ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

Department of Business Administration

Consumer as an individual:

Introduction:

A consumer is a person or a group who wishes to buy, purchases, or uses

purchased goods, items, or services for personal, social, family, household, or
similar purposes that are not specifically connected to entrepreneurial or business
practices.

A consumer is someone who purchases products for personal use rather than
resale or commercial purposes. A customer is someone who spends a certain
amount of money for something that is needed to purchase goods and services.
As a result, customers play a crucial role in the neoliberal economy's economic
structure. Without market demand, manufacturers will be unable to export for
one of the most important reasons: to appeal to customers. The buyer is also a
member of the delivery chain.

Consumer behavior is the study of how individuals, groups, or organizations want,

purchase, use, and dispose of products, objects, and services in order to meet
their needs and desires. It applies to the consumer's actions in the marketplace
and the reasons behind those actions.
Marketers expect to be able to identify which products are required in the
marketplace, which are outdated, and how best to present the goods to
customers by identifying what motivates consumers to purchase those goods and
services.

Consumer behavior analysis assumes that buyers are partners in the marketplace.
Consumers are assumed to play different positions in the industry, according to
position theory. Consumers play a variety of functions in the decision-making
process, from information provider to customer to payer to disposer.
In various usage contexts, the functions vary as well; for example, a mother may
act as an influencer in a child's buying process, but she may also act as a disposer
for the family's goods.

The following are some examples of customer behavior definitions:

(i) Consumer behavior, according to Engel, Blackwell, and Mansard, is

described as "the conduct and decision processes of people who buy products
and services for personal use."

(ii) Consumer behavior, according to Louden and Bitta, is the decision-making

process and physical action that people partake in while assessing, purchasing,
consuming, or disposing of products and services.

Consumer Behavior’s Nature:

(i) Various causes have an effect on it:

The following are some of the factors that influence consumer behavior:

-Product design, price, advertising, packaging, location, and distribution are all
marketing considerations.
-Individual characteristics such as age, gender, educational attainment, and
income level.
-Psychological considerations such as purchasing motivations, product
perceptions, and feelings toward the product
-Situational considerations, such as the physical environment at the moment of
buying, the social environment, and the passage of time.
-Social considerations such as social class, peer associations, and familial
relationships.
-Cultural factors like religion and social status (caste and sub-castes).

(ii) It is constantly changing:

Consumer behavior is constantly changing. Based on the quality of the items, it

undergoes changes over time. Kids, for example, favor bright and fancy boots,
while adolescents and young adults prefer trendy footwear, and middle-aged and
senior citizens prefer more sober footwear. Several other causes, such as a rise in
income level, education level, and marketing factors, could trigger a shift in
purchasing behavior.

(iii) It varies from one consumer to another:

Consumers should not all act in the same way. Consumers behave in a number of
ways. Individual influences such as consumer existence, lifestyle, and society
contribute to variations in consumer behavior. Any customers, for example, are
technophiles. They go shopping and pay more than they can afford.

They borrow money from friends, family, and banks, and in some cases, they use
immoral means to invest on advanced technology shopping. However, there are
some customers who, despite having extra cash, stop making even routine
transactions and avoid using and purchasing advanced technology.

(iv) Varies from one region to the other and from one country to another:
Consumer behavior varies greatly between states, territories, and continents. The
behavior of urban consumers, for example, differs from that of rural consumers. A
significant number of rural customers are selective in their spending choices.

Despite having ample money, wealthy rural consumers may hesitate to invest on
luxuries, while wealthy urban consumers may take out bank loans to purchase
expensive goods such as vehicles and home appliances. Consumer behavior can
also differ between states, territories, and nations. It varies based on childhood,
lifestyle, and developmental stage.

(v) Marketers need information about consumer behavior:

Marketers must have a thorough understanding of customer behavior. They must

study the various factors that affect their target consumers' buying decisions.

They will make reasonable campaign choices based on their perception of

customer preferences when it comes to the following factors:

-Modeling and configuration of the product.

-The product's pricing.
-Advertising for the product. -Packaging.
-Positioning
-Distribution place.

(vii) Leads in a purchasing decision:

A purchasing decision is made as a result of constructive customer behavior. A

consumer's choice to purchase a commodity can be affected by a number of
factors. As a result of the buying decision, demand rises, and advertisers' profits
rise. As a result, advertisers must manipulate customer behavior in order to
maximize sales.

(viii) Varies depending on the product:

Consumer buying behavior varies depending on the commodity. Any customers
can purchase a large quantity of one item while purchasing a small or no quantity
of another. Teenagers, for example, may spend a lot of money on snobby items
like smart phones and branded clothing, but not on general and scholarly reading.
A middle-aged person can spend less on clothing but invest in savings, insurance,
and pension plans, among other things.

(ix) Improves living standards:

Consumer's buying behaviors can result in a higher standard of living. The higher a
person's quality of living, the more goods and services he or she consumes.
However, despite having a decent salary, a person who spends less on goods and
services deprives themselves of a higher standard of living.

(x) Reflects the current status:

Consumer buying behavior is not only influenced by, but also represents, the
consumer's status. Consumers who buy expensive vehicles, watches, and other
objects are thought to be of better social standing. The luxurious goods often
offer the owners a feeling of dignity.

Consumer behaviour study covers the following:

- What buyers think and feel about various options (brands, products, services,
and retailers)

- How buyers think about and choose between different options.

- Consumer behaviour when reading and shopping.

- The effect of the climate on customer behaviour (peers, culture, media).

- How will brand tactics be tweaked and changed to have a greater impact on
consumers?
Consumer Behaviors Influencing Factors:

Due to the widespread availability of media, people have become even more
inspired today. This is triggering a shift in consumer tastes, which is being fueled
in part by the growing middle class.

For example, since the vast majority of middle-class women were housewives,
they chose home-cooked meals tailored to their families' preferences. With the
passage of time, more women have started to work, resulting in a rise in
packaged food demand.

Consumers' lifestyle preferences and purchasing habits are being influenced by

India's urbanization:

- Bulk sales from supermarkets and hypermarkets rather than regular visits to
local locations, owing to comfort, sanitation, and a more appealing atmosphere
associated with the former. Consumers today are much more adventurous and
willing to take chances.

- Pakistanis are becoming more modernized and able to experiment as a result of

the growing influence of Western society. As a result of this Westernization, a
host of international brands have found traction in Pakistani market. Many
Pakistani women, for example, use foreign cosmetics products.

- Today's consumers are often health-conscious. They want to eat better and keep
in shape. As a result, a growing range of FMCG brands promote themselves as
safer alternatives. A few brands that answer this need are Maggi Atta Noodles,
NESTLE, Biscuits, and Tropicana fruit juices.

- Celebrities in Pakistan, especially actors and cricketers like Shaid Afridi and
Waseem Akram , are frequently asked to endorse products and participate in
marketing campaigns. Celebrities' popularity has grown as print and social media
have become more widespread.
They are closely watched, and even their most insignificant actions make
headlines. They are being observed and imitated. As a result, enlisting actors in
ads garners a lot of interest from consumers.

- Consumers are more likely to react positively to ads that star their favorite
celebrity. What the celebrity does has a positive effect on the consumer's mind,
resulting in favorable feelings about the commodity. In addition, in the middle of
the advertising clutter, these ads have a greater recall rating.

In Conclusion:

The blend of environmental, societal, personal, and psychological influences that

affect behavior are entirely uncontrollable from the standpoint of marketing
strategies. We must consider how they communicate and affect buying actions
because of the influence they have on shopping habits.
We must not lose sight of the distinctions between buyers and consumers, as well
as the strategic ramifications of these distinctions.

References
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