Meaning and significance of consumer behaving / factors affecting consumer behavior
Meaning of Consumer Behaviour
Consumer behaviour may be defined as follows: Consumer behaviour is a study of a complex of those factors which result in particular buying decisions of consumers-based on rationality, or compulsions.
Ostrow and Smith (The Dictionary of Marketing) have defined consumer behaviour as follows:
“Consumer behaviour is actions of consumers in the market place and the underlying motives for those actions.”
Salient features of the concept of consumer behavior:
Some salient features of the concept of consumer behaviour are described below:
(i) Consumer behaviour is a subset (or part) of the human behaviour and connot be separated from it.
(ii) Consumer behaviour may be based on either of the three forces, resulting in a buying decision-rationality or emotions or some compulsions Le. while buying a particular item of consumption, a person may act rationally (according to reason or logic); or may act emotionally, or may go in for buying something due to certain pressure caused by family or social circumstances.
(iii) Consumer behaviour is an outcome of many factors; which are quite complex and interrelated.
(iv) Consumer behaviour is not what people buy and why. It is rather, a study of the tendency of people to buy or not to buy certain things, over a period of time.
Significance of Studying Consumer Behaviour : A study of consumer behaviour is significant (or rather imperative) for the following reasons:
(i) Realistic Implementation of the Marketing Concept: The modem marketing concept is consumer-oriented. To give a realistic implementation to this concept, a study of consumer behaviour is imperative. More specifically, a study of consumer behaviour is a must for developing an ideal marketing-mix, which is the cornerstone of the concept of marketing.
It is, in fact, very true to state that unless the marketer knows what consumers buy and why: it is not possible to design and implement a successful scheme of marketing-mix to, beat the completive elements.
(ii) Planning Product Differentiation and Market Segmentation : For planning product differentiation strategies (i.e. making the product so differentiated and unique that consumer may be tempted to buy only that product due to its unique features): a study of consumer behaviour is very significant or necessary.
Again, for designing schemes of market segmentation (a process of dividing a potential market into distinct sub-markets of consumers with common needs and characteristics), a study of consumer behaviour is very necessary.
As a matter of fact, the success of marketing management depends on designing schemes of product differentiation and market segmentation, the background data for which is furnished by a study of consumer behaviour.
(iii) Selection of Distribution Channels: A study of consumer behaviour not only includes what consumers buy; but also the source from where they buy. For example, men of status in society may never buy things from ordinary shops and ordinary markets. They may prefer to buy from prestigious stores and markets; even though they may have to pay a higher price and so on for various categories of consumers. Thus a study of consumer behaviour guides the marketer to select suitable channels of distribution, to provide maximum convenience and satisfaction to different groups of consumers.
(iv) Designing Promotional Techniques: Promotional techniques include advertising message and media, personal selling approaches and special sales promotional devices. Designing promotional techniques is much facilitated by a study of consumer behaviour, which may throw light on the psychology of people as to the factors which affect their buying decisions. Those factors which affect consumers’ buying behaviour may be suitably incorporated into the promotional techniques of the organisation.
(v) Trade-off between Price and Quality: A study of consumer behaviour is likely to reveal whether target consumers of the enterprise emphasize more on the price of the product or its quality. On this basis, the marketer can device suitable pricing strategies and programmes aimed at upgrading the quality of organisation’s products to suit the needs, habits and behaviour of consumers.
Determinants of Consumer Behaviour into the following categories:
(1) Cultural-religious-social factors
(2) Personal factors
(3) Psychological factors
Following is a brief account of various factors comprised in the above mentioned categories:
(1) Cultural-Religious-Social Factors- Some important determinants of consumer behaviour in this category are:
(i) Culture: Culture is a complex of values, beliefs, attitudes and understandings which are shared in common by aggregates of people, living in organized societies and which shape human behaviour to a particular style. Since consumer behaviour is a part of human behaviour, culture has a profound effect on consumer behaviour.
For example, the consumer behaviour of the Indians is much different from the consumer behaviour of people in other countries. Again, even in Indian, the consumer behaviour of the North Indians is much different from the consumer behaviour of the South Indians and so on for various other parts of the country.
(ii) Religion: Religion has a profound effect on consumer behaviour. For example, the consumer behaviours of the Hindus, the Muslims and the Christians etc. are very radically different. In fact, some very traditional Hindus may not prefer leather goods; thinking it to be a sin to consume items made of the skin of animals.
(iii) Family Consumption Patterns : Family consumption patterns and trends, too, have an effect on consumer behaviour. For example, the consumption habits and patterns of the head of the family may be transmitted in to or partially to his sons, daughters, wife and brothers and so on.
(iv) Reference Groups: Reference groups are social groups of friends, colleagues, relatives, neighbors, etc. with whom a person comes into interaction, quite frequently. These groups exercise a great impact on the consumer behaviour.
(v) Changing Social Values: Values, beliefs, attitudes etc. of people are changing in society, summarized in the phrase ‘changing social values”. These changing social values emerge due to factors like, technological advancements, demonstration effect, generation gaps etc.and these shape consumer behaviour to a considerable extent.
(2) Personal Factors
Some important determinants of consumer behaviour in this category are:
(i) Economic Conditions of Individuals: Economic conditions of people have a significant effect on consumer behaviour. There is no doubt that consumption habits, buying systems and other aspects of consumer behaviour of the upper class, the middle class and the poor class are considerably different.
(ii) Educational Background: It is generally observed that educated persons let logic and intellect dominate their buying decisions and exhibit totally different consumer behaviour than uneducated or less educated people. The latter category of people follow buying behaviour of others whom they can in contact with and ordinarily use little logic in their behaviour as consumers, especially on items of luxurious consumption.
(iii) Occupation and Status: Occupation and status of people are big determinants of consumer behaviour. Many persons buy things of the type which others in their occupation/profession are also consuming. Again men of status e.g. doctors, professors, judges etc. may not like to buy cheap items of consumption used by ordinary men, out of their prestige and status in society.
(iv) Age: Age of an individual has a great effect on consumer behaviour. Buying habits and consumption behaviours of kids, adults and elderly persons are observed to be very different from one another’s.
(v) Sex: Males and females of society, belonging to different age groups, have very different buying habits and consumption patterns. Ladies of all strata of society are observed to be having a preference for saree, costly garments, jewellery etc.; while gents may prefer liquors, cigarette, books, items of comforts in their household etc.
(vi) Marital Status: Married and unmarried people demonstrate different consumer behaviours. In the married class of people also, consumer behaviour of newly-weds may be much different from those who have experienced substantial periods of married life.
(vii) Preference for Life Style : Some people have a preferene for a modern Westernized style of life; while some may like to lead a simple Indian life style. Consumer behaviours of both these categories of people are substantially different.
(3) Psychological Factors
Some determinants of consumer behaviour in this category are:
(i) Motivation: Keeping in view Maslow’s need hierarchy as a theory of motivation, needs follow a hierarchical order towards their fulfillment. Accordingly, people have a tendency to satisfy first those needs which are unfulfilled at a particular level, before thinking of needs at higher levels.
As such, this psychological concept of motivation shapes consumer behaviour and men at different stages of need-hierarchy have different consumption patterns and habits.
(ii) Perception: Perception is one’s own way of looking at things. One object may be perceived to be good by one’ while some other may perceive that to be quite bad and undesirable. Accordingly, perception has a remarkable impact on consumer behaviour. People have a tendency to buy things which they perceive to be desirable. Since perception differs from persons to person; consumer behaviour also differs from person to person.
(iii) Attitudes : An attitude is a psychological attribute which makes one feel or think about something-positively or negatively and shapes one’s behaviour towards the attitudes object, accordingly. In fact, people have a preference for those items of consumptions towards which they have a positive attitude. Hence, attitudes of people are a big determinant of consumer behaviour.
(iv) Learning: Learning here means a lesson learnt by an individual from his/her past actions. Consumer behaviour is much shaped by the learning process of people in that people prefer to buy things in respect of which their experience was good or encouraging and avoid things in which of which their experience had been disheartening.
