Scope & Application of Consumer Behaviour

1. Scope and Application of
Consumer Behaviour

3. Introduction
 The term consumer behavior, individual buyer
behavior, end-user behavior, and consumer
buying behavior all stand for the same.
Consumer behavior is the study of how
individuals, groups, and organizations select
buy, use, and dispose of goods and services,
ideas, or experiences to satisfy their needs and
wants. Consumer behavior may be defined as
the decision process and physical activity
individuals engage in when evaluating,
acquiring, using, or disposing of goods and
services.

4. Introduction

5. Introduction
 According to Belch and
Belch “consumer behavior is the process
and activities people engage in when
searching for, selecting, purchasing,
using, evaluating and disposing of
products and services so as to satisfy
their needs and desires”.

6. Nature of consumer behaviour
 Consumer behavior refers to the actions and
decisions made by individuals and households when
purchasing goods and services. Understanding
consumer behavior is crucial for businesses because
it allows them to develop effective marketing
strategies and products that meet the needs and
preferences of their target audience. The nature of
consumer behavior is multidisciplinary and involves
various factors that influence the decision-making
process of consumers.

7. Nature of consumer behaviour

8. Nature of consumer behaviour
 These factors include cultural, social, personal, and
psychological factors. Cultural factors refer to the
values, beliefs, and customs that influence the
behavior of individuals in a particular society. Social
factors include family, friends, and other social
networks that influence consumer behavior. Personal
factors include age, gender, income, and lifestyle,
while psychological factors refer to the attitudes,
beliefs, and perceptions of individuals.

9. Cultural Factors
 Cultural factors are the values, beliefs, and customs
that influence the behavior of individuals in a particular
society. Cultural factors can include things like
language, religion, social norms, and even cuisine.
For example, in some cultures, it may be customary to
purchase gold jewelry as a symbol of wealth and
status. In other cultures, the use of certain products
may be restricted or prohibited due to religious beliefs.

10. Social Factors
 Social factors include family, friends, and other social
networks that influence consumer behavior. People
often make purchasing decisions based on the
opinions and recommendations of those around them.
For example, a person may choose to purchase a
product based on a recommendation from a friend or
family member.

11. Personal Factors
 Personal factors refer to characteristics that are
unique to an individual, such as age, gender, income,
and lifestyle. These factors can influence a person’s
purchasing decisions in various ways. For example,
younger consumers may be more likely to purchase
trendy or fashionable products, while older consumers
may prioritize durability and quality.

12. Psychological Factors
 Psychological factors refer to the attitudes, beliefs,
and perceptions of individuals. These factors can
include things like motivation, personality, and
perception of risk. For example, a person may choose
to purchase a particular product because they believe
it will make them feel happier or more confident.
Overall, the nature of consumer behavior is complex and
influenced by various factors. Understanding these
factors can help businesses develop effective marketing
strategies and products that meet the needs and
preferences of their target audience.

13. SCOPE OF CONSUMER BEHAVIOR
 Consumer behavior is a crucial aspect of marketing
that involves understanding the needs, preferences,
and decision-making processes of consumers. The
scope of consumer behavior is broad and
encompasses various aspects of marketing, such as
product development, pricing, promotion, and
distribution.

14. Product Development
 By understanding consumer behavior, businesses can
develop products that meet the needs and
preferences of their target customers. This includes
identifying the features and benefits that are most
important to customers and designing products that
align with these preferences. Consumer behavior
research can also help businesses identify gaps in the
market and opportunities for innovation.

15. Product Development Strategies -

16. Pricing
 Effective pricing strategies require an understanding
of consumer behavior. By analyzing consumer
behavior data, businesses can identify the price points
that are most likely to be accepted by their target
audience. This includes considering factors like
consumer demographics, purchasing habits, and
perceptions of value.

17. Promotion
 Advertising and promotion techniques are developed
based on the behavior of the target audience. By
analyzing consumer behavior data, businesses can
identify the most effective communication channels
and messaging strategies for their products. This
includes considering factors like consumer
demographics, media consumption habits, and
purchasing behavior.

18. Distribution
 Identifying the best distribution channels for their
products is another key aspect of consumer behavior.
By analyzing consumer behavior data, businesses can
identify the most effective distribution channels for
their target audience. This includes considering
factors like consumer purchasing habits, geographic
location, and online behavior. Overall, the scope of
consumer behavior is broad and includes various
aspects of marketing. By understanding consumer
behavior, businesses can develop effective strategies
that meet the needs and preferences of their target
audience, which can lead to increased sales and
profitability.

19. IMPORTANCE OF CONSUMER BEHAVIOUR
 Consumer behavior is an important aspect of
marketing that helps businesses understand their
target customers. By studying consumer behavior,
businesses can identify what motivates customers to
buy their products or services, which can help them
develop effective marketing strategies. There are
several reasons why consumer behavior is important
for businesses:

20. Understanding Customer Needs
 One of the primary reasons why consumer behavior is
important is because it helps businesses understand
the needs and preferences of their target customers.
By analyzing consumer behavior data, businesses can
identify the features and benefits that are most
important to customers, which can inform product
development and marketing strategies.

21. Developing Effective Marketing Strategies
 Effective marketing strategies require an
understanding of consumer behavior. By analyzing
consumer behavior data, businesses can identify the
most effective communication channels and
messaging strategies for their target audience. This
can help businesses develop advertising and
promotion techniques that resonate with their target
audience, leading to increased sales and profitability.

22. Identifying Opportunities for Growth
 Analyzing consumer behavior data can also help
businesses identify opportunities for growth. By
identifying gaps in the market and understanding
consumer needs and preferences, businesses can
develop innovative products and services that meet
the needs of their target audience. This can help
businesses stay ahead of their competitors and
increase their market share.

23. Enhancing Customer Satisfaction
 By understanding consumer behavior, businesses can
also enhance customer satisfaction. By identifying the
features and benefits that are most important to
customers, businesses can develop products and
services that meet their needs and preferences. This
can lead to increased customer loyalty and positive
word-of-mouth, which can help businesses attract new
customers and increase their customer base

24. APPLICATION OF CONSUMER BEHAVIOUR
 Lets try and find application of consumer behviour by
most simplest ways:

25. Analyzing market opportunity
 Consumer behavior study help in identifying the
unfulfilled needs and wants of consumers. This
requires examining the friends and conditions
operating in the Marketplace, consumer’s lifestyle,
income levels, and energy influences. This may reveal
unsatisfied needs and wants. Mosquito repellents
have been marketed in response to a genuine and
unfulfilled consumer need.

26. Selecting the target market
 Review of market opportunities often helps in
identifying district consumer segments with very
distinct and unique wants and needs. Identifying these
groups, behave and how they make purchase
decisions enable the marketer to design and market
products or services particularly suited to their wants
and needs. For example, please sleep revealed that
many existing and potential shampoo users did not
want to buy shampoo fax price at rate 60 for more and
would rather prefer a low price package containing
enough quantity for one or two washers. This finding
LED companies to introduce the shampoos sachet,
which become a good seller.

27. Marketing-mix decisions
 Once unsatisfied needs and wants are identified, the
marketer has to determine the right mix of product,
price, distribution, and promotion. Where too,
consumer behavior study is very helpful in finding
answers to too many perplexing questions. The
factors of marketing mix decisions are: i) product ii)
price iii) promotion iv) distribution

28. Use in social and nonprofits marketing
 Consumer behavior studies are useful to design
marketing strategies by social, governmental, and not
for profit organizations to make their programs more
effective such as family planning, awareness about
AIDS.
‘Consumer behavior’ is a vital aspect of marketing
that helps businesses develop effective strategies to
attract and retain customers. By understanding the
nature and scope of consumer behavior, businesses
can identify opportunities for growth and develop
products and services that meet the needs and
preferences of their target customers.

29. Thank You