Understanding Consumer Behaviour is very important when it comes to Marketing. The following blog post takes a look at the same.
The curriculum of MBA comprises a lot many things. Right from marketing to finance to managerial economics and consumer behaviour are some of the major specializations covered in an MBA program.
The study and analysis of individuals, groups or social organizations is known as consumer behaviour. It is an amalgamation of the elements of Sociology, Psychology, Social Anthropology, and Economics.
The study of Consumer Behaviour attempts to understand the psychology and the decision-making processes of buyers as an individual or as a group. There are several stages that a consumer goes through before buying a particular product. A marketer needs to understand the buying behaviour of a customer for their products to perform well in the market. Understanding consumer behaviour is an extremely important aspect of marketing as it is consumers who comprise the market and market forces are driven by them.
Let’s take an example. There would hardly be takers in the low-income-group for a product like Kelloggs Special K. Customers belonging to this segment would rather buy pulses and vegetables that are necessary for survival.
The marketers need to understand the psychology of consumers and what makes them choose a particular product over other. How are consumers influenced by their immediate surroundings, peers, family, co-workers and so on.
In today’s competitive market, marketers have realized that in order to outperform competitors they must accomplish potentials of full profit from each and every customer. The three main drivers of a successful relationship between customers are marketers are high level of customer satisfaction, customer values and a solid structure required for customer retention.
Providing customer value is very important at the marketer’s end. Customer value is the ratio between the customer’s perceived benefits and the resources that are used to attain the benefits. The concept of customer value is highly subjective.
Certain external factors are also responsible for influencing consumer behaviour. These include culture, locality, sub-culture, ethnicity, social class, family, market mix factors and reference groups.