Summary - CONSUMER BEHAVIOUR (MKT)

Consumer behavior is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions. Marketers expect that by understanding what causes the consumers to buy particular goods and services, they will be able to determine—which products are needed in the marketplace, which are obsolete, and how best to present the goods to the consumers. Definition: 1. According to Engel, Blackwell, and Mansard, ‘Consumer behaviour is the actions and decision processes of people who purchase goods and services for personal consumption’. 2. According to Louden and Bitta, ‘Consumer behaviour is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’. Scope of Consumer Behaviour: 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 cornerstone 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. ST.JOSEPH'S DEGREE & PG COLLEGE 2) Consumer behaviour - 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 consumer’s welfare. 4) Consumer behavior and DE marketing: 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 gov