CONSUMER BEHAVIOUR

MODEL ONE: ORIGIN, DEFINITION AND SIGNIFICANCE OF CONSUMER

BEHAVIOUR

 INTRODUCTION:

Origin of Consumer Behaviour Consumer behaviour was developed as a distinct sub-discipline

of marketing in the 1940s–1950s. Today, consumer behaviour is an interdisciplinary social
science that integrates components from psychology, sociology, social anthropology,
anthropology, ethnography, marketing, and economics, particularly behavioural economics.
Consumer behaviour is an important topic of study from a marketing standpoint. According to
the marketing concept, marketers must first describe the benefits that consumers desire in the
marketplace. Marketing plans are thereafter created to meet those desires. This strategy of
guaging (examining) consumers needs and wants is a critical element of marketing often
followed by most organizations when creating markets for their products/services. In a modern
economy with several items per competitor and multiple competing distribution sites, it is critical
for any organization to address consumer requirements as the key to success for both survival
and profit production.

 Definition of Consumer Behaviour:

Consumer behaviour refers to how people determine whether, what, when, where, how, and
from whom to buy goods and services (Walters, 1979). It is also "the study of buying units and
exchange processes in the acquisition, consumption and disposal of products, services,
experiences and ideas." This concept emphasizes purchasing units in an attempt to encompass
individuals and groups who purchase goods or services (Mowen, 1993). Consumer behaviour is
also the behaviour of customers while they are looking for, buying, utilizing, assessing, and
discarding items, services, and ideas (Schiffman and Kanuk 1997). It refers to how people‘s
emotions, attitudes, and preferences influence their purchasing decisions.
  Types of Consumer:

Personal and organizational consumers are the two categories of consumers that can be
identified.

1. Personal Consumers: Personal consumers buy things and services for their own use or
to provide as a present to others.
2. Organizational Consumers: Organizational consumers, on the other hand, buy items
and services to run a business, including for-profit and non-profit businesses, government
agencies and educational institutions. Summarily, consumer behaviour deals with people,
groups and organisations, as well as all behaviours related to the acquisition, use, and
disposal of goods and services.

 Significance of Consumer Behaviour:

 It helps to create production policies tailored to the consumer's needs, tastes, and preferences.
 It helps to understand the impact of price on purchasing this will assist you in comprehending
the impact of price on purchasing. When the pricing is reasonable, and the product is
inexpensive, more people will buy it.

 It aids in exploiting various market opportunities on the part of marketers.

 Important in approaching and building a marketing mix (product, price, place, and promotion).

 Consumer Behaviour and Marketing Management

The scope of consumer behaviour studies how people make decisions and act when they buy and
use things. , The formation and maintenance of a satisfactory trade relationship in any business,
is dependent on its understanding of consumer purchasing behaviour. Effective business leaders
understand the importance of marketing to their company's success. Any marketing program's
long-term effectiveness depends on a thorough grasp of consumer behaviour. In fact, it is
regarded as a cornerstone of the marketing concept and a significant philosophical orientation for
many marketing executives. The heart of the marketing concept is encapsulated in three
interconnected orientations: customer requirements and wants, corporate integrated strategy and
company integrated strategy.
Consumer behaviour, Non-profit and Social Marketing Even non-profit organisations such as
government agencies, religious sects, universities, and philanthropic institutions must advertise
their services to "target groups of customers or institutions" in today's society. At other times,
these organisations are required to make public appeals for support of specific causes or views.
They also contribute to the eradication of society's issues. As a result, a thorough grasp of
consumer behaviour and decision-making will aid these efforts.

 Consumer Behaviour and Government Decision Making

The importance of consumer behaviour principles to government decision-making has increased

in recent years. There are two key areas of activity that have been impacted: i. Government
services: An understanding of these services' consumers, or users, is becoming increasingly
important in government provision of public services. ii. Consumer protection: Many
government agencies at all levels are active in regulating company activities to safeguard
consumers‘ welfare.

Consumer Behavior and Consumer Education:

Consumers will directly benefit from systematic analyses of their behaviour. Individually or as
part of more formal educational programmes, this can happen. Consumers may be more ready to
plan to save money if they understand that a big amount of the billions spent yearly on grocery
products is spent on impulsive purchases rather than on a pre-planned shopping list. In general,
customers have the potential to better understand how they influence their behaviour as
marketers who can influence their purchases.

 TERMINOLOGIES IN CONSUMER BEHAVIOUR

Buyer versus Consumer Buyers: are the people who make the formal agreements for the
purchase, service, delivery and payment terms. Buyers are not often the ones who make the final
choice.

Consumers are those who use a purchased product to meet a physical, social or psychological
demand (s). Both of these terms are interchangeable. The establishment of two more notions -
ultimate and industrial/institutional consumers - resulted from the synonymous use.

Ultimate Consumer versus Industrial/Institutional Consumer: The ultimate consumer is the

person who buys things for his or her home from marketing middlemen. The
industrial/institutional consumer, on the other hand, receives the product for resale or use in
manufacturing other marketable items.

Consuming versus Purchasing Obtaining any market item from the distribution channel (the
marketing intermediaries) is referred to as purchasing, and it is simply one component of the
consumer decision process. On the other hand, consuming entails using the product to fulfil
motives that are either biological or secondary in nature(s).

Customer versus Consumer: The term "customer" usually refers to someone who purchases
regularly from a specific retailer or company. For example, a person who shops at Justrite
Shopping Mall or fills up at a Mobil gas station is considered a customer of these businesses.

Anyone who engages in any of the actions listed in our definition of consumer behaviour is
called a "consumer." As a result, a customer is defined by a certain company, whereas a
consumer is not. Consumers have traditionally been defined solely in terms of economic goods
and services. According to this viewpoint, consumers are potential buyers of items and services
for use.