27-09-2013, 03:06 PM
Consumer Behaviour and various analytical techniques
Introduction
UNDERSTANDING consumer behavior is the key to success in the marketplace. Companies
are constantly looking at customer behavioral patterns to predict future trends. Among the
many tools is data analytics. Broadly speaking, data analytics can be described as the process
of collecting, analyzing and using data (related to demographic information, past behavior
trends, etc) to better understand and predict the behavior of existing and prospective
customers for business decision-making.
Consumer behavior may be defined as: the decision process and physical activity individuals
engage in when evaluating, acquiring, using, or disposing of goods and services. Several
aspects of this statement need emphasis and elaboration so that their meanings can be more
fully appreciated.
Customers and consumers
The term‖customer‖ is typically used to refer to someone who regularly purchases from a
particular store or company. Thus, a person who shops at A&B or who uses a particular scent
is viewed as a customer of these firms. The term ―consumer‖ more generally refers to anyone
engaging in any of the activities used in our definition of consumer behavior. Therefore, a
customer is defined in terms of a specific firm while a consumer is not.
The traditional viewpoint has been to define consumers strictly in terms of economic goods
and services. This position holds that consumers are potential purchasers of products and
services offered for sale. This view has been broadened over time so that at least some
scholars now do not consider a monetary exchange essential to the definition of consumers.
This change implies that potential adopters of free services or even philosophies or ideas can
also be encompassed by the definition.
Micro Perspective
The micro perspective involves understanding consumers for the purpose of helping a firm or
organization accomplish its objectives. Advertising managers, product designers, and many
others in profit-oriented businesses are interested in understanding consumers in order to be
more effective at their tasks. In addition, managers of various nonprofit organizations have
benefited from the same knowledge. For example, the Indian Red Cross Society have been
effective in applying an understanding of consumer behavior concepts to their activities.