Consumer behaviour is the study of when, why, how, and where people do or do not

buy product. It blends elements from psychology, sociology, social anthropology and
economics. It attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioural 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. 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, personalisation, customisation and one-to-one
marketing. Social functions can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as a social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in
order to satisfy customers.

Case study of hero Honda:

According to the authors of Consumer Behaviour: Building Market Strategy, Consumer

Behaviour can be defined as 'the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences,
or ideas to satisfy needs and the impacts that these processes have on the consumer and
society'. [Hawkins, D Mothersbaugh, D & Best, R (2007)]

Consumer behaviour is important to businesses as it includes acquisition of information

to stimulate purchase by consumers. Business organizations keep in mind that by
understanding the thoughts, feelings, actions of consumers, they can positively attract
new customers and retain current ones. Organizations can not only benefit from
understanding consumer problems but also establish a competitive advantage.

Honda a multinational corporation headquartered in Japan, is the sixth largest automobile

manufacturer in the world. Honda produces automobiles, motorcycles, and power
products. The company also develop innovating technologies to meet the demands of the
future. Honda emphasizes on establishing customer relationships through its products and
services by confronting key issues and providing solutions.
Hence, Honda's necessitate to research closely on consumer behaviour before their
product is launched into the market. Honda wants their customers to always enjoy the
crucial satisfaction of mobility. They are determined to remain ahead of their
competitors, while being valued for their activities by society and customers worldwide.
Honda researches closely on the market and the society in order to create quality
performance position within the market. By considering certain factors in a consumer's
life, preference, ideas, likes and dislikes, Honda ensures their products and services are
met accordingly. Before launching a product, Honda's team of researchers launch into an
array of studies on consumer behaviour to meet the particular needs of customers in
different regions around the world. Honda has been known as a quality brand offering the
style and performance for their enthusiasm in improving their automobiles. With
competitors gaining entrance to the already competitive market, Honda has a need to
research the consumers. Competitors aim to capture the attention of the market by
creating value for money offerings and enhancing brand position through other ranges.

In today's world of evolving technology, consumer tastes are categorized by fast changes.
To survive in the market, Honda has to be constantly innovating and understand the latest
consumer trends and tastes.
Consumer behaviour provides important clues and strategy to marketers on how to
explore and conquer the market. By understanding the four applications to effectively
understanding consumer behaviour, Honda will effectively satisfy consumer wants and
demands.

Marketing strategy is the effective use of a business plan which combines product
development, promotion, distribution, and pricing approaches. It is also used to identify a
firm's marketing goals and explains how it will be achieved within a stated timeframe.
Marketing strategy determines the choice of target market segment, positioning,
marketing mix, and allocation of resources. By conducting research on consumer
behaviour, Honda would be able to develop their product according to consumer's
preferences. With effective use of promoting tools and efficient distributing services,
Honda can gain competitive advantage. Honda can use the analysis of their research to
target their preferred consumers and position their product.

Honda must research closely on consumer behaviour in order to effectively ascertain

regulatory policy through marketing activities such as safety and privacy protection.
Regulatory policies are made in order to protect and aid consumers, which is why Honda
maintains a commitment to preserving consumers' privacy. By letting consumers know
their information is safe, consumers will definitely keep Honda's image as a reputable
and trustworthy automobile company. Research on consumer's behaviour and their
environment is crucial to ascertain the organizations products not only meet the demands
and satisfaction of its customers but also to the consent of the respective governments
while promoting for a better environment.

Social marketing is the application of marketing strategies and tactics in which Honda
can use to alter and create behaviours to have a positive effect on their target market and
the society as a whole. Honda can use social marketing as an advantage to their campaign
when targeting on different segments through personalized promotions, advertisements
and societies.

In an online article titled "Honda Civic Tour Delves Into Social Media", the band Fall
Out Boy fans of the Honda Civic Hybrid, agreed to a sponsorship of their tour and appear
in promotional videos on their tour site, actively recommending the car for its
environment friendly aspects. (Aun, 2007)

Studying consumer behaviour make us better consumers. Honda believes in studying the
consumer's behaviour in order to gain insight on a consumer's environment to enhance
Honda's brand position by understanding the environment it is in. Informed individuals
are to strengthen the consumers' ability to make choices according to characteristics and
values of a product. Honda aims at accomplishing this goal by implementing certain
types of promotion, advertising, sales pitch etc to influence the consumers buying
decisions. This is important to an organization like Honda as the attitudes and behaviours
of the consumer is affected by these informed individuals. In order to gain acceptable
reviews, Honda must research closely on consumer behaviour.

The efforts done by Honda can decrease the chances of failing in the automotive industry.
To succeed, Honda has to understand what makes potential customers behave the way
they do. Honda's goal is to get enough relevant market information to develop accurate
profiles of buyers that is basically to find the general ground and symbols for
communication. The primary mission of advertising is to reach prospective customers
and influence their awareness, attitudes and buying behaviour.