Chapter: Business Science : Customer Relationship Management : Understanding Customers

Customer or Consumer Behavior

Customer or consumer behavior is the study of how individuals make decisions to spend their valuable resources (Time,money,effort) on consumption-related items.

CUSTOMER BEHAVIOR

Customer or consumer behavior is the study of how individuals make decisions to spend their valuable resources (Time,money,effort) on consumption-related items. It includes what they buy it, why they buy it, where they buy it, how often they buy it, and how often they use it.

According to belch and or is the processbelchandactivities ‖ consumer people engage behav in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires.

CUSTOMER BEHAVIOR IN RELATIONSHIP PERSPECTIVE

1. Understanding customer is the central part of the marketing process to know why a customer or buyer makes a purchase.

2. Without such an understanding, business will and wants.

3. Some business still produces the product without knowing the importance of the customer.

4. Organization clearly understands the benefits wanted by customers, reasons for purchase, re-purchase etc.

5. Importance of customer behavior

6. Production policies

7. Price policies

8. Decision regarding channel of distribution

9. Decision regarding sales promotion

10. Exploiting market opportunities

11. Customers do not always act or react predictably.

12. Consumers preferences are changing and becoming highly diversified.

13. Rapid introduction of new products

14. Implementing thencpt‖―marketing co

FACTORS INFLUENCING CONSUMER BEHAVIOR

15. Psychological factors

1. Motivation

2. Perception

3. Learning

4. Beliefs and attitude

• Personal Factors

1. Age and Life cycle stage

2. Occupation

3. Life style

4. Personality and self concept

• Cultural factors

1. Culture

2. Sub culture

3. Social class

• Social factors

1. Refernce groups

2. Family

3. Roles and status

• Buying role of a customer

• Initiator

• Influencer

• Decider

• Gatekeeper

• Buyer

• User

Buying decision of customers

• What to buy?

• How much to buy?

• Where to buy?

• When to buy?

• How to buy?

Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail

Business Science : Customer Relationship Management : Understanding Customers : Customer or Consumer Behavior |