1. What is the difference between consumer and customer?
2. Define consumer behavior.
3. What do you mean by a reference group?
4. Discuss the role played by personality to determine consumer behavior in a market.
5. Fill in the blanks:
(a) Consumers generally spend---------to make purchase decisions for high-involvement products than to those for low-involvement products.
(b) Consumers are generally satisfied if purchases meet with their ----------
(c) The -----------is the person who changes the product to usable form for consumption.
6. How does economic condition and life style indicate consumers purchasing behavior?
7. State the various stages of the consumer decision making process. Explain any one.
8. Briefly explain the importance of studying consumer behavior.
1. Consumer is used to represent a situation where a product can be consumed, and customer is used to deal with situation where the product is purchased and may not be directly consumed.
2. Consumer behavior is defined as the study of how individuals make decisions to spend their available resources on consumption related items
3. A reference group comprises of two or more persons realizing common goals, group values, attitudes and behavior.
4. • It is the collection of inner psychological attributes that characterize the outer behavior an individual in terms of individual differences.
• Personality traits like dominance, self-confidence, sociability or adaptability of a person influence his decision making up to great extent.
5. (a) More Time and effort
6. (i)Economic conditions: People in the high income bracket have higher purchasing power. They buy expensive and trendy goods. People in the low income groups buy simple and relatively cheaper goods.
(ii)Lifestyle: lifestyles are identified by observing activities, interests, opinions and demographics. The activities of individuals like hobbies, shopping, sports etc. Indicates a lot. People’s interests can be observed from their preferences of food, fashion, recreation, media choice etc.
7. Problem identification, Information search, evaluation of alternatives, purchase decision and action, post purchase evaluation.
8. (i) Knowledge of consumer behaviour helps to determine the marketing mix: The management keeps on exploring what type of product consumer purchases in general; what factors persuade him to buy a good; why does he buy a specific brand from a particular shop , what is his reaction to a new product introduced in the market.
(ii) To assess consumer’s actions or reactions: The consumer seeks value for money. He wants to pay fewer prices but expects superior features in the product. This has led many marketers to introduce quality product at reasonable price.
(iii) To meet diversified consumer preferences:with globalization customers got more availability of choices compared to 1991 era. For example, the customer now has many brands of cars to choose from like, Hyundai, Honda, Mercedes, BMW etc.
(iv) A guide to planning and implementing marketing strategies: Knowledge of consumer behaviour can serve as a great help to formulate and implement marketing strategies to achieve goals of the firm.
(v) To address special needs, personalities and lifestyles of consumers: Consumer prefers differentiated products to reflect their special needs, personalities and lifestyles. The study of consumer behaviour helps to satisfy such special needs. For example when Onida was introuced, it was advertised on the television ‘for the elite classes’.
(vi) Cultural factors comprise of set of values and ideologies of a particular community or group of individuals.
It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture.
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