1. NATURE OF CUSTOMER BEHAVIOR:
It has been established that the essence and purpose of production is consumption. Marketing expresses age-old philosophy the consumer is supreme, he is the king. There is no gain in saying the fact that consumers our clients occupy a central place in every organisations attempt to take eke out of living . Without them, there is no need for an organisations existence. It does become imperative that the behaviour of the consumer be fully understood with a view to offering benefits utilities that will satisfy them.
Consumer are individuals, households or organisations who acquire goods and services for personal consumption or usage. A buyer or consumer acquires goods and services either for personal usage or for other users.
Consumer or buyer behaviour is the observable action and / or reaction of the consumer in relation to the marketing mix, his person, his society and other influence simile. These action and reactions are exhibited by customer in his or her attempt to search, purchase, use, evaluate and dispose of goods, services or ideas they can benefit from. It is important to study consumer behaviour as it gives an understanding of their needs through the application of behavioral science as an aid for successful marketing. Marketing is successful only if one is able to satisfy one's target market.
Economics , physiology, sociology, anthropology, social physiology and demography are relevant discipline that have contributed to our understanding of consumer behaviour.
When will talk of a market, we do not mean a physical location or the aggregate of buyers and sellers. Rather we mean people individuals, household, organisations, who are actual or potential buyers of a product. It must be realised that consumers do not behave the same way, yet a common framework of grasping the market operating characteristics is important.
2. IDENTIFICATION OF KEY ELEMENTS IN THE MARKET
Understanding consumer behaviour calls for a marketing strategy aimed at finding the marketing mix to target market. Each market should be studied and their peculiarities and needs be fully is grasped.
THE FIRST COMMANDMENTS IN MARKETING IS MARKETETERS, KNOW THY MARKETS. THOU MUST KNOW THY CUSTOMERS IN AND OUT AND OFFER SERVICES THAT WILL SATISFY THEM.
A marketing practitioner should be able to provide answers to the following criteria question about market being served:
1. Who are the buyers of the products? The market occupants . They vary in terms of age, status, sex, lifestyle, taste purchasing power, religion, education. They are individuals, household, firms etc. It is worthwhile to distinguish between different groups and develop product tailored to meet their particular needs.
I think off the age composition of your customer and consider what product or service that may interest them.
2. What do consumers buy? The market objects. The consumers by durable goods, non durable goods and services, speciality goods, companies goods and shopping goods , industrial goods e.t.c.
3. Why do they buy? What are they seeking? Market objectives. It is basically for satisfaction of needs or wants and achieving primary and secondary utilities. Consumers being utility maximizers , will use their limited resources to acquire a bundle of goods that will put them on the highest utility curve. What bundle of attributes does organisation offer. Which one maximizes the value to cost ratio?
4. When do they buy? Market occasions. Define pattern variance. Rate of product usage or consumption, processing power, seasonal trend, timing are the main determinants.
5. Who are buying? Market organisation or elements of the decision making unit. The roles and respective influence of the following decision makers need to be understood.
Initiator, person who first recognises the need.
Influencer, person who carries explicite or implicite and influence in the decision. His input affects the choice of the person who decides.
Decider, person who determines whether to buy. What to buy how, when and where.
Buyer, person who makes the actual purchase.
user , the person who uses or consumes the product.
In the family settings, there are various approaches to decision-making. There is autonomic equal number of separate decisions are made, husband dominance husband dominates , wife. dominus wife dominates and same syncratic decisions jointly made.
5 . how do they buy ? Marketing operations that is factors influencing consumer behaviour. The following factors affect how consumers buy.
Personal age and life cycle, occupation, economic, factors, personal influence, size of purchase, source , payment method.
Social characteristics including reference groups, primary, secondary and aspirational groups and cultural influences values, beliefs, more e.t.c.
Physiological characteristics include motivation, perception, learning, and attitudes.
6. Where are the buyers and where will the goods be purchased? That is the location of the buyers and area convenient to them to for buying the product.
7. How much are The buyers prepared to pay? Is it low price, medium price or high price? What to pay depends on buyers preference and values, economic situation, bias income, lifestyle e.t.c.
8. How do they use the products and services? Heavily, lightly e.t.c.
9. What are the consumers preference and expectations. What does the customer expect or receive to gain the exchange for the price paid for?
3. DIFFICULTY AND IMPORTANTANCE OF UNDERSTANDING CONSUMER BEHAVIOR:
Do we really know what goes on in a buyer's mind before, during and after a purchase? It is like a black box. Sometimes, a buyer finds his behaviour indescriable. However, we may summarise the process leading to a purchase as beginning with a person, triggering behaviours towards a goal that is expected to bring satisfaction. This goal-oriented behaviour is influenced by persons Perception. Perception is the meaning we attached on the basis of our past experience, to stimuli received through our five Senses.
These perceptions influenced by factor in our sociological and psychological makeup.
it is desirable that marketers have a perfect understanding of the consumers. Somebody you don't know, you are most unlikely to please him. Satisfaction can come when marketers empathise . market segmentation is a right step towards understanding consumer behaviour which in turn brings about satisfaction.
4. ROLES OF CONSUMER BEHAVIOR IN MARKETING:
The marketing are the roles of consumer behaviour in marketing .
It enables marketers to understand the behavioral disposition of the consumers towards the firm and its marketing mix and marketing programs on the company's success.
It enables market to gain insight into what satisfies consumers. It examines all the factors that motivate consumers to buy a particular product.
It enables marketers to predict how consumers will respond to the firm products and marketing programs. The market now understands the factors that influence consumers to behave in a particular way.
Understanding consumer behaviour serves as a basis for segmenting and targeting the company's market.
The knowledge of consumer behaviour enables the marketer so identify new opportunities in the market please and evaluate the strength and weakness .
It makes possible the application of marketing concept by creating a marketing mix which satisfies consumers.
It enables the marketing practitioner to be able to predict the behaviour of consumer and arrange appropriate marketing strategies aimed at achieving the company's marketing and corporate objectives.
It assists the marketer to evaluate the performance of specific marketing strategies aimed at influencing the market.
5. CONSUMER DECISION MAKING PROCESS:
the following stage have been identified as common in buyers decision making process concerning whether to buy or not to buy a product.
Need arosa or problem recognise ation. The consumer recognises that he needs something. The need then you asking to take further steps.
Information search and processing. The consumer in need 64 information about how to acquire the product or service that he felt missing in his life. He asked where and how to get this product? He may get answers to these questions from his own accumulated knowledge or seek answers from other source ?
Product alternative evaluation. The consumer identifies a product or brand that can satisfy his needs he considers other products or brands. He evaluate, based on price, product features, desirable performance, package, knowledge popularity of the product, availability and image.
Purchase decisions. The next logical step is for the consumer to purchase the product.
Post-purchase evaluation. After purchase the consumer ask himself whether he has been satisfied after consuming the product. He compared his expectations with performance. If he is satisfied, he makes a repeat purchase otherwise he stops consuming the product and tell others how bad the product could be. Marketers need to ask their consumers whether the product sold to them have met their expectations. This is marketing concepts in action.
6. BUYING MOTIVES:
Buying motives are all factors within a person or organisation which combined to create a desire to purchase such factors are usually complex and comprise objective criteria like price, quality, delivery and sound subjective factors such as prestige, brand image, colour shape and packaging.
Buying motives refer to what drives or motivates the consumer to buy a product. Where to buy something relational and emotional motives.
Relational buying motives. These motives are prompted by logic and season. Examples of rational buying motives are:
1. NEED.
This is an object, service or resource which is deemed necessary for a persons survival, well-being or comfort. Abraham h maslow , an american psychologist build a hierarchy of needs model when he divided human needs in to five.
Psychological needs example food, shelter and clothing .
Security or safety needs.
Belongingness, love, affection or recognition needs.
Self esteem, self respect, ego satisfying needs .
Self fulfillment or self actualisation needs.
Cost. What to pay in exchange for the product or service. It also determines what customers will buy and the quality to be bought.
Reliability and dependability. A rational consumer is interested in buying products that are not only dependable but also reliable. They want products that will work perfectly and well and last long.
Usefulness. Consumer will buy products that are useful to them and serve them very well.
EMOTIONAL BUYING MOTIVES: these are motives that arise from feelings rather than logic, economy or utility. Emotional motives comprises of:
Fear: buyers who don't want to take unnecessary risk may buy a product because of fear of unknown. Against the logic of law of demand, an increase in the price of a product, rather than leading to a fall in demand, may elicit and increase in demand for fear that the price might continue to go up. those who have the instinct of self preservation by because of fear.
Pride. Consumers will buy a product that they feel will enhance their image and boost their ego. The functionality off the products not withstanding self-esteem, statues and the urge to achieve are the basis driving force here.
Sensory satisfaction. Some products are brought on account of the consumer's pleasure for sense of taste touch sight and hearing.
Emulation. Most customers have some people they want to emulate politically, socially e.t.c.
