IMPORTANCE OF CONSUMER BEHAVIOR IN MARKETING

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Table of content

Introduction…………………………………………………………………………….3
 
Importance of Consumer behavior in Marketing………………………………………3
 
Purchase Evaluation Criteria…………………………………………………………..5
 
Importance of Purchase Evaluation criteria in Marketing……………………………..6
 
Conclusion……………………………………………………………………………..8
 
References……………………………………………………………………………..9

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Introduction

At the time of deciding or making marketing plan putting consumer behavior in consideration is

important (Bettman & Park, 1980). It’s very important to understand the consumer behavior in

order to solve the marketing puzzle like sales, profits and all profit giving departments.

Business organization should understand that how clients mind operates and what are the

requirements of the consumer so that the organization can attract the customer.

Attempting to detect what causes, pulls and prompt customer is very vital information.

Consumer behavior includes the consumption and usage of product as well as the study of how

they are procured. Usage of product is concern of the marketer, because this may help in

positioning the product or how marketer can lead to increased usage of the product (Brucks,

1985). Tangible products, ideas and services are the part of the consumer behavior.

Importance of Consumer behavior in Marketing

There are 4 important usages of consumer behavior:

1. Consumer behavior is important for making marketing strategy. For e.g. Snack

advertisement is scheduled at afternoon. It is obvious that new product at the beginning is

consumed by a less customers and then slowly it increases so this directs us that the

company should be financially strong so that they can wait until the product become

commercial success and also the company should able to delight the initial customers so

that they can shape the many other customers.

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 2. Public Policy should also give considered because it is an important deciding source of

product performance.

3. Social marketing is another important matter that can help in understanding the consumer

behavior.

4. Another aspect of consumer behavior is that it makes good, aware and sensible

consumers in the matter of selecting products.

Consumer behavior provides the right direction to the organization to better their marketing

strategy by understanding the following.

 The mindset of the consumer that how they decide, feels, select between various choices.

 Behavior of customer while purchasing or making other marketing conclusion

 Decision making and marketing tactic of customer is influenced by their knowledge or

information processing powers.

 Consumer behavior helps in adapting and improving their marketing campaigns and

marketing strategies to more efficaciously reach user.

However, it is also important to check organizations own strength and loop wholes and also

analyze the other firms concerning the market or customer demand.

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Purchase Evaluation Criteria
Purchasing involves number of people with various backgrounds and obligations

An investigation carried out, by various scholars to analyze the purchase evaluation criteria and,

laid the following details for the marketers.

 Discover weak parts in a product's pattern by evaluating its attitude related to competitor

on the valuation criteria for every class of decision player.

 The salesman presentation skill should be enhanced in order to expose every side of the

product.

There are 6 stages in the, purchase evaluation criteria. Basically purchasing is a single stage

procedure, but due to degree of complexity, this stage has been discussed:

1. Recognition of the problem – This is related to knowledge of need. What actually

required, i.e difference between required and actual condition.

2. Look for Information – Information already gathered or known. For information External

search done from relatives or friend.

3. Valuation of choices – Evaluation of various alternatives must be done like ranking.

4. Buying option should be chosen which involves product, store, and method of buying.

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 5. Purchase - Purchase varies from time lapse, decision between buying option and

purchase, availability of product.

6. After Purchase valuation- result Satisfaction or dissatisfaction.

Importance of Purchase Evaluation criteria in Marketing

A purchase evaluation criterion is very important for effective marketing. Effective marketing

involves concentrating on the needs of the potential buyer (Kotler, 1991). This needs an

exhaustive knowledge and realizing of the customers need and what leads to determine these

needs. Marketers must research the customer’s requirement, perceptions, shopping and purchase

behavior. Marketers can make a better place in cut throat competition by knowing the all aspects

of consumer behavior.

Types of purchase evaluation criteria and its importance in marketing

Complex buying behavior

Customers involve in complex buying behavior when the customer is fully aware of brands

(Chernev, 1997). This happens usually when the product is expensive, involves risk like car,

computers, or furniture).This kind of customer needs help in knowing the features and benefits of

the product. Marketers can sell the product by informing the customer about the unique and

various features (Kurniawan, 2004).

Dissonance –reducing Behavior

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This kind of customer use to buy frequently, they are least concern about the brands and more

concerned about what available in the market.

Habitual Buying behavior

These are low cost product and daily use product.

Variety seeking buying behavior

Low consumer involvement. Preference given to variety.

Routine decision making

In this buyer consistently buy the same branded product.

Impulsive decision making

In this buyer purchase the product without any proper planning. Buyer takes the product

immediately after taking the decision.

Hence the marketers need to examine the various components which compel the customer for

requisite buying (Engel, 1983). This requires research of various other fields like:

1) Culture - Society has major role in influencing the human beings. Every society have

different requirement, and varies from each other. So, Marketers should understand the

deferential perception, behavior, wants in order to capture the market (Dhar, Nowlis &

Sherman,1999).

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 2) Social factor-People follow other people and interested in others taste so they prefer to

follow what their neighbor, family, friends or People around them like.

3) Personal factors – With the increase of Age, occupation or trend the requirement of the

individual changes.

4) Economy—Affordability or paying capacity of a customer must be kept in mind while pricing

the product.

5) Psychological factor (Mellers & Biagini, 1994)

Conclusion

Consumer behavior is essentially related more or less on analyzing how people buy, what they

buy, when they buy and why they buy. People, Pass through 6 main steps prior making a

purchase, these steps are essential part for any marketers to examine and be able to successfully

influence consumers to their products and also satisfy their requirements. According to Grunert

(1988), customer will purchase a product to fulfill their needs or wants. Before making any

purchase, consumer considers various factors like culture, neighbors, perception or affordability.

Hence, it is highly required for the company to understand the various factors on which

customers rely to buy certain products, this way only company can mark their success in this

competitive era.

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Reference

1. Bettman, J. R., & Park, W. (1980). Effects of prior knowledge and experience and
phase of the choice process on consumer decision process. Journal of Consumer
Research, 7(12), 234–248.

2. Brucks, M. (1985). The effects of product class knowledge on information search

3. Chernev, A. (1997, March). The effect of common features on brand choice:

4. Dhar, R., Nowlis, S. M., & Sherman, S. J. (1999). Comparison effects on

5. Engel, J. F. (1983). Consumer behavior (4th ed). Chicago: Dreyden Press.

6. Kotler, P. H. (1991). Marketing management: Analysis, planning and control (8th

7. Mellers, B. A., & Biagini, K. (1994, July). Similarity and choice. Psychological
Review, 101,505–518.

8. Kurniawan, S. H. (2004). Consumer decision-making in product selection and

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