Question

Consumer buying behavior is playing a vital role on consumer decision making process What do we mean by this concept and how it affects the consumer decision and what are those decisions that the marketer desire to achieve? Identify also types of risk consumers might perceive in the context of purchasing a car?

Answer 1

Answer:
Consumer buying behavior playes an important role in comsumer decision making process and decision as well in below mentioned ways:

• Consumer buying behavior shows the way consumer thinks before purchasing the product, suppose a consumer buying behavior shows he/she is more into international brand products, which are costly and more advertised. That consumer will always prefer to have those kind of products only while purchasing.
• If a particular consumer wants economical products, most of the time he/she will focus on those products for purchasing and see specification to meet the demand of that behavior.
• Advertisement also changes consumer behavior which indireclt changes consumer decision, so advertisement is so imprtant for all the brands.

Decisions that marketer desire to achieve are as follows:

• Marketer wants to target the audience who needs the product in the domain they are selling after that they want to manipulate it for purchasing their brand.
• If the behavior of the consumer shows he/she wants popular branded product like Car they marketer will try to convince that this is the branded Car that even celebrities are purchasing and is next big sensation in the market, to lure the customer to purchase it.
• They run targeted campaign on social media and advertisement for this as well.

List of risks that consumer may fall into because of making decision based on behavior:

• Taking instance of purchasing a car, now a days data mining algorithm of the companies are smart enough to know the purchasing behavior of the customer in advance.
• So when we will go to purchase a given model of the car, marketer may manipulate us knowing our buying behavior making us purchase the car that we never desired.
• Because of this we may get low quality Car that we never wanted on the first place.
• There are perceived risks as well which is uncertainty that customer face that customer face when buying items mostly expensive item for instance Car or house.
• Functional Risk: Perceived risks include the fear and doubts in the mind of the consumer that the product they are buying will fail to perform the function which it has been advertised for. For instance in purchasing car the engine and other parts may malfunctions.
• Social Risk : This type of risk is related to a consumer's social status. If a person is high and wealthy class they will always purchase branded costly car to maintain their social status.
• Financial Risk : Every consumer suffers some form of financial risks as well while purchasing any item, in case of purchasing Car and it doesn't perform as intended or in case of any damage extra financial loss as well.
• Physical Risk : There are risk of physical harm as well if the product is not good and can harm us physically as well. For instance if Car has some internal problem it can physically harm us as well.
• Hidden extra cost : Sometime hidden and extra costs comes into picture apart from MRP once we makeup a mind to purchase some product. For instance in case of Car apart from Car other customizations and accessories are charged extra which marketer revels when we fix they want this car.

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