Introduction to Business (MGT211) Spring, 2014
Graded Discussion Board No.2 Due Date: 04th August, 2014 Marks: 5
TOPIC: Consumer Behavior
NOTE: There is no grace period in case of GDB
- To familiar the students with the concept of consumer behavior and its significance for marketers.
After attempting this activity, students will be able:
1. To understand the significance of consumer behavior for company’s perspective.
2. Identify the factors that have make consumer more powerful
Understanding consumer behavior is very critical for designing effective marketing strategies. It helps managers to identify the appropriate people to target for designing attractive offerings. The earlier days of business, the market trends were controlled by sellers and consumers were at taking end. However in the current fast changing era the power in the marketplace is shifting from seller to customers as customers are now more informed, demanding and evaluative. Now companies spend millions of dollars in investigating the changing behaviors of consumers to win the market shares. Companies are well aware of the fact that their survival only depends on in-depth understanding of consumer preferences.
Point of Discussion:
Keeping in view the above scenario, identify those factors/reasons that have shifted the market powers from sellers to consumers. Mention at least five reasons.
1. Customers have become more informed ever before due to fast IT development.
2. Speedy changes in customer needs and wants.
3. Become more aware and economist to gauge and evaluate the cost and benefit analysis.
4. World has become a global village and boundaries have become meaningless.
5. Taste and preferences are with the customers.
Buyers become aware of the product
Buyers seek information and is receptive to learning about product
Buyers consider product benefits and determines whether to try it
Buyers examine, test or try the product to determine usefulness relative to needs
Buyers purchase the product and can be expected to use it when the need for the general type of product arises.