CONSUMER BEHAVIOUR

Consumer Behaviour



Consumer Behaviour

Introduction

The general study of factors associated with the acquisition, use, and disposal of goods and services is called consumer behavior . Decisions regarding consumption and the social and environmental issues associated with consumption are common aspects of humans' daily lives. Consider the last 48 hours of your life. If you are a typical U.S. citizen, you will have been exposed to at least 3,000 marketing efforts. You may have visited a wide array of physical retail locations in addition to having visited Internet-based retailers and unique auction and exchange sites. You may have posted information about a movie or a book you recently experienced or sought advice from other consumers about a future purchase.

Customer Decision Process while purchasing a brand

The process starts with a customer who wants to buy personalized running shoes for around $150. The more the customer tells the vendor about his or her likes and dislikes during the integration process, the better chance there is of a product being created that meets his or her exact needs on the first try. After delivery of the customized product, feedback from the customer enhances NIKE' knowledge of the customer. The manufacturer can draw on detailed information about the customer for the next sale, ensuring that the service provided becomes quicker, simpler, and more focused. The state of information is increased and fine-tuned with each additional sale. This data is also used to propose subsequent purchases automatically once the life of the training shoes is over (for NIKE customers who train intensively, this can be every couple of months).

When NIKE enters a learning relationship with its customers, it increases the revenues from each customer because, and in addition to the actual product benefits, it simplifies the purchasing decision, so the customer keeps coming back. Why would a customer switch to a competitor—even one that can deliver a comparable customized product—if NIKE already has all of the information necessary to supply the product? A new supplier would need to repeat the initial process of gathering data from the customer. Moreover, the customer has now learned how his or her integration into the process successfully results in the creation of a product. By aggregating information from a segment of individual customers, NIKE also gains valuable market research knowledge. As a result, new products for the mass-market segment can be planned more efficiently and market research is more effective because of unfiltered access to data on market trends and customers' needs. This is of special benefit to companies that unite large-scale, make-to-stock production with tailored services. Mass customization, thus, can become an enabling strategy for mass production. Customer's decision is influenced by the following factors:

Place

Place refers to the geographic location with respect to your target market(s), competition, employees, and distribution channels. It also includes relevant site characteristics such as convenient access to highways and exit ramps, proximity to other demand generators/attractions, restrictions on site development, and natural scenic features. And in today's e-commerce world, it includes all the attributes ...