Meaning

Marketers have noticed that there have been key changes occurring in consumer attitudes, especially in the recent past. Not too long ago, debt was viewed as a detested thing by Indian families. But now, Indian consumers have developed a huge change in the attitudes towards debt. Today, it is considered to be perfectly legitimate and an easy way to create assets and aspire for a better lifestyle. This change in consumer attitudes has led to the emergence of a number of very easy credit options. There has also been a shift in the mind set towards rising aspirations and changing attitudes to lifestyle, recreation and entertainment expenditures. As a result, today a basic product such as a soap or detergent is competing with a credit card, cell phone or digital camera - all of which are bought with the same money. 

Added to this is the fact that the market is flooded with an explosion of choices of products with seemingly very little differences between one and the other, which are often not even perceptible to consumers. The result of such imperceptible differences is that, the consumer is confused on which product and brand to select from the wide range of choices. Thus, the urge to motivate the consumer to develop a positive buying behaviour towards their brand, has resulted in a vicious spiral of consumer down-trading, price based competition, value destruction, erosion in profit margins at times even leading to the death of the brands.

Successful marketers have realised that the formula for success will be based on how effectively they have identified their customers' expectations from products and brands and provide the same with a very high value satisfaction level. These marketers are engaged in gauging the behaviour of consumers (or customers), identify the sources, timing and direction of the changes in their behaviour, the emerging new competencies and perspectives.......all of which will enable them to respond to the changes in the most effective manner. 

Definition of Consumer Behaviour

Consumer behaviour can be said to be the study of how individuals make decisions on how to spend their available resources (time, money, effort) on various consumption-related items. This simple definition of consumer behaviour tells marketers to revolve every activity around the ultimate consumer and gauge their behaviour by specifically focusing on:

• Who buys products or services?

• How do they buy products or services?

• Where do they buy them?

• How often do they buy them?

• When do they buy them? and

• How often do they use them?

These questions will help in understanding better what factors influence the decision making process of the consumers. The decision making process identifies the number of people who are involved in this process and ascribes a role to them - like the user, decider, influencer and buyer.

It is believed that consumers or customers make purchase decisions on the basis of receipt of a small number of selectively chosen pieces of information. Thus it will be very important to understand what and how much information is required by the customer to help him evaluate the goods and services offerings.

Thus, the term consumer behaviour is defined as the behaviour displayed by consumers in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

For example, FMCG products such as, a soap or a shampoo or say coffee are usually bought by the consumer either for her own use or for her immediate family. She uses these products (as brands) in the privacy of her bathroom, kitchen or home. Further, she needs these brands more often, because of their very nature, and also shares a very personal, often intimate moments especially where the use of them either gives her personal joy as she cares for herself or experiences the joy of caring for those she loves.

For instance the advertisement on Nescafe 3-in-1 is based on a brilliant consumer and category truth. Coffee is said to be a mood uplifting magic brew which restores our equilibrium, sets our world right, puts us back in step with life around us. And its power is most noticed in its absence. In the ad we get to see people (young IT/ITES/BPO professionals) with real life depictions (shared digs, housekeeping helplessness in the absence of family support) all suitable for the product which indicates a convenience cuppa for the bachelor pad. In fact, the ad even has a vanished PYT neighbour reappearing and flashing a smile at the protagonist.

Products such as Nescafe or Barista can be said to be brands, which have a truly intimate relationship with the consumer. Such brands appeal to the inner self of the individual and inspire them to live their life with joy.

Relevance of Consumer Behaviour Study

Consumer behaviour study will enable marketers to develop powerful insights based on a deep understanding of what consumers seek and then ensuring that these are easily available and at affordable prices too. Through the consumer behaviour study, the marketer seeks to understand the functional, psychological and emotional gratification which consumers seek to desire from the product. Take for example, how Hindustan Lever Limited, had to change the brand positioning of LUX with the change in consumers' mind set towards the emotional and functional attributes being associated with the brand.

For more than 50 years LUX has been marketed as the 'soap of the stars', endorsed by film stars and has always stood for glamour and luxury. However, over the past few years studies showed that the consumer in LUX's target segment was looking for luxurious products that make her feel beautiful and special. A deep understanding of this desired 'feeling of specialness' led to creating a new position for Lux. It led to strengthening the position of Lux from 'The soap of the stars' to a soap that 'brings out the star in you! This shift recognizes that each woman is special, that there is something magnetic and star like in every women and that the consumer is not willing to buy into a brand whose only reason for existence is that it is endorsed by stars. This shift in consumer's mindset indicates that the consumer was clearly looking beyond the functional aspects with an inclination more towards the emotional and psychological facets that can be associated with the new 'LUX' brand of soap. The outcome of this shift led to creating the brand LUX, which connects more deeply with the consumer and placing it more uniquely and distinctively in the consumer's mind in comparison to other products with similar functional attributes.

The study of consumer behaviour is very relevant, especially for marketers because knowledge of the buyer(s), his or her buying motives and buying habits will help them in drafting the marketing programmes. Specifically put, organizations try to study and analyse consumer behaviour in order to :

• Adopt a customer culture, which incorporates customer satisfaction as an integral part of the company mission.

• Follow the marketing concept where the organization plays a consultative role, helping consumers to select (or identify) products and services, which would best meet their needs.

• Solicit support from the society by focusing on serving its members through giving consumers the freedom of choice and catering to their needs and wants.

Inspite of their best efforts, analyzing the consumers' buying behaviour is not only a puzzle but also a challenge for the marketer. For, the consumer has always displayed a complex buying behaviour. They have different needs and wants, often at various stages of emergence and actualization, displaying various degrees of prioritisation (some are latent, some manifest,