INSTITUTE OF SCIENCE AND TECHNOLOGY

CA2 for Even Semester-2023

TOPIC NAME:- CONSUMER BEHAVIOR

NAME : RITTIK SHEE

ROLL NO: 32109322005
SUBJECT NAME: MARKETING AND STRATEGIC
MANAGEMENT
SUBJECT CODE: MHA-(N)-306
SEMESTER: 3RD
DEPARTMENT: MANAGEMENT(MHA)
 ABSTRACT

The project report entitled- “CONSUMER BEHAVIOR” is

completed and submitted in the partial fulfillment of the
requirements for the award of degree in MASTER OF
HOSPITAL ADMINISTRATION.

Under the guidance of our teacher MITTHUN DAS

INTRODUCTION
Consumer behavior is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services. Consumer behavior
consists of how the consumer's emotions, attitudes, and preferences affect buying behavior.
Consumer behavior emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has
become an interdisciplinary social science that blends elements
from psychology, sociology, social anthropology, anthropology, ethnography, ethnology,
marketing, and economics (especially behavioral economics).
The study of consumer behavior formally investigates individual qualities such
as demographics, personality lifestyles, and behavioral variables (such as usage rates, usage
occasion, loyalty, brand advocacy, and willingness to provide referrals), in an attempt to
understand people's wants and consumption patterns. Consumer behavior also investigates on the
influences on the consumer, from social groups such as family, friends, sports, and reference
groups, to society in general (brand-influencers, opinion leaders).
CONSUMER BEHAVIOR IN MARKETING
Consumer behavior is important in marketing because it explains how consumers make decisions
about what products to buy when to buy them, and from whom to buy them.

Marketers can develop effective marketing strategies that target the right consumers with the
right message at the right time by understanding consumer behavior.

Here are some examples of how consumer behavior affects marketing:

 Segmentation

Consumer behavior research helps marketers behavioral segment markets. Marketers can
modify their marketing messages and strategies to better appeal to each demographic by
recognizing these segments.

 Product design

Understanding consumer behavior can also aid in product development. Marketers can
create products that better meet consumer needs and preferences by analyzing customer
requirements and tastes, leading to increased sales and customer satisfaction.

 Pricing Strategies

Marketers can use consumer behavior data to determine the price points at which
customers are willing to pay for a product, as well as the pricing strategies most likely to
appeal to each market segment.

 Branding

Consumer behavior research helps in the development of branding strategies. Marketers can
create brand messages and strategies that resonate with consumers and build brand loyalty by
understanding consumer attitudes and perceptions of brands.

WHY IS CONSUMER BEHAVIOR SO IMPORTANT?

Businesses invest a lot of time and resources in their product or service. Hence, it is absolutely
essential that their offerings cater to the needs of their customers. Or they will incur huge
amounts of losses.
So, in order to make sure that the products, as well as the brand, are well-accepted by the
consumers, it is important to first know what consumers want and are likely to buy.

 Better marketing and communications

As living standards, trends, and technology keep changing, consumers’ choices also keep
varying. Understanding how these factors affect customers’ buying habits helps
organizations design their messaging accordingly. Thus, having insights into consumers’
purchase behavior can help marketers in meeting their objectives.

 Improve customer retention

It is far more beneficial to retain an existing customer than to gain new customers. It’s
easier to sell new products and services to your existing customers than to find new ones.

So, retaining as many customers as possible should be the goal of entrepreneurs

interested in growing their companies.

 Increase customer loyalty

Understanding customer behavior helps in finding out ways to boost customer loyalty,
which in turn, will lead to higher sales and a strong brand. Analyzing trends in sales can
aid in offering discounts as well as suggesting the best products and services to them.

 Better plan inventory

Researching customer attitudes helps companies plan inventory and stock raw materials.
In the case of a service-based business, the management team can better plan their human
resources. If businesses see a trend in demand for specific products, they are likely to
send more purchase orders to their suppliers. Consumer behavior data can help them to
balance demand and supply.

 Increase sales

A company always aims to satisfy specific market niches. Even if the company operates
in different sectors, it should target potential buyers in each segment. If you know your
customers well, you can have better conversations with a high probability of closing the
deal.
 Instead of taking random shots and trying to sell to anyone, having knowledge about your
customers’ likes and dislikes helps in making smarter decisions. Such a strategy has a
higher chance of generating sales.

 Research competition

Studying consumer buying behavior helps in understanding the competitive market. You
can plan on how to position your products and services to offer competitive advantages.

CONSUMER BEHAVIOR FOR EFFECTIVE MARKETING

STRATEGIES
Marketers must understand several types of consumer behavior to create effective marketing
strategies and meet customer needs. This section will look at the four types of customer behavior
and how they affect businesses.

1. Complex buying behavior

When customers are actively involved in the purchasing decision process and are aware
of the significant differences between the various brands, this happens. Before making
purchasing decisions, consumers conduct extensive research, gather information, and
evaluate alternatives.

2. Dissonance-reducing buying behavior

This type of behavior happens when people make expensive or risky purchases and then
feel uncomfortable or confused about their decision. Consumers may seek reassurance,
information, or feedback from others to reduce confusion.

3. Habitual buying behavior

This happens when customers make purchases with minimal decision-making and
marketing efforts or information search. Based on prior experiences, they have developed
brand and customer loyalty also buying habits, and they may buy things out of habit,
convenience, or familiarity.

4. Variety-seeking buying behavior

This type of behavior happens when customers are not deeply involved in the purchase
 decisions but seek variety or uniqueness in their purchases. They may most often change
brands or products to satisfy their curiosity or need for variety.

WHAT FACTORS INFLUENCE CONSUMER BEHAVIOR WHILE

PURCHASING?
Consumer behavior is influenced by many external factors and internal factors such as
situational, psychological, environmental, and marketing factors, personal factors, family, and
culture.

Businesses try to collect data so that they can make decisions on how they can reach their target
audience in the most efficient way. While some influences may be temporary and others can be
long-lasting, these factors can influence a person to buy or not buy. Let’s now look at some of
these factors in detail.

 Situational factors

They are temporary in nature and include physical factors such as a store’s location,
layout, colors, music, lighting, and even scent. Companies try to make these factors as
favorable as possible. Other situational factors include holidays, time, and moods of the
consumer.

 Personal factors

These factors include demographic factors such as age, gender, income, occupation, etc.
It also depends on one’s interests and opinions. To further understand consumers,
companies also look more closely at their lifestyles – their daily routine, leisure activities,
etc.

 Social factors

This factor also includes social class, level of education, religious and ethnic background,
sexual orientation, customer orientation, and people around you – family, friends, or
social network. Different cultures have varying customs and rituals that influence how
people live their lives and what products they purchase.

Generally, consumers in the same social class exhibit similar buying behavior. Most
market researchers believe a person’s family is one of the biggest determinants of buying
 behavior.

 Psychological factor

A person’s ability to understand information, perception of needs, and mindset influence

consumer behavior. One’s reaction to a marketing campaign will depend on one’s beliefs
and state of mind.

HOW TO COLLECT DATA ON CONSUMER BEHAVIOR?

To understand consumer buying behavior, you need to know how consumers think and feel
about the different alternatives available in the market, how they reason, and how they choose
between different options.

The motivations that influence consumer behavior are so broad that the most effective way to
study them is to use different market research methods. These methods should collect both
qualitative and quantitative data. Some of the common data collection methods are:

Surveys

Surveys are a popular method for collecting data about customer behavior. Online, phone or in-
person surveys can provide quantitative information about customer opinions, preferences, and
behavior.

Focus groups

Small, moderated consumer discussions about a specific good or service are called focus groups.
Focus groups provide qualitative information on consumer opinions and views and also insights
into how customers interact with products and services.

Interviews

Consumer interviews can provide detailed data on customer behavior, attitudes, and preferences.
Interviews can be conducted in person or over the phone, and they can provide qualitative data to
boost quantitative data.

Observations

Observational research entails watching and recording consumers in their natural surroundings.
This method can aid in identifying patterns of behavior and offer insights into how consumers
engage with products and services.
Experiments

Experiments involve changing one or more variables to see what effect it has on customer
behavior. It can be carried out in a controlled environmental analysis or in the field, and it can
provide information about the connections between variables and consumer behavior.

Data analysis

Data from sources such as sales data, web analytics, and social media can be analyzed to gain an
understanding of customer behavior. This method entails recognizing patterns and trends in data
in order to determine consumer behavior and preferences.

Online surveys are the most efficient method of conducting consumer behavior studies. You can
create a survey using survey software and send it to your target audience. You can also
customize the survey flow to ask only relevant questions to respondents.

It lets you analyze data and generate reports to make better decisions. You can also filter data,
compare results and identify trends over time. Based on the results, you can predict demand and
formulate your sales and marketing strategy.

It also helps in designing pricing models, and the maximum amount customers can pay for a
specific bundle of features.
CONCLUSION
In this report consumer behavior is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them.
REFERENCE
 www.google.com

 www.wikipedia.com