Q1. Define Consumer Behaviour and its applications?
Definition
The study of consumers helps firms and organizations improve their marketing
... [Show More]
strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making other marketing
decisions;
Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
How consumer motivation and decision strategies differ between products
that differ in their level of importance or interest that they entail for the
consumer; and
How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
One "official" definition of consumer behavior is "The study of individuals,
groups, or organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society." Although it is not
necessary to memorize this definition, it brings up some useful points:
Behavior occurs either for the individual, or in the context of a group (e.g.,
friends influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or
how we can encourage increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil being sent into sewage
systems to save the recycling fee, or garbage piling up at landfills) this is
also an area of interest.
Consumer behavior involves services and ideas as well as tangible products.
The impact of consumer behavior on society is also of relevance. For
example, aggressive marketing of high fat foods, or aggressive marketing of
easy credit, may have serious repercussions for the national health and
economy.
There are four main applications of consumer behavior:
The most obvious is for marketing strategy—i.e., for making better
marketing campaigns. For example, by understanding that consumers are
more receptive to food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon. By understanding that
new products are usually initially adopted by a few consumers and only
spread later, and then only gradually, to the rest of the population, we learn
that (1) companies that introduce new products must be well financed so that
they can stay afloat until their products become a commercial success and
(2) it is important to please initial customers, since they will in turn
influence many subsequent customers’ brand choices.
A second application is public policy. A near miracle cure for acne, was
introduced. Unfortunately, Accutane resulted in severe birth defects if taken
by pregnant women. Although physicians were instructed to warn their
female patients of this, a number still became pregnant while taking the
drug. To get consumers’ attention, the Federal Drug Administration (FDA)
took the step of requiring that very graphic pictures of deformed babies be
shown on the medicine containers.
Social marketing involves getting ideas across to consumers rather than
selling something. Marty Fishbein, a marketing professor, went on
sabbatical to work for the Centers for Disease Control trying to reduce the
incidence of transmission of diseases through illegal drug use. The best
solution, obviously, would be if we could get illegal drug users to stop. This,
however, was deemed to be infeasible. It was also determined that the
practice of sharing needles was too ingrained in the drug cultur [Show Less]