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Writer's pictureDeepak Pande, CFP

Consumerism

Consumerism in marketing means protecting interests of the consumers through organized efforts of the individuals, association of persons, and Government from policies and practices that violate rights of the consumers to ensure fair business practices when consumers make purchase decisions. In economics, Consumerism refers to the economic policies that places stress on augmenting consumption of goods and services.


Let us attempt to understand the logic behind purchase decisions made by the Consumers. It would be essential for the manufacturers/marketers to understand buying behaviour of the Consumers, affecting marketing strategy of the goods and services provider. Consumer buying behaviour could be described as Staple, Impulse, Complex and Variety seeking.


Staple purchases refer to the routine purchase of goods and services that hardly requires any decision making. Such purchases exhibit stereotype behaviour of consumers that doesn't require much involvement of consumers. Food items like milk, bread, eggs and soft drinks could be termed as routine purchases.


Impulse purchases require no prior planning, and purchase decisions are made on the spot. The consumers who spend hours in making a purchase decision for goods and services buy some products without even giving a thought. These items are generally kept on payment counters where consumer stands in queue for making payment. Chocolate, candy bars, pencils, tooth brushes and gum are the items, which are bought impulsively.


Complex purchases involve high amount of decision making and research on the products. These type of products are expensive and buyer has little information. The buyer checks about the quality, stability, price and brand of the product from neighbours, carrying out net surfing and visiting multiple shops/showrooms/projects before zeroing on the product. These products could be cars, homes, electronic products including laptops & high-end mobiles.


Variety Seeking purchases are made by the consumers on regular basis but at longer intervals. The consumer may be familiar with the product but would like to seek information about a differentiated product or newly introduced brand. Such buying behaviour could be attributed to new brand introduced in the apparel category when consumer would like to do some research on differentiated product or new brand, which he is not familiar with.


Keep watching this space for interesting updates on Marketing aspects!

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