Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market. Every customer shows inclination towards particular products and services. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste and need.
Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.
Customers need as per Maslow’s Theory of Hierarchy of needs is to be understood while considering the marketing of a product, whether a physical or a service product.
- Physiological needs – food, drink, oxygen, sleep
- Safety needs – avoidance/protection from threatening situation and economic security
- Social needs – friendship, affection and sense of belonging
- Esteem needs self-respect, recognition, status and success
- Self-actualization – self-fulfillment
The study of consumer behaviour explains as to:
- Why and why not a consumer buys a product ?
- When a consumer buys a product ?
- How a consumer buys a product ?
Customer Relationship Management (CRM):
The art of managing the organization’s relationship with the customers and prospective clients refer to customer relationship management. It aims, at customer retention, maintaining relationship with external market who influence or provide referrals and integrating marketing activities, customer service and quality standards.
Activities under Customer Relations Management:
- Ensuring quick customer service,
- Maintaining customer information data base,
- Analyzing customer feed back,
- Conducting customer satisfaction survey Managing communication program,
- Hosting special events,
- Auditing and reclaiming lost customers
A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system which is also called an ‘Opportunity of Business’. The Sales and Field representatives then try getting business out of these customers by sophistically following up with them and converting them into a winning deal.