Demand and Supply | law of demand and supply Demand is related to consumption. It represents the process through which a consumer obtains goods…
Definition: of Consumer behavior
Consumer behavior is the study of the behavior and the activities of the consumer,
this study includes individual, a group or an industry of consumers or human force
in which we get know about the use, sale, purchase, and disposal of goods and services
by taking into consideration their mental, physical, and emotional behavioral approaches.
In today’s era of the business world, each and every business should know about their customers
as well as the market trend that what the customers want from the product or the service,
what they enjoy the most, how they spend their time and money, on what things they likely
to invest more and more etc all these factors will help the business to grow more in the market
and will be more beneficial for the goodwill in the market as well as in the eye of the customer
which will lead to more and more profit for the organization.
In the formal study of consumer behavior, we can study the broader concept of the behavior of the consumer as we know that consumers are differentiated in many areas,
such as u can divide them demographically, occasionally, on the basis of their loyalty,
on the basis of their potential, their needs, on the basis of their age, status etc
when we study the behavior of the consumer we had to focus on all these factors which affect the consumer as well as the industry.
At last, we can say that consumer behavior is the process of taking action and decision
by the people who are purchasing good for their personal use.
NATURE OF CONSUMER BEHAVIOUR
1 INFLUENCED BY VARIOUS FACTORS:
Factors such as age, gender, education, status, loyalty towards the brand etc
Some market factors effect such as price, offers, distribution, packaging, promotion etc
Cultural factors can effect such as caste, creed, class, religion, social status etc
2 UNDERGO A CONSTANT CHANGE:
Consumer behavior can never be the same it always differs from time to time, for example,
the trend of wax color between 90s kids was too much but nowadays kids prefer the oil paint
even the schools are also allowing nowadays
Another if a person income is low he will try to survive in that budget only but if there is a hike
in his income, he will definitely try some expensive products for increasing his social status
this will make a tremendous amount of change in his behavior.
3 VARIES FROM CONSUMER TO CONSUMER:
All the consumers in the market are not the same as we know that each and every person
is having different nature alike each and every consumer varies in nature, their lifestyle, status, etc
For example, some customers are so loyal towards the product and the company
that if they don’t get the product they can wait for the arrival of the product for a long period,
There are other consumers who are not so loyal if they don’t get the product they will purchase
the same product because they just need the product for their personal consumption
they do not need loyalty to use the product
4 VARIES FROM REGION TO REGION, COUNTRY TO COUNTRY:
The consumer behavior changes from region to region to such as if the consumer is from the south he may invest more in seafood but the consumer from the north will buy the grains and pulses all this difference is because of the lifestyle as well as the upbringing and the area
As we know the south side is not having many cultivated lands so they too much depend on the seafood such as fish, crab etc, but on the other side north is having a good crop for eating so he will invest in grains and pulses to eat.
Like this only consumer behavior is differed from region to region, country to country, state to state even to rural to urban.
5 INFORMATION ON THE CONSUMER BEHAVIOUR IS IMPORTANT TO MARKETERS:
For achieving the success and more and more profit and advantage the marketers should have the good knowledge of all their targeted customers in every factor and aspect of behavior.
Factors such as:
Price of the product
Promotion of the product
Distribution of the product
Offer on the product
The packaging of the product etc
6 LEAD TO PURCHASE DECISION:
The decision of buying or purchasing a product may lead to more demand of the product between other consumers as well as in the market which will lead to more profit so the marketers may introduce things which may influence the purchasing decision of the consumer positively.
7 VARIES FROM PRODUCT TO PRODUCT:
The behavior of the consumer varies from product to product such as for example the teenagers may invest more in cellphones, trendy wear mostly on those products which will help them to match their style and the group they are hanging out with.
At the same time, a person who is married and having responsibility will invest more and more pension, money to save schemes, how to earn income and how to increase his lifestyle.
8 Improve the STANDARD OF LIVING:
The purchasing behavior of the consumer always leads him to improve his lifestyle and the standard of living if the customer frequently buys the product he is improving his lifestyle but if he is not buying frequently the goods even if he is earning a good amount it means if he does not want to improve his lifestyle.
9 Reflect Status:
The consumer does not only influence the status of the customer but it also shows its replica
For example, if a customer owns more branded and luxurious things he is considered to be having a higher status in the society.
THREE FACTORS WHICH AFFECT CONSUMER BEHAVIOUR:
1 Psychological FACTOR:
The obvious factor which influences the behavior of the consumer is his physiological factor we should read out his mind when they come to buy the product as for example:
If you are running a grocery store think yourself as the customer and think what and why you would buy the product the reason can be
Weather the salesmen had told you about the new product you introduced to your shop
Is it on your shopping list
the product is under your diet which you follow strictly
product price is under budget or over budget or if you really want it to buy
The product contains the discount needed by the customer
And now apply all these physiological factors on your customer which will help you to understand your customer.
Personality of the consumer which is another factor which affects the behavior of the consumer the second customer buys the product if its packaging is something soothing to his eyes or is attractive, some other reason, maybe the packaging contains some message about the charity such as that if you buy this product, some amount of money will be donated to the charity.
Or it may contain your political or religious beliefs so the customer will always try to buy this type of product.
3 EXTERNAL MOTIVATORS:
The consumers are more likely to buy the product if the product is advertised by the person of their own locality or the person whom they have faith on.
For example: if your close friend or a family member try a new website for shopping and find it safe they will let you know about the website and the safety as well as the comparison of price and other things you will definitely try that website for shopping without even inquiring about it.