CONSUMER BEHAVIOR CHAPTER -1
Definition : Consumer behavior is the study of how individuals (or groups) make decision to spend their available
resources (i.e. time, money, effort) on consumption-related items. It includes the study of
- what they buy
- why they buy it
- when they buy it
- where they buy it
- how often they buy it and
- how often they use it.
Why we study Consumer behavior ?
- As consumer, we become more rational in making buying decisions. As consumers, we can understand how the marketers try to deceive us.
- As marketers, we can make better strategic marketing decisions, and we should try to do business more ethically.
3.
As student, we learn more of
marketing analytically as consumer behavior borrows
concepts from many other discipline like
Psychology, Sociology, Social psychology,
Anthropology, economics etc.
The approaches to study Consumer behavior :
There are Two approaches to
study consumer behavior. These are :
(a) Positivism and (b) Interpretivism
·
Positivism : This approach is from managerial
perspective. The managers want to know how people receive, store, and use
consumption-related information. By knowing the intricate psychological aspects of human beings , they could predict consumer behavior and
design appropriate marketing strategies to influence consumers. This approach
is known as “Positivism”.
· Interpretivism : This is the approach which is from academician’s perspective , the academicians try to analyze the psychological behavior of the
consumers. As CB is a multidisciplinary
subject, so the academicians want to understand consumers in a better way by
analyzing the inter-disciplinary relationships . This approach is not applied,
rather conceptual. Understanding of consumption behavior and the meanings
behind such behavior is called “Interpretivism”.
Ethics and Consumer Behavior :
One of the very important and
practical aspects of Consumer behavior is its ethical aspects. Human being is
unethical, especially the business people. These people have one target of
earning money by any means. Many times they forget or ignore ethical
aspects at business, for profit only. The people in our country, apply formalin
on fish so that it does not get rotten. The traders use chemicals to
early-ripen the fruits. The farmers innocently use poisonous fertilizers to get
good yields.
As a result, as consumers we
all the times are exposed to threats and
health hazards. Sometimes the government helps the traders to exploit the
consumers. The government itself is dominated and controlled by the business
tycoons.
Consequently, we the
consumers are absolutely helpless.
Therefore it is urgent that, not as business men, not as consumers, but
as civilized human beings, we must learn about ethics. In most simple language,
the term ethics means ‘not doing bad to people”. Ethics is more related with the concept of
morality.
The term Ethics is very
important in marketing. When we study CB we try to get a thorough knowledge of
Psychology. With this knowledge, the marketers are set to exploit the customers
even under legal frame. In order to prevent the practice, we should have
practiced ‘ethical’ aspects in marketing.
But, unfortunately there is
no universally accepted definition of “ethics”. We get two theories in this
regard :
Teleology : moral worth of behavior as determined by its consequences. It means “the greatest good to the society”. “Utilitarianism” is a Teleological theory.
According to this theory, it is perfectly allowable to do some concealed harm to some objects for the greater interest of the society. Consequently, it is ethical (for a company) to conceal negative consequences (of a product) among the early users, if a large number of people are likely to benefit once the product is perfected.
To utilitarians, ethics is evaluated on the basis of cost/benefit analysis. The society is permitted to do harm if that costs less than what is gained. We go on doing that as long as the benefits to society exceed the costs.
Deontology : deals with methods and intention involved in a particular behavior. Deontology focuses on the results of a particular action, and they tend to place greater weight on personal and social values than on economic values. This is somewhat personal judgment. What I think is bad , I won’t go for doing that.
This is something like “Do not do unto others what you would not have others do unto you, or your loved ones.”
Deontological thought of ethics is more accepted.
Ethics and Consumer Movement :
In
1962, President John F. Kennedy declared that the consumers had the right to safety, to be informed, and to be heard.
Subsequently, this Consumers, Bill of Rights included the rights to recourse and redress and to a physical environment that enhances the
quality of life.
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