Consumer Behaviour: Nature, scope and significance of consumer behaviour

 

Nature of Consumer Behaviour

1. Complex Nature: Since every individual has different needs and desires, and marketers have to target customers as per their needs. Therefore, it becomes a complex task for the marketers to find the pattern of every individual.

2. Varies for different consumers: Different consumers have different needs and desires. Hence, It is impossible for marketers to target each and every consumer for their products. Therefore, Marketers try to identify their target consumers for the products and services.

 

3. Dynamic Nature: The behaviour and mentality of each consumer evolves with the time. Therefore, the marketers may find any potential customer for their products and services who once hated them.

4. Influenced by various factors: Consumer behaviour is also influenced by certain factors like friends, family, culture, lifestyle etc.
EX: People promoting different products among their peers due to the satisfaction they achieved by using it.

5. Important for Marketers: Consumer Behaviour is very important for marketers as they have to develop their products as per the behaviour of consumers that whether they are willing to purchase it or not.

6. Brand Loyalty: Consumers have a tendency to buy products and services from a certain organization which they may like due to certain reasons. They develop a brand loyalty towards these organizations and tends to buy only their products even if their rival is performing better in the market.

Scope of Consumer Behaviour

1. Demand Forecasting : Marketers can estimate the demand of their product if they know how would a consumer behave and react after seeing their product. 

 

2. Marketing: Consumer Behaviour helps to identify the need, expectations and problems of the consumers. Therefore, they can easily build the product having those functions which the consumers exactly want.

3. Advertising: Different consumers may have different opinions and reactions on certain form of advertisement. Therefore, Marketers can target the customers with most prominent form of advertisement as per their behaviour.

4. Human Behaviour: If marketers are aware about the human behaviour of there consumers and which factors influence their behaviour, then they can make their product 100% compatible with the requirement of consumer.

 

                           

Significance of Consumer Behaviour

 1. Implementation of the marketing concept: Consumer behaviour helps to implement the modern marketing concept. The Modern marketing concept is customer driven which focuses on solving the problems of customers and satisfying their needs. Consumer behaviour identifies the the same problems and needs and hence, helps is developing the product as per customer requirement.

 

2. Planning product differentiation and Market Segmentation: After identification of consumer behaviour, the product developed will the only one of its kind, because it has been developed through proper research and consumer behavior analysis, so the product will automatically be different from all the products available in the market while satisfying the consumer needs.

Again, to divide the target market into different segments to focus better on different consumers, proper study of consumer behaviour is necessary.

 

3. Selection of distribution channels: Consumer Behavior Analysis not only tells what consumers want to buy but also from where they prefer to buy.

There may be different categories of consumers. First category only shops online, Second category only want products from prestigious offline stores and the third category may settle for the ordinary stores. Therefore, consumer behaviour also inform us how much we should focus on a certain distribution channel. 

4. Designing promotional techniques: Promotional techniques include advertisement messages, media, direct selling, online selling etc. Proper study of consumer behaviour will show the psychology of consumer towards different promotional formats. It will tell how much a consumers is influenced from a certain form of advertisement and promotion.