MODULE 1: Introduction to Consumer Behaviour: Defining consumer behaviour, Impact on marketing

strategies, Current trends in consumer behaviour

Consumer behaviour refers to the study of how individuals, groups, and organizations select, buy, use, and
dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Understanding consumer
behaviour is essential for businesses and marketers, as it provides insights into the factors that influence
purchasing decisions.
1. Needs and Wants:
- Needs: Basic requirements for survival, such as food, clothing, and shelter.
- Wants: Desires that go beyond basic needs, influenced by culture, personality, and social factors.
2. Motivation: - The driving force that compels individuals to take action to satisfy their needs and wants.
Motivations can be intrinsic (personal satisfaction) or extrinsic (external rewards).
3. Perception: - The process through which people select, organize, and interpret information from their
surroundings. Influenced by personal experiences, cultural background, and selective attention.
4. Learning: - Changes in behaviour resulting from experiences and information. Marketers use various
strategies to facilitate consumer learning, such as advertising and product demonstrations.
5. Attitude: - A learned predisposition to respond consistently in a favourable or unfavourable manner
toward a particular object, person, or situation. Attitudes influence purchasing decisions and can be
shaped by marketing efforts.
6. Culture and Social Influences: - Culture encompasses the shared values, beliefs, customs, and behaviours
of a society. Social factors include family, friends, social class, and reference groups, all of which influence
consumer behaviour.
7. Social Class: - A group of people with similar social and economic status, influencing their preferences
and behaviours.
8. Reference Groups: - Groups or individuals that people compare themselves to or use as a standard for
evaluating their own behaviours, attitudes, or values.
9. Personality and Lifestyle: - Personality traits and lifestyle choices play a role in shaping consumer
preferences. Marketers often use psychographic segmentation to target consumers based on their
interests, values, and lifestyles.
10. Decision-Making Process: - Problem recognition, information search, evaluation of alternatives,
purchase decision, and post-purchase evaluation constitute the consumer decision-making process.
11. Influence of Technology: - The advent of technology, especially the internet and social media, has
significantly impacted consumer behaviour by providing easy access to information, reviews, and online
shopping.
Understanding consumer behaviour helps businesses tailor their marketing strategies, product
development, and customer experiences to meet the needs and expectations of their target audience. It
involves a multidisciplinary approach, incorporating insights from psychology, sociology, economics, and
marketing.
Defining consumer behaviour: Consumer behaviour refers to the study of the processes and activities
individuals, groups, or organizations engage in when selecting, purchasing, using, and disposing of goods,
services, ideas, or experiences to satisfy their needs and wants. It involves understanding the various
factors that influence consumers throughout the decision-making process and how they interact with
products or services in the marketplace.
Impact on marketing strategies: Consumer behaviour has a profound impact on marketing strategies. By
understanding how and why consumers make purchasing decisions, businesses can tailor their marketing
efforts to effectively reach and engage their target audience. Here are some ways in which consumer
behaviour influences marketing strategies:
1. Segmentation and Targeting: - Understanding the diverse needs, preferences, and behaviours of
consumers allows businesses to segment their market effectively. Marketers can identify specific consumer
segments and tailor their products, messaging, and promotional activities to meet the unique
requirements of each segment.
2. Product Development: - Consumer preferences and demands shape product development. Businesses
need to align their product features, quality, and design with what consumers value. Regularly analyzing
consumer feedback and market trends helps in adapting and innovating products to meet changing
consumer needs.
3. Brand Positioning: - Consumer perceptions and attitudes towards a brand influence its positioning in the
market. Effective marketing strategies aim to create a positive brand image by aligning with consumer
values, addressing their concerns, and differentiating the brand from competitors.
4. Pricing Strategies: - Understanding how price sensitivity varies among different consumer segments
helps in developing appropriate pricing strategies. Some consumers may prioritize quality over price, while
others may seek the best deals. Marketers adjust pricing strategies based on consumer perceptions of
value.
5. Promotion and Advertising: - Consumer behaviour insights guide the selection of communication
channels, messaging, and promotional tactics. For instance, social media platforms may be preferred to
reach younger consumers, while traditional media might be more effective for an older demographic.
Marketing messages should resonate with consumer motivations and preferences.
6. Distribution Channels: - Consumer behaviour influences decisions regarding where and how products
should be made available. Understanding how consumers prefer to shop—whether online, in-store, or
through other channels—helps businesses optimize their distribution strategies.
7. Customer Experience: - Enhancing the overall customer experience is crucial for building brand loyalty.
Consumer behaviour insights help businesses identify touchpoints in the customer journey and improve
interactions, ensuring a positive and memorable experience.
8. Innovation and Adaptation: - Consumer behaviour is dynamic, and preferences can change over time.
Businesses that stay attuned to shifts in consumer behaviour can innovate and adapt their strategies
accordingly. This flexibility is vital for maintaining relevance in the market.
9. Personalization: - Personalized marketing, based on consumer preferences and behaviour, is becoming
increasingly important. Businesses use data analytics to create personalized experiences, recommend
products, and deliver targeted promotions, increasing the likelihood of conversion.
10. Ethical and Social Responsibility: - Consumers are increasingly concerned about the ethical and social
responsibility of brands. Businesses that align with consumer values and engage in socially responsible
practices can build trust and loyalty.
In summary, consumer behaviour serves as a foundation for effective marketing strategies.
Businesses that invest in understanding their target audience can create more relevant, engaging, and
successful marketing campaigns. The dynamic nature of consumer behaviour requires continuous
monitoring and adjustment of strategies to stay competitive in the market.
Current trends in consumer behaviour: Keep in mind that consumer behaviour is dynamic, and trends can
change rapidly due to various factors, including technological advancements, economic shifts, and global
events. Here are some general trends that were relevant around that time:
1. E-commerce Dominance: - The shift toward online shopping was already well underway, and the COVID-
19 pandemic accelerated this trend. Consumers increasingly prefer the convenience of shopping online,
prompting businesses to enhance their digital presence and improve the online shopping experience.
2. Digital Transformation: - Consumers are adopting digital technologies at an accelerated pace. This
includes using mobile apps, voice-activated assistants, and smart devices for shopping, communication,
and entertainment. Businesses are responding by investing in digital transformation to meet evolving
consumer preferences.
3. Personalization: - Consumers expect personalized experiences across various touchpoints. Businesses
are leveraging data analytics and artificial intelligence to tailor their products, services, and marketing
messages to individual preferences, enhancing customer engagement and satisfaction.
4. Sustainability and Ethical Consumption: - There is a growing awareness of environmental and social
issues, leading consumers to prioritize brands that demonstrate sustainable and ethical practices.
Businesses are integrating eco-friendly initiatives and ethical sourcing into their operations to appeal to
conscious consumers.
5. Health and Wellness: - Consumers are increasingly focused on health and wellness. This includes a
demand for healthier food options, fitness products, and mental health resources. Brands that promote
well-being and self-care are resonating with consumers.
6. Contactless Payments: - With concerns about hygiene and safety, there's a rising preference for
contactless payment methods. Mobile wallets, contactless cards, and other digital payment solutions have
become more popular as consumers seek secure and convenient transactions.
7. Subscription Services: - The subscription-based business model is gaining traction in various industries.
Consumers appreciate the convenience and cost-effectiveness of subscribing to services rather than
making one-time purchases. This trend is evident in areas such as streaming services, meal kits, and
software subscriptions.
8. Influence of social media: - Social media platforms continue to influence consumer decisions. User-
generated content, influencer marketing, and social commerce are playing crucial roles in shaping
consumer preferences and driving purchasing behaviour.
9. Remote Work Impact: - The rise of remote work has influenced consumer behaviour, affecting the
demand for home office equipment, comfortable clothing, and technology products that enhance the
remote work experience.
10. Rise of Conscious Consumerism: - Consumers are increasingly making choices based on values and
social responsibility. Brands that align with consumers' values and contribute to social causes are more
likely to build trust and loyalty.