4.1.2 Delving Deeper into Consumer Behaviour: Understanding the Definition¶
Definition of Consumer Behavior¶
Consumer behavior is the study of buying units and the exchange process involved in evaluating, acquiring, consuming, and disposing of goods, services, and ideas.
While the definition may seem complex, let’s break it down into simpler components for better understanding.
Key Components of Consumer Behavior¶
1. Buying Units¶
Buying units refer to the individuals or groups involved in the purchasing process.
Examples:
- Individuals: A person buying a shirt for themselves.
- Groups:
- A family purchasing clothes for a wedding.
- A group of friends shopping together for similar items.
2. Exchange Process¶
The exchange process involves interactions between buyers and sellers, where both parties have the freedom to choose.
Types of exchanges include:
- Organization to Consumer (B2C): Example - Procter & Gamble selling toothpaste to you.
- Organization to Organization (B2B): Example - A company buying raw materials from a supplier.
- Consumer to Consumer (C2C): Example - Selling products through social media or live-streaming platforms.
In the context of this discussion, the focus is on organization to consumer (B2C) exchanges.
Activities in Consumer Behavior¶
The study of consumer behavior examines four key activities:
1. Evaluating¶
How consumers compare different options before making a purchase.
Example: Choosing a toothpaste brand.
- Factors considered:
- Price
- Size
- Taste
- Color
- Brand reputation
- Availability (supermarket, online platforms, local stores).
2. Acquiring¶
Where and how consumers purchase goods.
Examples:
- Physical stores: Kirana shops, supermarkets.
- Online platforms: Amazon, Flipkart, BigBasket.
- Quick commerce: Blinkit, Swiggy Instamart.
3. Consuming¶
How consumers use the product after purchase.
Example: Toothpaste usage.
- Brushing habits:
- Once in the morning.
- Twice a day (morning and night).
- Three times a day.
4. Disposing¶
What consumers do with the product after use.
Examples:
- Squeezing the last bit out of a toothpaste tube before disposing of it.
- Disposing of products before they are fully used.
Why Understanding These Activities is Important¶
Case Study: Pepsodent Toothpaste¶
In the 1990s, Pepsodent introduced a unique marketing proposition: - Message: Germs return to teeth after eating, so you should brush twice a day (morning and night).
Impact: - Previously, families used one toothpaste tube per month. - By encouraging brushing twice a day, consumption doubled to two tubes per month. - Result: - Sales increased from 50,000 tubes to 1,00,000 tubes per month. - Market size and usage rate expanded without increasing the customer base.
This highlights how consumer behavior—especially consumption patterns—influences marketing strategy, market size, and market share.
Implications for Marketing Strategy¶
Influence on Marketing¶
Understanding consumer behavior allows businesses to: 1. Identify factors that influence purchasing decisions. 2. Create strategies to optimize product usage. 3. Tailor marketing efforts to match consumer preferences.
Broader Impact¶
Consumer behavior not only determines how consumers interact with products but also shapes: - Product design. - Distribution strategies. - Marketing messages.
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