Consumer Behavior and Market Segmentation :-ExamNotesHub team’s welcomes you all to this blog and thanks you for being with us and also support to us. Now today we are present a new Notes of Consumer Behavior and Market Segmentation in the book of Principal of Marketing. here we are discuss about consumer behavior and Marketing segmentation most impotent topic or concept and at the last we are also provide our Notes by writings our team.

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Consumer Behavior and Market Segmentation | Principle of Marketing | Notes & Pdf

Why Is Consumer behavior impotent :- It is important for any business and firm to understand there consumer behavior so that they can create products and services according to needs of their customers. All the Businesses can also used their knowledge of the consumer behavior to develop effective marketing strategies.

Definition of Consumer Behavior

Consumer behavior is the process whereby individuals decide whether, what, when, where, how and
from whom to purchase goods and service.

(Consumer behavior is the study of how people decide what to buy, when to buy it, and where to buy it from.)

For Example:- If you are hungry and you want to buy a Pizza. First of all  you think that “what kind of Pizza you want to eat” (e.g., Sicilian pizza, Regular pizza, cheese pizza, veg pizza…etc. ). Then, you may consider where you want to buy the Pizza from (e.g., a restaurant, caffe, online order…etc. ). Finally, you will make a decision about which Pizza to buy and where to buy from it.

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what is the basic different of a Customer and a Consumer?

Customer is someone who are purchased any goods and services from a supplier and also pays for it to fulfil their requirements.

Consumers are those who buy products for their own needs and also use them.

The buyer of a thing is frequently also the user, but this isn’t always the case. The parent is considered as customer and the child is the consumer when parents buy something for their kids. They may also be referred to as customers or buyers

Basic	Costumer	Consumer
Definition	A person who buys any products and services from a shop or a business for resale, gifting or consuming.	A person who uses or actually consumes these products and services.
Motive of buying	The motive of buying is either for resale or for consumption	The motive of buying is purely for consumption
Ability to resell	A customer can definitely resell the product for making profit.	A consumer does not resella product for making profit.
Payment	Customers always need to make the payment for buying a product or service	Consumers may or may not pay the price of the product i.e., monetary transaction is optional.
Examples	Organisations, individuals, parents, or anyone of purchases a product or service.	An Individual or entity that uses a product or service. They are termed as end users of the product.

 

Nature of Consumer behavior:

• Dynamic in nature:- The behavior of Consumer is continuously changing. It is depending on time, person’s age, lifestyle, and culture.
• Varies from customer to customer:- Every consumers behavior are always different. This is because they have different needs and goals.
• Leads to purchase decision:- The Consumer behavior is leads to his purchase decisions. When a consumers make decisions about what to buy so the various factors of variety are influence the consumer .
• Complex in nature:- The Consumer behavior is always complex. Everyone personal is different so there needs and there goals are also different that why It is difficult to understand every costumer nature and her mindset.
• Systematic Process:- The Consumer behavior is a systematic process. Consumer are always go through steps before purchase everything like as.. He is always identifying their need, research on the products, and also compare to other options

NEED FOR STUDYING CONSUMER BEHAVIOUR

• To understand what customers want and need. This is essential for businesses of all sizes, as it allows them to develop products and services that meet the needs of their target market.
• To develop effective marketing strategies. Consumer behavior research can help businesses to understand how their customers make decisions, what factors influence their purchases, and how they respond to marketing messages. This information can then be used to develop marketing strategies that are more likely to be successful.
• To improve customer satisfaction and loyalty. By understanding what their customers want and need, businesses can provide them with a better experience. This can lead to increased customer satisfaction and loyalty, which can be beneficial for the bottom line.
• To stay ahead of the competition. The market is constantly changing, and so are the needs and wants of consumers. By studying consumer behavior, businesses can identify new trends and opportunities early on. This can help them to stay ahead of the competition and maintain their market share.

FACTORS INFLUENCING CONSUMER BUYING DECISIONS

1.6.1 Psychological Factors
Human psychology is a crucial element in deciding customer behaviour. These factors
might influence a consumer’s choice despite being difficult to measure. Consumer
preferences, likes and dislikes for a given product and set of services are heavily
impacted by human psychology. Psychological factors include motivation, perception,
Attitudes and beliefs and learning.
a) Motivation: The word “motive,” which refers to a person’s needs, wishes, wants,
or desires. A consumer’s purchase decision is purely based on the level of
motivation he/she has. According to Maslow’s need hierarchy theory needs are
classified into physiological, safety, social, esteem and self actualization needs.
Out of these first two are the basic requirements to survive but when an individual
has already fulfilled these he moves to further needs and is motivated to fulfil
them. The more the level of motivation, the more efforts are done by the
consumer to fulfil the need.
b) Perception: Consumer perception has a big impact on what consumers act like.
Consumer perception is a method through which a consumer acquires information
about a product or service and interprets that information to form an opinion of
that particular product or service. Consumer’s preferences are driven by watching
advertisements on TV, internet, magazines, by sales promotions, by using
publicity and other promotional techniques. Therefore, marketers should create
positive promotion campaigns that help the consumer in forming a positive
perception about the product and the brand.
c) Learning: When someone purchases a product, they learn more about it. Through
experience, we gain new knowledge throughout life. While practicing can aid in
the development of skills, the only method to learn new things is through
exposures and experiences. Learning can be divided into conditional learning
and cognitive learning. Under conditional learning, a situation is repeatedly
presented to the person, causing them to develop an opinion about it. Contrarily,
in cognitive learning, the buyer will use his knowledge and abilities to find
fulfilment and a solution in the product he purchases.
d) Attitudes and Beliefs: Customers have particular attitudes and beliefs that
influence the things they buy and consume. Depending on this mindset, the
consumer behaves a certain way towards a product or a service. Attitude and
mindset puts an influence on the brand image and brand preference. Therefore,
marketers put a lot of effort into understanding consumer attitudes and beliefs in
order to construct their marketing campaigns.
1.6.2 Social Factors: Humans are social creatures and are influenced by their
surroundings. These surroundings include family, friends, relatives, groups, etc. that
influence a customers purchase decision. Humans aim to blend into society and attempt
to imitate other people. Therefore, the people around them have a big impact and
contribution in their buying decisions. These components are classified as social
elements. Several societal factors include:
a) Family: Family has a huge impact and influence on how people behave when take
a purchase decision. A person develops their preferences as a young child by
seeing their family members specially father and mother taking purchase
decisions, and they stick with those brands, tastes and shops as they age.
b) Reference groups: A person’s “reference group” is a collection of persons with
which he associates himself. The reference group’s members generally have
similar purchasing habits, tastes, preferences with which the customer equally
relate.
1.6.3 Cultural Factors: As we know the values and philosophies of a particular
community are shared by a group of people in our country and around the world. The
culture of the community is one that has originated from a group and its practises & has a
significant impact on how these groups behave. Some of the cultural factors are:
a) Culture: Cultural has a substantial impact on consumer buying behavior. The
category of cultural factors includes the beliefs, values, preferences, opinions, and
behaviours that a consumer learns from a closed group of relatives and other
influential people in their life. When we see around our country, a lot of different
cultural practices can be observed.
b) Sub Culture: Culture can be further classified into subcultures. The beliefs and
values of these sub cultural groups are similar. People from diverse religions,
castes, geographic locations, and nations can make up subcultures. By themselves,
these subcultures constitute a customer segment. For example when festivals like
Diwali, Holi or eid arrive customer’s wants and needs change. Markets are filled
with bright decorations and beautiful clothes. The same happens when Christmas
arrive in the west.
1.6.4 Personal Factors: Personal traits of individuals influence almost all the purchase
decisions taken by him/her. These factors create a habit or preference amongst the
consumers. Personal factors are generally classified into:
a) Age: Age is the first and foremost personal factor that influences a customers
behaviour. We all might have already observed differences in preferences among
people from different age groups. A student prefers to spend more on stationary as
compared to an elderly man. Consumers who are in their young age prefer to buy
more colourful and trendy clothing as compared to a professional who is working
as a doctor or lawyer who is assumed to buy more sober coloured clothing.
b) Income: A person’s purchasing behaviour and choices are highly influenced their
income. Consumers who are earning good incomes have more purchasing power
and they prefer to spend a lot on luxuries and compared to a person belonging to a
low income group. A consumer has more opportunities to spend on trendy and
luxurious goods when they have more disposable income that is income in hand.
c) Occupation: If a person is working as a teacher or doctor, the things he will pick
will differ from a person working as an unskilled labourer. Therefore we know
that different occupations lead to different consumer behaviours. The cosumers
usually purchase the items that that suit their profession or job. A craftsman
usually buys creative things as compared to a lawyer.
d) Lifestyle: A person’s or a group’s lifestyle refers to their interests, beliefs, actions,
and behavioural inclinations. Consumer behaviour is significantly affected by the
way of lifestyle a particular consumer is leading. A lifestyle can be classified into
numerous types namely urban, rural, healthy, active, digital, etc. A consumer
leading a active and healthy lifestyle may prefer to show a keen interest in
purchasing organic products, yoga equipments, etc.
1.6.5 Economic factors: The economic situation of a nation or market largely determines
the purchasing patterns and choices of consumers. A wealthy nation has a strong
economy, which increases the amount of money on the market and increases consumer
purchasing power. A weak economy leads us to a decision that the country might be in
trouble and may be witnessing a situation of war, unemployment, layoffs, recession, etc.
Several significant economic factors include:
a) Personal Income: The purchasing power of a person increases with increase in
their disposable income. Disposable income is the sum of money that remains
after a person’s basic needs have been met.
b) Family income: Family income is the total annual income of all members of a
family. There is more money available to spend on basics and extras when there
are more income earners in the family. More the amount of family income, more
will be the purchasing power of the family members and more expenses will be
seen on different types of goods other than necessities.
c) Savings: The amount of savings a consumer wishes to make from his or her
income has a significant impact on that consumer. If a consumer decided to
increase his savings, his spending on goods would decrease. Whereas, a consumer
will spend the majority of his income on goods if he is not saving this money.
d) Consumer Credit: Easy credit options for consumers who want to buy items
encourage greater expenditure. Customers can now easily obtain credit from
sellers through the use of credit cards, easy instalment loans, bank loans, hire buy,
and numerous other credit options. Consumers tend to buy more luxuries and
comforts when credit is more readily available

Importance of Consumer Behavior –

 

 

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