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Consumer behaviour is the study of when how and from where consumer buys the product. Because consumer is the sensitive factor, consumer behaviour study which emphasis that what type of decision consumer takes when he/ she is buying the product. It also tries to asses influences on the consumer from groups such as family, friends and society in general.
Consumer is a person who consumes the final product or services. Consumer may be a person or group of person. Consumer may be an individual or any organisation. Consumer buys the product for various reasons which may include buying of product for need, for the purpose of gift or for the purpose of showing the social status. These reasons help in creating the demand of the product by the consumer. People consume goods and services in economics for the satisfaction of their needs and wants. There may be several reasons why a customer cannot buy a particular product.
These reasons may include tastes and preference, income of the consumer is low that he cannot afford to buy the good. Income of the consumer affects the demand of a product to a large extent. There are different kinds of consumers. Some are of the nature that they are highly price sensitive but some consumers are not sensitive to price changes. Relationship of price of a product with demand of the product is known as price elasticity of demand. Consumers with high income group or who are in urgent need of the product will be ready to pay whatever the price of the product reaches. On the other hand there are consumers who are always in search of low priced goods.
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There are different types of consumers:
1. Personal consumers: - These are consumers who purchase goods for their self consumption or for the consumption of family.
2. Seasonal consumers:-Consumers who consume goods on seasonal basis are known as seasonal consumers. For example: - Consumers consume umbrellas in rainy season.
3. Organisational consumers:-These are the consumers who do not buy the goods for self consumption; rather they use the goods in the process of production. They purchase goods for resale with the motive to earn profits.
4. Need based consumer:- These are those consumers which buys the product when they needed and not at any other time.
5. Discount driven consumer:-These are the types of consumer which are attracted by high discounts available. They generally compromise with the quality of a product in order to avail high discounts.
6. Habitual consumers:-These are the consumers who are addicted to a particular type of a product. They cannot compromise with the substitute of that product even if the same is available at a cheaper price. For the goods to which they are habitual, they can pay the maximum amount according to their ability.
7. Impulse consumers:- These are the consumers who buy the product if they just like the product at their first sight. Price and other conditions are irrelevant for them if they like the product.
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