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Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

A consumer is a person or organization that uses economic services or commodities.In economic systems consumers are utilities expressed in the decision to trade or not.

Economics and marketing

The consumer is the one who pays something to consume goods and services produced. As such, consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.

Recently in marketing instead of marketers generating broad demographic profiles and Fisio-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization.Largely due the rise of the Internet, consumers are shifting more and more towards becoming “prosumers”, consumers that are also producers (often of information and media on the social web) or influence the products created (e.g. by customization, crowdfunding or publishing their preferences) or actively participate in the production process or use interactive products.

Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.

Consumer vs business buying behaviour for Marketing Management MCOM sem 2 Delhi University

Difference Between a Buyer and a Consumer

When you formulate a business and marketing plan you must take the time to identify your ideal target market. The target market is the group of people most likely to patronize the business. As a business owner or operator, you should understand the difference between a buyer and a consumer so that you know how to properly market your products and services to the public.

Buyer

  • A buyer is a customer—he is an individual or business that makes a purchase from a seller. Regardless of the scenario, the buyer is the party that gives or transfers money to the seller to secure a product. A teenager getting a video game from a store at the mall is a buyer as is a distribution company that purchases raw materials from a manufacturer on credit.

Consumer

  • On the other hand, a consumer is a person who uses a product or service. The consumer is often called an “end user” because he is the last stop and does not usually transfer or sell the item to another party. A buyer can be a consumer, as in the example of a teenager buying and using a video game. At the same time, a consumer is not necessarily the buyer—for instance, if a mother purchases cereal for herself and her family, each family member is a consumer of the product.

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Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

Buyer Behaviour?

The wealth of products and services produced in a country make our economy strong. Almost a the products, which are available to buyers, have a number of alternative supplies; i.e., substitutive products are available to consumers, who make a decision to buy products. Therefore, a seller, most of his time, seeks buyers and tries to please them. In order to be successful, a seller is concerned with

  • Who is the customer?
  • When do consumers buy?
  • How do consumers buy?
  • What do consumers buy?
  • From where do consumers buy?
  • Why do consumers buy?

A buyer makes a purchase of a particular product or a particular brand and this can be termed “product buying motives.” And the reason behind the purchase from a particular seller is “patronage motives.”

A buyer makes a purchase of a particular product or a particular brand and this can be termed “product buying motives.” And the reason behind the purchase from a particular seller is “patronage motives.”

The term individual buyer, consumer, end user and individual user refer to the same, a buyer who buys product and service for end/final use. Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology, and economics. It attempts to understand the buyer decision making process, both individually and in groups.

The term individual buyer behaviour, consumer buying behaviour and end user behaviour all stands for the same. The study of consumer behaviour is the study of how individuals make decisions to spend their available resources (time, money effort) on consumption-related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it.

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Consumer vs business buying behaviour for Marketing Management MCOM sem 2 Delhi University

Marketing Consumer Behavior is a sub field in Business schools often associated with sophisticated analytical side of advertising and sales. There are PhDs in this field but probably an MBA is sufficient for working in industry. Economics departments generally do not hire prospective professors with marketing degrees, Business schools hire PhDs in this field. Marketing unusually studies how to increase sales or what sells, but is less concerned with the actual mechanisms of causality. From a businesses prospective if sales go up this is good, we need not fully understand why. Economist on the other hand would only be concerned with what they can show with strong statistical test such as Granger causalityto cause the change.

Types of Defectors A defector can defect due to several reasons. The various types of defectors are:

1)Price Defectors: Those who switch to competitors for lower priced goods or services.

2)Product Defectors: Customers who switch to competitors who offer superior goods and services.

3)Service Defectors: Customers who defect because of poor customer service.

4)Market Defectors: Customers who exit the market because of re-location or business failure.

5)Technological Defectors: Customers who switch to products outside the industry.

6)Organisational Defectors: Customers who leave because of political considerations inside the firm, such as reciprocal buying arrangements.

Consumer vs business buying behaviour for Marketing Management Mcom sem 2 Delhi University

Recommended read:

Part A Firm and Market for Managerial Economics Mcom Delhi University
Unit I Demand and The Firm for Managerial Economics Mcom Delhi University

Consumer vs business buying behaviour for Marketing Management MCOM sem 2 Delhi University

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