Consumer Decision Behaviour

Course FacilitatorDr.C.DHARMARAJ

M.Com., MBA., M.Phil., MA., PGDCA., PGDMM., Ph.D.,

Assistant Professor(SG)School of Management

Karunya UniversityCoimbatore-611 114

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Unit 1 - OverviewIntroduction to Consumer Behavior

Importance of CB

Evolution of CB

Methods of studying CB

Underlying principles of CB

Consumer - driven marketing strategy

Conclusion to unit 1Dr.CD, KSM

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CONSUMER & CUSTOMERCONSUMER Is used to represent situation

where a product can be consumed. He is an end user of the product.

CUSTOMER Is used to deal with situations where the product cannot be directly consumed.

MARKETING Is the performance of business activities that direct the flow of goods and services from producer to ultimate consumers

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CONSUMER BEHAVIOUR-According to Ostrow and Smith have defined consumer behaviour as actions of consumers in the market place & the underlying motive for

those actions

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Consumer Behavior-Activities

Consuming (Using)

Disposing (Dispose of product Packaging / product remains)

Obtaining (purchasing)Decide to buy

Products consideredPlace to buy

Payment modeTransport

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Evolution of consumer behaviorManufacturing OrientationFrom Manufacturing to sellingManufacturer - Wholesaler – Agent-Retailer -

Consumer : Facilitating Organizations such as advertising, research firms, Financial institutions etc.,

Retail supply chainFrom selling to Marketing

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Cont……

Comprehensive Marketing

Marketing

Selling

Manufacturing

Consumer Focus

High

Low

Motivation research

Post - modernism

Positivism

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WHY STUDY CONSUMER BEHAVIOURConsumer is Supreme / KingConsumer do not always act / react in a same wayConsumer preferences are changingConsumer likes and dislikes should understandFor market segmentationIntroduction of new productImplementing the marketing conceptFor measure the customer loyalty to the product

Educates and protects consumers

Helps formulate public policyDR.CD, KSM

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Method of studying consumer behaviour

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Consumption research

Observation-Observing

behaviour in different situation

Interviews and SurveysExperimentati

on

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Underlying principles of consumer behaviour

The consumer is Sovereign / rulerThe consumer is GlobalConsumers are DifferentConsumer has RightsEvery one needs to understand consumers

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Consumer - driven marketing strategyMarket

analysis-Consumer, company,

Social, political,

Legal environment

Marketing mix

strategies-product,

Price, Place, Promotion

Implementation-In market

place

Market segmentatio

n –Geographic, demographic

, psychograph

ic

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