MBA 1st Year Marketing Management Understanding Consumer Behavior Short Question Answer

Q.15. What Is consumer behavior? Explain any one model of consumer behavIour.

Ans. Consumer Behaviour: Consumer is the king of the market. All the marketing activities of all the business enterprises go around the habits, tastes, preferences, attitudes of consumers. Manufacturers produce what their consumers want. They provide the goods and services at the time and places most convenient to their consumers. So, all the marketing activities go around the satisfaction of the needs and wants of consumers. Consumer purchases an article as a result of certain mental and economic forces creating desires and wants which they understand can be satisfied by the articles for purchase. Thus, the producer should identify the motives which prompt them to purchase, so that he can offer a complete article satisfying their needs. This is the buying motive.

Consumer behaves in a particular manner as directed by his inner motive. The market has to study and analyze consumer behavior to maximize sales and thereby profits. Studying consumer behavior is a basic requirement of marketing and a marketing manager can create, maintain and increase the demand for his products only when he understands the feelings, wants, and buying motives of his consumers. Several models have been developed to study consumer behavior. One of them is buying a model.

Buying Behaviour Model: According to the system approach of buying behavior, we have inputs, processing, outputs, feedback loop. The objective is the expected satisfaction of the buyer from the product or service. The inputs include buying power, marketing mix (4Ps), and other factors. Output are buyers’ attitudes, opinions, fillings, and preferences as affected by buying process.

Q.1.6. What are the stages In the buying process? Explain.
List and explain the steps in the buyer decision-making process.
Write the steps Involved In the process of purchase decision-making for a consumer product.

Ans. Steps in Buyer—Decision Making Process: Customers go through five stages decision- making process in any purchase. So, this model is important for anyone making marketing decisions.

Step 1: Problem Recognition: In this stage, the consumer perceives a need. This happens when there is seen a difference—one that is large enough to get to act between the ideal state and actual state. This state starts when the buyer recognizes a problem or need. Marketers need to identify the circumstances that trigger a particular need by collecting information from a large number of consumers. They, then, develop marketing strategies that trigger consumer interest. Consumer motivation may need to be increased so that a potential purchase is given serious consideration.

Step 2: Information Search: There is a great deal of research on studying. When consumers decide to do extensive searches. An aroused consumer will be inclined to search for more information. The major information sources are key interest to the marketer to which the consumer will turn and the relative influence each will have on the subsequent purchase decision. The information sources can be—personal, family, friends, neighbors.

• Commercial: Advertising, websites, dealers, salespersons, packaging, etc.
• Public; Mass media, consumer rating organizations.
• Experiential: Handling, examining, using the product.

The relative amount of these sources varies with product category and the buyer’s characteristics. The most effective information comes from personal sources or public sources that are independent authorities. Each information source performs a different function in influencing the buying decision. Commercial sources normally perform an information function whereas personal sources perform an evaluation function.

Step 3: Evaluation of Alternatives: How does the consumer process compete for brand information and make a final value judgment? No single process is used by all consumers or by one consumer in all buying situations. In the evaluation process, first, the consumer tries to satisfy his need. Second, the consumer looks for certain benefits from the product solution. Third, the consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits to satisfy their need. The attributes of interest vary by product.

Step 4: Purchase Decisions: In the evaluation stage, the consumer forms preferences among the brands. The consumer may form an intention to buy the most preferred brand. In executing a purchase intention, the consumer makes up five decisions related to a brand dealer, quantity, timing, and payment method. Purchases of everyday products involve fewer decisions and less deliberation.

In some cases, consumers may decide not to formally evaluate every brand and in others, intervening factors may affect the final decision.

Step 5: Post Purchase Behaviour: After the purchase, the consumer might experience dissonance that stems from noticing certain features or hearing favorable things about other brands. Marketing communications should supply beliefs and evaluations that reinforce the consumer’s choice and help him or her feel good about the brand. The marketer’s job does not end with purchase but they must monitor post-purchase satisfaction, post-purchase actions and post-purchase product uses.

Post-purchase satisfaction involves customer satisfaction with a purchase. Satisfaction is a function of closeness between expectations and the product’s perceived performance. If performance falls short of expectations, the consumer is disappointed and if meets expectations, the consumer is satisfied. These feelings make a difference in whether the consumer buys the product and talks in favor or not in favor of the product.

Q.17. What are the three main importances of consumer behavior In marketing?

Ans. The importance of the study of consumer behavior was not realized by business and industrial enterprises. It was taken for granted that whatever is produced and whenever is produced, can be sold easily in the market. It was further assumed that the customers have no choice or preference of their own and they purchase whatever is sold to them. It was considered enough for marketers to collect the quantitative data of consumption. No need was realized for collecting and analyzing the qualitative data. Now, the time has changed, recognitions have changed and considerations have changed. Business and industrial enterprises have realized the importance of consumer behavior in the following areas:

1. Production Policies: The study of consumer behavior affects the production policies of the enterprise. Consumer behavior discovers the habits, tastes, and preferences of consumers and such discovery enables an enterprise to plan and develop its products according to these specifications. An enterprise must be in continuous touch with the changes in consumer behavior so that necessary changes in products may be made.
2. Price Policies: A businessman must study the behavior of his consumers well before fixing the price of his product because consumer behavior affects the price policies of the enterprise to a great extent. For example, some people purchase a product only because it increases their social prestige. Therefore, the price of such commodities may be fixed higher. On the other hand, some buyers purchase some goods because of the cheapness and utility of these products. The price of such products should not be increased.
3. Distribution Policies: Consumer behavior also affects the distribution policies of an enterprise. The manufacturers must assure a regular and continuous supply of products in the market. Therefore, all the efforts should be made to distribute the products through channels of distribution most suited to the consumers so that availability of these products at right time and right place may be assured.

Q.18. What are the types of consumer buying behavior?

Ans. Buying habits of consumers/levels of the consumer decision-making process are called buying situations. There are four specific levels of consumer decision-making or consumer buying behavior:

1. Complex Buying Behaviour: This is the situation that occurs when a consumer makes Ml use of the decision process. This category involves expensive, complex items with which the person has little or no experience. In this, perceived risk of all kinds is high.
2. Dissonance-reducing Buying Behaviour: This situation occurs when a consumer uses each step in the purchase process but does not spend a great deal of time on each of them. It requires less time than extended decision-making since the person typically has some experience with both what and the where of the purchase.
3. Habitual Buying Behaviour: This situation takes place when the consumer buys out of habit and skips steps in the purchase process. The customer wants to spend little or no time shopping and the same brands are usually re-purchased. In this, the items are bought regularly.
4. Variety Seeking Buying Behaviour: Some buying situations are characterized by low involvement but significant brand differences, here consumers often do a lot of brand switching. The market leader and the minor brand in this category have different marketing strategies.