can be changed through persuasive communication.

4. Consumer Information Processing and Decision Making

The consumer enters into each purchasing situation with a unique set of environmental and individual variables influencing his or her behavior. Buying decisions are affected by media communications. Interpersonal communications also enter into consumer buying decisions. Opinion leaders can influence buying decisions significantly.

Marketing Applications of Consumer Behavior Theory and Knowledge

The study of consumer behavior offers vast potential for real world application. And the possibilities open to people trained in this field range from positions in market research firms to jobs in government regulatory agencies investigating consumer fraud.

Micromarketing Areas of Application

The most common uses of consumer behavior theory and research remain in the realm of micromarketing, better known as business marketing. Here the applications are: (i) managerial, (ii) research oriented, and (iii) creative to manage marketing operations effectively, provide research inputs for meeting consumer demands, and devise strategies for persuasive communications.

Managerial Application (anticipating new markets)

This aspect of marketing concept challenges business people to regard every nuance (delicate difference in shade of meaning) of social change as a potential market development. In a rapidly changing economy the challenge become particularly acute. Improved educational opportunities helped to create a new breed of consumers, more aware, more demanding and more skeptical of advertising claims.

 Widespread affluence has prompted demand for new and different leisure products, expanded travel services etc. In Bangladesh, demand for mineral water due to increased health consciousness which is related to increased educations. Demand for packed products in Bangladesh has increased.

Research oriented (Market segmentation)

No marketers could hope to interest every existing consumer in the specific product or service offered. Thus markets are segmented. Markets can be segmented in many different ways. Research in consumer behavior most often focuses on areas that would facilitate segmentation.

Creative (Developing Strategies)

Strategy is a plan or scheme for deceiving enemy. Contemporary business rely increasingly on strategy formation at all levels of marketing effort from product development to retailing. This phenomenon becomes rapidly apparent in persuasive communication: advertising, promotion, and selling. One impetus for careful planning of strategy is the sheer volume of products on the market.

 Another is the fact that many are parity products with different brand names and packaging but no real product difference. Ex. Gasoline, detergent, aspirin. Consider the clutter of TV commercials and it is understandable why viewers can recall so few advertising messages. Here it becomes necessary to position products in consumers frame of reference.

Macro-marketing Areas of Applications

The application of an understanding of consumer behavior are not restricted to the realm of business and profit. Practitioners concerned with urban planning, administering social services, and economic policy require information about consumers to perform their role effectively.

Public policy decisions

Government agencies have recently taken a more activist role in regulating business practices. Some of their efforts are generally accepted by consumers. Virtually everyone stands against deceptive advertising. Ban on the polythene bags is an example. To alleviate atmospheric pollution, drastic measures like gasoline rationing, and even outright automobiles bans in urban areas seemed called for.

 The process of drawing people gradually away from their cars to mass urban transit must be well researched and thoughtfully planned effort to succeed. Convenience package such as beer to check pollution, but consumers will be reluctant to return bottles.

Contributions to behavioral sciences

Research into consumer learning, attitudes and influences upon decision making often overlaps with psychological and sociological investigation. Finding concerning consumer perception, motivation and conditioning add to the body of knowledge about individual behavior.

 Studies exploring the relationship between reference groups and consumer decision making contribute to sociological theory and practice. So the study of consumer behavior is useful to anyone who will deal with the interests, activities, and purchasing patterns of consumer in business, government or academic pursuits.