Learn about ‘Consumer Behavior’ with the help of easy to understand, richly illustrated Powerpoint Presentation of 184 Slides. (View Demo Below) Download Demo Powerpoint Presentation for FREE!

Consumer Behavior • 1. Consumer Behaviour • Based on concepts from Psychology Sociology Anthropology Marketing Economics • Why do we need to study Consumer Behaviour? Because no longer can we take the customer/consumer for granted.

• 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. • All managers must become astute analysts of consumer motivation and behaviour • Can Marketing be standardised? Because cross - cultural styles, habits, tastes, prevents such standardisation.

• Unless Managements act The more successful a firm has been in the past, the more likely is it to fail in the future. Because people tend to repeat behaviour for which they have been rewarded.

Before understanding consumer behaviour let us first go through few more terminologies: Who is a Consumer? Any individual who purchases goods and services from the market for his/her end-use is called a consumer.

In simpler words a consumer is one who consumes goods and services available in the market. Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above examples, both Tom and Mike are consumers. What is consumer Interest? Every customer shows inclination towards particular products and services.

Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste, need and of course pocket. Let us go through the following example: Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves.

The store manager showed them the best dresses available with him. Maria immediately purchased two dresses but Sandra returned home empty handed. The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store. In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste, mind set and ability to spend.

What is Consumer Behaviour? Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use. Why do you think an individual buys a product? • Need • Social Status • Gifting Purpose Why do you think an individual does not buy a product? • No requirement • Income/Budget/Financial constraints • Taste When do you think consumers purchase products?

• Festive season • Birthday • Anniversary • Marriage or other special occasions There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on. The study of consumer behaviour explains as to: • Why and why not a consumer buys a product? • When a consumer buys a product? • How a consumer buys a product? During Christmas, the buying tendencies of consumers increase as compared to other months. In the same way during Valentines week, individuals are often seen purchasing gifts for their partners.