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Intorduction to Consumer Behavior

The document provides an overview of consumer behavior, detailing how individuals make decisions regarding the purchase and use of products and services. It outlines the importance of understanding consumer needs and the evolution of marketing concepts, including production, product, selling, and marketing concepts. Additionally, it emphasizes the significance of customer value, satisfaction, and retention in building long-term relationships with consumers.

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3 views28 pages

Intorduction to Consumer Behavior

The document provides an overview of consumer behavior, detailing how individuals make decisions regarding the purchase and use of products and services. It outlines the importance of understanding consumer needs and the evolution of marketing concepts, including production, product, selling, and marketing concepts. Additionally, it emphasizes the significance of customer value, satisfaction, and retention in building long-term relationships with consumers.

Uploaded by

hina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION

CONSUMER BEHAVIOR
WHAT IS CONSUMER BEHAVIOR ACCORDING TO
YOU?
WHAT IS CONSUMER BEHAVIOR?
Consumer behavior focuses on how
individuals make decisions to spend
their available resources(time, money,
effort) on consumption related items.
The behavior that consumers
display in searching for, purchasing
, using , evaluating and ordering of
products and services that they
expect will satisfy their needs.
That is including ,
What they buy?
Why they buy?
When they buy it?
Where they buy it?
How often they buy it?
How often they use it?
How they evaluate it after the purchase?
How they dispose it?
ATTENTION…..
Consumers play a vital role in the health
of the economy
All the business activities are depend on
the consumers.
So, business organizations are need to
understand personal and group
influences that affect consumer
decisions and how these decisions are
made.
TYPES OF CONSUMERS
Personal Consumer
Personal consumer
who buys goods and
services for his or
her own use , for
the use of the
household or as a
gift for a friend.
Organization
consumer
this includes profit or
non profit businesses
,government
agencies and
institutions buy
products ,equipment'
s and services in
order to run their
organization.
DEVELOPMENT OF MARKETING CONCEPTS

The field of consumer


behavior is rooted in the
marketing concept, a business
organization that evolved in
the 1950s through several
alternative approaches
toward doing business
referred to, respectively , as
the production concept, the
product concept , selling
THE PRODUCTION
CONCEPT
The oldest Concept in business
It holds that consumers will prefer
products that are widely available
and inexpensive.
Managers of production oriented
businesses concentrate on achieving
high production efficiency, low costs
and mass distribution.
THE PRODUCT CONCEPT

The product concept proposes that


consumers favor product s that
offer that the most quality,
performance, or innovative
features.
Managers in these organizations
focus on making superior products
and improving them overtime.
THE SELLING CONCEPT

The selling concept propose that


consumers and businesses , if
left alone, won’t buy enough of
the organization products.
The organization must therefore
undertake an aggressive selling
and promotion effort.
THE MARKETING CONCEPT
The marketing concept holds that the
key to achieving organizational goals is
being more effective than competitors
in creation , delivering , and
communicating superior customer value
to marketer chosen target markets.
According to this concept marketer
always try to understand and meeting
customer expressed needs.
To implement marketing concept,
organization wants to identify consumer
unsatisfied needs.
To identify unsatisfied consumer needs ,
companies had to engage in Consumer
research.
Consumers are highly complex, their needs
and priorities of different consumer groups
are different dramatically.
Hence , to implement the marketing concept
organizations have to follow some key
strategic tools.
KEY STRATEGIC
TOOLS
Segmentation

Targeting

Positioning

Marketing Mix
Market
Targeting Positioning
Segmentation
Geograp refreshing products
-Promotes happiness and

hic positivity for every drink

Domestic
Region
International
Urban
Density
Rural

Demographi
c
Age 10-40
Gender Males and females

Life-cycle stage

Average, above average,


Income
high-income earners
Professionals, students,
Occupation
employees

Behavioral
Degree of loyalty
Refreshment, satisfaction
of habit, enjoying the
Benefits sought
good taste, spending time
with people
User status Regular users
Easygoing, ambitious,
Personality
determined
CLASS ACTIVITY

Think of an idea for a new


product or service. Who
would be the target
market(s) and how would
you position your offering?
MARKETING MIX

Marketing Mix is the set


of marketing tools that
the firm uses to pursue
its marketing objectives
in the target market.
MARKETING MIX IN CUSTOMER
POINT OF VIEW
4 Ps 4 Cs

Customer
Product Solution

Customer
Price Cost

Place/ Convenien
Distribution
ce
Promotion Communication
CUSTOMER VALUE, SATISFACTION AND RETENTION

Today market is very competitive. There are


lot of alternative brands available in the
market to satisfy one product
requirement.
To outperform this competitors organization
must achieve the full profit potential from
each and every customer.
Hence ,organizations trying to buildup ,
maintain and improve long term
relationship with the customers.
CONT….

The three drivers of


successful relationships
between marketers and
customers are customer
value, high level of
satisfaction, and building
a structure for customer
retention.
CUSTOMER VALUE

Customer value refers to the perceived benefits a


customer receives from a product or service compared
to the costs incurred to acquire and use it. It is the
difference between what customers are willing to pay
for a product or service and what they actually pay,
considering factors like quality, features, and
satisfaction.
For example, if a customer buys a smartphone that has
advanced features, good performance, and a long
battery life, the customer value is the overall
satisfaction and benefits the customer perceives from
these attributes relative to the price they paid for it.
CUSTOMER SATISFACTION
Customer satisfaction is the extent to which
a products perceived performance matches
a buyers expectations.
If the product ‘s performance falls short of
expectations , the customer is dissatisfied.
If performance matches expectations, the
customer is satisfied.
If performance exceeds expectations , the
customer is highly satisfied or delighted.
CUSTOMER RETENTION
The higher level of customer
satisfaction lead to greater customer
retention.
Loyal customer are happy customers
who will return to purchase again and
persuade others to use that company's
products or services. This equates to
profitability, as well as happy
stakeholders.

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