2. Consumers are "actors" on the marketplace.
Customers are the most important people for any organization. The
success of any organization is dependent on its satisfied customers.
The satisfied customers remains loyal to the organization and bring
repeat business.
Consumers can be made happy only if their needs are met.
The organizations should treat their customer’s service as an
investment and not a cost. They should also remember that
customer’s satisfaction is at heart of the selling process.
3. Consumer behaviour is the study of individuals or groups and
organizations on how they select, purchase, use or dispose of
products services, ideas or experiences to satisfy needs and desires.
“Consumer behaviour is the study of how people buy, what they buy,
when they buy and why they buy.” - Kotler
4. It plays a vital role in identifying customers need.
It provides possible ways to meet the customer needs.
It is useful to provide solution for specific problem.
It enhances marketing performance.
It helps in achieving the sales target.
5. It is the decision-making process used by consumers regarding market
transactions before, during, and after the purchase of a goods or services.
Stages of Buying Decision Process:
7. Cultural Factors: 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.
Psychological Factors: Among the factors influencing consumer behavior,
psychological factors can be divided into 4 categories: motivation, perception,
learning as well as beliefs and attitudes
1. Motivation:
2. Perception:
3. Learning:
4. Beliefs and attitudes:
8. Social Factors: Social factors are among the factors influencing consumer behavior
significantly. They fall into three categories: reference groups, family and social
roles and status.
1. Reference groups and membership groups
2. Family
3. Social roles and status
9. Personal factors:
Decisions and buying behavior are obviously also influenced by the characteristics
of each consumer.
1. Age and way of life:
2. Purchasing power and revenue:
3. Lifestyle:
4. Personality and self-concept:
10. Situational Factors:
Situational factors are the factors override or influence, psychological and social issues. These factors
are related to the purchase or shopping situation, as well as to temporal states.
1. Purchase Situation
2. Shopping Situation
Customers might be ready to purchase a product or service but completely derailed once they arrive in
the store. Marketers use several techniques to influence consumers at this choice stage of the decision
process. The following techniques are considered for shopping situation,
a. Store Atmosphere:
b. Sales people:
c. Crowding:
d. Promotions:
e. Packaging:
11. The simple and cheap purchase requires less buyer deliberation and participation
and vice & versa. Therefore based on the degree of buyer’s involvement and the
degree of difference among brands, buying behaviour can be classified into four
types, namely-
Complex buying behaviour
Dissonance reducing buying behaviour
Habitual buying behaviour
Variety seeking buying behaviour
12. Customer service is a key to bring customers back. Good customer service is the Life
Blood of any business.
If you truly want to have good customer service, all you have to do is ensure that your
business consistently does these things:
Answer your phone
Don’t make promises unless you will keep them
Listen to your customers
Deal with complaints
Be helpful even if there’s no immediate profit in it.
Train your staff to be always helpful, courteous and knowledgeable
Take the extra step
Give in something extra
13. Satisfied Customers
Customer Loyalty
Less Cost required to attract new customers
Edge on Competitors
Key to survival of success
14. How Customers can be Satisfied?
First element of customer satisfaction is a perfect product, designed to be as
defect-free.
Second, product delivered must be by caring people.
Third, product should be delivered “on time”.
Final element of customer satisfaction is an effective problem resolution process
15. Merchandise
Price
Physical Surroundings
Promotional Schemes
Employees Interaction
After Sales Services
Service Support
Other miscellaneous factors
16. Step 1: Listen to Customer feedback.
Step 2: Fix the individual Customer problem.
Step 3: Analyze the Data.
Step 4: Take action to resolve or prevent customer issues.
Step 5: Management Systems.
Step 6: Feedback to Customers on improvements.