A Study On Consumer Behavior Business Essay

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Consumers are motivated to engage in activities for many aired reasons. According to the Consumer psychology in behavioral perspective. “ The most widely-accepted and influential models of consumer behavior derive in large part from cognitive psychology. As a result, consumer choice is usually understood as a problem-solving and decision-making sequences of activities, the outcome of which is determined principally by the buyer's intellectual functioning and rational, goal-directed processing of information.”(Foxall, p.8)

Consumers and their behaviors comprise of many attributes and differentials. These differences are not just associated with demographics, groups or any one particular item. These is a complex development of behaviors that exist in the consumer markets. Just by human nature, consumers can be

natural, changeable, and self-interested. By these definitions, businesses, consumers and purchasers are usually trying to find the best profitable deal around and always looking after number one

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( number one cab be the business or themselves). What makes the customers is not always a predilection attribute, but rather an educated or compulsory procedure that has been in stowed into their mindset. In other words, we as merchants can still influence the consumer. These are conduct to boost the products as vendors and create relationship to influence the consumers to have confidence in the products. Once the consumer's need are found, vendors can then create the “image” of what the consumer should expect from the products. On the other hand, getting as much information about the customer can give the vendor more information to better serve the market as a whole. The marketplace is characterized by continuous change in market composition, business practices and structure.(Moschis, George P.).

Consumer is the most important person to the marketer because the marketer takes to consideration on the liking and disliking of the consumer and he produce the goods and services accordingly.

Consumer behavior is important for the three persons.

1. As a consumer most of the time we spend time in the market and a lot on decision making that what to buy and how to buy and meeting and conferencing with different types of peoples and friends with different types of goods and services. After all these things we come to the conclusion and then take some steps for the purchasing of different goods and services. If we don't have know how of the market we can suffer huge losses.

2. Consumer behavior is also important for producer because he design and manufacture different types of product and services keeping in view the wants and needs of consumer.

3. The knowledge of consumer behavior is also important for scientists, whether he is working for profitable organization or non profitable organization.

Consumer behavior is defined as the mental and emotional process along with the physical activities of the people who consume goods and services to satisfy their particular needs and wants. One of the advantages of consumer behavior can be seen when looking at advertisers and how they advertise by keeping the consumers in mind. Advertisers spend a lot of money to keep individuals and groups of individuals interested in their products . The advertiser's goal is to get enough relevant market data to develop accurate profiles of buyers that is basically to find the common ground and symbol of communication. This involves the studyof consumer behaviour the mental and emotional process and physical activities of the people who purchase and use goods and services to satisfy particular needs and wants. The primary mission of advertising is to reach prospective customers and influence their awareness, attitudes and buying behaviour.

Consumer behavior is such a thing which depicts consumer's attitude towards a product. It shows consumer's likeness ao dislikeness towards the product. Consumer behavior plays a very important role in the success or failure of a product. If a consumer is satisfied from the product then his behavior would be positive towards the product and if he is not satisfied from the product then his behaviour would be negative towards the product. A company's success largely depends upon the consumer's positive behavior. Today's consumer is very well aware about the products available in the market. He knows what is a good products and what is a bad products. He is well educated and decides to purchase goods on merit. He will never go for such products which do not meet the quality standards. He will buy only those things which will truly satisfy his needs and expectations.

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Today's global companies truly believe on this idea that a consumer must be fully satisfied. For this purpose they have the special department like research and development. These global companies keep on doing research on the products and their customers. From research and surveys companies get the true picture of its standing in the market. According to the consumers feedback they further develop and improve their products. For consumer it is a advantage that the company gives respect to his views and attitudes and brings changes in the products accordingly.

Howard and Sheth (1969) , applied that there are four typical types of buying behavior based on the type of products that intends to be purchase.

▪Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made.

▪Habitual buying behavior is where the individual buys a product out of habit e.g. daily newspaper

▪Variety seeking buying behavior is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the morning.

▪Dissonance reducing buying behavior is when buyer are highly involved with the purchase of products, because the purchase is expensive or infrequent.

Tesco clubcard with over 11m active members, Tesco clubcard is one of the most popular loyalty schemes in the UK. Member earn clubcard points based on their spend with Tesco. They can also earn point on their spending with selected loyalty scheme partners such as powergen, the gas and electricity supplier. On a quarterly basis, clubcard points are converted into clubcard vouchers, which can be exchanged for discount on shopping in Tesco.

Tesco's clubcard loyalty scheme is designed not only to reward members based on their spend, but also to enable Tesco to better understand and meet the needs and preferences of its customers by recording and analyzing their buying behaviour. In each clubcard mailing, Tesco uses the information gained from its loyalty scheme to provide customers with offers that are as appropriate to them as possible. In fact, as a member, when you receive your clubcard vouchers, you will also receive one of over 80,000 different combinations of other specials offers and vouchers, allocated to you based on your previous purchases and shopping babits. So instead of having to thow half of the extra vouchers away, you should be able to save money by using them all.There are four main way to earn clubcard points;

▪In Tesco shops

▪online

▪Tesco personal finance

▪clubcard partners

By spending points customer can spend their rewards with Tesco, but its well worth keeping in mind that you will get four times the value by exchanging their voucher for deal token, which can be spent with a wide range of partners on all kinds of products and services.

The clubcard launch in 1995 was an integral part of a move, by tesco , to a customer-centred strategy. Launched as a ‘Thank you card', it allowed the company to develop one-to-one relationships on a corporate level. The cost of running the scheme is considerable. In addition to the 1% discount on sale, it was estimated that start-up costs alone were £10m but the company was convinced that this was money well spent. During pre-lunch trials at 14 stores, over 250,000 clubcard were issued, representing an uptake at the sites involved of between 70-80%. During the trials, high-spending customers were identified and given special treatment, including invitations to ‘meet the staff' cheese and wine evenings at their local store.

The success of the trial clubcard paved the way for the UK national launch. Membership of the scheme was open to all tesco customer through any of its then 519 stores. Cards were issued on application and were able to be used to accumulate points on every shopping trip. The customer presented the magnetic stripe card at the checkout, where it was swiped through existing credit card reading equipment. Details of the customers purchases were recorded, with clubcard points automatically awarded for every £5 spent in the store, over a minimum of £10 per visit. The cost of the mailing were high. By 1996 these were estimated to be £11m alone, but tesco was seeking a return from this investment. And between 1997 to 2003 tesco directly become tesco.com .it can track online performance via clubcard and target those likely to shop from homeand also celebrate their ten years of clubcard with scoring points.

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By the end of march 1995, one month after the launch, over 5m people had joined the clubcard scheme and tesco recorded a like-for-like increase in sale. Clubcards impact on sale was However, not everything was plain sailing. One of the earlier problems to emerge with clubcard was in the sheer amount of data that was being collected. As well as having one of the largest customer database in the UK, this was also continually updated with purchase information, every time an individual customer used their card.

According to Tim Mason, Tescos recently promoted marketing Director, saw the real impact working at the local level: 'I believe that the key to the future is going to be an individual response to individual customers. Micro Marketing will be at the forefront of our future strategy. It is no good talking about which is the “best shopping trip”: you have got to deliver the best shopping trip for each and every customer. ‘He predicted that eachof the 524 stores would become a marketing unit, where staff would get to know their own customers individually and understand exactly what they wanted from their shopping experience.