Consumer behavior is described as follows:
“The decision-making and physical activity involved in evaluating, acquiring, using, and disposing of goods and services:”
This definition brings up two crucial difficulties. a) Who or what constitutes consumers? b) What kind of decision-making procedure do they use? These questions’ responses give a broad overview of consumer behavior.
A “customer” purchases a product or service from a particular organization or shop. A customer is always described in terms of a particular brand or business. As a result, unlike consumers, customers are defined in terms of a particular company. However, the term “consumer” refers to a far broader group of people, including not just the actual purchase or customer but also all of its users. The terms “personal consumer” and “organizational consumer” are frequently used to refer to two separate categories of consumers.
A person who purchases products and services for their use, the use of their family, or as a gift for a friend is referred to as an end user or ultimate consumer.
Organizational Consumers includes profit and not-for-profit businesses, government agencies (local, state, and national), and institution (e.g., schools and hospitals) all of which must buy products, equipment, and services to run their organizations.
Consumer behavior encompasses not only the actual customer and his act of purchasing but also the numerous roles that different people play and the influence they have on the choice to make a purchase. There are five distinct roles that people may play when making a purchase:
- Initiator: The person who determines that some need or want is unmet and authorizes a purchase to rectify the situation. A person who first suggests the idea of buying the product or service.
- Influencer: A person whose view or advice influences the decision. The person who by some intention or unintentional word or action influences the purchase decision, the actual purchase, and/or the use of the product or service.
- Decider: A person who decides on any component of a buying decision – whether to buy, what to buy, how to buy, or where to buy.
- Buyer: The person who makes the actual purchase transaction.
User: an individual who makes use of the good or service. The one who will utilize or consume the purchase most directly.