Consumer Behavior
Consumer Behavior is a field of study that focuses on understanding how individuals, groups, or organizations make decisions to spend their available resources on consumption-related items. This includes what they buy, why they buy it, when they buy it, how often they buy it, and how often they use it, among other aspects. Here's a detailed look into this subject:
History
The study of Consumer Behavior has roots that trace back to the early 20th century, with significant development post-World War II:
- Early Studies: In the 1920s and 1930s, economic theory dominated consumer research, focusing primarily on utility and rational choice models.
- Post-War Period: After World War II, there was a shift towards understanding psychological and social influences on buying behavior, influenced by works like those of Paul F. Lazarsfeld, who conducted studies on voting behavior which later influenced consumer behavior research.
- 1950s-1960s: The integration of psychology into marketing led to the development of the Motivation Research by scholars like Ernest Dichter, who explored the subconscious motivations behind consumer purchases.
- 1970s-1980s: The field expanded with cognitive psychology, incorporating decision-making models and information processing theories.
- 1990s onwards: With the advent of the internet and digital technology, consumer behavior research began to include digital consumer interactions, online purchasing behavior, and the effects of social media.
Key Concepts
- Decision Making Process: This involves the stages a consumer goes through from problem recognition to post-purchase evaluation.
- Influences on Consumer Behavior:
- Culture and subculture
- Social class
- Reference groups and family
- Personal factors like age, occupation, economic situation, lifestyle, and personality
- Psychological factors like motivation, perception, learning, beliefs, and attitudes
- Consumer Decision Making Models: Includes models like the Engel-Kollat-Blackwell (EKB) model, Howard-Sheth model, and the Nicosia model, which describe the cognitive and behavioral processes consumers undergo when making purchase decisions.
Contemporary Issues
Recent trends in Consumer Behavior include:
- Digital Influence: The impact of e-commerce, social media, and digital marketing on how consumers interact with brands.
- Environmental and Ethical Concerns: Growing awareness among consumers about sustainability, ethical production, and corporate social responsibility.
- Personalization and Customization: Advances in data analytics allowing for tailored marketing strategies and personalized consumer experiences.
- Globalization: The need to understand consumer behavior across different cultures and markets as businesses expand globally.
Sources
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