NATURE & SCOPE OF CONSUMER BEHAVIOUR

1.PROCESS : 

Consumer behaviour is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps; 

1.  Need identification to buy the product .

2. Information search relating to the product.  

3. Listing of alternative brands.

4. Evaluating the alternative (cost-benefit analysis)

5. Purchase decision.

6. Post-purchase evaluation by the marketer.

      2. INFLUENCED BY VARIOUS FACTORS :

   

     Consumer behaviour is influenced by a number of factors. The factors that influence consumers are : marketing, personal, psychological, situational, social, cultural etc.

    

      3. DIFFERENT FOR ALL CUSTOMERS :

    All consumers do not behave in the same manner. Different consumers behave differently. The difference in consumer behaviour is due to individual factors such as nature of the consumer’s life style, culture, etc.

4. DIFFERENT FOR DIFFERENT PRODUCTS :

Consumer behaviour is different for different products.  There are some consumers who may buy more quantity of certain items and very low/no quantity of some other items.

5. REGION BOUNDED :

The consumer behaviour varies across states, regions and countries. For instance, the behaviour of urban consumers is different from that of rural consumers.

Normally, rural consumers are conservative (traditional) in their buying behaviour.

6. VITAL FOR MARKETERS :

Marketers need to have a good knowledge of consumer behaviour. They need to study the various factors that influence consumer behaviour of their target customers. The knowledge of consumer behaviour enables marketers to take appropriate marketing decisions.

     7. REFLECTS STATUS :

Consumers buying behaviour is not only influenced by status of a consumer, but it also reflects it. Those consumers who own luxury cars, watches and other items are considered by others as persons of higher status.

     8. SPREAD - EFFECT :

Consumer behavior has a spread effect.

The buying behaviour of one person may  influence the buying behavior of another person. For instance, a customer may always  prefer to buy premium brands of clothing, watches and other items etc. 

This may influence some of his friends, neighbors, colleagues. This is one of the reasons why marketers usecelebrities like Shahrukh Khan , Sachin to endorse their brands.

     9. STANDARD OF LIVING :

Consumer buying behaviour may lead to higher standard of living. The more a person buys the goods and services, the higher is the standard of living.

10. KEEPS ON CHANGING :

The consumer’s behaviour undergoes a change over a period of time depending upon changes in age, education and income level. Etc, for instance,, kids may prefer colorful dresses, but as they grow up as teenagers and young adults, they may prefer trendy clothes.

SCOPE :

 The scope of a subject refers to everything that is studied as part of that subject. When we set out to explain the scope of consumer behaviour we need to refer to all that which forms part of consumer behaviour. 

Consumer behaviour includes not only the actual buyer and his act of buying but also the various roles played by different individuals and the influence they exert on the final purchase decision.

1) Consumer behaviour and marketing management : Effective business managers realise the importance of marketing to the success of their firm. A sound understanding of consumer behaviour is essential to the long run success of any marketing program. In fact, it is seen as a comerstone of the Marketing concept, an important orientation of philosophy of many marketing managers. The essence of the Marketing concept is captured in three interrelated  orientations consumers needs and wants, company integrated strategy. 

2) Consumer behaviour and non profit and social marketing : In today's world even the non-profit organisations like government agencies, religious sects, universities and charitable institutions have to market their services for ideas to the "target group of consumers or institution." At other times these groups are required to appeal to the general public for support of certain causes or ideas. Also they make their contribution towards eradication of the problems of the society. Thus a clear understanding of the consumer behaviour and decision making process will assist these efforts.

3) Consumer behaviour and government decision making : In recent years the relevance of consumer behaviour principles to government decision making. Two major areas of activities have been affected: 

i) Government services: It is increasingly and that government provision of public services can benefit significantly from an understanding of the consumers, or users, of these services.

ii) consumer protection: Many Agencies at all levels of government are involved with regulating business practices for the purpose of protecting consumers welfare.

4) Consumer behaviour and demarketing: It has become increasingly clear that consumers are entering an era of scarcity in terms of some natural gas and water. These scarcities have led to promotions stressing conservation rather than consumption. In other circumstances, consumers have been encouraged to decrease or stop their use of particular goods believed to have harmful effects. Programs designed to reduce drug abuse, gambling, and similar types of conception examples. These actions have been undertaken by government agencies non profit organisations, and other private groups. The term "demarketing" refers to all such efforts to encourage consumers to reduce their consumption of a particular product or services.

5) Consumer behaviour and consumer education: Consumer also stands to benefit directly from orderly investigations of their own behaviour. This can occur on an individual basis or as part of more formal educational programs. For example, when consumers learn that a large proportion of the billions spend annually on grocery products is used for impulse purchases and not spend according to pre planned shopping list, consumers may be more willing to plan effort to save money. In general, as marketers that can influence consumers' purchases, consumers have the opportunity to understand better how they affect their own behaviour.