CONSUMER BEHAVIOR

3.1 DIFFERENT TYPES OF CONSUMERS

There are mainly five types of customers, they are:

1. Discount Customers.
2. Loyal Customers.
3. Need Based Customers.
4. Wandering
5. Impulsive Customers.

DISCOUNT CUSTOMERS

These are the customers who are frequent visitors but purchase the regular products or brands when there comes any discounts or offers or when the price of the product is low. These customers also increase the quantity of purchase whether there is a high range of discount or offer.

LOYAL CUSTOMERS

In the list of loyal customers it includes the customers who are fully satisfied. These types of customers will be less in number although helps to increase sales, profit and also helps for instant sales. These types of customers also help for mouth advertisement. And also they demand more respect or attention from the suppliers.

NEED BASED CUSTOMERS

In these types of customers, they purchase the product only according to their need. Also these customers are not bothered about the offers or price, they need to fulfill their needs. But it is difficult for them to be convenient about the product or to explain how the product can fulfill their needs.

WANDERING CUSTOMERS

These types of customers cannot include in the list of regular customers. These types of customers will not have a particular option or not sure about what to buy. These types of customers include in least profit customers. These customers ask for the specifications about the recent product in the market but never show interest in buying.

IMPULSIVE CUSTOMERS

These types of customers will not have a product list to purchase but they purchase the product at the point of site. These customers are difficult to convince about the product and are a challenging one to sell the product with actual profit due to heavy bargaining. Impulsive customers should be treated positively then it results for recommendation.

B2B is an online business sales transaction between two businesses. And B2C is referred to the selling to direct individual customers or between individuals.

There are four types consumer buying behavior, they are :

1. Dissonance-reducing buying.
2. Variety-seeking
3. Complex buying.
4. Habitual buying.

Numerous psychological studies review that the purchase of an individual is decided by their emotional and rational factors. So every organization should point on the emotions and aspirations of the consumers.

IDENTIFYING NEED

The buying starts when there comes a need or identifying a need. And also the business tends to have need by influencing them with the use of marketing and advertising techniques.

PRODUCT SPECIFICATIONS

The business should always think about the new purchase that has to be made. How it will cost and also how it will benefit. Consumers always will have an exact idea and specification of the product that they have to purchase and the business has to combine it with.

EVALUATE SUPPLIERS

Many of the consumers always evaluate their suppliers. They will assess the reputation and reliability of the suppliers. These are done for the products which are expensive or under a category of luxury products. Consumers will be known by the brands and will have knowledge about it.

PURCHASE DECISION

Most people make their purchase with their partners or friends, but the purchase decision always involves one person. There is always a chance for recommendation at the time of purchase. So the purchase and business always cycle as a big process. Advertisements play a major role in purchase decisions. Income and need are the important factors to be considered in a purchase decision; also the cost of the product and the market situation will be gathered with it.

POST PURCHASE

Valuing consumers after purchase also increases the reputation of the organization. The main process of valuing consumers is after sales service. Every company or organization should assure after sales service to their consumers. Through that it increases trust and relation towards the organization. Offering better customer care service increases the preference in choosing. It also results in positive recommendation or mouth advertisement. The instant feedback from the customers can also help for making better strategies or decisions. It also helps to determine the demand of the product and also can innovate new products according to the customer preference.

DIFFERENCE BETWEEN B2B AND B2C

B2B

• It involve selling of good and services to other businesses.
• It emphasis on long-term relationship.
• It orders in bulk quantity.
• It prices differently according to the clients.
• It designs on information.
• It targets on decision making people, sales representatives and managers.

B2C

• It involves selling of good and services to direct consumers.
• It emphasis on products and services.
• It orders in small quantity.
• The price will not be same also there is discounts and offers.
• It designs attractive and catchy.
• It targets on individuals who plans to purchase product and service.

HOW CONSUMER BEHAVIOR DIFFER IN DIFFERENT MARKETS

The study of consumers or customers, the process of how they utilize the product and the study of taste and preferences is known as Consumer behavior. There are four types of consumer behavior:

1. Dissonance Reduce Buying Aspects.
2. Variety Seeking Buying Aspects.
3. Complex Buying Aspects.
4. Habitual Buying Aspects.

 Consumer behavior in B2B:

In B2B the marketers need a long time to close a transaction can say 6-8 months.

Consumers take commercial purpose of purchase decision of product and service. And the consumers in B2B aim to manufacture products which they can sell to other customers or other businesses. The behavior of B2B consumers are determined or depends on the entire group.

Consumer behavior in B2C:

The customer does not predetermined or does not pre-plan to buy a product and it is a short term transaction. In this the consumer takes decisions individually. Consumers make purchases to fulfill their needs.

CUSTOMER LOYALTY IN DIFFERENT MARKET B2C MARKET

• The consumers are not loyal or trust the brands the level of trust decreases day by
• The consumer is now ready to switch to different brands if they get more offers, quality, discounts and also in lower price.
• Now the businesses cannot be up to date according to consumer taste and

B2B MARKET

• A small number of loyal customers indicates the difference between a failed and successful organization.

A study informs that 75% of sales reps are highly degrading and underperforming.