Livestock Economics, Marketing and Business Management

CONSUMER BEHAVIOUR

• Consumer behaviour refers to those acts of individuals directly involved in obtaining and using economic goods and services, including the decision processes and determines these acts.
• Consumer behaviour may be analyzed from the three principal angles as detailed below :

Steps in the buying process

• Broadly, a buying decision involves the following steps/stages
  • Decision that there is a need for a product
  • Pre-purchase search about its relevant particulars
  • Analyzing the importance of different factors involved (i.e.) price, utility, durability and the like,
  • Weighing the pros and cons of alternative products
  • Selection of the best available product in the context
  • Use of the product and
  • Post use review

Role of individuals in the buying process

• There are five different roles that persons play in a buying decision process.
  • Initiator: The person who first suggests or thinks of buying the particular product.
  • Influencer: A person who explicitly /implicitly carries some influence on the final decision.
  • Decider: A person who ultimately determines any part or the whole of the buying decision -Whether/What/ How/ When/ Where to buy?
  • Buyer: The person who makes the actual purchase.
  • User: The person (s) who consume or use the product or services

Determinants of buyer behaviour 

• In a broad sense the determinants of buyer / consumer behaviour may be divided into two groups as follows:
  • Marketing channel can be defined as a path through which product moves from producer to consumer.
  •  Hence a short channel of distribution will be an effective tool to reach the target consumers.
  •  However, distribution of products having lower unit value and high turn over like eggs involves a large number of middlemen.
  • The channels of distribution serve as a network, which creates value for the consumer by generating possession, time and place utilities.
  • There are number of middleman and merchants, including Government and co-operative agencies, who act as links between the producers and consumers.
  • The possible visible channels of distribution for few selected livestock products (Milk, egg) are given below.