Raheja Nikita Anilkumar Monica Academic Year 2012-2013 Subject Marketing Human Resource Management(MHRM) Class TYBCOM DIVISION

ON C Roll No 280 College Chandibai Himathmal Mansukhani

Mobile No- 9320254259

Introduction
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It blend elements from psychology, sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the field.[2] Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-toone marketing. Social functions can be categorized into social choice and welfare functions. What is Consumer Behavior? How many times throughout the day do people make product decisions? If you stop to think about it, many product decisions are made every day, some without much thought. What should I wear? What should I eat? What am I going to do today? Many product decisions are answered routinely every day and they help move the economy of cities, countries and ultimately the world.

Product decisions also shape life for the consumer. How can simple decisions be so important? Why do marketers spend millions of dollars to uncover the reasons behind these decisions? To define consumer behavior: it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics.

Provide value and customer satisfaction. Effectively target customers. Enhance the value of the company. Improve products and services. Create a competitive advantage Understand how customers view their products versus their

competitors' products.

Expand the knowledge base in the field of marketing, Apply marketing strategies toward a positive affect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.) Consumer behaviour, also called as Consumer Psychology, is a branch of applied Psychology, marketing and Organizational Behaviour. It examines consumers' decision making processes and ways in which they gather and analyze information from the environment. See the consumer behaviour article for an overview. Consumer behaviour is a multidisciplinary field which is integral to Industrial Psychology and aspects of household economy studied in microeconomics. Consumer behaviour also means the actions shown by consumers while making decision to select household and consumer items.

Consumer behaviour is a very interesting theory to learn for MBA Students. Trends associated with consumer behaviour in the emerging Indian context have certain unique aspects. The huge market at the lower economic strata running to several millions of households for fastmoving consumer goods, the vast youth population that makes the market especially attractive to several multinational brands, the growth of luxury markets, the appearance of modern retail outlets in an environment that is still characterized by kirana shops and the enhanced rural patronage of goods and services spanning several categories are just some of the important factors that make the Indian context significantly different from the western markets.

Definitions of consumer behaviour

Consumer behaviour is the study of when, why, how and where

people do or do not buy products The process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires Consumer behaviour is much more than buying things: it also embraces the study about how having (or not having) things affect our lives, and how our possessions influence the way we feel about ourselves and about each other our state of being

Consumer behavior is influenced by many factors: consumer behavior is influenced by many factors.

a) Cultural factors such as social class, sub caste. Religion etc. b) Social factors such as social class, reference groups, family. c) Personal factor such as age, gender, education, income. d) Psychology actors such as buying motives, perception of the product, attitude. e) Situational factors such as physical surrounding at the of purchase, social surrounding

It has four types :

a) Routine response: the consumer spends very little time for buying. For eg, milk b) Limited decision making: the consumer a lot of time for buying for eg, clothes c) Extensive decision making: the consumer spends a lot of time for buying for eg, house, car d) Impulsive buying: unplanned and spontaneous for buying by the consumer is called is called impulses buying.

Consumer behavior is dynamic:

Consumer behavior is dynamic. It goes on changing. This is because consumer and their environment goes on changing. Internet has brought many changes in consumer behavior. More and more people especial the young generation are using the internet to collect information about goods and services. They even buy goods and services through the internet. It involves interaction:

Consumer behavior involves interaction between people, thinking, feeling. This wil satisfy the needs and wants of the consumer and to

give value to consumer. All these interaction influence the individual consumer the market and full society. It changes as per regions and countries:

Consumer behavior is differently in different places. The behavoiur of a rural consumer is different from an urban consumer. A rural will not buy a luxury item very easily, even I he has a lot of money . but an urban consumer will buy luxury products very easily without thinking. Consumer behavior changes according to the upbringing of the consumer, their life-style, the level of development.

It has many uses uses :

companies study consumer behavior because it has many uses. It helps the company a)to improve its products and services b)to effectively target its customer c) to create a competitive d) to make effective marketing starategies.etc

It has a spread effect:

Consumer behavior has spread effect. The buying behavior of one person will influence the behavior o other people. A crowded shop will attract more customer. For eg, if a person buys a car then his friends, and neighbor may also by car. After seeing these ads many people will buy the product

It shows status :

Consumer behavior is influenced by status of a person. It also shown the status of a person. So if a person buys luxury cars, cars, costly mobiles phones, ets then people will say that he has a status. Similarly, if a persons buys cheap and unbranded items then people will say he has a low status . so a persons buying behavior will show his status

It is a broad term:

Consumer behavior is a broad term. It include individual buyer who buy goods and services for themselves and for families. It also include industrial buyer who buy product for their companies. It also includes individual consumer and group of consumer. Consumer behavioral includes everything that a consumer does while selecting, buying, using and disposing of goods and services. it includes the consumer behavior as a payer, as a buyer and as a user.

It goes on changing:

Consumer behavior is not static. It goes on changing over a period of time. This is because consumer behavior depends on many factors. The consumer will show different behavior as a kid as a teenager, as a young man, as a middle man. The same consumer show different behavior situation. while purchasing the same product at different time

Different consumer behave differently:

All consumer do not behave in same way. Different consumer behave differently while purchasing the same product. This is coz of individual

factor such as nature of consumer, lifestyle, culture, etc. He may also borrow money from relatives, friends, banks, etc. for shopping. On the other hands, there may be many rich consumers who have a lot of surplus money but they may not go for regular shopping. It is different for different products:

Consumer behavior is different for different product. when a consumer buy car or house he will spent a lot of time collecting information about a product and its different brands. He will take many people opinion for buying this brand. He will take lot of time for deciding which brand should take. He will automatically purchase his favorite brander any one of top brand.